1. Origin of the Dollar:
- The term "dollar" was derived from the Spanish peso, which was widely used in the Americas during the colonial period. The Spanish word "peso" was a shortened form of "peso duro" (hard weight) and was eventually anglicized to "dollar."
2. Continental Currency:
- During the American Revolutionary War, the Continental Congress issued paper money known as "Continental currency" to finance the war efforts. These bills, introduced in 1775, bore various denominations, including one dollar notes.
3. The United States Mint:
- The Coinage Act of 1792 established the United States Mint and introduced a decimal currency system. This act set the value of the dollar as equal to 100 cents. The first dollar coins, known as "Flowing Hair dollars," were minted in 1794.
4. First Dollar Bills:
- While coins were the primary form of currency in the early days of the United States, paper money also played a role. The first federal paper money, commonly referred to as "Demand Notes," was issued by the United States Treasury in 1861. These notes included the one-dollar denomination and featured the portraits of various historical figures.
5. The Federal Reserve System:
- The Federal Reserve Act of 1913 established the Federal Reserve System, giving the U.S. government more control over the nation's monetary system. The Federal Reserve Notes, commonly known as dollar bills, became the standard paper money issued in the United States.
Throughout the years, various iterations and designs of the dollar bill have been introduced, featuring notable historical figures and incorporating security features to prevent counterfeiting. The Treasury Department and the Bureau of Engraving and Printing are responsible for designing, printing, and issuing U.S. currency, including dollar bills.