1.
President of the United States
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The President of the United States is the head of state and head of government of the United States. The president directs the executive branch of the government and is the commander-in-chief of the United States Armed Forces. The president is considered to be one of the worlds most powerful political figures, the role includes being the commander-in-chief of the worlds most expensive military with the second largest nuclear arsenal and leading the nation with the largest economy by nominal GDP. The office of President holds significant hard and soft power both in the United States and abroad, Constitution vests the executive power of the United States in the president. The president is empowered to grant federal pardons and reprieves. The president is responsible for dictating the legislative agenda of the party to which the president is a member. The president also directs the foreign and domestic policy of the United States, since the office of President was established in 1789, its power has grown substantially, as has the power of the federal government as a whole. However, nine vice presidents have assumed the presidency without having elected to the office. The Twenty-second Amendment prohibits anyone from being elected president for a third term, in all,44 individuals have served 45 presidencies spanning 57 full four-year terms. On January 20,2017, Donald Trump was sworn in as the 45th, in 1776, the Thirteen Colonies, acting through the Second Continental Congress, declared political independence from Great Britain during the American Revolution. The new states, though independent of each other as nation states, desiring to avoid anything that remotely resembled a monarchy, Congress negotiated the Articles of Confederation to establish a weak alliance between the states. Out from under any monarchy, the states assigned some formerly royal prerogatives to Congress, only after all the states agreed to a resolution settling competing western land claims did the Articles take effect on March 1,1781, when Maryland became the final state to ratify them. In 1783, the Treaty of Paris secured independence for each of the former colonies, with peace at hand, the states each turned toward their own internal affairs. Prospects for the convention appeared bleak until James Madison and Edmund Randolph succeeded in securing George Washingtons attendance to Philadelphia as a delegate for Virginia. It was through the negotiations at Philadelphia that the presidency framed in the U. S. The first power the Constitution confers upon the president is the veto, the Presentment Clause requires any bill passed by Congress to be presented to the president before it can become law. Once the legislation has been presented, the president has three options, Sign the legislation, the bill becomes law. Veto the legislation and return it to Congress, expressing any objections, in this instance, the president neither signs nor vetoes the legislation
2.
John F. Kennedy
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Kennedy was a member of the Democratic Party, and his New Frontier domestic program was largely enacted as a memorial to him after his death. Kennedy also established the Presidential Medal of Freedom in 1963, Kennedys time in office was marked by high tensions with Communist states. He increased the number of American military advisers in South Vietnam by a factor of 18 over President Dwight D. Eisenhower, in Cuba, a failed attempt was made at the Bay of Pigs to overthrow the government of Fidel Castro in April 1961. He subsequently rejected plans by the Joint Chiefs of Staff to orchestrate false-flag attacks on American soil in order to gain approval for a war against Cuba. After military service in the United States Naval Reserve in World War II and he was elected subsequently to the U. S. Senate and served as the junior Senator from Massachusetts from 1953 until 1960. Kennedy defeated Vice President, and Republican presidential candidate, Richard Nixon in the 1960 U. S, at age 43, he became the youngest elected president and the second-youngest president. Kennedy was also the first person born in the 20th century to serve as president, to date, Kennedy has been the only Roman Catholic president and the only president to have won a Pulitzer Prize. Kennedy was assassinated in Dallas, Texas, on November 22,1963, Lee Harvey Oswald was arrested that afternoon and determined to have fired the shots that hit the President from a sixth floor window of the Texas School Book Depository. Dallas nightclub owner Jack Ruby fatally shot Oswald two days later in a jail corridor, then-Vice President Lyndon B. Johnson succeeded Kennedy after he died in the hospital. The FBI and the Warren Commission officially concluded that Oswald was the lone assassin, the majority of Americans alive at the time of the assassination, and continuing through 2013, believed that there was a conspiracy and that Oswald was not the only shooter. Since the 1960s, information concerning Kennedys private life has come to light, including his health problems, Kennedy continues to rank highly in historians polls of U. S. presidents and with the general public. His average approval rating of 70% is the highest of any president in Gallups history of systematically measuring job approval and his grandfathers P. J. Kennedy and Boston Mayor John F. Fitzgerald were both Massachusetts politicians. All four of his grandparents were the children of Irish immigrants, Kennedy had an elder brother, Joseph Jr. and seven younger siblings, Rosemary, Kathleen, Eunice, Patricia, Robert, Jean, and Ted. Kennedy lived in Brookline for ten years and attended the Edward Devotion School, the Noble and Greenough Lower School, and the Dexter School through 4th grade. In 1927, the Kennedy family moved to a stately twenty-room, Georgian-style mansion at 5040 Independence Avenue in the Hudson Hill neighborhood of Riverdale, Bronx and he attended the lower campus of Riverdale Country School, a private school for boys, from 5th to 7th grade. Two years later, the moved to 294 Pondfield Road in the New York City suburb of Bronxville, New York. The Kennedy family spent summers at their home in Hyannis Port, Massachusetts, in September 1930, Kennedy—then 13 years old—attended the Canterbury School in New Milford, Connecticut. In late April 1931, he required an appendectomy, after which he withdrew from Canterbury, in September 1931, Kennedy attended Choate, a boarding school in Wallingford, Connecticut, for 9th through 12th grade
3.
United States Secretary of the Treasury
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This position in the Federal Government of the United States is analogous to the Minister of Finance in many other countries. The Secretary of the Treasury is a member of the Presidents Cabinet, nominees for The Secretary of the Treasury undergo a confirmation hearing before the United States Senate Committee on Finance before being confirmed by the United States Senate. The Secretary of the Treasury is a member of the U. S. National Security Council. The Secretary along with the Treasurer must sign Federal Reserve notes before they can become legal tender, the Secretary also manages the United States Emergency Economic Stabilization fund. Most of the Departments law enforcement agencies such as the U. S. Customs Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, secret Service were reassigned to other Departments in 2003 in conjunction with the creation of the Department of Homeland Security. The Secretary of the Treasury salary is $205,700 annually,2 Deputy Secretary of the Treasury M. Peter McPherson served as Acting Secretary of the Treasury from August 17,1988, to September 15,1988. 4 Deputy Secretary of the Treasury Kenneth W. Dam served as Acting Secretary of the Treasury from December 31,2002,5 Deputy Secretary of the Treasury Robert M. Kimmitt served as Acting Secretary of the Treasury from June 30,2006, to July 9,2006. 7 Deputy Secretary of the Treasury Neal Wolin served as Acting Secretary of the Treasury from January 25,2013, as of April 2017, there are eleven living former Secretaries of the Treasury, the oldest being George P. Shultz. The most recent Secretary of the Treasury to die was Lloyd M. Bentsen, United States Department of the Treasury
4.
Silver certificate (United States)
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Silver certificates are a type of representative money issued between 1878 and 1964 in the United States as part of its circulation of paper currency. They were produced in response to silver agitation by citizens who were angered by the Fourth Coinage Act, the certificates were initially redeemable for their face value of silver dollar coins and later in raw silver bullion. Since 1968 they have been only in Federal Reserve Notes and are thus obsolete. Large-size silver certificates were issued initially in denominations from $10 to $1,000 and in 1886 the $1, $2, in 1928, all United States bank notes were re-designed and the size reduced. The small-size silver certificate was issued in denominations of $1, $5. The complete type set below is part of the National Numismatic Collection at the Smithsonians National Museum of American History, the Coinage Act of 1873 intentionally omitted language authorizing the coinage of “standard” silver dollars and ended the bimetallic standard that had been created by Alexander Hamilton. By 1875 business interests invested in silver wanted the bimetallic standard restored, people began to refer to the passage of the Act as the Crime of 73. Further public agitation for silver use was driven by fear that there was not enough money in the community. Members of Congress claimed ignorance that the 1873 law would lead to the demonetization of silver, some blamed the passage of the Act on a number of external factors including a conspiracy involving foreign investors and government conspirators. In response, the Bland–Allison Act, as it came to be known, was passed by Congress on 28 February 1878, the first silver certificates were issued in denominations of $10 through $1,000. Reception by financial institutions was cautious, while more convenient and less bulky than dollar coins, the silver certificate was not accepted for all transactions. Congress used the National Banking Act of 12 July 1882 to clarify the legal status of silver certificates by clearly authorizing them to be included in the lawful reserves of national banks. A general appropriations act of 4 August 1886 authorized the issue of $1, $2, the introduction of low-denomination currency greatly increased circulation. Over the 12-year lifespan of the Bland–Allison Act, the United States government would receive a seigniorage amounting to roughly $68 million, Treasury Secretary Franklin MacVeagh appointed a committee to investigate possible advantages to issuing smaller sized United States banknotes. Due in part to the outbreak of World War I and the end of his appointed term, any recommendations may have stalled. On 20 August 1925, Treasury Secretary Andrew W. Mellon appointed a committee and in May 1927 accepted their recommendations for the size reduction. On 10 July 1929 the new currency was issued. This required that the Treasury maintain stocks of dollars to back
5.
Harry S. Truman
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Harry S. Truman was an American politician who served as the 33rd President of the United States, assuming the office upon the death of Franklin D. Roosevelt during the waning months of World War II. In domestic affairs, he was a moderate Democrat whose liberal proposals were a continuation of Franklin Roosevelts New Deal, but the conservative-dominated Congress blocked most of them. He also used weapons to end World War II, desegregated the U. S. armed forces, supported a newly independent Israel. Truman was born in Lamar, Missouri, and spent most of his youth on his familys 600-acre farm near Independence, in the last months of World War I, he served in combat in France as an artillery officer with his National Guard unit. After the war, he owned a haberdashery in Kansas City, Missouri, and joined the Democratic Party. Truman was first elected to office as a county official in 1922. After serving as a United States Senator from Missouri and briefly as Vice President, he succeeded to the presidency on April 12,1945, upon the death of Franklin D. Roosevelt. Germany surrendered on Trumans 61st birthday, just a few weeks after he assumed the presidency, but the war with Imperial Japan raged on and was expected to last at least another year. Although this decision and the issues that arose as a result of it remain the subject of debate to this day. Truman presided over a surge in economic prosperity as America sought readjustment after long years of depression. His presidency was a point in foreign affairs, as the United States engaged in an internationalist foreign policy. Truman helped found the United Nations in 1945, issued the Truman Doctrine in 1947 to contain Communism and his political coalition was based on the white South, labor unions, farmers, ethnic groups, and traditional Democrats across the North. Truman was able to rally groups of supporters during the 1948 presidential election. The Soviet Union became an enemy in the Cold War, Truman oversaw the Berlin Airlift of 1948 and the creation of NATO in 1949, but was unable to stop Communists from taking over China. When communist North Korea invaded South Korea in 1950, he sent U. S. troops, after initial successes in Korea, however, the UN forces were thrown back by Chinese intervention, and the conflict was stalemated throughout the final years of Trumans presidency. Scholars, starting in 1962, ranked Trumans presidency as near great, Harry S. Truman was born on May 8,1884, in Lamar, Missouri, the oldest child of John Anderson Truman and Martha Ellen Young Truman. His parents chose the name Harry after his mothers brother, Harrison Harry Young, while the S did not stand for any one name, it was chosen as his middle initial to honor both of his grandfathers, Anderson Shipp Truman and Solomon Young. The initial has been written and printed followed by a period
6.
Ronald Reagan
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Ronald Wilson Reagan was an American politician and actor who was the 40th President of the United States, from 1981 to 1989. Before his presidency, he was the 33rd Governor of California, from 1967 to 1975, after a career as a Hollywood actor and union leader. Raised in a family in small towns of northern Illinois, Reagan graduated from Eureka College in 1932. After moving to Hollywood in 1937, he became an actor, Reagan was twice elected President of the Screen Actors Guild, the labor union for actors, where he worked to root out Communist influence. In the 1950s, he moved into television and was a speaker at General Electric factories. Having been a lifelong Democrat, his views changed and he became a conservative and in 1962 switched to the Republican Party. In 1964, Reagans speech, A Time for Choosing, in support of Barry Goldwaters foundering presidential campaign, Building a network of supporters, he was elected Governor of California in 1966. Entering the presidency in 1981, Reagan implemented sweeping new political, in his first term he survived an assassination attempt, spurred the War on Drugs, and fought public sector labor. During his re-election bid, Reagan campaigned on the notion that it was Morning in America, foreign affairs dominated his second term, including ending of the Cold War, the bombing of Libya, and the Iran–Contra affair. Publicly describing the Soviet Union as an empire, and during his famous speech at the Brandenburg Gate. Jack, a salesman and storyteller, was the grandson of Irish Catholic immigrants from County Tipperary, Reagan had one older brother, John Neil Reagan, who became an advertising executive. As a boy, Reagans father nicknamed his son Dutch, due to his fat little Dutchman-like appearance and Dutchboy haircut, Reagans family briefly lived in several towns and cities in Illinois, including Monmouth, Galesburg, and Chicago. In 1919, they returned to Tampico and lived above the H. C, Pitney Variety Store until finally settling in Dixon. After his election as president, residing in the upstairs White House private quarters, for the time, Reagan was unusual in his opposition to racial discrimination, and recalled a time in Dixon when the local inn would not allow black people to stay there. Reagan brought them back to his house, where his mother invited them to stay the night and have breakfast the next morning, after the closure of the Pitney Store in late 1920 and the familys move to Dixon, the midwestern small universe had a lasting impression on Reagan. Reagan attended Dixon High School, where he developed interests in acting, sports and his first job was as a lifeguard at the Rock River in Lowell Park in 1927. Over a six-year period, Reagan reportedly performed 77 rescues as a lifeguard and he attended Eureka College, a Disciples-oriented liberal arts school, where he became a member of the Tau Kappa Epsilon fraternity, a cheerleader, and studied economics and sociology. While involved, the Miller Center of Public Affairs described him as an indifferent student and he majored in economics and sociology, and graduated with a C grade
7.
Federal Reserve System
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The Federal Reserve System is the central banking system of the United States. Over the years, events such as the Great Depression in the 1930s, the U. S. Congress established three key objectives for monetary policy in the Federal Reserve Act, maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Federal Reserves dual mandate. S, the Fed conducts research into the economy and releases numerous publications, such as the Beige Book. S. member banks, and various advisory councils. The federal government sets the salaries of the seven governors. Nationally chartered commercial banks are required to hold stock in the Federal Reserve Bank of their region, thus, the Federal Reserve System has both private and public components to serve the interests of the public and private banks. The structure is considered unique among central banks and it is also unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used. The U. S. Government receives all the annual profits, after a statutory dividend of 6% on member banks capital investment is paid. In 2015, the Federal Reserve made a profit of $100.2 billion, the primary motivation for creating the Federal Reserve System was to address banking panics. Before the founding of the Federal Reserve System, the United States underwent several financial crises, a particularly severe crisis in 1907 led Congress to enact the Federal Reserve Act in 1913. Today the Federal Reserve System has responsibilities in addition to ensuring the stability of the financial system. S. S and this practice is called fractional-reserve banking. As a result, banks usually invest the majority of the funds received from depositors, on rare occasions, too many of the banks customers will withdraw their savings and the bank will need help from another institution to continue operating, this is called a bank run. Bank runs can lead to a multitude of social and economic problems, the Federal Reserve System was designed as an attempt to prevent or minimize the occurrence of bank runs, and possibly act as a lender of last resort when a bank run does occur. Many economists, following Milton Friedman, believe that the Federal Reserve inappropriately refused to lend money to banks during the bank runs of 1929. Because some banks refused to clear checks from certain others during times of economic uncertainty, to address these problems, Congress gave the Federal Reserve System the authority to establish a nationwide check-clearing system. It took over this role from the private sector clearing houses which operated during the Free Banking Era, whether public or private, through its discount window and credit operations, Reserve Banks provide liquidity to banks to meet short-term needs stemming from seasonal fluctuations in deposits or unexpected withdrawals. Longer term liquidity may also be provided in exceptional circumstances, the rate the Fed charges banks for these loans is called the discount rate. By making these loans, the Fed serves as a buffer against unexpected day-to-day fluctuations in reserve demand and this contributes to the effective functioning of the banking system, alleviates pressure in the reserves market and reduces the extent of unexpected movements in the interest rates. For example, on September 16,2008, the Federal Reserve Board authorized an $85 billion loan to stave off the bankruptcy of international insurance giant American International Group
8.
United States Department of the Treasury
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The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue, the Department is administered by the Secretary of the Treasury, who is a member of the Cabinet. On February 13,2017, the Senate confirmed Steven Mnuchin as Secretary of the Treasury, the first Secretary of the Treasury was Alexander Hamilton, who was sworn into office on September 11,1789. Hamilton was asked by President George Washington to serve after first having asked Robert Morris, Hamilton almost single-handedly worked out the nations early financial system, and for several years was a major presence in Washingtons administration as well. His portrait is on the obverse of the U. S. ten-dollar bill while the Treasury Department building is shown on the reverse. Besides the Secretary, one of the best-known Treasury officials is the Treasurer of the United States whose signature, along with the Treasury Secretarys, the Treasury prints and mints all paper currency and coins in circulation through the Bureau of Engraving and Printing and the United States Mint. The Department also collects all federal taxes through the Internal Revenue Service, the Congress had no power to levy and collect taxes, nor was there a tangible basis for securing funds from foreign investors or governments. The delegates resolved to issue paper money in the form of bills of credit, the Congress stipulated that each of the colonies contribute to the Continental governments funds. With the signing of the Declaration of Independence on July 4,1776, despite the infusion of foreign and domestic loans to pay for a war of independence, the United Colonies were unable to establish a well-organized agency for financial administration. Michael Hillegas was first called Treasurer of the United States on May 14,1777, the Treasury Office was reorganized three times between 1778 and 1781. The $241.5 million of paper Continental Dollars devalued rapidly, by May 1781, the dollar collapsed at a rate of from 500 to 1000 to 1 against hard currency. Protests against the worthless money swept the colonies and angry Americans coined the expression not worth a Continental, Robert Morris was designated Superintendent of Finance in 1781 and restored stability to the nations finances. Morris, a colonial merchant, was nicknamed the Financier because of his reputation for procuring funds or goods on a moments notice. His staff included a Comptroller, a Treasurer, a Register, and auditors, who managed the finances through 1784. The Treasury Board of three Commissioners continued to oversee the finances of the confederation of former colonies until September 1789, the First Congress of the United States was called to convene in New York on March 4,1789, marking the beginning of government under the Constitution. Alexander Hamilton took the oath of office as the first Secretary of the Treasury on September 11,1789, Hamilton had served as George Washingtons aide-de-camp during the Revolution, and was of great importance in the ratification of the Constitution. Because of his financial and managerial acumen, Hamilton was a choice for solving the problem of the new nations heavy war debt. Hamiltons first official act was to submit a report to Congress in which he laid the foundation for the financial health
9.
Federal Reserve Note
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Federal Reserve Notes, also United States banknotes or U. S. banknotes, are the banknotes currently used in the United States of America. Denominated in United States dollars, Federal Reserve Notes are printed by the United States Bureau of Engraving and Printing on paper made by Crane & Co. of Dalton, Federal Reserve Notes are the only type of U. S. banknote currently produced. The notes are then put into circulation by the Federal Reserve Banks, at which point they become liabilities of the Federal Reserve Banks, Federal Reserve Notes are legal tender, with the words this note is legal tender for all debts, public and private printed on each note. They have replaced United States Notes, which were issued by the Treasury Department. Federal Reserve Notes are backed by the assets of the Federal Reserve Banks and these assets are generally Treasury securities which have been purchased by the Federal Reserve through its Federal Open Market Committee in a process called debt monetizing. This monetized debt can increase the supply, either with the issuance of new Federal Reserve Notes or with the creation of debt money. This increase in the base leads to a larger increase in the money supply through fractional-reserve banking as deposits are lent. Prior to centralized banking, each bank issued its own notes. The first institution with responsibilities of a bank in the U. S. was the First Bank of the United States. Its charter was not renewed in 1811, in 1816, the Second Bank of the United States was chartered, its charter was not renewed in 1836, after President Andrew Jackson campaigned heavily for its disestablishment. From 1837 to 1862, in the Free Banking Era there was no central bank. From 1862 to 1913, a system of banks was instituted by the 1863 National Banking Act. The first printed notes were Series 1914, in 1928, cost-cutting measures were taken to reduce the note to the size it is today. The authority of the Federal Reserve Banks to issue notes comes from the Federal Reserve Act of 1913, legally, they are liabilities of the Federal Reserve Banks and obligations of the United States government. Although not issued by the Treasury Department, Federal Reserve Notes carry the signature of the Treasurer of the United States, at the time of the Federal Reserves creation, the law provided for notes to be redeemed to the Treasury in gold or lawful money. The Emergency Banking Act of 1933 removed the gold obligation and authorized the Treasury to satisfy these redemption demands with current notes of equal face value, under the Bretton Woods system, although citizens could not possess gold, the federal government continued to maintain a stable international gold price. This system ended with the Nixon Shock of 1971, present-day Federal Reserve Notes are not backed by convertibility to any specific commodity, but only by the collateral assets that Federal Reserve Banks post in order to obtain them. Series 1914 FRN were the first of two large-size issues, denominations were $5, $10, $20, $50, and $100 printed first with a red seal and then continued with a blue seal
10.
Central Intelligence Agency
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As one of the principal members of the U. S. Intelligence Community, the CIA reports to the Director of National Intelligence and is focused on providing intelligence for the President. Though it is not the only U. S. government agency specializing in HUMINT and it exerts foreign political influence through its tactical divisions, such as the Special Activities Division. Despite transferring some of its powers to the DNI, the CIA has grown in size as a result of the September 11 attacks. In 2013, The Washington Post reported that in fiscal year 2010, the CIA has increasingly expanded its roles, including covert paramilitary operations. One of its largest divisions, the Information Operations Center, has shifted focus from counter-terrorism to offensive cyber-operations, when the CIA was created, its purpose was to create a clearinghouse for foreign policy intelligence and analysis. Today its primary purpose is to collect, analyze, evaluate, and disseminate foreign intelligence, warning/informing American leaders of important overseas events, with Pakistan described as an intractable target. Counterintelligence, with China, Russia, Iran, Cuba, the Executive Office also supports the U. S. military by providing it with information it gathers, receiving information from military intelligence organizations, and cooperates on field activities. The Executive Director is in charge of the day to day operation of the CIA, each branch of the military service has its own Director. The Directorate has four regional groups, six groups for transnational issues. There is a dedicated to Iraq, regional analytical offices covering the Near East and South Asia, Russia and Europe, and the Asian Pacific, Latin American. The Directorate of Operations is responsible for collecting intelligence. The name reflects its role as the coordinator of intelligence activities between other elements of the wider U. S. intelligence community with their own HUMINT operations. This Directorate was created in an attempt to end years of rivalry over influence, philosophy, in spite of this, the Department of Defense recently organized its own global clandestine intelligence service, the Defense Clandestine Service, under the Defense Intelligence Agency. This Directorate is known to be organized by regions and issues. The Directorate of Science & Technology was established to research, create, many of its innovations were transferred to other intelligence organizations, or, as they became more overt, to the military services. For example, the development of the U-2 high-altitude reconnaissance aircraft was done in cooperation with the United States Air Force, the U-2s original mission was clandestine imagery intelligence over denied areas such as the Soviet Union. It was subsequently provided with signals intelligence and measurement and signature intelligence capabilities, subsequently, NPIC was transferred to the National Geospatial-Intelligence Agency
11.
History of the United States dollar
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The history of the United States Dollar refers to more than 240 years since the Continental Congress of the United States authorized the issuance of Continental Currency in 1775. On April 2,1792, the United States Congress created the United States dollar as the standard unit of money. The term dollar had already been in usage since the colonial period when it referred to eight-real coin used by the Spanish throughout New Spain. By the end of 1778, Continental Currency retained only between 1⁄5 to 1⁄7 of its face value. By 1780, Continental bills – or Continentals – were worth just 1⁄40 of their face value, Congress tried to reform the currency by removing the old bills from circulation and issuing new ones, but this met with little or no success. By May 1781, Continentals had become so worthless they ceased to circulate as money, Benjamin Franklin noted that the depreciation of the currency had, in effect, acted as a tax to pay for the war. In the 1790s, after the ratification of the United States Constitution, Congress appointed Robert Morris to be Superintendent of Finance of the United States following the collapse of Continental currency. In 1782, Morris advocated the creation of the first financial institution chartered by the United States, the Bank of North America was funded in part by specie loaned to the United States by France. Morris helped finance the final stages of the war by issuing notes in his name, the Bank of North America also issued notes convertible into specie. On July 6,1785, the Continental Congress of the United States authorized the issuance of a new currency, article One states they were prohibited to make any Thing but gold and silver Coin a Tender in Payment of Debts. The United States Mint was created by Congress following the passing of the Coinage Act of 1792 and it was primarily tasked with producing and circulating coinage. The first Mint building was in Philadelphia, then the capital of the United States, the Mint was originally placed within the Department of State, until the Coinage Act of 1873 when it became part of the Department of the Treasury. The Mint had the authority to convert any precious metals into standard coinage for anyones account with no seigniorage charge beyond refining costs, Congress acted on Hamiltons recommendations in the Coinage Act of 1792, which established the dollar as the basic unit of account for the United States. The word dollar is derived from Low Saxon cognate of the High German Thaler, in the early 19th century, gold rose in relation to silver, resulting in the removal from commerce of nearly all gold coins, and their subsequent melting. Therefore, in the Coinage Act of 1834, the 15,1 ratio of silver to gold was changed to a 16,1 ratio by reducing the weight of the gold coinage. This created a new U. S. dollar that was backed by 1.50 g of gold, however, the previous dollar had been represented by 1.60 g of gold. The result of this revaluation, which was the first devaluation of the U. S. dollar, was that the value in gold of the dollar was reduced by 6%, moreover, for a time, both gold and silver coins were useful in commerce. In 1853, the weights of U. S. silver coins were reduced and this had the effect of placing the nation effectively on the gold standard
12.
United States Note
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A United States Note, also known as a Legal Tender Note, is a type of paper money that was issued from 1862 to 1971 in the U. S. Having been current for more than 100 years, they were issued for longer than any form of U. S. paper money. They were known popularly as greenbacks, a name inherited from the earlier greenbacks, the Demand Notes, often termed Legal Tender Notes, they were named United States Notes by the First Legal Tender Act, which authorized them as a form of fiat currency. They were originally issued directly into circulation by the U. S. Treasury to pay expenses incurred by the Union during the American Civil War, during the next century, the legislation governing these notes was modified many times and numerous versions were issued by the Treasury. S. Treasury Seals and serial numbers in place of green ones, existing United States Notes remain valid currency in the United States, however, as no United States Notes have been issued since January 1971, they are increasingly rare in circulation. The Act of July 17,1861 authorized United States Secretary of the Treasury Salmon P. Chase to raise money via the issuance of $50,000,000 in Treasury Notes payable on demand. These Demand Notes were paid to creditors directly and used to meet the payroll of soldiers in the field. While issued within the framework of Treasury Note Debt, the Demand Notes were intended to circulate as currency and were of the same size as banknotes. During December 1861, economic conditions deteriorated and a suspension of specie payment caused the government to cease redeeming the Demand Notes as coins, the beginning of 1862 found the Unions expenses increasing, and the government was having trouble funding the escalating war. Demand Notes—which were used, among other things, to pay Union soldiers—were unredeemable, congressman and Buffalo banker Elbridge G. Spaulding prepared a bill, based on the Free Banking Law of New York, that eventually became the National Banking Act of 1863. This caused tremendous controversy in Congress, as hitherto the Constitution had been interpreted as not granting the government the power to issue a paper currency. Spaulding justified the action as a means of carrying into execution the powers granted in the Constitution to raise and support armies. Initially, the emission was limited to $150,000,000 total face value between the new Legal Tender Notes and the existing Demand Notes, the Act also intended for the new notes to be used to replace the Demand Notes as soon as practical. The Demand Notes had been issued in denominations of $5, $10, and $20, in addition, notes of entirely new design were introduced in denominations of $50, $100, $500 and $1000. The Demand Notes printed promise of payment On Demand was removed, Legal tender status guaranteed that creditors would have to accept the notes despite the fact that they were not backed by gold, bank deposits, or government reserves, and had no interest. The Act did provide that the notes be receivable by the government for short term deposits at 5% interest, the rationale for these terms was that the Union government would preserve its credit-worthiness by supporting the value of its bonds by paying their interest in gold. Lastly, by making the bonds available for purchase at par in United States Notes, the limitations of the legal tender status were quite controversial. This controversy would continue until the removal of the exceptions during 1933, the largest amount of greenbacks outstanding at any one time was calculated as $447,300,203.10
