Category Archives: History of Finance in US

Government intervention in US economy

US economy has a great intervention from private firms, yet they are under the control of the government of US. This regulation is mainly done in two ways. The economic regulation is done directly or indirectly. Monopolies were prevented by regulating the price of certain utilities and products beyond a maximum level of profit making. Market forces were under the control of the antitrust law.

Social regulations were extended to ensure that public health and safety is considered by controlling the private companies. Regulation of drugs and food products reaching the market was done by the government. Air, land and water was regulated by certain standards.

The history of US dollar

The unit of currency in US is known as dollar. This currency has been adopted as the legal as well as official currency of various other countries. Congress of the Confederation of US has taken over the currency and this is the mostly used currency in all international transactions.

US also produce official coins starting from the year 1792. US dollar is unique and there has been various types of banknotes existing in the country. US dollar is based on the decimal system. This was created under the coinage act of 1792. There was not much dollar coins used in the country at that time.

US Federal Reserve Notes

The currency created by the Federal Reserve Act established in the year 1913 in US was known as Federal Reserve notes. This resulted in the birth of the Federal Reserve System in US. A Central Bank was not a possible case. The system consisted of twelve Federal Reserve banks and was a decentralized system. The names of the banks were present on the Federal Reserve notes and there was the characteristic number or letter representing the banks. This represented the economic development and the distribution of population in US till 1914. After this, there was no major modification occurred to the Federal Reserve notes.

National Bank notes in US

The National bank notes or currency of US was introduced under the Banking Act of the nation in 1863. This was primarily intended at making money for the federal government. The national bank notes had wonderful designs and are greatly collected. Because of their association with the local banks of US and because of these reasons, most of these national notes still exist.

National bank notes were suppressed in the year 1935. All that bonds intended to get bank notes was never continued after that. There was no direct backing up for national bank notes with the help of gold. This was hence considered not to be used for import duties or for public debt.