Coinage History in US To Add Your Trading Insights
Before the first currency emerges, the citizens of the United States get the desired goods through a barter system. At that time there were no trusted coins to trade except for some real coins from Spain. As a newly established country, the United States has the opportunity to form its own coins. The formation of the coin during Congress under President George Washington.
The Beginning of US Coinage
The first currency was adopted on April 2, 1792. The United States then established Mint to oversee all operational and labor activities. All Mint employees have to plant a $ 10,000 bond to be able to occupy its position at that time. The first coins in the US are printed using gold, silver and copper with the words carving and the sign of freedom. Here are the first coins Mint coined in 1792.
- $ 10 gold eagle: 270 grains (17.5 g) pure gold
- $ 5 gold half eagle: 135 grains (8.75 g) pure gold
- $ 2.50 quarter eagles: 67 and 4/8 grains (4.37 g) gold standard
- Half dollar: 208 grains (13.5 g) standard silver
- Dimes: 41 and 3/5 grains (2.7 g) of silver
- Half a cent: 20 and 4/5 grains (1.35 g) of standard silver
- One cent: 11 pennyweight (17.1 g) copper
- Half a cent: 5 and ½ pennyweght (8.55 g) copper
The golden ratio: silver then is 1:15. So one troy ounce of gold equal to 15 ounces of silver.
The dollar began to be printed equal to 8 Spanish realists. A speaker says that 8 Spanish realists are dollars that are “milled” by Spanish coins. The word “milled” here refers to the fact that the coin is milled to determine the consistency of weight and size to prevent counterfeiting. This grinding process allows these Spanish coins to be used in many countries around the world.
The price of gold remained consistent at $ 19.39 an ounce from 1792 until a small spike to $ 21.79 in 1814 and $ 22.16 in 1815 before finally returning to $ 19.39. In 1833, gold price of gold $ 19.39 was no longer found so that in Congress set a new value in line with the replacement of the Act 1834 on the coin which was then under president Andrew Jackson. New regulations on weight and value of gold are adopted in order to be synchronized with the market and their relative value to silver. This revision caused the gold to dollar ratio to be equivalent to $ 20.67 per ounce of gold and increased the golden ratio: silver from 1:15 to 1:16.
Unfortunately this is even considered a criminal law by western silver farmers because this silver price boom will enrich the economies of the western countries and the silver price dropped for the gold standard that will be adopted by governments around the world. A force called Free Silver Movement was established which later became a tool in the transition of the 1878 Bland Allison Act.
This action allows the Treasury to buy $ 2-4 silver in a month to fill the circulation. This decision was passed to Congress after President Rutherford B Hayes’s veto was ruled out. The Sherman Silver Purchase Act passed in 1890 can replace the previous law. Once enforced then seen an increase in purchases of 4.5 million ounces of silver per month. President Cleveland subsequently withdrew this action in 1893 as gold reserves in the Treasury were being exhausted by investors selling silver in exchange for gold.
The South Minister then encouraged Finance Minister Salmon P. Chase in 1861 to create “In God We Trust” on the first approved coin of two cent coins in 1864. This decision was later extended to gold and silver coins as part of the 1865 Act.In 1873 all coins were approved by In God We Trust without the prior approval of Congress.
20th Century and Beyond
Under President Johnson in 1965 the Coin Act was passed because silver and gold began to wane. Silver quarters saw a complete removal of content from half a dollar to 40% and 90%. Silver is then replaced with copper alloys, zinc, manganese and nickel. In order for hoarding to be prevented then freezing dates are also passed. All printed coins have a date of 1964 for a certain period of time.Mint marks are also removed for five years. The Mint mark is a letter on the coin that indicates which Mint is generating the coin. This serves to eliminate the identification features of newer coins and also prevents their removal from circulation.
The Coin of 2005 Act makes a commemorative coin that recognizes all previous presidents beginning in 2007. The previous $ 1 warning coins continue like Sacagawea $ 1 but comprise no less than 1/3 of the total of all $ 1 coins. The conclusion is that American coins have came a long time since the barter system.Although it has long been known, but no doubt there will be more changes in the future.