The first paper money in the North America
In the North America - in Canada which was since 1763 under the British management, banknotes have started to let out in 1866 face values from 1 to 500 dollars. Later to them banknotes in 1000 both 5000 dollars and the change ticket in 25 cents were added. The largest banknotes have been let out in 1918 and 1924 by face value in 50000 dollars. Banknotes of high face values (from 500 to 50000 dollars) were not used in circulation but only were applied in interbank transactions.
The First paper money in the North America has been let out in Maccaчyсетсе in 1690 during the first military expedition against Canada. Release has been intended for a covering of expenses of expedition - mainly for payment of the salary to soldiers. These bank notes were issued by face values from 2 shillings to 10 pounds.
Paper money of the first release has been decided to extinguish in 12 years with payment of the award of 5 %. Issue has been repeated in the big size in 1703 during the second Canadian expedition. Following releases were carried out in 1709, 1710 and 1711. The course of the let out paper money constantly fell. With 1702 for 1713 paper money of Massachusetts has depreciated in 8 times.
With the organisation in America of banking issue of paper money became
To be carried out through banks and practised various states. Besides Maccaчусетса banknotes began to be issued in Connecticut, Rhode Island, Nju-Gempshire, New Jersey, New York, Northern and South Carolina, Pennsylvania, Virginia, Maryland, Delaware and Georgia. Falling of a course of bank notes to a greater or lesser extent occurred practically in all states of New England. All bank notes in the British possession of the North America were issued by face values in pounds and shillings. Besides, in these territories, naturally, the bank notes which have been let out in Great Britain were in use.
After the beginning of revolutionary war for independence the Continental congress which did not have the tax right, but needing means for war conducting, has decided to resort to issue of paper money. Depreciation of paper money has begun in 1776. The metal coin practically all has disappeared from the reference. The legislative decisions regulating the prices and a course of money, did not help. The congress has decided not to exceed at release of paper money of the sum of 200 million dollars. These so-called «continental money» (were issued by face values in dollars) have depreciated in huge degree. The congress officially recognised their depreciation in 40 times, and actually by 1781 they have fallen in much bigger degree.
As a matter of experience release of "continental money» the point forbidding to states to resort for a covering of debts to release of poor paper bank notes has been included in the text of the federal constitution developed in 1787.
According to the constitution to the federal government of the United States it has not been given an exclusive right of release of own money. This situation has generated uncountable set of various means
Payment at full absence of control from the federal center behind their release and the reference. Banks of states, cities including private, as a rule, let out own banknotes. Because of full if so it is possible to be expressed, chaos in state monetary circulation regional monetary systems of the country often suffered bankruptcy.
The Banknotes which were issued by numerous banks, were simple enough in manufacturing, and their falsification did not represent the big work. Besides, procedure of registration of banks was simple enough, and it was necessary to meet rather simple conditions to become "bank" and пристynить to printing of banknotes. The numerous fictitious private banks which have bred in all states, and their banknotes the population has nicknamed «wild cats» (Wildcat). They so have littered state monetary circulation that real possibility to define has disappeared what bank note before you - present, from «a wild cat» or simply false.
The Exchequer of the USA during the period with 1793 for 1861 let out periodically time quickly redeemed bonds (Treasure Notes), serving by the unique exit from financial difficulties during wars,
Crises and other force-majeur circumstances. Other bank notes till 1861 was not issued. The central government and the governments of separate states had to run all financial business through numerous private banks or to make calculations in a hard coin.
Civil war between the North and the South has demanded from both parties of huge financial expenses on its conducting. The congress of the USA has accepted on July, 17th, 1861 the certificate obliging exchequer to let out a banknote under name Demand Notes (banknotes "on demand") and Legal Tendeg (lawful means of payment) who did not exchange on a hard coin and were provided only with trust to the government. The issue total sum has been limited by 433 million dollars. Banknotes were issued by face values from 5 to 5000 dollars. On green colour of the back they have received the name «Grееnbасks». These bank notes have begun release in the USA of banknotes so-called «the big format».
In Civil war 1861 - 1865 southern states let out own bank notes. Since 1862 they have started to depreciate sharply. In 1863 for 100 gold dollars gave 2000 paper dollars of confederates, and in 1865 - from 6000 to 8000 paper dollars. After the end of war dollars of confederates have lost lawful payment force. It is interesting that in the first years of Civil war dollars of confederates were printed in New York. Later they continued to be printed in Richmond, capital of Confederation of southern states.
the Author: Denisov A.E.