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^ Why Wonder B
THE HOW AND WHY WONDER BOOK OF
C O I N S A N D
C U R R E N C Y
Wr i t t en by Dr. Paul J. Gel i nas
I l l ust r at ed by John Hul l
Edi t or i al Pr oduct i on: Donal d D. Wo l f
PRESIDENT KENNEDY
MEMORIAL'
HALF tfOLtART ! '
Edi t ed under t he super vi si on of
Dr . Paul E. Bl a c k wo o d , Was hi ngt on, D. C.
Text and i l l ust r at i ons appr ov ed by Oak es A. Wh i t e ,
Br ookl yn Chi l dr en' s Museum, Br ookl yn, New Yor k
WON DE R BOOKS NEW YORK
I n t r o d u c t i o n
One of the interesting facts to learn from this How and Why Wonder
Book of Coins and Currency is that many unusual things have served man-
kind as exchange through the ages. Cows, sheep, nails, or salt were once
used as money! You will be even more surprised to learn that the feathered
skins of woodpeckers' heads served as small change. And there was a time
when so many whales' teeth closed a big business deal. Cowrie shells were
carried around the world by sailing merchants because of their international
value.
The mai n purpose of money has always been the same to function as
a medi um of exchange. Money of itself has no real value. You can't eat
it, wear it, or build a shelter with it. You eat food; you dress in clothing;
and you build houses with lumber and bricks. The worth of money is in
its acceptability as a medi um of exchange.
How the money system of the United States has developed is a spell-
binding tale sprinkled with bits of history, as reflected in stories of the
"continental," the pine tree shilling, the greenback, and other monies.
Changes in our money are still taking place.
This How and Why Wonder Book of Coins and Currency will guide you
in your study of the different kinds of money. It is a most useful reference
for any young person studying history, economi cs or just reading for fun.
Paul E. Blackwood
Dr. Blackwood is a professional employee in the U. S. Office of Education.
This book was edited by him in his private capacity and no official support
or endorsement by the Office of Education is intended or should be inferred.
1965, by Wonder Books, Inc.
All rights reserved under International and Pan-American Copyright Conventions.
Published simultaneously in Canada. Printed in the United States of America.
C o n t e n t s
Page
THE NATURE OF MONEY 5
What is money? 5
What is a standard of value? 6
Does the value of money change? 6
Is money wealth? 7
MONEY LONG AGO 8
What is barter? 8
Money Materials Commodity Money 10
What was "living" money? 10
Were tools money material? 11
What is "wife" money? 11
What kind of money is edible? 12
What kind of money went "up in smoke"? 13
What was the Aztec treasure? 13
What kind of money can be brewed? 14
What other useful things were
money material? 14
14
15
What is shell money?
What was wampum?
What was unusual about the
stone money of Yap?
METALS BECOME MONEY
What kind of metals became money?
When were metals first used as money?
How did Roman copper money develop?
How did some world currencies
get their names?
How did metal coins develop?
Whose portrait was first used on a coin?
Did the invention of coins prevent cheating? 22
What is the origin of the word "dollar"? 23
What are "two bits" and "four bits"?
What was the pine tree shilling?
How has U. S. coinage changed?
How are U. S. coins made?
PAPER MONEY
jgg^ What is credit?
What is the oldest paper money
15
17
18
18
18
19
20
21
24
24
25
26
27
28
we know of? 28
Page
What was one reason why paper money
was introduced in Europe? 29
What is the "gold standard"? 29
Why is paper money accepted? 30
What was Continental money? 30
When did the
r
present system of
U. S. paper money begin? 31
What is the U. S. Treasury?, 31
What is "legal tender"? 32
Who chooses the designs for paper money? 32
How are dies and plates for
U. S. paper money produced? 33
How is money printed? 34
Are paper bills printed with special ink? 34
What paper currency is issued in the U. S.? 34
How big is a dollar bill? 35
Do we have "money to burn"? 35
What is the origin of the "dollar sign"? 36
COUNTERFEIT MONEY 36
What is a counterfeiter? 36
How can you help the Secret Service? 37
BANKS 38
What are the important functions of banks? 38
How is a bank started?
Why is your money safe in the bank?
Who can borrow money from a bank?
What is interest?
What is a check?
What is numismatics?
How important is the age of a coin?
When is a coin a collector's item?
How does the condition of the coin
affect its value?
How should you clean coins?
How should you keep coins?
Where can you get information
about clubs?
39
40
41
42
43
44
46
46
In the ancient Greek world, Croesus,
King of Lydia, was considered one of
the richest men. His contemporary,
Solon of Athens, a statesman, was con-
sidered one of the wisest men of his
time. Shown below is the traditional
encounter between the two with Croe-
sus showing Solon his wealth and So-
lon telling Croesus that wealth is not
happiness.
Everybody has his own relationship to money and
uses whatever he owns accordingly. There are the
misers who treasure it for its own sake and who will
deny themselves the least pleasures that money can
buy for the pleasure that hording it gives them; there
are the spendthrifts who throw their money about
without any thought of what will happen afterwards;
and there is a full scale of other tendencies between
these two extremes. There are proverbs and wise say-
ings galore about the subject from the Biblical "For
the love of money is the root of all evil" to the popu-
lar "Easy come, easy go." There are a host of litera-
ture, legends in mythology, and tales from history
aimed at making man see money in its proper per-
spective. It should always be only a means to an end;
it can buy many things but not the highest values of
mankind friendship, love, and health, to name just
a few.
All through the ages there have been responsible people, neither misers nor spendthrifts, who spent their
money for the necessities and occasional luxuries of life and still saved some for a "rainy day." These early
American piggy banks prove that children and grownups saved then as you should today.
In a primitive society, there is no need for
money. If a person wants something another
person owns, he has to get it as a gift or trade
something else for it. Robinson Crusoe lived
happily without money.
From Phrygia, an ancient coun-
try in Asia Minor, comes the
legend of King Midas who re-
ceived from Dionysus, the god
of wine and drama, the power
of turning into gold whatever he
touched. What seemed a bless-
ing became a curse when even
the food he touched also turned
to gold. Dying of hunger, he
shook off the curse by cleansing
himself by washing in the river
Pactolus. The river actually became famous in history for the
gold washed from its sands.
T h e N a t u r e o f M o n e y
Co i n s a n d c u r r e n c y ma n ' s mo n e y
h a v e i nt e r e s t e d ma n a n d i nf l uenced
hi s wo r k s f or c e nt ur i e s . T h e y h a v e ap-
p e a r e d in ma n y f or ms , s er ved ma n y
uses, a nd c o n t r i b u t e d mu c h t o ci vi l i za-
t i on. N o o n e k n o ws wh a t f o r m of
mo n e y we shal l us e in t he f ut ur e. Pe r -
h a p s o u r pr e s e nt s ys t em of mo n e y wi l l
be r e p l a c e d by s o me t h i n g ne we r , eas i er
t o ha ndl e , a n d mo r e i n a c c o r d wi t h t he
ne e ds of a hi ghl y me c h a n i z e d s p a c e a ge .
What is
money?
An y ar t i cl e wh i c h is wi del y a c c e p t e d i n
e x c h a n g e f or g o o d s a n d
s e r v i c e s i s c o n s i d e r e d
mo n e y . T h e ar t i cl e, how-
e v e r , h a s t o a n s w e r t h e f o l l o w i n g
r e q u i r e me n t s : I t h a s t o b e c o mp a r a -
t i vel y r a r e o r o b t a i n a b l e onl y t h r o u g h
s o me de g r e e of ef f or t ; it h a s t o b e eas y
a n d p l e a s a nt t o h a n d l e ; it h a s t o b e gen-
er al l y a t t r a c t i ve t o t he eye a n d pr ef er -
a b l y s ma l l e n o u g h t o c a r r y ; a n d it h a s
t o b e r e c o g ni z e d as mo n e y b y a t l eas t
t wo pe opl e , t he sel l er a n d t he buye r .
I n o u r s oci et y, p e o p l e pr e f e r c oi ns a n d
p a p e r not e s , b u t b e y o n d t hi s pr e f e r e nc e ,
ma n y p e o p l e us e mo n e y wi t h o u t h a v i n g
mu c h i de a of wh a t i t r eal l y is a n d wh a t
i t does . As y o u r e a d o n, y o u wi l l find
a s t or y filled wi t h a ma z i n g f act s a n d
s ur pr i s es .
T h e ma i n p u r p o s e of mo n e y is t o s er ve
as a me d i u m of e x c ha ng e .
wh a t is a Q
0 0 (
J
S a n (
j s er vi ces a r e
standard , ,
r
, . . e x c h a n g e d t o r m o n e y ,
of val ue? , , . ,
whi c h, i n t u r n , i s us e d t o
b u y o t h e r g o o d s a n d ser vi ces. I t is c al l ed
a me d i u m b e c a u s e i t i s i n t h e mi d d l e be-
t we e n t h e b u y e r a n d t h e sel l er a n d hel ps
t o ma k e t h e t r a n s a c t i o n pos s i bl e.
Be s i de s s er vi ng as a me d i u m of ex-
c h a n g e , mo n e y a l s o s er ves as a s t a n d a r d
of va l ue . I t t el l s us h o w v a l u a b l e a n
obj e c t i s. To d a y , f or e x a mp l e , a bi g
h o u s e cos t s mo r e t h a n a s mal l h o u s e
b e c a u s e mo r e l a b o r a n d ma t e r i a l go i nt o
it. As a r es ul t , t h e bi g h o u s e p r o v i de s
mo r e c o mf o r t s a n d c onve ni e nc e s . Pe o -
pl e a r e wi l l i ng t o p a y mo r e f or i t . If
y o u a c t ua l l y b u y t h e ho us e , y o u a n d
t h e de a l e r h a v e a g r e e d t o p l a c e t h e s a me
v a l ue o n t h e me r c h a n d i s e . I n t h e Un i t e d
St at es , dol l a r s a n d c e nt s a r e t he s t an-
d a r d b y wh i c h t h e v a l u e of g o o d s a n d
s er vi ces a r e me a s u r e d . If y o u l i ved i n
En g l a n d , y o u wo u l d b u y t hi ngs wi t h
p o u n d s , shi l l i ngs, a n d p e nc e . Ot h e r na-
t i ons h a v e t he i r o wn n a me s f or uni t s
of mo n e y . Ge r ma n y , f or e x a mp l e , ha s
t h e ma r k ; Me x i c o , t h e pe s o. Wh a t e v e r
n a me t he p e o p l e gi ve t hei r mo n e y
dol l a r , p o u n d , ma r k , or p e s o i n e a c h
i ns t a nc e , i t is t he s t a n d a r d of va l ue .
Mo n e y , of c our s e , do e s n o t g r o w o n
t r ees as yo u
Does t he val ue , 1 1 1
, , . h a v e p r o b a b l y
of money c hange?
r J
b e e n r e mi n d e d by
y o u r mo t h e r o r y o u r f a t he r . If mo n e y
we r e as easi l y o b t a i n e d as l eaves o n
b r a n c h e s , t h e r e wo u l d b e s o mu c h of i t
t h a t n o o n e wo u l d v a l ue it. Wh e n e v e r
a n y k i n d of mo n e y i s i n t o o gr e a t
a b u n d a n c e i n r e l a t i o n t o t he a mo u n t
of g o o d s a n d s er vi ces a va i l a bl e , t h a t
mo n e y t e nds t o b e l owe r i n val ue. If,
f or e x a mp l e , t h e s up p l y of mo n e y we r e
d o u b l e d , a n d t he a mo u n t of c o mmo d i -
t i es a n d s er vi ces r e ma i n e d t h e s a me ,
t he n mo n e y wo u l d t e n d t o l ose one- hal f
i t s va l ue .
Yo u doubt l e s s l y h a v e h a d a n exper i -
e nc e t o s h o w t h a t t he v a l ue of mo n e y
doe s c ha ng e . P e r h a p s y o u p a i d $ 1 . 0 0
f or a wal l et . Wh e n , s o me mo n t h s l at er ,
yo u t r i ed t o b u y t he s a me t ype of wal l et
a s a gi ft f or a f r i end, t h e pr i c e h a d g o n e
u p t o $ 1 . 2 0 . T h e s t o r e k e e p e r e x p l a i ne d
t h a t t h e hi g he r cos t of p r o d u c t i o n a n d
ma t e r i a l h a d r a i s e d t he pr i ce.
If pr i c es g o up, y o u r mo n e y is wo r t h
l ess; if pr i c es go d o wn , mo n e y is wo r t h
mo r e . Ma n y f a c t or s affect pr i ces . If
s t or es a r e ove r - s t oc ke d wi t h bi cycl es,
t h e s uppl y i s t o o l a r ge a n d t he d e ma n d
t o o s mal l . Un d e r t he s e c i r c ums t a nc e s ,
t he de a l e r ma y l o we r hi s pr i ce.
An o t h e r f a c t or t h a t i nf l uences t he
v a l ue of y o u r mo n e y i s t h e s uppl y of
mo n e y i t sel f. If t he s uppl y is i nc r e a s e d
i n r e l a t i on t o t he n u mb e r of t hi ngs t o
buy, we h a v e wh a t is c al l ed i nf l at i on.
T h a t is, pr i c es a r e i nf l at ed, e nl a r ge d, or
r ai s ed, j us t as a b a l l o o n e x p a n d s wh e n
mo r e ai r is i nj ect ed. I n t i me of wa r ,
wh e n wa g e s a r e hi g he r a n d t he s uppl y of
g o o d s a n d ser vi ces a r e l i mi t ed, t he r e is
d a n g e r of i nf l at i on b e c a u s e t he r e is t o o
mu c h mo n e y i n r e l a t i o n t o t h e g o o d s a n d
ser vi ces avai l abl e.
I n t i me s of de pr e s s i on, wh e n j o b s a r e
f ewer a n d wa g e s l owe r , t he s up p l y of
mo n e y i n t he h a n d s of t he p e o p l e is
s ma l l e r i n r e l a t i o n t o t h e a mo u n t of
g o o d s a n d s er vi ces a va i l a bl e . Pr i c e s
t e n d t o b e l owe r , a n d we h a v e wh a t is
k n o wn as def l at i on. Pr i c e s a r e def l at ed,
o r ma d e s mal l er .
Ma n y f a c t or s affect t h e wo r t h of y o u r
dol l a r ; we h a v e n a me d j us t a f ew.
Ge ne r a l l y, p e o p l e r e a l l y d o n o t wa n t
mo n e y . T h e y wa n t t h e
Is money ., . ,
m
' t h i n g s mo n e y c a n b u y ,
weal t h?
J J
g o o d s a n d s er vi ces t h a t
a r e usef ul t o pe opl e . Mo d e r n mo n e y is
t h u s a me a s u r e of we a l t h i n t h e s a me
wa y t h a t a q u a r t c o n t a i n e r is a me a s u r e
of l i qui d. Pr e s e nt - da y mo n e y r e p r e s e nt s
we a l t h, b u t is n o t we a l t h i n i t sel f. T h e
f ew p e nni e s wo r t h of p a p e r us e d t o
ma k e t h e bi l l , o r t h e s ma l l c os t of me t a l
t o ma k e t he c oi n, c a n n o t b e c o ns i de r e d
we a l t h. Bu t we wi l l l e a r n t h a t i n t h e
pa s t , t he t hi ngs t h a t we r e us e d as mo n e y
we r e ge ne r a l l y a f or m of we a l t h i n t he m-
sel ves.
To d a y , o u r mo n e y is s ai d t o b e pr op-
er t y r i ght s b e c a u s e t he mo n e y ent i t l es
us t o g o o d s or p r o p e r t y wh i c h s ome -
b o d y el se is wi l l i ng t o gi ve us f or i t .
Too much money chas-
ing too few goods.
Increasing wartime pro-
duct i on increases
wages without provid-
ing more goods to buy
with the money. If not
checked by government
measures, this leads to
inflation.
Th u s , a l t h o u g h mo n e y is n o t a f o r m of
we a l t h i n i t sel f, it is a p r o p e r t y r i ght t o
we a l t h. A n d t h a t is e xa c t l y wh a t o u r
dol l a r bi l l s r e p r e s e nt t o d a y : a s ymb o l of
we a l t h, n o t we a l t h i t sel f.
I t is t r u e t h a t u n d e r n o r ma l c ondi -
t i ons , n o o n e n e e d go h u n g r y if he h a s
mo n e y i n hi s p o c k e t . Bu t wh o wo u l d
wa n t t o e a t t he mo n e y i t sel f ? To d a y ,
mo n e y is ge ne r a l l y i n t he f o r m of bi l l s
a n d coi ns . Y o u c a n n o t us e t h e m t o k e e p
y o u wa r m, n o r wi l l t he y s hel t er yo u
f r om t he c ol d. Pi c t u r e your s el f f ar f r om
ci vi l i zat i on, p e r h a p s s t r a n d e d i n a des-
er t . Yo u r p o c k e t mi g ht bul ge wi t h $ 1 0
bi l l s, o r y o u r p u r s e b e filled wi t h si l ver
coi ns . Co u l d y o u sat i sfy y o u r t hi r s t
b e c a u s e you h a d mo n e y ? Wo u l d y o u r
mo n e v f eed y o u , or p r o t e c t yo u f r om
t he b u r n i n g s un? Su p p o s e a f r i endl y
na t i v e of t hi s ma ke - be l i e ve l a nd finally
di s c over s you r o a mi n g a b o u t in di st r ess.
Yo u c oul d, of c our s e , offer yo ur bi l l s
a n d c oi ns f or hi s hel p. But he wo u l d
r ef us e t o t a k e t hes e, b e c a u s e he h a s
ne v e r s een s uc h bi l l s. Hi s eyes mi g h t
l o o k wi t h p l e a s ur e on s o me t r i nket s , or
ma y b e a s c out kni f e. F o r s uc h ar t i cl es,
he mi g h t l e a d y o u t o saf et y a n d he l p yo u
t o find f ood a n d wa t e r . T h e s c out kni f e
wo u l d h a v e s e r ve d t he ma i n f unc t i on of
mo n e y . I t wo u l d h a v e b e e n a me d i u m
of e x c h a n g e , a me a n s by wh i c h y o u ob-
t a i ne d wh a t y o u n e e d e d wi t h s o me t h i n g
wh i c h s o me o n e el se c o ul d us e.
Two-way barter, above left, poses no big problems. "A" has a fish and needs moccasins; "B" has moccasins and wants
a fish; the exchange is easy enough. It becomes more complicated if a three-way transaction is required (above right).
"A" has moccasins and needs an ax. "B" has an ax to spare, but needs fishhooks. "A" has now to find a "C" who has
fishhooks and wants moccasins. He then will exchange his moccasins for "C's" fishhooks, and the fishhooks for "B's" ax.
M o n e y L o n g A g o
Ce n t u r i e s a go, mo n e y di d n o t fulfill
al l t h e r e q u i r e me n t s wh i c h we e xpe c t of
i t t o d a y . Ma n ' s e a r l y mo n e y e vol ve d
g r a d u a l l y i nt o mo d e r n mo n e y . I n f act ,
l ong a go, t h e r e wa s p r o b a b l y n o mo n e y
at al l , b e c a u s e t h e r e wa s n o n e e d f or i t .
Wh e n a p e r s o n wa n t e d s o me t h i n g f r om
ot he r s , h e h a d t o r e c e i ve it as a gift,
t r a d e s o me t h i n g el se f or i t , o r t a k e i t
wi t h o u t a s ki ng. He l p i n g hi ms el f a t t he
e x p e n s e of ot he r s , h o we v e r , wa s c ons i d-
e r e d b a d e ve n b y pr i mi t i ve ma n . Puni s h-
me n t wa s us ua l l y s ever e f or t h e c a ve
ma n wh o t hi e ve d.
Wh e n p e o p l e a r e sel f-suffi ci ent , t h e r e is
n o neces s i t y f or mo n e y . I n
What is i i J
. , a s i mpl e soci et y, p e o p l e d o
n o t n e e d t o o ma n y t hi ngs .
Mo s t of us a r e f ami l i ar wi t h t h e s t or i es
of Ro b i n s o n Cr u s o e a n d t h e Swi ss F a m-
i l y Ro b i n s o n , a n d h o w t he s e p e o p l e
l i ved h a p p i l y wi t h o u t mo n e y . Wh e n
t h e r e is n o mo n e y , p e o p l e e x c h a n g e
s o me t h i n g t h a t t he y o wn f or s o me t h i n g
t h a t s o me b o d y el se pos s es s es . Go o d s
a n d s er vi ces a r e e x c h a n g e d f or o t he r
g o o d s a n d s er vi ces wi t h o u t t he us e of a n
i n t e r me d i a r y me d i u m of e x c ha ng e . Th i s
is c a l l e d b a r t e r . T h e wo r d , b a r t e r , c o me s
f r o m t h e Ol d F r e n c h wo r d , barater,
wh i c h me a n s t o e x c h a n g e or c he a t . T h e
s e c o n d me a n i n g p r o b a b l y r ef er s t o t h e
f act t h a t i n t r a d i n g of t hi s s or t , o n e per -
s on of t en get s a b e t t e r b a r g a i n .
Ba r t e r , h o we v e r , me a n t t h a t if a per -
s on wa n t e d t o e x c h a n g e a c r u d e s hovel
f or a p a i r of s a nda l s , h e h a d t o find
s o me o n e wh o o wn e d t h e s a nda l s a n d
a l s o wa n t e d a s hovel . I n s pi t e of i t s i n-
c o nv e ni e nc e s , b a r t e r i n g c o n t i n u e d f or
t h o u s a n d s of ye a r s . I n f act , i t c o nt i nue s
t o exi st t o d a y a mo n g s o me Af r i c a n
t r i bes wh o c o n d u c t t he i r t r a d e b y ba r -
Not just goods were
bartered for goods, but
often also services for
services or services for
goods. A soldier, for
instance, might have
obtained shelter, food,
and clothing in ex-
change for protecting
the trip of a merchant
who had employed him.
Homer accounts that at
the time of the Trojan
War, about 1 200 years
before the birth of
Christ, a golden armor
was worth 100 oxen.
t er i ng. A na t i v e wi l l p l a c e a s t a l k of
b a n a n a s b y a r i ve r b a n k wh e r e i t c a n b e
easi l y f o u n d b y a fisherman wh o wi l l
l eave a d o z e n ma c k e r e l i n i t s pl a c e . T h e
t r a d e is ma d e wi t h ne i t he r t r a d e r ever so
mu c h as s eei ng t h e o t he r .
We mi g h t v e r y wel l i ma g i n e a ma n
wh o h a d d e v e l o p e d c o n s i d e r a b l e ski l l at
ma k i n g mo c c a s i ns . H e finally speci al -
i zed hi s ef f or t s a n d d e v o t e d al l hi s t i me
t o ma k i n g mo c c a s i ns , t h u s p r o d u c i n g
a n exces s of wh a t h e n e e d e d f or hi s o wn
use. H e wo u l d t h e n h a v e t o find a wa y
of us i ng t h e mo c c a s i n s t o get o t h e r
t hi ng s t h a t h e n e e d e d .
So me t i me s , i n o r d e r t o t r a d e a t al l , h e
wa s c o mp e l l e d t o a c c e p t , i n e x c h a n g e
f or hi s mo c c a s i ns , s o me ar t i c l e t h a t h e
di d n o t n e e d b u t t h a t a n o t h e r p e r s o n
mi g h t wa n t . T h r o u g h t h e us e of t h e
mo c c a s i n s as a n i n t e r me d i a r y ar t i cl e, h e
c o u l d finally get t h e t hi ngs t h a t h e r eal l y
wa n t e d . A ser i es of s uc h t hr e e - pa r t y
t r a n s a c t i o n s mi g h t wel l h a v e e s t a bl i s he d
o n e a r t i c l e i n a c o mmu n i t y as a wi de l y
a c c e p t a b l e me a n s of e x c h a n g e .
MONEY MATERIALS
- C O MMO D I T Y MONEY
As we h a v e s ai d be f or e , i n di f f er ent
pl a c e s s o me t hi ngs c a me t o b e wo r t h
mo r e t h a n ot he r s . T h e y we r e v a l u e d be-
c a us e of t hei r us ef ul nes s , t hei r b e a u t y ,
or b o t h . I t wa s eas y t o e x c h a n g e t h e m.
Th e y b e c a me t he s t a n d a r d of v a l ue a n d
we r e us e d mu c h as mo n e y is us e d t o d a y .
Su c h t hi ngs a r e c a l l e d mo n e y ma t e r i a l s ,
or c o mmo d i t y mo n e y . Le t us n o w h a v e
a l ook a t wh a t t he s e mo n e y ma t e r i a l s
wer e.
F o r c e nt ur i e s , me n h a v e d e p e n d e d o n
f a r mi n g a n d do me s -
What was *.'*. 1 c
,. _ t i c a t i ng a n i ma l s t o r
living money?
t hei r l i vi ng. A ma n
wh o o wn s c a t t l e c o u l d ma k e us e of t h e m
in ma n y ways . Ca t t l e pul l he a v y wei ght s ,
a r e usef ul in f a r mi ng , a n d gi ve mi l k.
Th e i r s ki ns p r o v i d e ma t e r i a l f or cl ot h-
i ng, t ool s a r e ma d e f r om t hei r b o n e s
a n d h o r n s , a n d t hei r me a t c a n b e e a t e n.
So it is no t s ur pr i s i ng t o l e a r n t ha t , r el a-
t i vel y ear l y, c a t t l e b e c a me a mo n e y ma -
t er i al . A c e r t a i n n u mb e r of o x e n wo u l d
b u y a c e r t a i n a mo u n t of l a nd, t ool s , or
ut ens i l s .
T h e Gr e e k p o e t Ho me r , wh o wr o t e
t he s t or y of t he t e n- ye a r Tr o j a n Wa r
( a b o u t 1 2 0 0 B. C. ) , r e c o r d e d o x e n as
t h e me a s u r e of v a l ue a sui t of a r mo r
wa s wo r t h qui t e a n u mb e r of oxe n. I n
ear l y Eg y p t a n d Cr e t e , s he e p we r e us e d
as a me d i u m of e x c h a n g e , a n d t he an-
c i ent He b r e ws me a s u r e d we a l t h in flocks
a n d he r ds . On e ox e q ua l l e d t en s he e p ;
t he s he e p we r e us e d t o ma k e c h a n g e . I n
e a r l y Ro me , al s o, l i ves t ock b e c a me a
me d i u m of e x c ha ng e .
E v e n wh e n me t a l c oi ns b e c a me pop-
ul a r , ma n y of t h e e a r l y c oi ns h a d pi c-
t ur e s of bul l s a n d c o ws o n t h e m. Some -
t i mes , t he c oi ns we r e i n t he f o r m of a n
a n i ma l o r l o o k e d l i ke a p a r t of a n ani -
ma l . On e c oi n, a v a l u a b l e c ol l ec t or ' s
i t e m f r om t h e s o u t h e r n p a r t of Fr a n c e ,
h a s t h e f o r m of a h a m. Wh e n t he Eg y p -
t i ans s t a r t e d t o us e gol d i ns t e a d of
cat t l e, t he y s h a p e d t h e gol d i nt o t he
f o r m of s ma l l s he e p. Bu t f or a l ong t i me
af t er c oi ns h a d b e c o me t he me d i u m of
e x c h a n g e , l i ves t oc k stil l wa s us e d f or
t h e s a me p u r p o s e .
I n t wel f t h c e n t u r y En g l a n d , t he da ys
of Ro b i n H o o d a n d t h e vi l l ai nous Sher -
iff of No t t i n g h a m, t h e a v e r a g e ma n
mi g h t s p e n d a l i f et i me wi t h o u t s eei ng
a n y c o i ne d mo n e y . He wo u l d b a r t e r hi s
c r o p s a n d a n i ma l s f or o t h e r f o o ds a n d
c l ot hi ng, a n d he wo u l d p a y hi s t a xe s t o
t he ki ng i n s he e p o r hor s e s . T h e ki ng' s
f a vor i t e t a x c ol l ec t i ons we r e pal f r eys
( s a d d l e p o n i e s ) , des t r i er s ( wa r h o r s e s ) ,
l i ver i es ( c a r r i a g e h o r s e s ) , a n d s ome-
t i me s h u n t i n g f al cons .
Th i s wa s k n o wn i n mo n e t a r y hi s t or y
as ' - l i vi ng" mo n e y , o r p a y me n t i n ki nd.
Wh a t e v e r it wa s c al l ed, it wa s unque s -
t i o na b l y c u mb e r s o me t o ha ndl e . Yo u
c a n wel l i ma g i n e t h a t t h e r e we r e o t he r
d i s a d v a n t a g e s i n u s i n g a n i ma l s a s
mo n e y . F o r o n e t hi ng, y o u h a d t o f eed
y o u r mo n e y . Yo u h a d t o p r o v i d e p a s t u r e
f or it. It c o ul d be a t t a c k e d a n d d e v o u r e d
by wi l d a ni ma l s . Du r i n g t he ni ght , y o u r
mo n e y c o u l d e ve n r u n a wa y.
T h e wo r d , p e c u n i a r y , wh i c h r ef er s
t o mo n e y ma t t e r s , c o me s f r om t he La t i n
wo r d , pecus, me a n i n g cat t l e. T h e En g -
l i sh wo r d , fee, me a n i n g p a y me n t f or
ser vi ces, is cl os el y r e l a t e d t o t h e Ge r ma n
[0
wo r d, vieh ( p r o n o u n c e d f e e ) , me a n i n g
cat t l e. Y o u c a n see t h a t " l i vi ng" mo n e y
mu s t o n c e h a v e h a d g r e a t i mp o r t a n c e
al l ove r t h e wo r l d.
F o r t h e s a me r e a s o n t h a t c a t t l e a n d
s h e e p b e c a m e s o
Wer e t ool s ., ,
. . easi l y us e d as a me-
money mat er i al ?
J
d i u m of e x c ha ng e ,
t ool s f or f a r mi n g b e c a me p r i z e d pos s es -
si ons, a n d t h u s a s t a n d a r d of val ue. J us t
as t he c oi ns of l a t e r Gr e e c e a n d R o me
r e mi n d us of t h e c a t t l e mo n e y , t h e
ear l y Ch i n e s e coi ns , wh i c h we r e i n t h e
f o r m of s hovel s a n d kni ves , r e mi n d us
of t he t ool mo n e y . T h e y r e p r e s e nt ac-
t ua l t ool s wh i c h we r e or i gi nal l y v a l u e d
as mo n e y . Bu t we d o n o t h a v e t o g o as
f ar b a c k as t he a nc i e nt Ch i n e s e t o find
usef ul t ool s b e i ng u s e d as mo n e y ma t e -
r i al . Wh e n e v e r a n d wh e r e v e r me n h a v e
t o fight h a r d t o l i ve, t he mo s t n e e d e d
t hi ngs b e c o me t ho s e wh i c h a r e v a l ue d
t he mos t . T h a t is wh y nai l s b e c a me
mo n e y f or t he e a r l y s et t l er s of Ame r i c a .
Nai l s , wh i c h at t h a t t i me h a d t o b e ma d e
by h a n d a n d s hi p p e d f r om Eu r o p e , we r e
wo r t h a gr e a t deal . A set t l er wh o o wn e d
n o t h i n g b u t a k e g of nai l s wa s cons i d-
e r e d a we a l t hy ma n !
O n t h e we s t c o a s t of Af r i c a , i n Ca me -
r o u n , mi n i a t u r e i r o n
w h a t i s
u *u-
., ,, _ s p e a r s a b o u t t h i r t y
"wife money?
r
*
i nc he s l ong a r e us e d
f or mo n e y a n d a r e k n o wn as " wi f e"
mo n e y . Ab o u t a d o z e n s pe a r s a r e t he
p u r c h a s e pr i c e f or a wi f e. Sma l l e r s pear s ,
At right, early metal "money," tokens which remind
us of the times when the things they represent were
actually used to barter.
RECTANGUIAR COIN FROM
LUCANIA, AN ANCIENT REGION
IN SOUTH ITAIY
COIN FROM NIMES,
SOUTHERN FRANCE,
IN THE FORM OF A
HAM
1 u
m .j
' 1
wh i c h r a n g e i n si ze f r o m a b o u t f our t o
t wel ve i nc hes , a r e u s e d f or s ma l l e r pur -
c has es . Mo s t l i kel y, t h e mo n e y b e g a n
as r e a l s pear s , a v a l u e d pos s es s i on
wh i c h t h e na t i ve s u s e d as a me d i u m of
e x c ha ng e . Ov e r t he ye a r s , t he y b e c a me
s ma l l e r a n d eas i er t o c a r r y unt i l t he y
we r e us el es s as we a p o n s . Bu t t hei r us e
a s a me d i u m of e x c h a n g e r e ma i n e d , a n d
t hi s is wh a t t he y a r e t o d a y mo n e y
ma t e r i a l . A f ew g e ne r a t i o ns a go, i n t h e
S o u t h Sea I s l a nds , c o c o n u t s we r e t h e
me d i u m of e x c h a n g e . Y o u h a d t o gi ve
t e n t h o u s a n d c o c o n u t s t o get a wi f e i n
r e t u r n .
On e c o mmo d i t y t h a t h a s b e e n u s e d as
mo n e y b y a g r e a t ma n y
, p e o p l e a t di f f er ent t i me s
of money ~
is edi bl e? ^
n
di f f er ent p a r t s of t h e
wo r l d i s sal t . E v e n t o-
da y, i n s o me p a r t s of Af r i c a , b l o c k s of
sal t a r e us e d as mo n e y . I n I n d i a i n t h e
n i n t h c e nt ur y, sal t wa s so s c a r c e t h a t
it b e c a me mo r e p r e c i o us t h a n t h e f a bl e d
I n d i a n s a pphi r e s . Ma n y p e o p l e h a v e ex-
p e r i e n c e d t h e suf f er i ng c a u s e d b y a l a c k
of sal t . Th i s mi n e r a l is a mo s t i mp o r t a n t
i t e m i n t h e di et of ma n a n d be a s t . I t is
n o t o n l y a nec es s i t y f or t h e h e a l t h of a n
i ndi vi dua l , b u t is v a l u e d as a s e a s oni ng
f or hi s dai l y me a l s . Be f o r e t h e d a y of
mo d e r n r e f r i ge r a t i on, s al t wa s al s o us e d
as a p r e s e r v e r of f oodst uf f s. Sal t , as a n
I n d i a n mo n e y f or m, wa s p a c k e d i n
" q u i l l s , " b a m b o o t u b e s of v a r y i n g
l e ngt hs a n d si zes. T h e si ze of t h e qui l l
d e t e r mi n e d i t s va l ue .
Ab o u t t h e first c e n t u r y A. D. , sal t wa s
s c a r c e i n t h e R o ma n Emp i r e . Ma n k i n d
h a d n o t ye t f o u n d a wa y t o e x t r a c t i t i n
suffi ci ent l y l a r g e q u a n t i t y f r o m t h e e a r t h
o r f r o m t h e sea. T h e R o ma n s ol di er s of
t h a t t i me we r e of t en p a i d a salarium
sal t mo n e y . F r o m t he Ro ma n . s a l a r i u m,
we get o u r mo d e r n wo r d , s al ar y, a n d " He
is n o t wo r t h hi s s a l t " l i t er al l y me a n s a
ma n d o e s n o t e a r n hi s wa ge s . I n a nc i e nt
Et h i o p i a , s al t wa s al s o u s e d as mo n e y .
I t wa s t h e c u s t o m wh e n me e t i n g s ome-
one , t o offer y o u r mo n e y t o b e l i c ke d as
a si gn of f r i e nds hi p, An d , of c our s e , a
ma n ' s mo n e y s o o n d i s a p p e a r e d if h e h a d
t o o ma n y f r i ends !
12
4
Tobacco was once the legal tender of the
Virginia Colony. First, the actual leaves were
used and later, tobacco warehouse receipts
in convenient amounts. The latter were ac-
ly the first paper money of America.
0
COCO
BEANS
CORTEZ ENTERING ONE
OF MONTEZUMA' S TREASURE
HOUSES
AZTEC COINS
Gold coins were known in the Aztec Empire
of Mexico; Hernando Cortez extracted a
million gold pieces from Montezuma, the
Aztec ruler. Coco beans, however, were the
common currency.
What kind of
money went
"up in smoke"?
T h e f a t e of a n o t h e r c o mmo d i t y mo n e y ,
t o b a c c o , is i nt er es t -
i n g . I n t h e e a r l y
d a y s of Vi r g i n i a ,
t o b a c c o b e c a m e
s uc h a n i mp o r t a n t p r o d u c t t h a t it wa s
a c t ua l l y ma d e l egal mo n e y b y t h e Vi r -
gi ni a Go v e r n me n t . T h a t is, t h e gove r n-
me n t a c c e p t e d t o b a c c o i n p a y me n t of
t a xe s a n d o t h e r fees. Af t e r s ever al ye a r s ,
e v e r y b o d y i n t h e c o u n t r y wa s g r o wi n g
hi s o wn p a t c h of " mo n e y " i n t h e b a c k -
y a r d . I nf l at i on set i n, a n d t o b a c c o l ost
i t s v a l u e as mo n e y , b u t as a c o n s o l a t i o n
p r i z e f or t h e o wn e r , i t st i l l c o u l d b e
s mo k e d .
What was the
Aztec treasure?
H e r n a n d o C o r t e z h a d h e a r d s t o r i e s
a b o u t t h e gol d a n d
si l ver t r e a s u r e of t h e
Az t e c I n d i a n s , a n d
i n 1519, h e s et o u t t o c o n q u e r Me x i c o .
T o get pos s e s s i on of t he s e f a bl e d t r ea-
s ur es wa s suffi ci ent i nc e nt i ve f or t h e
S p a n i a r d s t o r i s k mo n e y a n d me n i n
Ce n t r a l Ame r i c a . Co r t e z s uc c e e de d
wi t h decei t , t r e a c he r y, a n d s up e r i o r we a -
p o n s i n de f e a t i ng t h e Az t e c s a n d t a k i n g
t he i r E mp e r o r , Mo n t e z u ma , p r i s o ne r .
At l ast , h e wa s a bl e t o e nt e r t h e Az t e c
t r e a s u r e s t or e hous e s ! He f o u n d s o me
g o l d a n d si l ver pi eces , a n d s o me pr i ce-
l ess ge ms . Bu t t h e b u l k of Mo n t e z u ma ' s
13
t r e a s ur e wa s i n t h e f o r m of t h o u s a n d s
of c o c o b e a ns , wh i c h t he I n d i a n Em-
p e r o r h a d r e c e i ve d as t r i b ut e f r o m t he
p r o v i nc e s t h a t h e h a d c o n q u e r e d . F o r
t h e Az t e c s , t h e c o c o b e a n wa s mo n e y ,
a n d mo r e v a l u a b l e t h a n gol d a n d si l ver .
T h e b e a n s we r e ve r y c o nv e ni e nt t o
ha ndl e , r el at i vel y d u r a b l e , a n d h a d f ood
va l ue . T h e y we r e so hi ghl y v a l u e d as a
me d i u m of e x c h a n g e t h a t s o me di s-
h o n e s t p e r s o n s e v e n t r i e d t o c ount e r f e i t
t h e m. T h e y wo u l d ma k e i mi t a t i o ns o u t
of cl ay, v a r ni s h t h e m, a n d t r y t o p a s s
t h e m o n f or r e a l c o c o mo n e y . T h e
l ar ges t mo n e y uni t wa s a s a c k of s o me
t we nt y- f our t h o u s a n d b e a n s . I t s ur el y
c o n t a i n e d e n o u g h " s ma l l c h a n g e " f or
t h e t r a n s a c t i o n s of e v e r yda y l i vi ng!
A n e x p l o r e r r e p o r t s t h a t as r e c e nt l y as
t he t hi r t i es , h e p a i d
Wha t ki nd of , . . . .
r
.
hi s c a r r i e r s wi t h t ea-
money can .
be br ewed?
t l l e S d u r m

h l S t r a v d s
i n Ti b e t , Ch i n a , a n d
Mo n g o l i a . Tea- t i l es , wh i c h a r e st i l l u s e d
i n t he s e c o unt r i e s t o d a y , a r e mo n e y i n
t he f o r m of t e a t a bl e t s . T h e a c t ua l t e a
mo n e y , i n s pi t e of i t s we i g ht a n d i nc on-
ve ni e nc e , is st i l l u s e d f or figuring a n d
c o n c l u d i n g bus i ne s s t r a ns a c t i o ns . T e a
mo n e y is i n b r i c k s ma d e of t e a l e a ve s
we i ghi ng t wo a n d one- hal f p o u n d s . F o u r
br i c ks ma k e a p a c k e t . A c a me l mi g h t
cos t t we nt y- t wo p a c k e t s a n d t h r e e
br i c ks .
D o w n t h r o u g h h i s t o r y , f i s h h o o k s ,
h o u n d s , h a w k s ,
g r a s s ma t s , s i l k,
What other useful
things were
money mat er i al ?
b e a v e r
'
a n d C O O n
s ki ns h a v e b e e n
u s e d f or mo n e y . T h e p e o p l e s of Ea s t e r n
E u r o p e u s e d f ur as a me d i u m of ex-
c h a n g e u p unt i l t h e Mi d d l e Ag e s a n d
e ve n t o t he b e g i nni ng of t he s i xt e e nt h
c e nt ur y. I n Ol d Ru s s i a n , t he wo r d ,
kuny, me a n s mo n e y , a n d a l s o me a n s
ma r t e n , a l i t t l e f ur - be a r i ng a n i ma l wi t h
a v a l u a b l e s ki n. I n Fi nni s h, raha, t he
s qui r r e l s ki n, is t he wo r d f or mo n e y .
Mo n e y ma t e r i a l wa s u s e d unt i l t he be-
gi nni ng of t he n i n e t e e n t h c e nt ur y i n
ma n y c ount r i e s , i n a d d i t i o n t o c o i ne d
a n d p r i n t e d mo n e y . Ser vi ces we r e ve r y
of t en p a i d f or i n mo n e y , p l us a c e r t a i n
a mo u n t of wi ne , p o t a t o e s , c or n, or wo o d ,
d e p e n d i n g o n t he v a l u e of t he c o mmo d -
i t y i n t h e speci fi c l oc a t i on. I n Eu r o p e ,
af t er t h e Fi r s t a n d S e c o n d Wo r l d Wa r s ,
wh e n f o o d a n d l u x u r y i t e ms b e c a me ex-
t r e me l y s c ar c e, c i gar et t es , b u t t e r , eggs,
a n d n y l o n s t oc ki ngs r e p l a c e d c ur r e nc y.
T e n c a n d y b a r s a n d a p a c k a g e of ci ga-
r e t t e s b o u g h t a wr i s t wa t c h , a n d a p a i r
of nyl o ns b o u g h t ha i r c ut s f or ever y
me mb e r of a l a r g e f ami l y.
What is
shell money?
We h a v e t a l k e d a b o u t usef ul t hi ngs t h a t
we r e us e d as mo n e y
ma t e r i a l s , b u t t he use-
ful t hi ngs a r e n o t al -
wa y s v a l u e d t h e mo s t . Wh e n p e o p l e i n
a c e r t a i n a r e a h a v e e n o u g h of t h e t hi ngs
t he y ne e d, t he y wa n t p r e t t y t hi ngs a n d
v a l u e t h e m mo r e t h a n t h e us ef ul ones .
I n wa r m c ount r i e s , f or i ns t a nc e , wh e r e
n a t u r e t a k e s c a r e of t he pr i mi t i ve ne e ds
of ma n b y gi vi ng f r ui t i n a b u n d a n c e a n d
o nl y t h e s i mpl e s t c l ot he s a n d s hel t er a r e
n e e d e d , ma n des i r es mo s t t he t hi ngs t h a t
a r e h a r d t o get o r n a me n t s or ma t e r i -
al s f r o m wh i c h o r n a me n t s c a n b e ma d e .
F e a t h e r mo n e y is u s e d b y na t i ve s of cer -
t a i n S o u t h Se a i s l ands . Fe a t h e r s t h a t a r e
14
e xt r e me l y di ffi cul t t o get o r es peci al l y
col or f ul f e a t he r s a r e wo r t h mo r e t h a n
ot her s . On o t he r i s l ands , t h e f e a t he r e d
s ki n of t h e h e a d s of wo o d p e c k e r s is us e d
f or mo n e y , o r wha l e s ' t e e t h o r i vor y or
j a de . O n Ne w Gu i n e a , s h a r k ' s t o o t h
mo n e y , wh i c h t h e " r i c h " wo r e o n s t r i ngs
a r o u n d t hei r ne c ks , wa s us e d. Bu t mo r e
t h a n a n y t h i n g el se, shel l s h a v e b e e n u s e d
f or mo n e y . Of t h e ma n y k i n d s of shel l s
t h a t h a v e s er ved t hi s p u r p o s e , c owr i e
shel l mo n e y h a s h a d t h e wi de s t ci r cul a-
t i on. T h e l i t t l e c owr i e , a n o r n a me n t a l
shel l , s p r e a d as mo n e y f r o m Ch i n a a n d
I n d i a e a s t wa r d t o t h e i s l ands of t h e
Paci f i c Oc e a n , a n d b e c a me a me d i u m of
e x c h a n g e i n ma n y p a r t s of Af r i c a a n d
e ve n t he Ame r i c a s . Co wr i e mo n e y st i l l
c i r c ul at es t o d a y a mo n g t h e Da h o me a n s
o n t h e we s t c oa s t of Af r i c a . T h e onl y
f o r m of mo n e y t h a t e ve r g a i n e d i nt e r na -
t i onal u s a g e wa s t hi s de l i c a t e pea- t o-
wa l n u t si ze s ea shel l t h a t wa s c a r r i e d
a r o u n d t h e wo r l d b y s ai l i ng t r a de r s .
I n s o me c ount r i e s , e ve n wh e n me t a l
coi ns we r e a l r e a dy i n exi s t enc e, c owr i e
shel l s we r e pr e f e r r e d. T h e y we r e c l e a ne r
a n d mo r e p l e a s a n t t o h a n d l e , i mpos s i bl e
t o c ount er f ei t , a n d h a d t h e a d d e d v a l u e
of a r e p u t a t i o n f or s u p e r n a t u r a l qual i -
t i es. Th i s ma d e t h e m i de a l i n s o me re-
gi ons as ma g i c a l c h a r ms a n d a mu l e t s
whi c h, a s wa s s upe r s t i t i ous l y bel i eved,
p r o t e c t e d t he o wn e r f r o m evi l .
What was
wampum?
T h e c o u n t e r p a r t t o t h e c o wr i e of t h e
Ea s t wa s t h e q u a h o g
shel l f o u n d o n t he At l a n -
t i c c oa s t , wh i c h s e r ve d
t h e No r t h Ame r i c a n I n d i a n a s mo n e y .
T h e shel l wa s u s e d e i t he r l oos e, o r i n
st r i ngs. Af t e r b e a d s we r e ma d e f r o m
t he shel l s, t he y we r e s t r ung i n ma n y de-
s i gns o n bel t s , ne c kl a c e s , a n d br a c e l e t s .
Qu a h o g shel l s a n d b e a d s we r e whi t e ,
p ur p l e , or b l a c k a n d t h e d a r k e r t he y
we r e , t h e mo r e v a l u a b l e t he y we r e c on-
s i der ed. Wa mp u m, t h e n a me f or t h e
shel l a n d t he mo n e y , c o me s f r om a n
I n d i a n wo r d , wampumpeag. Wh e n t he
e a r l y s et t l er s c a me t o Ame r i c a , t h e y
s t a r t e d t o us e t h e wa mp u m, n o t onl y i n
t he i r t r a d e wi t h t he I ndi a n s , b u t f or
ma n y t r a n s a c t i o n s a mo n g t he ms e l ve s ,
as wel l . I t i s t o l d t h a t of t en t h e I n d i a n s
t r a d e d w a mp u m f or c o i ne d mo n e y , b u t
n o t t o us e t h e me t a l mo n e y t o b u y
goods . T h e y d e c o r a t e d t hei r s q u a ws
wi t h s t r i ngs of wh i t e ma n ' s coi ns . As
t he shel l s we r e ver y h a r d , it t o o k qui t e
s o me l a b o r t o ma k e t he b e a ds . T h e us e
of wa mp u m as mo n e y s t a r t e d t o det er i -
o r a t e wh e n , i n 1760, an e nt e r pr i s i ng
set t l er s t a r t e d a wa mp u m f a c t or y in
Ne w J e r s e y wh e r e e xpe r t wo r k e r s pr o-
d u c e d t he b e a d s whol e s a l e on a mas s -
p r o d u c t i o n scal e. As us ual , t he a b un-
d a n c e of t he me d i u m of e x c ha ng e , a n d
t he f act t h a t it wa s n o w easi l y avai l -
a bl e de s t r o ye d its v a l ue as mo n e y .
U p t o n o w, we h a v e h e a r d a b o u t t hi ngs
t hat wer e of f er ed
What was unusual , ,,
a n d ge ne r a l l y ac-
c e p t e d as mo n e y
c o mmo d i t i e s
t h a t c o ul d be us e d as f ood, or we r e val -
u e d as t ool s , i mp l e me nt s , or o r n a me n t s .
On e k i n d of mo n e y t h a t do e s n o t a n s we r
a n y of t he s e de s c r i pt i ons wa s t he mo n e y
of Ya p , o n e of t he Ca r o l i n e I s l a nds i n
t h e Paci f i c Oc e a n . Ma d e of l i me s t one ,
Y a p mo n e y l ooks ver y mu c h l i ke a mi l l -
s t o ne wi t h a ho l e i n i t , a n d r a n g e s i n si ze
about the stone
money of Yap?
INDIAN
WAMPUM
t
i.
Bricks of tea, weighing about 2 Vi
pounds, were used in Siberia, Mongo-
lia, and Tibet as money.
Rare feathers and feathers woven
into belts of various length were
used as a medium of exchange.
There is, in the Chase Manhattan
ney Museum in New York, a
ouble-coil band from the Santa
Cruz Islands which measures 27 feet
in length; it is woven from the red
feathers of some 500 tiny honey-
birds. Feather coils were used for
the more important purchases, such
as canoes and wives.
DOG TEETH \
MONEY,
SOLOMON
ISLANDS
The above j Bcj K I Bi cI is also in the Money
Museum in mtwJBork^orpains about 2600 strings
of beads. It was made in the early 19th century
by the Tyal tribe of Formosa. Jackets like the one
shown were used to purchase wives and cattle.
The person who wore the jacket could also tear
off strings of beads and spend them for purchases
of lesser value.
9*
WAMPUM TREATY BELT
F Stone money from the
P island Yap. Size and
color determined the
value.
f r o m a d o u g h n u t t o a wa g o n - wh e e l . T h e
v a l u e of t he s e s t one s wa s n o t i n t h e use-
f ul nes s of t h e ma t e r i a l , i n t he i r or na -
me n t a l v a l ue , o r i n t he i r e a s y h a n d l i n g .
T h e i n h a b i t a n t s of t h e i s l a nd v a l u e d
t he i r pos s e s s i on b e c a u s e i t wa s di ffi cul t
t o get t h e s t one s a n d b e c a u s e t he y at -
t r i b u t e d s u p e r n a t u r a l p o we r s t o t h e m.
T h e p a r t i c u l a r l i me s t o n e f or t h e
mo n e y c o u l d n o t b e f o u n d o n t h e i s l a nd
of Ya p , b u t h a d t o b e q u a r r i e d o n t he
P a l a u I s l a nds mo r e t h a n t h r e e h u n d r e d
mi l es a wa y . T h e h e a v y s t one s h a d t o b e
t r a n s p o r t e d t o Y a p o n r af t s. T h e y h a d
t o b e wo r k e d , wi t h o u t b e i ng b r o k e n ,
i nt o t he i r r o u n d s ha p e . T h e h o l e i n t he
mi ddl e , wh i c h i s u s e d t o c a r r y t he mo n e y
o n a pol e , h a d t o b e dr i l l ed. T h e y h a d
t o b e pol i s he d. Al l t hi s h a d t o b e ac-
c o mp l i s h e d wi t h c r u d e a n d s i mpl e i n-
s t r ume nt s . Ma n y a r af t wa s l os t i n t h e
c r os s i ng of t h e o p e n sea.
T h e chi ef of t h e vi l l age us ua l l y t o o k
t he l ar ges t a n d be s t s t one s a n d p u t t h e m
i n f r ont of hi s h u t as t o k e n s of hi s
p o we r a n d mi g ht , a n d t o p l e a s e t h e
gods . Wh a t r e ma i n e d f r om t h e t r ans -
p o r t wa s u s e d t o b u y al l i es i n c a s e of
fighting. R a n s o m wa s p a i d wi t h t h e
s t ones . I n f act , n o r eal l y i mp o r t a n t
t r a n s a c t i o n t o o k p l a c e wi t h o u t s o me
s t one s c h a n g i n g pos s es s i on. Si nc e it
wa s di ffi cul t t o t r a n s p o r t t he s t one s
f r o m o n e p l a c e t o t h e o t he r , t he y ve r y
of t en s t a ye d wi t h t h e or i gi na l o wn e r . I t
wa s e n o u g h t h a t t h e n e w o wn e r k n e w
" hi s " s t one , a n d e v e r y b o d y el se wa s i n-
f o r me d wh o s e t r e a s u r e i t wa s . T h e b i g
s t ones , wh i c h we r e u s e d onl y f or bi g a n d
i mp o r t a n t t r a ns a c t i o ns , we r e of t en r e-
f e r r e d t o as " me n ' s mo n e y , " whi l e t h e
wo me n u s e d t h e s ma l l e r s t one s o r eas i er
t o c a r r y shel l mo n e y f or t he i r " ma r k e t
t r a n s a c t i o n s . " T h e v a l u e of t h e Y a p
s t one s l ay n o t onl y i n t he i r si ze, b u t i n
t h e c o l o r of t h e s t o n e a n d i t s age, a s
wel l . T h e ol de r t he " whe e l , " t h e mo r e
p o we r i t pos s e s s e d a n d t h e hi g he r wa s
i t s va l ue .
Egyptian weighing metal
and jewelry used as
medium of exchange.
M e t a l s B e c o m e M o n e y
No b o d y r eal l y k n o ws wh o first us e d
me t a l s f or mo n e y . Me t a l s a n s we r i deal l y
t o al l r e q u i r e me n t s we h a v e s ai d a me-
d i u m of e x c h a n g e s h o u l d h a v e . T h e y
gr e a t l y e x c e e d i n c o n v e n i e n c e al l mo n e y
ma t e r i a l s we h a v e di s c us s ed. An i ma l s
n e e d t o b e f ed a n d c a r e d f or . To o l s l os e
s o me of t he i r v a l u e t h r o u g h we a r a n d
t e a r , o r b y b e c o mi n g obs ol e t e . If y o u ex-
a mi n e al l mo n e y ma t e r i a l s we h a v e di s-
c us s e d, y o u wi l l find t h a t t he y a r e
c l ums y me d i a of e x c h a n g e , suffi ci ent f or
p r i mi t i v e c o mmu n i t i e s , b u t h a n d i c a p s
wh e n t r a d e b e c o me s r eal l y c o mp l i c a t e d.
17
Wi t h t h e p a s s a g e of t h e c e nt ur i e s , me t a l s
b e c a m e i n c r e a s -
Wha t kind . ^ p r e f e r r e d
of met al s ,
- o v e r o t h e r c o r n -
bec ame money?
mo di t i e s as me d i a
of e x c ha ng e . I t wa s eas i er t o c a r r y pi ec es
of p r e c i o us me t a l s i n one ' s p o c k e t t h a n
t o h e r d oxe n. Me t a l c o u l d al s o b e di vi -
d e d i nt o s ma l l e r pi ec es ; it l a s t e d l onge r
t h a n ma n y o t h e r mo n e y ma t e r i a l s ; a n d
i t wa s c o mp a r a t i v e l y e a s y t o r e c ogni z e .
T h e p r e c i o u s me t a l s , gol d a n d si l ver ,
we r e n o t t h e onl y me t a l s t h a t we r e r ec-
o g ni z e d as me d i a of e x c h a n g e . Co p p e r ,
br a s s , b r o n z e , a n d i r on, al l b e c a me me-
di a of e x c h a n g e , a me a s u r e of va l ue ,
mo n e y .
At first, me t a l mo n e y wa s i n t h e s h a p e
of l u mp s a n d b a r s , or dus t , o r s o me t i me s
o r n a me n t s l i ke r i ngs o r br a c e l e t s . E a c h
t i me i t wa s us e d i n b u y i n g or sel l i ng,
i t h a d t o b e we i g h e d o r me a s u r e d .
We d o n o t k n o w e xa c t l y wh e r e a n d
wh e n me t a l s we r e
meZsTrli
fim U S C d &S m

n e y
'
. - We k n o w t h a t t h e
used as money?
us e da t e s f a r b a c k
i n hi s t or y, e ve n if i t wa s n o t uni ve r s a l or
excl us i ve. T h e Ol d Te s t a me n t ( Ge n e s i s
2 3 : 1 6 ) t el l s us t h a t " Ab r a h a m we i g h e d
t o E p h r o n . . . f o ur h u n d r e d s hekel s of
si l ver , c u r r e n t mo n e y wi t h t h e me r -
c h a n t . " Th i s wa s t o p a y f or a b u r i a l
p l a c e f or Ab r a h a m' s wi f e, Sa r a h , a b o u t
EARLY MONEY FROM EGYPT, ASIA
MINOR, AND THE LANDS OF THE BIBLE.
t hr e e t h o u s a n d ye a r s a go. T h e s hekel
wa s a n a nc i e nt we i ght uni t us e d par t i c-
ul a r l y by t h e a nc i e nt He b r e ws . As a
mo n e y uni t , it c o u l d b e gol d or si l ver.
Hi s t o r i a n s t el l us t h a t c ub e s of gol d
a n d si l ver , v a l u e d a c c o r d i n g t o t hei r
we i ght , we r e a l s o u s e d i n Eg y p t a n d
Ch i n a as e a r l y as 2 5 0 0 B. C.
I n a nc i e nt Ro me , b e f o r e 3 0 0 B. C. , cop-
p e r wa s u s e d f or
How di d ma k i n g pot s . Th e s e
Roman copper
J i~ o w e r e s o p o p u l a r
money devel op?
r v
w i t h t h e c i t i z e n s
t h a t t he y we r e us e d a s e x c h a n g e f or
o t h e r goods . Th u s , i n t h e n a t u r a l pr oc -
ess by wh i c h a c o mmo d i t y be gi ns t o
f unc t i on as mo n e y , c o p p e r , al s o, b e c a me
a me d i u m of e x c h a n g e . A wa y h a d b e e n
f o u n d t o e x t r a c t t hi s me t a l f r o m t he is-
l a n d of Cy p r u s i n t h e Me d i t e r r a n e a n
Sea. T h e i s l a nd got i t s n a me f r om ky-
prios, t h e Gr e e k wo r d f or c o p p e r . Co p -
p e r wa s t h e first me t a l ext ens i vel y us e d
b y ma n f or ma k i n g t ool s b e c a us e , l i ke
gol d a n d si l ver , i t is of t en f o u n d i n a
p u r e s t a t e i n t h e e a r t h. As i t is a r el a-
t i vel y soft ma t e r i a l , i t c a n b e b e a t e n i nt o
s h a p e wi t h o u t he a t i ng . Th u s , c o p p e r
wa s gr e a t l y v a l u e d as a c o mmo d i t y i n
i t sel f.
Ag a i n , n o b o d y k n o ws wh e n , i ns t e a d
of t he c o p p e r pot s , s t r i ps of c o p p e r ,
c a l l e d oboli i n La t i n , we r e of f er ed as
mo n e y . We d o n o t h a v e e ve n a def i ni t e
PERSIAN GOLD COIN (5TH CEN-
TURY B.C.) SHOWING KING
CYRUS WITH BOW AND ARROW
EGYPTIAN GOLD
RING MONEY, ABOUT 1000 B.C.
DOUBLY MARKED
ELECTRON,
ABOUT 700 B.C.
LYDIAN ELECTRON (ABOUT 560 B.C.)
OF KING CROESUS; WITH HEAD OF
A LION FACING HEAD OF A BULL
i dea of t h e si ze of t he st r i ps, e x c e p t f or
a nc i e nt r e c o r d s me n t i o n i n g t h a t six ob-
oli ma d e a " h a n d f u l . " Ab o u t 3 0 0 B. C. ,
wei ght s of c o p p e r ( a n d s o me t i me s
b r o nz e , a mi x t u r e of c o p p e r a n d t i n )
r e p r e s e nt i ng t h e a c t ua l v a l ue of t he
me t a l at t h a t t i me b e c a me mo n e y . T h e
we i ght s we r e t h e uncia ( o u n c e ) ; t h e
aes, we i ghi ng a b o u t t wel ve o u n c e s ; a n d
t he semi ( h a l f ) , we i g hi ng hal f t he
we i ght of t he aes, or six o unc e s .
I n Ro me , c o p p e r c o n t i n u e d t o b e t h e
mo s t p o p u l a r me d i u m of e x c h a n g e unt i l
t he i s l and of Cy p r u s mi n e d it in s uc h
vas t q u a n t i t y t h a t it b e c a me over - pl ent i -
ful . Co p p e r t he n we n t d o wn i n v a l ue be-
c a us e of t he a b u n d a n t s up p l y in r e l a t i on
t o t he g o o d s a n d s er vi ces a va i l a bl e . T h e
r es ul t wa s t ha t a R o ma n goi ng t o ma r -
ket mi g ht h a v e t o l oa d d o wn hi s d o n k e y
wi t h pi eces of c o p p e r o r b r o n z e in o r de r
t o b u y hi s ne e ds f or a f east da y. Wi t h
t he l oss of t h e v a l ue of c o p p e r , si l ver
a n d gol d b e c a me t he me d i u m of ex-
c ha ng e .
I n A. D. 800, Ch a r l e ma g n e , t h e first Em-
p e r o r of t h e Ho l y
R o m a n E m p i r e ,
d e c r e e d t h a t t h e
b a s i c m o n e t a r y
uni t s ho ul d be o n e
p o u n d of si l ver , di v i de d i nt o t wo hun-
dr e d a n d f or t y s ubdi vi s i ons cal l ed de-
niers af t er t he ol d R o ma n mo n e y uni t ,
How did some
world
currencies
get their names?
denarius. Wh a t is F r a n c e t o d a y wa s
t he n a p a r t of t he Ho l y R o ma n Emp i r e ,
a n d i n t he F r e n c h l a ng ua g e , t h e wo r d
f or mo n e y is argent, f r om t he R o ma n
argentum, me a n i n g si l ver.
Ha v e yo u ever wo n d e r e d wh y t he
Engl i s h, wh o s e uni t s of mo n e y t o d a y a r e
t h e p o u n d , t he shi l l i ng, a n d t he p e nc e ,
wr i t e, f or i ns t a nc e , o n e p o u n d , f our
shi l l i ngs, a n d five p e n c e as 1, 4s h, a n d
5 d ? T h e is a de r i va t i on of L. , t he
R o ma n a b b r e v i a t i o n f or libra, me a n i n g
p o u n d ( s i l v e r ) ; t h e " d " is a n a bbr e vi a -
t i on f or t h e denarius, t he mo n e y uni t
b r o u g h t by R o ma n s ol di er s o c c up yi ng
t he Br i t i s h I sl es.
T h e shi l l i ng, h o we v e r , s e e ms t o h a v e
a di f f er ent g e o g r a p h i c a l or i gi n. I t is
c l a i me d t h a t shi l l i ngs we r e p a r t s of me t a l
r i ngs a n d o r n a me n t s (schellingas) us e d
as a me d i u m of e x c h a n g e by t he Nor s e -
me n , t he or i gi nal i n h a b i t a n t s of wh a t is
Pure uncoined silver in-
gots passed as money
in China (from 1259 to
1933) and other Asian
countries. The ingots in
China were in the forms
of boats or shoes; in
Siam, however, they
were shaped like ca-
noes. The value de-
pended on the weight.
BRONZE SHEKEL,
REVERSE
SILVER SHEKEL,
REVERSE
BRONZE SHEKEL
OBVERSE
SILVER SHEKEL
OBVERSE
Left, bronze shekels, originally
thought to date from 142-135
B.C., just before the Maccabean
uprising, and, right, silver
shekels. Scientists now believe
that both these coins from the
Holy Land date from A.D. 66,
the time of the first revolt of the
Jews against the Romans.
J
t o d a y Sc a ndi na v i a . T h e y h a d al s o t r av-
el ed o v e r t h e s ea a n d vi s i t ed t he Br i t i s h
I sl es.
I
How did metal
coins develop?
We h a v e me n t i o n e d t h a t e a c h t i me a
q u a n t i t y of m e t a l
c h a n g e d h a n d s , i t
h a d t o b e we i g h e d o r
me a s u r e d . Wi t h t h e pr i mi t i ve b a l a n c e s
a n d we i ght s , t hi s wa s n o t t h e f as t es t wa y
t o c o n c l u d e a b a r g a i n . Be s i de s t ha t ,
t he r e we r e a l wa ys p e o p l e wh o t r i ed t o
c he a t b y gi vi ng wr o n g we i ght s . Wi t h t h e
d e v e l o p me n t of t he " c o i n , " wh i c h ma d e
c he a t i ng mo r e di ffi cul t a n d we i ghi ng un-
ne c e s s a r y, t he l ong wa y f r o m b a r t e r t o
mo d e r n mo n e y a c t ua l l y h a d r e a c h e d i t s
l as t p h a s e . T h e i nv e nt i o n of t h e c oi n,
l i ke ma n y o t h e r i mp o r t a n t i nve nt i ons ,
is a t t r i b u t e d t o t he " Fe r t i l e Cr e s c e n t , "
t h e c r e s c e nt - s ha p e d r e g i o n i n As i a
wh i c h is c o ns i de r e d t he c r a dl e of We s t -
e r n ci vi l i zat i on. As e a r l y a s 7 0 0 B. C. ,
t he t r a d i n g p e o p l e s of t h e c o a s t a l re-
gi ons , mo s t l y Gr e e k s , h a d u s e d s mal l
l u mp s of a n al l oy of gol d a n d si l ver f or
mo n e y . Th e s e yel l ow pi ec es of me t a l ,
f o u n d i n t h e r i ver a n d mo u n t a i n s of t he
c o unt r ys i de , we r e c a l l e d electron af t er
EARLY GREEK COINS.
MACEDONIAN SILVER STATER,
BEGINNING OF 5TH CENT, B.C.
t he Gr e e k g o d of t h e s un, He l i os El ec-
t or . I t i s be l i e ve d t h a t a b o u t 7 0 0 B. C. ,
s o me c l ever me r c h a n t s de c i de d t o ma r k
t he gol d b e a n s t h a t c a me i nt o t hei r
h a n d s , af t er h a v i n g we i g he d t h e m a n d
f o u n d t h e we i g ht c o n f o r me d t o specifi-
c a t i on. T h e n t he y wo u l d b e us e d a g a i n
t o b u y o t h e r g o o ds . I n t hi s wa y, t he
me r c h a n t s s a v e d t he ms e l ve s t h e t r o u b l e
of we i g h i n g t h e s a me pi e c e s wh e n t he y
a g a i n c a me i nt o t he i r h a n d s . So o n,
o t h e r me r c h a n t s , t r us t i ng t h e ho ne s t y of
t h e we l l - k no wn me r c h a n t s , a c c e p t e d t h e
ma r k e d pi e c e s at " f a c e v a l u e , " wi t h o u t
c h e c k i n g t h e we i ght .
Wh i l e t he s e ma r k e d e l e c t r ons c a n b e
c o n s i d e r e d t h e first s t e p i n t he devel op-
me n t of mo d e r n c oi ns , t h e first r eal , if
pr i mi t i ve , c oi ns we r e ma d e b y t h e Ki ng s
of Ly d i a a b o u t t h e s a me t i me. T h e Ki n g
of Ly d i a , a n a nc i e nt c o u n t r y i n wh a t is
t o d a y p a r t of Tu r k e y , o wn e d al l t he
gol d a n d si l ver of t he c o u n t r y . He k e p t
hi s t r e a s u r e d me t a l s h i d d e n i n hi s pal -
aces , a n d u s e d t h e e l e c t r ons t o p a y hi s
s ol di er s , ma k e al l i es, b u y g o o ds ,
s t r e n g t h e n hi s p o we r , a n d e nl a r g e hi s
e mp i r e . Fo l l o wi n g t h e e x a mp l e of t he
Gr e e k me r c h a n t s , h e ma r k e d hi s el ec-
SILVER STATER,
ABOUT 600 B.C.
OBVERSE
SILVER DECADRACHM,
SYRACUSE, 4TH CENT. B.C.
SILVER TETRADRACHM,
ATHENS, ABOUT 470 B.C.
OBVERSE REVERSE
OBVERSE
REVERSE
SILVER STATER,
CORINTH, ABOUT 300 B.C.
TETRADRACHA
WITH HEAD OF
ALEXANDER THE
GREAT, THRACE,
ABOUT 290 B.C.
REVERSE
EARLY ROMAN COINS
DENARIUS SHOWING
ROMAN CITIZEN VOTING
A BRONZE AS WITH HEAD OF
GOD JANUS ORIGINALLY WEIGHED
12 OUNCES (336-280 B.C.)
SILVER DENARIUS
2ND CENT. B.C.
AN AS (NERO) SHOWING
VICTORY FLYING
(A.D. 54-68)
DENARIUS WITH
HEAD OF TIBERIUS
(A.D. 14-37)
BRONZE SESTERCE
WITH COLLOSEUM
(A.D. 1ST CENT.)
t r o ns wi t h hi s c o a t of a r ms a h e a d of
a l i on wi t h o p e n mo u t h o n b o t h si des
of t he pi e c e of me t a l . Fi r s t , t h e ci t y
s t at es of Gr e e c e i n t h e c o a s t a l r e gi ons of
As i a Mi n o r ; t he n, Gr e e c e p r o p e r , fol -
l o we d t h e Ki ng ' s e x a mp l e .
T h e s e e a r l y c oi ns we r e st i l l v e r y mu c h
u n l i k e o u r c oi ns t o d a y . T h e y we r e n o t
evenl y f o r me d, r o u n d , a n d flat, b u t un-
even, oval , o r r e c t a n g u l a r , a n d n o t o n e
is i de nt i c a l t o t h e o t h e r . Bu t t h e g u a r a n -
t e e f or t he i r we i g h t a n d c o n t e n t s of pr e-
c i ous me t a l , wh i c h t he y r e c e i ve d wi t h
t he seal of t h e Ki n g or t h e g o v e r n me n t ,
ma d e t h e m t h e a nc e s t o r s of mo d e r n
mo n e y .
Wi t h t h e i nv e nt i o n of t h e c oi n, t he
r i ght t o ma k e mo n e y c h a n g e d f r o m t he
i ndi vi dua l t o t h e g o v e r n me n t , b e i t ki ng,
ci t y, o r s t at e, a n d t h e r i g ht t o ma k e
mo n e y b e c a me , a n d st i l l is, a t o k e n of
s over ei gnt y.
I t is i nt e r e s t i ng t o n o t e t h a t t h e l as t
Ki n g of Ly d i a wa s Cr o e s u s . H e wa s t h e
first t o h a v e c oi ns ma d e of g o l d a n d sil-
v e r a t t h e s a me t i me . H e c o n q u e r e d t h e
Gr e e k ci t y s t a t e s o n t h e c o a s t of t h e
ROMAN COIN
STRUCK IN BRITAIN
(A.D. 293-296)
w m f o \
Early coining: The bronze die for obverse side (the
side which bears the principal design) was set in an
anvil and the die for the reverse side (the opposite
side) was set in a punch. One person would hold, with
tongs, a heated silver disk between anvil and punch;
another, holding the punch in one hand, would strike
it with a hammer and so force the design into the
silver.
Ae g e a n Sea, t o o k ove r t h e r i ght of ma k -
i ng coi ns , a n d t a x e d t h e Gr e e k s so
hi ghl y t h a t h e b e c a me o n e of t h e richest
me n of hi s t i me . T o d a y , hi s n a me is st i l l
a s y n o n y m f or we a l t h.
Cr o e s u s ' we a l t h c o u l d n o t p r e v e n t t he
e n d of Ly d i a . I n
5 4 6 B. C. h e l os t hi s
l i fe a n d hi s c o u n t r y
i n a b a t t l e wi t h Cy-
r us I , Ki n g of Pe r s i a , wh o t o o k o v e r t h e
r i g ht t o ma k e coi ns . I n Pe r s i a , u p t o t h e
Whose portrait
was first
used on a coin?
21
This 1 O-drachm Greek silver piece is generally con-
sidered one of the world's most beautiful coins. It
was struck about 412 B.C. in Syracuse to commemo-
rate the victory of the forces of Syracuse over the
invaders from Athens.
t i me of t h e wa r wi t h Ly d i a , onl y l u mp s
of g o l d we r e us e d as mo n e y . Cy r u s
a d o p t e d Cr o e s u s ' me t h o d of ma k i n g t h e
Ly d i a n c oi n. I n s t e a d of Cr o e s u s ' c o a t of
a r ms o n b o t h si des, Cy r u s p u t o n t he
c oi ns a p i c t ur e of hi ms el f wi t h b o w a n d
a r r o w as a s ymb o l of hi s mi g h t a n d
s t r e ngt h.
T h e gol d a n d si l ver of Ly d i a ma d e
t h e e mp i r e of Pe r s i a , b u t it c o u l d n o t
p r e v e n t i t s downf a l l . On t he c o n t r a r y ,
it mi g h t h a v e h a s t e n e d i t . Al e x a n d e r t he
Gr e a t , i n 3 3 4 B. C. , set o u t t o c o n q u e r
Pe r s i a . T h e wa r l as t ed f or f our ye a r s ,
b u t he finally de f e a t e d Pe r s i a a n d es-
t a bl i s he d hi s o wn e mp i r e , r e a c h i n g f r om
t he Ad r i a t i c Sea t o t he Ni l e . On l y t he
mo n e y he c o i ne d or h a d ma d e i n t we nt y
a u t h o r i z e d pl a c e s p r o v i d e d hi s e mp i r e
wi t h c ur r e nc y.
We h a v e s ai d t h a t us i ng c e r t a i n we i ght s
of me t a l as mo n e y
i n v i t e d c h e a t i n g
b y gi vi ng wr o n g
w e i g h t s . N o
s o o ne r h a d c oi ns b e e n i nve nt e d, t h a n
di s ho ne s t p e o p l e f o u n d a wa y t o r e p l a c e
t he c h e a t i n g i n we i ght t he y c ount e r -
Did the invention
of coins prevent
cheating?
f ei t ed t he coi ns . Af t e r t r us t wa s es t ab-
l i s hed i n a pi e c e of me t a l wi t h a des i gn
o n b o t h si des, t he s e p e o p l e fal si fi ed t he
des i gn a n d p u t it o n i nf er i or me t a l .
Le a d , f or i ns t a nc e , wa s mu c h c h e a p e r
t h a n si l ver . A f or ger c o ul d get a gr e a t
de a l of l e a d f or l i t t l e mo n e y , he c oul d
ma k e c oi ns o ut of l e a d t h a t l o o k e d l i ke
t he si l ver ones , a n d he us e d t he c ount e r -
feit c oi ns t o get r eal mo n e y or goods .
Ot h e r p e o p l e c h e a t e d b y s c r a p i ng me t a l
f r om t h e r i m of t he coi ns . T h e c oi n di d
no t l ook ve r y di f f er ent t h a n be f or e a n d
t he c h a n g e wa s no t easi l y de t e c t e d. To -
da y, t h e r a i s e d a n d mi l l e d e dge s of o u r
c oi ns ma k e s c r a pi ng wi t h o u t be i ng de-
t e c t e d i mpos s i bl e . S o me c ount e r f e i t e r s
dr i l l ed hol e s i n t he coi ns , r e mo v e d t he
me t a l f r om t he i ns i de, a n d left onl y a
shel l of g o o d me t a l , wh i c h t he y t he n
filled a g a i n wi t h i nf er i or me t a l s .
Di s h o n e s t p e r s o ns , h o we v e r , we r e n o t
t h e onl y o n e s wh o c h e a t e d t h e h o n e s t
ma n of hi s mo n e y . Go v e r n me n t s con-
s t a nt l y n e e d e d mo n e y t o c o n d u c t wa r s ,
p a y debt s , o r t o k e e p t h e r ul i ng mo n -
a r c hs i n l uxur y. On e of t he ear l i est
k n o wn cas es of a g o v e r n me n t ' s c he a t i ng
wa s in R o me i n t h e first c e nt ur y B. C.
T h e ma i n mi n t at t he t i me wa s i n t he
t e mp l e of t he g o dde s s J u n o , t he wi f e of
t he hi ghe s t R o ma n dei t y, J up i t e r . She
Silver denarius from 1st century B.C. shows the head
of the goddess Juno on the obverse side and her
temple in Rome on the reverse side.
22
wa s t he g o dde s s p r e s i di ng ove r ma r r i a g e
a n d wo me n . She h a d t h e b y n a me Mo -
ne t a , wh i c h me a n s t h e advi s er , t h e c oun-
sel or . I t i s f r o m t hi s J u n o Mo n e t a t h a t
o u r wo r d s , mo n e y , mo n e t a r y , mi n t , t he
F r e n c h wo r d , monnaie ( wh i c h me a n s
s mal l c h a n g e ) , a n d e q u i v a l e n t wo r d s i n
ma n y o t h e r l a n g u a g e s a r e de r i ve d. If
J u n o c o u n s e l e d t o a n y t h i n g , i t wa s n o t
h o n e s t y i n ma k i n g c oi ns ! T h e si l ver
d e n a r i u s wa s s u p p o s e d t o c ons i s t of gen-
u i n e si l ver wi t h t h e h e a d of J u n o o n o n e
s i de a n d t h e t e mp l e o n t h e o t he r . Ac t u -
al l y, i t wa s c o i ne d i n c o p p e r a n d cov-
e r e d wi t h t hi n s t r i ps of si l ver , wh i c h
we r e s t a mp e d wi t h t h e des i gns . Wh e n
t he y we r e f r eshl y mi n t e d , n o b o d y no-
t i c e d t h e di f f er ence, b u t af t er a t i me , t h e
si l ver wo r e off, a n d t h e c o p p e r s h o we d
t h r o u g h . Wh e n t hi s p r o c e d u r e b e c a me
k n o wn , t he n e i g h b o r i n g t r i be s r e f us e d
t o a c c e p t t he s e c oi ns a n d wo u l d t r a d e
onl y wi t h o l de r c oi ns wh i c h h a d a di ffer-
e nt des i gn, a n d wh i c h t he y we r e c on-
vi nc e d h a d t h e p r o p e r c o n t e n t of si l ver .
Wh a t t he y di d n o t k n o w wa s t h a t t h e
R o ma n c oi ne r s we r e s ki l l ed e n o u g h t o
p u t t h e ol d de s i gn o n ne wl y ma d e coi ns ,
wh i c h we r e s i l ver - pl at ed c o p p e r a n d n o t
p u r e si l ver , as s u p p o s e d . T h e p r a c t i c e of
t h e R o ma n s wa s i mi t a t e d f or c e nt ur i e s
al l ove r t he wo r l d.
CHARLEMAGNE' S SILVER DENIER,
A.D. 8TH CENTURY
Wh e n t h e Ho l y R o ma n E mp i r e l ost i t s
mi g h t a n d d i s i n t e -
What is t he . , . .
g r a t e d i n t o m a n y
origin of t he , . ,
wor d " dol l ar " ?
s m a 1 1 a n d
^ p e n -
d e n t s t a t e s i n E u -
r o p e , t h e r ul e r s of t he s e s t at es t r i e d t o
get r e v e n u e a n d f a me by c r e a t i ng t he i r
o wn coi ns . Mo n e t a r y c onf us i on a n d in-
s t abi l i t y mo u n t e d as t h e c o n t e n t s of
p r e c i o us me t a l s va r i e d f r om c o u n t r y t o
c o u n t r y . S o me g o v e r n me n t s d e ma n d e d
t h a t f or e i gn c oi ns h a d t o b e e x c h a n g e d
f or t he i r o wn mo n e y wh e n e nt e r i ng t hei r
c o u n t r y , a n d t he official, or unof f i ci al ,
mo n e y - c h a n g e r s a g a i n h a d a c h a n c e t o
c h e a t t h e me r c h a n t a n d l i t t l e ma n .
On e of t he s e ne wl y c r e a t e d coi ns ,
h o we v e r , exc el l ed i n des i gn a n d st abi l -
i t y of me t a l c o n t e n t a n d c o ns e q ue nt l y
e a r n e d t h e t r us t of t he pe opl e . Th i s wa s
a si l ver pi e c e first c o i n e d f or t he Co u n t s
of Sc hl i c k ear l y i n t h e s i xt eent h c e n t u r y
a n d l at er f or Ge r ma n a n d Au s t r i a n
k i ng s a n d e mp e r o r s . I t wa s c a l l e d
Joachimsthaler af t er J o a c h i ms t h a l , t he
p l a c e i n Bo h e mi a wh e r e t he si l ver wa s
mi n e d a n d t h e mi n t s t ood. As t he n a me
wa s t o o l ong, it s oon b e c a me s ho r t e ne d
t o Thaler, a n d as s uc h, it s t a r t e d i t s
t r a ve l s t h r o u g h Eu r o p e , wel l r e c e i ve d
wh e r e v e r i t a p p e a r e d . I t s n a me c h a n g e d
p ho ne t i c a l l y a c c o r d i n g t o t h e l a n g u a g e
GOLD DUCATO DOPPIO,
MILANO, ITALY, 1481
SILVER PENNY OF ED-
WARD THE CONFESSOR
(A.D. 1042-1066)
PAPAL GOLD COIN,
POPE CLEMENT VIII,
16TH CENTURY
23
of t h e c o u n t r y . Wh e n t h e Ge r ma n Re i c h
a u t h o r i z e d t h e c oi na ge , t h e y we r e c al l ed
Reichsthaler i n c o unt r i e s wh e r e Ge r -
ma n wa s s p o k e n. T h e y b e c a me rigsdaler
i n Sc a ndi na v i a , rijksdaalder i n Ho l l a n d ,
talar i n P o l a n d , a n d i n t h e l a t e 18t h cen-
t ur y, dol l a r i n Ame r i c a . (Thaler taler
daler dollar.)
What are
"two bi t s" and
" f our bi t s"?
JOACHIMSTHALER (FIRST MINTED
IN 1525 IN BOHEMIA)
An o t h e r c o i n t h a t wa s ge ne r a l l y ac-
c e p t e d o u t s i d e i t s ac-
t u a l pol i t i c a l d o ma i n
w a s t h e S p a n i s h
mi l l e d " p i e c e of
e i ght , " s o c a l l e d b e c a u s e t h e figure ei ght ,
r e p r e s e nt i ng i t s wo r t h of ei ght reals wa s
s t a mp e d o n i t . Th i s c oi n, b r o u g h t i nt o
t h e Sp a ni s h c ol oni e s i n t he Ame r i c a s ,
b e c a me t h e p r i nc i p a l c oi n f or t h e e a r l y
s et t l er s a n d wa s k n o wn as t h e Sp a n i s h
SPANISH MILLED DOLLAR
(PIECE OF EIGHT)
dol l a r . As mo n e y f or c h a n g e wa s s c a r c e
i n t h e s e v e nt e e nt h c e nt ur y, s o me i ngeni -
o u s s et t l er c u t t h e Sp a n i s h dol l a r i n hal f
a n d t h e n i n q u a r t e r s . As t h e wh o l e dol -
l a r wa s wo r t h ei ght reals, hal f of i t wa s
wo r t h " f our bi t s " o r f o ur s ma l l pi eces
( 5 0 ^ t o d a y ) , a n d a q u a r t e r of t he c oi n
wa s wo r t h " t wo b i t s " ( 2 5 ^ t o d a y ) .
Cu t t i n g mo n e y t o ma k e c h a n g e wa s
n o t a n excl us i vel y Ame r i c a n i nve nt i on.
I t i s be l i e ve d t h a t i t s t a r t e d i n En g l a n d
d u r i n g t h e Mi d d l e Ag e s . Pe n n i e s cr e-
a t e d i n t h e e a r l y e l e v e nt h c e n t u r y h a d a
c r os s o n t h e r e v e r s e s i de of t h e c oi n. I t
wa s e a s y t o c u t a l o n g t h e h o r i z o n t a l a r m
of t h e c r os s a n d ma k e t wo c oi ns o u t of
t h e one . If s ma l l e r c h a n g e wa s ne e de d,
o n e c o u l d c ut o n c e mo r e t h r o u g h t h e
ve r t i c a l a r m a n d ma k e f o ur pi ec es o u t of
t h e or i gi na l c oi n. I t is be l i e ve d t h a t t hi s
wa s h o w t h e Br i t i s h h a ' p e n n y c a me i nt o
exi s t enc e. I t wa s o n c e r e a l l y hal f a
p e n n y , a n d t h e f a r t hi ngs we r e o n c e
r e a l l y " f o ur t hi ng s , " o n e - q u a r t e r of a
p e n n y .
As y o u h a v e r e a d , t h e e a r l y s et t l er s of
t h e Un i t e d St a t e s us e d
What was . i j
n a i l s , g u n p o w d e r ,
t he pi ne t ree
shi l l i ng?
f u r s
'
b u l l e t s
> i s h -
h o o k s , a n d t o b a c c o
f or t r a d e a mo n g t he ms e l ve s . T h e y us e d
w a mp u m f or t he i r t r a d e wi t h t h e I ndi -
ans . If t h e y c o u l d get a ny, t he y al s o us e d
Sp a n i s h do l l a r s a n d En g l i s h shi l l i ngs,
wh i c h we r e c o i n e d i n E n g l a n d b u t we r e
t h e offi ci al mo n e y of t h e Co l o ni e s . F r o m
1 6 5 2 unt i l 1672, t h e Co l o n y of Ma s s a -
c hus e t t s mi n t e d i t s o wn c oi ns , a mo n g
t h e m t h e f a mo u s p i ne t r e e shi l l i ng,
wh i c h wa s v a l u e d at a b o u t t hr e e - qua r -
t e r s of t h e v a l u e of t h e En g l i s h shi l l i ng,
COINS OF EARLY AMERICA
PINE TREE SHILLING,
1652
NEW CONSTELLATION CENT,
1783
OAK TREE
SHILLING,
1652
as i t c o n t a i n e d a s ma l l e r a mo u n t of sil-
ver . J o h n Hul l , a gol d a n d s i l ver s mi t h
i n t he Ma s s a c h u s e t t s Ba y c o l o ny, wa s
s el ec t ed i n 1 6 5 2 b y t h e Ge n e r a l C o u r t
t o ma n a g e t h e ne wl y e s t a bl i s he d co-
l oni a l mi n t . Wi t h hi s p a r t n e r , Ro b e r t
Sa n d e r s o n , h e c o i n e d c r u d e o a k , wi l -
l ow, a n d p i n e t r e e shi l l i ngs i n a d d i t i o n
t o t wo- , t hr ee- , a n d s i x- pence pi eces .
How has U.S.
coinage changed?
T h e first c oi ns of t h e Un i t e d St a t e s we r e
a u t h o r i z e d b y
Co n g r e s s i n a n a c t
of Ap r i l 2, 1 7 9 2,
wh i c h p r o v i d e d f or t h e e s t a b l i s hme nt
of t he mi n t , t h e p l a c e wh e r e me t a l
mo n e y is p r o d u c e d . Th i s a c t al s o di-
r e c t e d t h e i s s ua nc e of t h e f ol l owi ng
c oi ns :
Go l d : Ea g l e s ( e a c h of t h e v a l u e of
t e n uni t s o r d o l l a r s ) , hal f - eagl es ,
q ua r t e r - e a g l e s ;
/
SOU, 1721, 1767.
FRANCE MINTED THESE PIECES
FOR USE IN CANADA AND
LOUISIANA TERRITORY
EXCELSIOR CENT, 1787,
DESIGNED FOR N. Y. STATE
$50 gold coin, privately minted in 1851 and called
the "California Slug."
Si l ver : Do l l a r s , hal f dol l ar s , q ua r t e r -
dol l ar s , di me s a n d hal f - di mes ;
Co p p e r : Ce n t s a n d hal f - cent s .
Ma n y c h a n g e s i n t h e l a ws g o v e r ni ng
c o i na g e i n t h e Un i t e d St at es , a n d i n t he
c oi ns t he ms e l ve s , h a v e b e e n ma d e s i nce
t he or i gi na l a c t of 1792. Ha l f - di me s
a n d hal f - cent s n o l o ng e r a r e i s s ued. At
v a r i o u s t i mes , c oi ns i n t h e 3- cent d e n o m-
i na t i o n h a v e b e e n i s s ue d; t he y we r e first
a u t h o r i z e d i n 1851. A 20- c e nt pi e c e wa s
c o i n e d f or a t i me b e g i nni ng i n 1875. A
2- c ent pi e c e wa s c o i n e d f r o m 1 8 6 4 t o
1873. T h e 5- cent c oi n wa s i n t r o d u c e d
i n 1866. Go l d c oi ns a r e n o l onge r
mi n t e d i n t h e Un i t e d St at es .
25
The Fugio penny of
1787 was the first
coin issued by the
U.S.A. It carried the
inscription "Mind Your Business," a phrase ascribed
to Benjamin Franklin.
On the suggestion of
the Rev. Mr. Wat-
kinson of Pennsyl-
vania in 1861, Sal-
mon P. Chase, the
Secretary of the
Treasury in Lincoln's
Cabinet, ordered the director of the mint in Phila-
delphia to conceive a motto for our national coins to
show the trust of the American people in God. The
familiar form of the motto "In God We Trust" first
appeared in 1864 on a 2-cent piece. The wording
had been proposed by Chase himself. The use of
the motto was interrupted and it did not appear on
all coins of all series until decreed by law on July
11, 1955.
NEW JERSEY CENT,
REVERSE ^he legend "E Pluribus Unum" which
means "Out of many, one" first appeared
on the New Jersey cents minted from
1786-88. Ever since 1864, all U.S. coins
have carried this Latin inscription. By
placing this reminder on coins, Congress
emphasized the need for the cooperative
effort of all citizens. It also stressed that
the United States was formed of many nationalities
with different political and social groups, all working
together to build one great nation.
T h e Un i t e d St a t e s c oi ns n o w i n ci r cu-
l a t i on a r e t h e si l ver dol l a r ; o t h e r si l ver
c oi ns i n d e n o mi n a t i o n of 5 0 c e nt s ( ha l f
d o l l a r ) ; 2 5 c e nt s ( q u a r t e r - d o l l a r ) ; 10
c e nt s ( d i me ) ; a n d mi n o r c oi ns i n de-
n o mi n a t i o n s of 5 c e nt s ( n i c k e l ) , a n d 1
c e nt ( b r o n z e ) . N o si l ver dol l a r s h a v e
b e e n c o i n e d s i nc e 1935. Go l d c oi ns a r e
n o l o ng e r p r o d u c e d t o b e us e d as a me-
d i u m of e x c h a n g e i n t hi s c o u n t r y .
I n o u r mo d e r n e c o n o my , t he c oi n as a
me d i u m of e x c h a n g e o r as a me a s u r e of
v a l ue h a s l os t i t s me a n i n g . T o d a y , al l
ove r t h e wo r l d, a c oi n is i mp o r t a n t onl y
t o ma k e c h a n g e .
How are U.S.
coins made?
Ou r si l ver c oi ns a r e ma d e f r om p u r e
si l ver a l l oye d ( mi x e d )
wi t h c o p p e r a t t he
r a t i o of o n e h u n d r e d
p a r t s c o p p e r a n d ni ne h u n d r e d p a r t s sil-
ver . Si l ver b y i t sel f is t o o soft f or coi ns ,
a n d mu s t b e mi x e d wi t h s o me o t he r
me t a l t o we a r wel l . T h e Un i t e d St at es
5- cent pi e c e is ma d e f r o m a n al l oy of
7 5 % c o p p e r a n d 2 5 % ni ckel , a n d t he
b r o n z e c e nt is ma d e f r o m a n al l oy of
9 5 % c o p p e r a n d 5 % zi nc a n d t i n.
Wh e n t h e mi x t u r e s a r e p r o p e r l y bal -
a n c e d , t h e me t a l s t h e n g o t o t he me l t i ng
f ur na c e s wh e r e t he y a r e b r o u g h t t o a
boi l i ng l i qui d. Af t e r t ha t , t h e me t a l s a r e
p o u r e d i nt o mo l d s , a l l o we d t o h a r d e n ,
a n d t h e n r ol l e d i nt o t hi n s t r i ps i n t he
r ol l i ng mi l l s. Th i s t h i n n i n g p r o c e d u r e
is r e p e a t e d unt i l t h e s t r i ps h a v e b e e n
flattened d o wn t o t h e p r o p e r t hi c kne s s
f or t he c oi n i n t e n d e d .
F r o m t he s e s t r i ps , p l a nc he t s , or
Early U.S.A. coins, collector's
items, among which the five-
dollar gold piece is one of the
most valuable because only
three are known to exist today.
HALF-CENT, 1793
OBVERSE LARGE CENT, 1796,
OBVERSE
HALF-DIME, 1793,
REVERSE
THREE-CENT (SILVER),
1851-1873, OBVERSE
26
bl a nks , a r e c ut o n a pr es s . Af t e r t he
bl a nks a r e p u n c h e d o u t of t h e st r i ps,
t hey a r e f ed t h r o u g h a f u r n a c e a ga i n.
Th i s s of t ens t h e m f or t he s t a mp i n g ma -
chi nes . T h e b l a n k pi ec es a r e n e x t p l a c e d
i n t he t u mb l i n g b a r r e l s wh e r e t he y a r e
t u mb l e d i n a c he mi c a l s ol ut i on t o pol i s h
t h e m a n d t o t a k e off t h e r o u g h edges .
N o w t he b l a n k di s ks a r e p u t t h r o u g h
t h e mi l l i ng, or " u p s e t t i n g , " ma c hi ne s .
He r e t he e dge s a r e r ol l e d b a c k , o r " up-
s et , " t o k e e p t h e m f r o m we a r i n g o u t t o o
qui c kl y. T h e b l a n k s a r e n e x t t a k e n t o
a n o t h e r r o o m f or i ns pe c t i on. T h o s e t h a t
a r e f o u n d t o b e def ect i ve a r e r e mo v e d
f r o m t h e ot he r s , a n d a r e r e - me l t e d. T h e
g o o d b l a n k s a r e t h e n s t a mp e d o n b o t h
si des wi t h di es u n d e r a p r e s s ur e of o n e
h u n d r e d t o ns a s q u a r e i nc h. T h e edges ,
i n t he s a me pr oc e s s , a r e r o u g h e n e d , or
r e e de d, t o p r e v e n t di s hone s t p e o p l e
f r om c hi p p i ng off s o me of t he si l ver
f r om t he coi ns .
Fi na l l y, t he c oi ns a r e c o u n t e d a ut o-
ma t i c a l l y b y ma c h i n e , ver y r a pi dl y. At
t h e s a me t i me , t h e s hi ny pi ec es a r e
p o u r e d i nt o ba gs . I n t he c a s e of al l
coi ns , t h e b a g s a r e i mme d i a t e l y s eal ed,
a n d t h e n de l i ve r e d t o h u g e va ul t s . F r o m
he r e , t he c oi ns a r e di s t r i but e d t o b a n k s
i n s uc h a mo u n t s as t he bus i ne s s of t he
c o u n t r y ma y r e qui r e .
P a p e r M o n e y
We h a v e s een h o w c oi ns s e r ve d f or a
l ong t i me q ui t e s at i s f act or i l y as a me-
d i u m of e x c h a n g e a n d h o w t h e e xi s t e nc e
of t he c oi ns ma d e t r a d e eas i er . As t r a d e
b e c a me eas i er , p e o p l e t r a d e d mo r e
wi t h e a c h o t h e r a n d wi t h p e o p l e i n dif-
f er ent ci t i es a n d e ve n c ount r i e s . Hu g e
s ums of mo n e y c h a n g e d h a n d s a n d h a d
t o b e c a r r i e d o r s ent f r o m o n e p l a c e t o
a n o t h e r . I t b e c a me i nc r e a s i ngl y c um-
b e r s o me t o t r a ns f e r l a r ge q ua nt i t i e s of
coi ns , a n d t h e r e wa s a l wa ys t h e d a n g e r
of l oss o r r o b b e r y .
Money does not grow
on trees, but there were
"money trees" in many
countries, especially in
Asia. Japan, the East
Indies, Malacca, and
others had them. While
modern coins are
usually die-cut, the
"trees" were cast and
the coins broken off be-
fore being put in circu-
lation.
RIGHT, SILVER DOL-
LAR, 1804, OBVERSE.
A RARITY, AS ONLY t
A DOZEN OR SO ARE \
KNOWN.
THREE-CENT (NICKEL),
REVERSE, 1865-1889
HALF-EAGLE
($5 GOLD), 1822
27
Clay tablet from the 25th century
B.C., an early Babylonian "due
bill," a written acknowledgment of
indebtedness.
Oriental bronze token
from 13th century A.D.
Paper money in the past was usually a simple symbol
of worth. Like the Babylonian clay tablet and the
Oriental bronze token, it was a statement (on paper)
that the acknowledgement of indebtedness or the
promise of payment was backed up by the fact that
a standard commodity of recognized value was safely
stored somewhere.
P e o p l e s t a r t e d t o us e p a p e r n o t e s i n-
s t e a d of me t a l coi ns . I n s t e a d of s e ndi ng
me t a l t o t h e sel l er of s o me me r c h a n d i s e
i n a n o t h e r ci t y, a b u y e r wo u l d g o t o t h e
b a n k i n hi s o wn ci t y, del i ver t h e me t a l
mo n e y t o t h e b a n k , a n d r e c e i ve a " b a n k
n o t e " t h a t s t a t e d t h a t t h e mo n e y wa s
r e c e i ve d b y t h e b a n k a n d wa s b e i n g h e l d
f or t h e h o l d e r of t h e not e . T h a t b a n k
n o t e wa s as g o o d as c oi ns a n d t h e b u y e r
c o u l d s e nd i t t o t h e sel l er , wh o mi g h t
gi ve it t o s o me b o d y el se as p a y me n t .
Wh o e v e r h a d t h e n o t e k n e w h e c o u l d
a l wa ys get t h e gol d o r c oi ns f or i t o n
d e ma n d f r o m t h e b a n k wh e r e i t wa s
or i gi nal l y de pos i t e d. Mo r e a n d mo r e
no t e s of t hi s k i n d we r e u s e d b y t r a de r s .
T h e p a p e r mo n e y we us e t o d a y s er ves
ba s i c a l l y t h e s a me p u r p o s e . T o d a y ,
s uc h no t e s a r e n o t i s s ued b y b a n k s .
Cr e d i t me a n s ge t t i ng s o me t h i n g of v a l u e
f or a p r o mi s e t o p a y f or it
l a t e r . T h e wo r d " c r e di t "
c o me s f r o m t h e La t i n cre-
dere wh i c h me a n s " t o be l i e ve " o r " t o
What is
credit?
t r us t . " Wh e n a p e r s o n b u y s s o me t h i n g
f or wh i c h h e is t o p a y l a t e r , h e is s ai d t o
h a v e r e c e i ve d c r e di t b e c a u s e t h e sel l er
bel i eves t h a t t h e b u y e r c a n b e t r us t e d t o
p a y wh a t h e o we s a t a f ut ur e da t e .
Wh e n we b o r r o w a c u p of s uga r f r om
t h e l a d y n e x t d o o r , s he is e x t e ndi ng
c r e di t t o us. Al s o , wh e n we b o r r o w
mo n e y f r o m a b a n k , t h a t b a n k is gi vi ng
us c r edi t . Cr e d i t ma y , t he r e f or e , b e re-
c ei ved i n mo n e y , o r o t h e r va l ua bl e s ,
i nc l udi ng g o o d s o r ser vi ces.
A n o t e wi t h t h e p r o mi s e t o p a y t a k e s
t h e p l a c e of mo n e y a t t h e mo me n t . T h e
us e of p a p e r mo n e y b e g a n mu c h t he
s a me wa y .
T h e Ch i n e s e we r e us i ng p a p e r mo n e y
w h e n M a r c o
Wha t is t he
p o l a f a m o u s
oldest paper
T
.. .
, , I t a l i a n t r a de r ,
money we know of? '
v i s i t e d t h e i r
c o u n t r y i n t h e t h i r t e e n t h c e nt ur y. Ma r c o
wa s p e r s u a d e d t o r e ma i n i n t he s er vi ce
of Ku b l a i Kh a n , t h e r ul e r of t h a t di s t a nt
l a nd, wh i c h wa s t h e n l ar gel y u n k n o wn
28
t o Eu r o p e a n s . H e t r a v e l e d ext ens i vel y
t h r o u g h o u t t h e Ea s t , a n d r e t u r n e d a t
l ast t o hi s o wn c o u n t r y wi t h ma n y s t or i es
of t h e wo n d e r s of t h e Or i e n t . As ear l y
as A. D. 1273, a c c o r d i n g t o Ma r c o
Po l o , t h e Ch i n e s e E mp e r o r i s s ued no t e s
p r i n t e d o n mu l b e r r y p a p e r . E a c h wa s
s t a mp e d wi t h t h e r e d s eal of Ku b l a i ,
a n d s i gned b y hi s t r e a s ur e r s .
T h e ol de s t p a p e r mo n e y of wh i c h a
s p e c i me n i s k n o wn t o exi st is t he
" Kwa n " n o t e first i s s ued i n Ch i n a i n
A. D. 1368. I t wa s ei ght a n d one- hal f
b y t hi r t e e n a n d one- hal f i nc hes , or
a b o u t as l a r g e as a p a g e of t hi s b o o k .
M a r c o h a d e a r l i e r e x p r e s s e d h i s
a ma z e me n t u p o n di s c ove r i ng t h a t t he s e
p e o p l e h a d p a p e r mo n e y . " Wh e r e a s , " h e
s ai d, " o u r a l c he mi s t s d r e a me d of t ur n-
i ng c h e a p me t a l i nt o gol d, t h e Ch i n e s e
E mp e r o r h a d f o u n d a b e t t e r wa y b y
me r e l y t u r n i n g p a p e r i n t o mo n e y . " T h e
t e r m " a l c h e mi s t " r e f e r r e d t o t ho s e wh o
s t udi e d o r p r a c t i c e d a n e l e me n t a r y s or t
of c he mi s t r y d u r i n g t h e Mi d d l e Ag e s .
P a p e r mo n e y i n E u r o p e g r e w o u t of t h e
u s e of l et t er s
Wha t wa s one r eason
o f c r e d i t ?
why paper money i i i J
. * . . w h i c h h a d
was introduced
in Europe?
b e e n u t l l l z e d
i n Ch i n a cen-
t ur i es ear l i er as a n i n s u r a n c e a ga i ns t
r o b b e r s . A l et t er of c r e di t t he n, as t o-
da y, wa s ge ne r a l l y i s s ued b y a b a n k , a n d
a d d r e s s e d t o a n o t h e r b a n k i n a di f f er ent
ci t y o r f or ei gn c o u n t r y . Su c h a l et t er
g a v e a p e r s o n i n wh o s e f a v o r i t wa s
ma d e o u t t h e r i g ht t o get f unds a t a
b a n k o r o t h e r i ns t i t ut i on me n t i o n e d .
T h e speci fi c a mo u n t of mo n e y o r c r e di t
t o b e ma d e a va i l a bl e t o t h e t r a ve l e r wa s
s t a t e d. Wh e n h e u s e d t hi s l et t er of
c r edi t , t h e a mo u n t h e got wa s e n t e r e d
o n t h e l et t er as a r e c o r d t o s h o w h o w
mu c h wa s ye t d u e h i m.
Du r i n g t h e Mi d d l e Ag e s ( A. D. 500-
1 4 0 0 ) , b o t h i n E u r o p e a n d i n Ch i n a ,
t h e c o u nt r ys i d e a n d t h e t r a d e r o u t e s
w e r e i n f e s t e d w i t h r o b b e r s . M e t a l
mo n e y wa s wh a t t he s e t hi eves wa n t e d ,
n o t pi ec es of p a p e r t h a t t he y c o u l d n o t
us e. Ac c o r d i n g l y , i ns t e a d of c a r r yi ng
c oi ns f r o m o n e p l a c e t o a n o t h e r f or
t r a d i n g p ur p o s e s , it wa s mu c h saf er a n d
mo r e c o n v e n i e n t f or t r a ve l e r s t o c a r r y
l et t er s of c r edi t . Th e s e l et t er s a r e con-
s i de r e d t h e a nc e s t o r s of o u r mo d e r n
p a p e r mo n e y .
What is the
"gold standard"?
Pr e c i o u s me t a l s di d n o t l os e t hei r i m-
p o r t a n c e i n var i -
o u s m o n e t a r y
s ys t ems t h r o u g h -
o u t t h e wo r l d wi t h t h e i n t r o d u c t i o n of
p a p e r mo n e y . Gr e a t Br i t a i n, i n 1821,
Scenes like the one
shown at right were
common sights during
the Middle Ages when
the trade routes were
infested with robbers.
p u t i t s mo n e y o n t h e gol d s t a n d a r d ,
wh i c h me a n s t h a t t h e g o v e r n me n t gua r -
a nt e e s t h a t t h e p a p e r mo n e y i s s ued c a n
b e e x c h a n g e d a t a n y t i me f or a fixed
a mo u n t of gol d. Ot h e r c ount r i e s , a t
l eas t unt i l 1870, we r e o n t h e si l ver s t an-
d a r d , r e d e e mi n g bi l l s i n a fixed a mo u n t
of si l ver . S o me c o unt r i e s h a d a bi me t a l -
l i c s t a n d a r d , e x c h a n g i n g i n e i t he r si l ver
o r gol d. Ab o u t t h e e n d of l as t c e nt ur y,
pr a c t i c a l l y ever y c o u n t r y , i nc l udi ng t h e
Un i t e d St at es , h a d a d o p t e d t h e gol d
s t a n d a r d . O n al l Un i t e d St at es ' p a p e r
bi l l s wa s t h e i mp r i n t t h a t t h e a mo u n t of
dol l a r s s t a t e d o n t h e bi l l h a d t o b e p a i d
i n gol d t o t h e b e a r e r o n d e ma n d . Wh e n
t h e p ub l i c s t a r t e d t o l os e c onf i de nc e i n
p a p e r mo n e y d u r i n g t h e de p r e s s i o n of
t h e l a t e 1920' s , mo r e a n d mo r e p e o p l e
t r i e d t o r e d e e m t he i r mo n e y i n gol d.
Th i s wo u l d h a v e e x h a u s t e d t h e gol d
r es er ves of t h e b a n k i n g s ys t ems , a n d
s o o n e n a t i o n af t er t h e o t h e r we n t off
t h e gol d s t a n d a r d . I n 1933, we l eft t h e
gol d s t a n d a r d a n d d e t e r mi n e d t h e wo r t h
of t h e dol l a r a t 5 9 c e nt s as c o mp a r e d t o
i t s gol d s t a n d a r d wo r t h . Mo s t o t h e r
c o unt r i e s f ol l owe d t hi s e x a mp l e .
Go l d , h o we v e r , i s st i l l u s e d t o s et t l e
a c c o u n t s b e t we e n n a t i o n s a n d i s h e l d i n
t h e Un i t e d St a t e s t o b a c k u p t h e F e d e r a l
Re s e r v e Ba n k ' s not e s , b u t n o o t h e r
p a p e r mo n e y . T h e wo r d of t he Go v e r n -
me n t a n d i t s p o we r t o col l ect t a xe s a r e
e n o u g h t o k e e p u p t h e t r us t i n t h e v a l ue
of t he bi l l s i s s ued b y t he Go v e r n me n t .
T h e o n e e x c e p t i o n is t h e o n e dol l a r sil-
ver cer t i f i cat e. If y o u r e a d t he p r i nt i ng
o n o n e of t h e bi l l s, y o u wi l l see " Si l ver
Ce r t i f i c a t e " o n i t s u p p e r e dge a n d " On e
Do l l a r i n Si l ver P a y a b l e t o t he Be a r e r
o n De ma n d " a t t h e b o t t o m.
P a p e r mo n e y , as wel l as coi ns , is ac-
c e p t e d i n e x c h a n g e
Why is paper ~ , ,
,_ t o r g o o d s a n d ser-
money accept ed?
v i c e s b e c a u s e
i t s v a l u e h a s b e e n e s t a bl i s he d b y t h e gov-
e r n me n t , a n d p e o p l e h a v e c onf i denc e i n
t h e g o v e r n me n t . T h a t c onf i denc e ma y
c o me p a r t l y f r o m t h e s t or e of g o l d a n d
si l ver h e l d b y t h e g o v e r n me n t f or i nt er -
n a t i o n a l p a y me n t s . Ho we v e r , t h e confi -
d e n c e t h a t we h a v e i n U. S. mo n e y is
b a s e d ma i n l y u p o n t h e s t abi l i t y of t h e
Go v e r n me n t , a n d t h e bel i ef t h a t t he
va l ue s p l a c e d u p o n mo n e y b y t he Go v -
e r n me n t wi l l n o t c h a n g e t o o qui c kl y.
We ar e, t he r e f or e , g l a d t o a c c e p t p a p e r
mo n e y i n e x c h a n g e f or s er vi ces o r f or
g o o ds . Ot h e r s , s i mi l ar l y, a r e wi l l i ng t o
a c c e p t t h a t mo n e y f r o m us b e c a u s e t he y
a l s o be l i e ve t h a t t h e mo n e y wi l l con-
t i n u e t o b e a me d i u m of e x c h a n g e f or
t hi ngs t h a t t he y des i r e.
T h e De c l a r a t i o n of I n d e p e n d e n c e h a d
b e e n s i gned i n
Wh a t wa s
1 nnel
, - ,
r
.. . . , 1 7 7 6 b y a Co n -
Cont i nent al money?
J
gr es s r e pr e s e nt -
i ng t h e Ame r i c a n c ol oni es . T h e y h a d
r e v o l t e d a g a i ns t t h e En g l i s h r ul e. T h e
t hi r t e e n c ol oni e s we r e n o w l i nke d t o-
g e t h e r i n t h e Un i t e d St at es . Bu t t h e r e
r e ma i n e d five o r mo r e ye a r s of s t r uggl e
b e f o r e c o mp l e t e vi c t or y wo u l d b e t hei r s .
Me a n wh i l e , t h e Co n g r e s s h a d n o r e a l
a u t h o r i t y , a n d h a d t o b e g t h e s t at es f or
s ol di er s a n d c u r r e n c y t o wa g e wa r
a g a i ns t t h e Eng l i s h.
T h e Go v e r n me n t of t he Un i t e d
S t a t e s , u n d e r t h o s e c i r c u m s t a n c e s ,
n e e d e d i t s o wn mo n e y . " Co n t i n e n t a l "
bi l l s we r e i s s ued, e ve n t h o u g h t he Co n -
gr es s h a d n o p o we r of t a x a t i o n. Bu t t h e
30
s t at es f ai l ed t o ma k e t he i r c o n t r i b u t i o n
t o wa r d t h e s u p p o r t of t h a t mo n e y . Co n -
s e que nt l y, e ve n t h o u g h t h e y we r e ac-
c e p t e d i n mo s t s t at es , Co n t i n e n t a l bi l l s
r a p i dl y we n t d o wn i n v a l ue . T h e r e wa s
n o s t r o n g a u t h o r i t y s u c h as exi st s i n t h e
p r e s e nt F e d e r a l Go v e r n me n t , o r gol d
a n d si l ver b a c k i n g , t o c r e a t e c onf i denc e
i n t hi s mo n e y . " No t wo r t h a Co nt i -
n e n t a l " b e c a me a c o mmo n e xpr e s s i on,
a n d finally, t h e e q u i v a l e n t of o n e do l l a r
i n t h a t c u r r e n c y wa s wo r t h onl y o n e
p e n n y .
T h e p r e s e nt s ys t e m of Un i t e d St a t e s
p a p e r mo n e y b e g a n
When di d t he
w i t h
^
C i v U W a J
.
present system
of U.S. paper
money begi n?
W a r
'
t h e o n l
y
a c c e
P
l
-
a b l e U. S. p a p e r cur -
r e nc y c ons i s t e d of n o t e s i s s ue d b y b a n k s
u n d e r t h e p e r mi s s i o n, o r c h a r t e r , of t h e
F e d e r a l a ut ho r i t i e s o r t h e s t a t e gove r n-
me n t s . ( T o d a y , be s i de s t h e Go v e r n me n t ,
onl y o n e b a n k , t h e F e d e r a l Re s e r v e
Ba n k , i s a u t h o r i z e d t o i s s ue b a n k not e s .
F o r t h e v a l ue s i s s ue d b y t hi s b a n k , t h e
c o u n t e r v a l u e i n g o l d i s h e l d b y t h e Fe d -
er al Go v e r n me n t . )
T h e first p a p e r mo n e y i s s ue d b y t h e
Go v e r n me n t of t h e Un i t e d St a t e s c on-
si st ed of Tr e a s u r y n o t e s a u t h o r i z e d un-
de r ac t s of J ul y 17 a n d Au g u s t 5, 1861,
a n d F e b r u a r y 12, 1862. Th e s e no t e s
we r e i n d e n o mi n a t i o n s of $5, $ 1 0 , a n d
$ 2 0 .
T h e Tr e a s u r y is a b r a n c h of t h e Un i t e d
S t a t e s G o v e r n m e n t
Wha t is t he , - .,
, - _ . c r e a t e d t o r t h e p ur -
U.S. Treasury? .
r
.
p o s e of s upe r vi s i ng
a n d ma n a g i n g t h e c o u n t r y ' s finances.
On e of t h e ma n y b r a n c h e s of t h e de-
p a r t me n t is t he Bu r e a u of En g r a v i n g
a n d Pr i nt i ng , wh e r e p a p e r mo n e y a n d
o t h e r Go v e r n me n t p a p e r s a r e pr i nt e d.
T h e Bu r e a u of t h e Mi n t , wh e r e c oi ns
a r e ma d e , is a n o t h e r . T h e Secr et Ser vi ce,
wh i c h , a mo n g v a r i o u s o t h e r dut i es ,
g u a r d s a g a i ns t c ount e r f e i t i ng, is a l s o
o n e of t h e s ever al b u r e a u s o p e r a t i n g i n
t h e Tr e a s u r y De p a r t me n t of t h e Un i t e d
St a t e s .
T h e Tr e a s u r y s t or y goes b a c k i nt o
t h e s mo k e a n d f ur y of e a r l y Re v o l u t i o n -
a r y Wa r st r i f e wh e n t h e Co n t i n e n t a l
Co n g r e s s a s s e mb l e d a t Ph i l a d e l p h i a
t o c o ns i de r t h e di ffi cul t p r o b l e m of pr o-
v i d i n g f unds t o c a r r y o n t h e s t r uggl e f or
Ame r i c a n f r e e do m. O n Ap r i l 1, 1776,
Co n g r e s s r e s ol ve d t h a t a Tr e a s u r y Offi ce
b e set up .
Ou r f o r e b e a r s we r e wi s e i n d e ma n d -
i ng t h e mo s t effi ci ent pos s i bl e h a n d l i n g
of p u b l i c finance. T h e ba s i c wo r k i n g
s t r uc t ur e of t h e Tr e a s u r y h a s b e e n
a d a p t a b l e e n o u g h t o me e t da y- t o- da y
n e e d s of t h e Go v e r n me n t as t h e Un i t e d
St at es g r e w a n d e x p a n d e d .
T h e Tr e a s u r y Se a l i s i mp r i n t e d o n al l
Un i t e d St a t e s mo n e y a n d o n official
Tr e a s u r y d o c u me n t s . T h e c i r c ul a r de-
si gn of t h e Seal is d o mi n a t e d b y a s hi el d
u p o n wh i c h a p p e a r t h e scal es of j us-
t i ce, a n d t hi r t e e n s t ar s f or t h e or i gi nal
s t at es . T h e La t i n i ns c r i pt i on r e a d s
Thesaur. Amer. Septent Sigil., si gni fy-
i ng " T h e Seal of t h e Tr e a s u r y of No r t h
Ame r i c a . " T h e wo r d i n g , " No r t h Ame r -
i c a , " is a r el i c f r o m t h e d a y s wh e n i t wa s
h o p e d t h a t C a n a d a wo u l d b e c o me p a r t
of t h e Un i t e d St at es . O n di f f er ent t ype s
of p a p e r mo n e y , t hi s seal i s a di f f er ent
c ol or .
31
Five ShiOings* [ Ncv33t 3
T
His Indented Bill of Five
Shillings,i ue from the Colony
of New-York to the Poffefsor there-
of, (hail be in valm; equal to Money,
aup flu 11 be accordingly accepted by
the Treat urer of this Colony, for the
time bein", in all publick Payments,
and for any Funi at any time in the
Treafury. Dated, New-York }'/f
of M*y, '79- by order of the Litut.
Council aud General
jovernour,
Afsembly of the faid Colony.
&
<V>
B
&-
>0fC/T
Paper money issued in 1709 by the New York Colony.
No.3^<
?
<*
/
* *' j
tlm
will
XL,9
tvfefc
forty Dollars.
This BILL entitles]!!
the Boxer to re-
i ceivc erty ^miti
\mitfci WIM, orj
]the 'bi'.zt thereof ine
frjitit or iS&er, ac-ES
'cording tot<Zt]>tt-\
tim palled by C*-|
grtjt f PfL'tietUitA
Sept. %6ti, i7?8[
M a
$40 Continental note.
^c^The President, Directors Q%
J ^ and Company of the Bank A
* ^ j ofNorth-Amerkapromise J^#
f 6J3 ro pay fo r/ie Bearer, on~**
& demand, One Ninetieth ofe
* ^ a Dollar. H &m
& August 6, iy8t). J |
| p ^nc^rindj, Ga/hier.&'h
What is
"legal tender"?
A n ac t of F e b r u a r y 25 , 1862, a ut ho r -
i z e d a n i s s u e o f
Un i t e d St a t e s not e s ,
o r " l e g a l t e n d e r , "
p o p u l a r l y r e f e r r e d t o a s " g r e e n b a c k s , "
i n wh i c h t h e f ol l owi ng d e n o mi n a t i o n s
a p p e a r e d : $ 1 , $ 2, $ 5 , $ 1 0 , $ 2 0 , $ 5 0 ,
$ 1 0 0 , $ 5 0 0 , a n d $ 1 0 0 0 . " Le g a l t e n d e r "
t o d a y is a n y k i n d of mo n e y wh i c h h a s
b e e n d e s i g n a t e d b y l a w as a c c e p t a b l e i n
p a y me n t f or g o o d s a n d s er vi ces i n a
p a r t i c u l a r c o u n t r y . I f , f or e x a mp l e , y o u
of f er ed a C a n a d i a n do l l a r bi l l t o p a y f or
a n ar t i c l e i n a d r u g s t or e, t h e c l e r k c o u l d
r ef us e t o a c c e p t t h a t k i n d of mo n e y be-
c a u s e i t h a s n o t b e e n de s i g na t e d b y l a w
a s l egal t e n d e r i n t h e Un i t e d St at es .
Si mi l ar l y, a Ca n a d i a n ci t i zen, do i ng
bus i ne s s i n hi s o wn c o u n t r y , n e e d n o t
a c c e p t Ame r i c a n mo n e y b e c a u s e t h a t
mo n e y is n o t l egal t e n d e r i n hi s c o u n t r y .
T h e Go v e r n me n t ma k e s mo n e y l egal
t e n d e r b y def i ni ng t h a t mo n e y wh i c h a
c r e di t o r mu s t a c c e p t t o c a nc e l o u t a
de bt . Co n g r e s s , i n 1 9 33, p r o v i d e d t h a t
" al l c oi ns a n d c u r r e n c y of t h e Un i t e d
St a t e s b e l egal t e n d e r f or al l de bt s , p u b -
l i c a n d p r i v a t e . . . "
Who chooses
the designs
for paper money?
T h e des i gns us e d o n o u r p a p e r mo n e y ,
i n c l u d i n g s e l e c -
t i on of p o r t r a i t s ,
a r e t he r es pons i -
bi l i t y of t h e Secr e-
t a r y of t h e Tr e a s u r y wh o a c t s wi t h t h e
a dv i c e of di r e c t or s of o t h e r b u r e a u s ,
i nc l udi ng t h e Bu r e a u of En g r a v i n g a n d
Pr i n t i ng . By t r a di t i o n, p o r t r a i t s u s e d o n
o u r p r e s e nt p a p e r mo n e y a r e t h o s e of
Ame r i c a n s , us ua l l y Pr e s i de nt s of t h e
Un i t e d St a t e s wh o s e p l a c e s i n hi s t or y
a r e we l l - k n o wn t o t h e Ame r i c a n pe opl e .
Odd denomination note issued by the first bank
chartered by the U.S.A.
T h e first r e g u l a r i s s ue of t h e Un i t e d
St at es c ur r e nc y, t he Tr e a s u r y no t e s
( c o mmo n l y k n o wn as d e ma n d n o t e s )
i s s ued i n 1861, c a r r i e d o n t he $ 5 bi l l s
t h e p o r t r a i t of Al e x a n d e r Ha mi l t o n ,
first Se c r e t a r y of t h e Tr e a s u r y u n d e r
Ge o r g e Wa s h i n g t o n . T h e p o r t r a i t of
Pr e s i de nt Ab r a h a m Li n c o l n wa s o n t he
$ 1 0 bi l l s of t h e s a me i s s ue.
Wh e n a n e w n o t e h a s b e e n o r d e r e d by
Co n g r e s s i o n a l ac-
How are dies
and plates for
U.S. paper money
produced?
t i on, a mo d e l is
de s i g ne d b y a n ar -
t i st i n t h e Bu r e a u
of En g r a v i n g a n d
Pr i nt i ng. T h e mo d e l mu s t b e a p p r o v e d
by t he Se c r e t a r y of t h e Tr e a s u r y . T h e
des i gn is r e p r o d u c e d i n soft st eel b y
e ngr a ve r s . S e p a r a t e p o r t i o n s s uc h a s
t he p o r t r a i t , o r n a me n t s , a n d l et t er i ng
a r e e n g r a v e d b y s peci al i s t s .
T h e finished e ng r a v i ng , k n o wn as a
di e, is h e a t e d i n c y a n i d e of p o t a s s i u m,
a n d t h e n d i p p e d i n oi l o r b r i n e ( s a l t
s o l u t i o n ) t o h a r d e n i t . T h e di e is ne x t
p l a c e d o n a pr es s , a n d u n d e r h e a v y pr es -
s ur e, a c yl i nde r of soft st eel is r ol l e d
ove r i t . T h e e n g r a v i n g is t h u s t r ans -
f e r r e d t o t h e r ol l of soft st eel .
T h e st eel of t h e r ol l is h a r d e n e d a n d
t he des i gn is a g a i n t r a ns f e r r e d t o soft
st eel pl at es . Th e s e pl a t e s , wi t h t h e de-
B E L A WA R E C i T Y B A N K
ONK DOLLAR
. /y~
y
']> **? J5#r* - .
$1 bank note, 1854.
U.S. legal tender note, 1862, the "Greenback.
GREAT SEAL OF THE U.S.A.,
OBVERSE
REVERSE
si gn of t he or i gi nal di e u p o n i t , a r e ha r d-
e n e d a n d c l e a ne d. No w t he pl a t e s a r e
r e a d y f or t he pr i nt e r . T h e or i gi nal di e
ma y b e us e d t o p r o d u c e n u me r o u s r ol l s,
a n d e a c h r ol l is a va i l a bl e t o ma k e addi -
t i ona l pl a t e s as t ho s e in s er vi ce b e c o me
wo r n .
P a p e r c u r r e n c y ( $ 1 bi l l s, Ser i es 1957,
f or e x a mp l e ) is pr o-
. . ._ d u c e d o n ni ne hi gh
money pr i nt ed?
s pe e d pr e s s e s i n t he
Bu r e a u of En g r a v i n g a n d Pr i nt i ng .
E a c h pr e s s r e q ui r e s onl y o n e p r i nt i ng
pl a t e . E a c h p l a t e pr i nt s o n e s heet of
not e s . Up o n c o mp l e t i o n of t he b a c k
a n d f ace pr i nt i ng, s t a c ks of t he s e
s heet s a r e t r i mme d t o a u n i f o r m si ze.
T h e n t h e ser i al n u mb e r s , seal s, ser i es
ye a r , a n d s i gna t ur e s a r e p r i n t e d on e a c h
not e . T h e ful l -si ze s heet s a r e t h e n c ut in
hal f . A de t a i l e d e x a mi n a t i o n is t he n
ma d e of e a c h r e ma i n i n g s heet , af t er
wh i c h t he s heet s a r e f ur t he r s ubdi vi de d
i nt o s t a c ks of i ndi vi dua l not e s . T h e
not e s a r e t h e n b a n d e d i nt o uni t s of o n e
h u n d r e d e a c h, a n d c o mb i n e d i nt o p a c k -
ages c o n t a i n i n g f our t h o u s a n d not e s
e a c h.
Ot h e r d e n o mi n a t i o n s a n d cl as s es of
c u r r e n c y a r e p r i n t e d o n di f f er ent t ype s
of pr es s es , a n d di f f er ent l y pr oc e s s e d.
Bu t i n a n y cas e, a n a s s e mb l y l i ne pr o-
duc t i o n of al l p a p e r c u r r e n c y h a s si m-
pl i fi ed t he wh o l e o p e r a t i o n , b r i ng i ng
a b o u t a hi g h de g r e e of effi ci ency i n i t s
ma n u f a c t u r e .
Un i t e d St a t e s p a p e r mo n e y is p r i n t e d
o n s peci al p a p e r . Hi g h s t a n d a r d s a n d
pr oc e s s e s i n t h e p r o d u c t i o n of t hi s p a p e r
ma k e it mo s t di ffi cul t , or a l mo s t i mpos -
si bl e, f or o t he r s t o us e it f or i l l egal pur -
pos es . I t is ma d e of l i ne n a n d c o t t o n a n d
it c o n t a i n s s mal l s e g me n t s of r e d a n d
b l u e si l k fibers wh i c h a r e e mb e d d e d dur -
i ng t he pr oc e s s of ma n u f a c t u r e . T h e
me t h o d by wh i c h i t is ma d e is k e p t
s ecr et . T h e p a p e r is p r o d u c e d b y a c o m-
me r c i a l firm o p e r a t i n g u n d e r st r i ct Go v -
e r n me n t c ont r ol .
Al l i nk s us e d t o p r i nt Un i t e d St a t e s pa-
p e r mo n e y i n t h e Bu-
Are paper bills ,- ,-.
. . . . r e a u ot En g r a v i n g
pri nt ed wi t h , _ . .
. , . , ~ a n d P r i n t i n g a r e
speci al ink?
&
ma n u f a c t u r e d i n t h e
Bu r e a u i t sel f . T h e i nk s a r e p r o d u c e d b y
b l e n d i n g dr y c ol or s , oi l s, a n d o t he r
c he mi c a l s of t h e hi ghe s t o b t a i n a b l e
qua l i t y. T h e i ng r e di e nt s a r e p l a c e d i n
h u g e mi xe r s . T h e i nk mi x t u r e s a r e p u t
u n d e r e x t r e me p r e s s ur e s b e t we e n st eel
r ol l er s t o a s s ur e a p r o d u c t of p r o p e r
t e xt ur e . A t es t is ma d e of e a c h n e w
b a t c h t o ma k e s ur e t h a t i t c o n f o r ms
wi t h t he s t a n d a r d s e s t a bl i s he d by t he
Bu r e a u l a b o r a t o r y b e f o r e a n y of t he i nk
is u s e d f or pr i nt i ng.
T h e r e a r e t h r e e t ype s of c u r r e n c y n o w
b e i n g f u r n i s h e d t o
Wha t paper |
3 a n
]
i S
f
o r
c i r c ul a t i on:
currency is . ,
A
.
r
.
. : s i l v e r c e r t i f i c a t e s ,
issued in
t he U S ? U n i t e d S t a t e s n o t e s ,
a n d F e d e r a l Re s e r v e
not e s . Si l ver cer t i f i cat es, wi t h t h e Tr e a s -
ur y Seal i n bl ue , a r e i s s ued i n d e n o mi n a -
t i ons of $1, $5, a n d $ 1 0 . Un i t e d St at es
not e s , wi t h t h e Seal i n r e d, a r e i s s ued i n
$2, a n d $ 5 bi l l s. F e d e r a l Re s e r v e not es ,
wi t h t h e Seal i n gr e e n, a r e i s s ued i n t h e
f ol l owi ng d e n o mi n a t i o n s : $5, $10, $ 20 ,
$ 5 0 , $ 1 0 0 , $ 5 0 0 , $ 1 0 0 0 , $ 5 0 0 0 , a n d
$ 1 0 , 0 0 0 .
34
FEDERAL RESERVE
SEAL AND LETTER
TREASURY
SEAL
SERIAL
NUMBER
FACE PLATE
NUMBER
The diagram shows the
position of the impor-
tant features of paper
currency.
Y o u ma y q u e s t i o n t h e s i gni f i cance of
t he s t a r t h a t a p p e a r s i n f r ont of t h e
s er i al of s o me pi e c e s of Un i t e d St a t e s
mo n e y . Wh e n a n o t e i s mu t i l a t e d i n t he
c o ur s e of ma n u f a c t u r i n g , i t h a s t o b e
r e p l a c e d. T o r e p l a c e i t wi t h a n o t e of
e xa c t l y t h e s a me n u mb e r as t h a t o n t h e
i mpe r f e c t s p e c i me n wo u l d r e q u i r e t h e
us e of a s peci al ma c h i n e , a n d wo u l d b e
cos t l y a n d de l a yi ng. " S t a r " n o t e s a r e
s ubs t i t ut e d i ns t e a d. Ex c e p t t h a t t he y
h a v e t he i r o wn s peci al s er i al n u mb e r
a n d a s t ar , t h e s e n o t e s a r e t h e s a me
as t he ot he r s , a n d , of c our s e , wo r t h t h e
f ace va l ue .
P a p e r c u r r e n c y of t h e p r e s e n t si ze wa s
first i s s ue d i n J ul y,
How big IS ., n^n , ,
a dol l ar bill?
1 9 2 9
'
r e
P
l a c m
S
l a r
g
e r
not e s . T h e o l d n o t e s
we r e a b o u t one - t hi r d l a r g e r t h a n t ho s e
y o u h a v e t o d a y . T h e p r e s e nt si ze of a
finished n o t e is a b o u t 2 . 6 1 i nc he s b y
6 . 1 4 i nc hes , a n d t h e t hi c kne s s is . 0 0 4 3
i nc h. Ne w no t e s wi l l s t a c k t wo h u n d r e d
a n d t hi r t y- t hr e e t o o n e i nc h. Ol d cur -
r e nc y, of wh i c h o n l y a r e l a t i ve l y s ma l l
a mo u n t r e ma i n s o u t s t a n d i n g , is c an-
cel ed a n d r e t i r e d wh e n r e c e i ve d b y t h e
Tr e a s u r y t h r o u g h o n e of t h e b a n k s .
If y o u h a v e t hr ee- f i f t hs, o r mo r e , of a
bi l l , y o u ma y h a v e i t r e d e e me d f or ful l
f ace v a l u e b y a s k i ng a l oc a l b a n k t o
s e n d i t t o t h e Tr e a s u r y De p a r t me n t .
So me t i me s , a bi l l ma y b e p a r t l y b u r n e d ,
or t o r n . If y o u h a v e l ess t h a n t hr ee-
fifths, b u t c l e a r l y mo r e t h a n t wo- fi ft hs,
y o u ma y get b a c k one- hal f of i t s f ace
va l ue . F r a g me n t s n o t mo r e t h a n t wo-
fifths a r e n o t e x c h a n g e a b l e , unl es s ac-
c o mp a n i e d b y s at i s f ac t or y p r o o f t h a t
t h e mi s s i ng p o r t i o n s h a v e b e e n t ot a l l y
de s t r o ye d.
Do we have
"money to burn"?
Wh e n p a p e r c u r r e n c y b e c o me s wo r n
a n d n o l onge r fit
f or g e ne r a l us e, it
i s w i t h d r a w n
f r o m c i r c ul a t i on, de s t r oye d, a n d re-
p l a c e d b y n e w not e s . T h e wo r n - o u t
no t e s a r e d e s t r o y e d b y b u r n i n g . On e
dol l a r bi l l s ma k e u p t he b u l k of t he
c u r r e n c y wh i c h h a s t o be t hus de s t r o ye d
f or unf i t ness. A o n e dol l a r bi l l l ast s
a b o u t a y e a r as a r ul e, a n d mo r e t h a n
a bi l l i on of t h e m a r e i n c i r c ul a t i on.
35
Hi g h e r d e n o mi n a t i o n bi l l s l as t l o ng e r
b e c a u s e t he y a r e n o t u s e d b y p e o p l e as
f r e que nt l y as t h e s ma l l e r bi l l s.
T h e or i gi n of t h e " do l l a r s i gn" ( $ ) h a s
b e e n v a r i o u s l y a c -
c o u n t e d f or . P e r h a p s
t h e mo s t wi de l y ac-
c e p t e d e x p l a n a t i o n is
t h a t it is t he r es ul t of e vol ut i on, i nde-
What is the
origin of the
p e n d e n t l y i n di f f er ent pl ac es , of t he
Me x i c a n o r Sp a n i s h " P ' s " f or pesos, or
piastres, o r pi e c e s of ei ght ( t h e Sp a ni s h
d o l l a r ) . T h e t he o r y, de r i v e d f r o m a
s t udy of ol d ma n u s c r i p t s , is t h a t a n " S"
g r a d u a l l y c a me t o b e wr i t t e n ove r t he
" P , " d e v e l o p i n g a c l os e e q ui v a l e nt of
t h e " $ " ma r k , wh i c h e ve nt ua l l y evol ved.
I t wa s wi de l y u s e d b e f o r e t h e a d o p t i o n
of t h e Un i t e d St a t e s dol l a r i n 1785.
C o u n t e r f e i t M o n e y
Du r i n g t h e Ci vi l Wa r , i n t h e Un i t e d
St at es , c ount e r f e i t e r s b e c a me ve r y ac-
t i ve, a n d p u t a va s t a mo u n t of f a k e bi l l s
i nt o c i r c ul a t i on. Sub s e q ue nt l y, t he Se-
c r e t Ser vi ce, a di vi s i on of t h e Tr e a s u r y
De p a r t me n t , wa s e s t a bl i s he d J ul y 5,
1865, t o fight c u r r e n c y c ount e r f e i t e r s .
( La t e r , a g e nt s of t hi s o r g a n i z a t i o n we r e
a s s i gne d t o a ddi t i o na l dut i e s s uc h as t he
p r o t e c t i o n of t h e Pr e s i d e n t of t h e Un i t e d
St a t e s a n d hi s f a mi l y. )
A c ount e r f e i t e r is a p e r s o n wh o pr i nt s
i mi t a t i o ns of t h e offi-
Wha t is a . ,
c
. ,
, . _ c i a l m o n e y o t t h e
count erfei t er?
J
G o v e r n m e n t , a n d
t r i es t o c i r c ul a t e t h e m as t h o u g h t he y
we r e ge nui ne . H e c opi es , or o t he r wi s e
r e p r o d u c e s , wh a t a p p e a r s t o b e l egal
t e n d e r wi t h o u t p e r mi s s i o n of t h e Go v -
e r n me n t . Th i s f a ke mo n e y is t h e n p u t
i nt o c i r c ul a t i on as if it h a d t he s a me
v a l u e as t h e mo n e y i s s ued u n d e r t he
a us pi c e s of t he Tr e a s u r y De p a r t me n t .
Of c our s e , t h e c ount e r f e i t mo n e y is en-
t i r el y wi t h o u t v a l ue b e c a u s e n o pr i va t e
i ndi vi dua l h a s t h e r i ght t o ma k e s uc h
r e p r o d u c t i o n s of Un i t e d St a t e s mo n e y .
Ac c o r d i n g l y , a p e r s o n wh o a c c e pt s a
c ount e r f e i t bi l l l os es wh a t e v e r h e ma y
h a v e gi ve n i n e x c h a n g e .
T h e c r i me of ma k i n g f al se mo n e y ,
wh i c h i s of f er ed wi t h t h e p r e t e n s e t h a t it
is l egal t e n d e r , h a s exi s t ed f or ma n y
c e nt ur i e s i n v a r i o u s c ount r i e s . Me n
we r e b e h e a d e d i n a n c i e n t Ch i n a f or
c o unt e r f e i t i ng c u r r e n c y , a n d unt i l l a t e
i n t h e e i g h t e e n t h c e nt ur y, d e a t h wa s t h e
p u n i s h me n t i n mo s t c o unt r i e s f or t hi s
i l l egal act i vi t y. To d a y , i n t h e Un i t e d
St at es , a n y o n e c o n v i c t e d of ma k i n g ,
pa s s i ng, o r k n o wi n g l y pos s e s s i ng c oun-
t er f ei t bi l l s s hal l b e fined n o t mo r e t h a n
five t h o u s a n d dol l a r s o r i mp r i s o n e d n o t
36
mo r e t h a n fifteen ye a r s , o r b o t h . Si m-
i l ar l y s ever e pe na l t i e s a r e me t e d o u t f or
c ount e r f e i t i ng Un i t e d St a t e s coi ns .
Y o u c a n h e l p t h e Se c r e t Se r vi c e b y ex-
a m i n i n g y o u r
How can you help
the Secret Service? ^
cl os el y a n d , al s o,
by k n o wi n g s o me of t h e c ha r a c t e r i s t i c s
of c ount e r f e i t c u r r e n c y . Ev e r y ye a r ,
p e o p l e a r e c h e a t e d o u t of h u g e s u ms b y
pa s s e r s of c ount e r f e i t bi l l s. A p e r s o n
ma y p u r c h a s e a do l l a r ar t i c l e wi t h a
c ount e r f e i t t e n do l l a r bi l l . T h e st or e-
k e e p e r wi l l gi ve h i m t h e ar t i cl e, p l us
ni ne dol l a r s i n c h a n g e . T h e c o unt e r -
f ei t er h a s t h e n n o t o nl y me r c h a n d i s e
wo r t h o n e dol l a r , b u t a l s o t h e ni ne dol -
l ar s wh i c h h e r e c e i ve d i n c h a n g e . T h e
s t o r e k e e p e r i s l eft wi t h n o t h i n g b u t a
f a ke a n d wo r t hl e s s t e n dol l a r bi l l .
Co u n t e r f e i t e r s mu s t f ool s o me b o d y
t o ma k e a pr of i t . St o r e k e e p e r s , b a n k s ,
a n d t h e a v e r a g e p e o p l e wh o f ai l t o ex-
a mi n e t he i r mo n e y a r e of t en t o b l a me
f or t he i r o wn l oss.
Portraits of great Americans appear on United States
paper currency. It is important for your own protec-
tion to know on which bills the portraits appear. You
should be especially familiar with the bills you are
most likely to handle more often, the $1, $2, $5, $10, and $20 bills. Bills are some-
times fraudulently raised to represent larger denominations. A bill, for example,
might be manipulated by just altering the amount printed on it. If you get a $10 bill
with the picture of George Washington, you should know that the bill was tampered
with; the $10 bill should have Hamilton's portrait, while Washington appears on the
$1 bill. All bills of the same denomination bear always the same portrait as follows:
George Washington on $1 bills; Thomas Jefferson on $2 bills; Abraham Lincoln on
$5 bills; Alexander Hamilton on $10 bills; Andrew Jackson on $20 bills; Ulysses Grant
on $50 bills; Benjamin Franklin on $100 bills; William McKinley on $500 bills; Grover
Cleveland on $1,000 bills; James Madison on $5,000 bills; and Salmon P. Chase on
$10,000 bills.
PART OF GENUINE
MONEY MAGNIFIED
Genuine money looks good because it is made by
experts. It is produced on costly machines designed
for the purpose and printed from steel plates pro-
duced by the finest engravers in the country. No
counterfeiter ever has duplicated the artistic work of
the highly skilled craftsmen of the Bureau of Engrav-
ing and Printing.
A genuine engraved plate makes clear lines. The
counterfeit money, on the other hand, is nearly always
made from defective plates. Fake money is usually
printed with comparatively cheap ink on cheap and
different paper. If you are observant, you can actually
see and feel the difference between genuine and
counterfeit money.
B a n k s
What are the
important functions
of banks?
As we h a v e s een, b a n k s a r e v e r y cl os el y
c o n n e c t e d wi t h
t h e s t o r y o f
m o n e y . A l -
t h o u g h t h e s t or y
of b a n k s a n d b a n k i n g wo u l d fill a n o t h e r
How and Why Wonder Book, we . c a n -
n o t c o mp l e t e o u r b o o k a b o u t mo n e y
wi t h o u t me n t i o n i n g s o me t h i n g a b o u t
t h e hi s t or y a n d f unc t i o ns of b a n k s .
I n t h e s e c o n d c e n t u r y b e f o r e t h e b i r t h
of Ch r i s t , Me s o p o t a mi a n pr i e s t s ( i n t h e
Mi d d l e E a s t ) g u a r d e d t h e t r e a s ur e s of
t hei r c h u r c h a n d r ul e r s i n t h e t e mpl e s .
Gr a d u a l l y , t h e pr i es t s s t a r t e d t o d o t h e
s a me f or me r c h a n t s , b y a g r e e i ng t o k e e p
t he i r mo n e y , as wel l . Th e s e t e mp l e
t r e a s ur i e s b e c a me a s or t of p r i mi t i v e
b a n k wh i c h ful fi l l ed o n e of t h e b a s i c
f unc t i ons of b a n k s , t o t a k e mo n e y a n d
s a f e g u a r d i t .
We h a v e l e a r n e d t h a t d u r i n g t h e Mi d -
dl e Ag e s , p e o p l e b e g a n t o c a r r y n o t e s
f or t he i r me t a l c oi ns b e c a u s e t h e me t a l
wo u l d n o t b e s af e o n l o ng j o u r n e y s
wh e r e r o b b e r i e s we r e c o mmo n . Tr a v e l -
er s g a v e t he i r c oi ns t o g o l ds mi t hs wh o
c o u l d s t or e t h e m, a n d i n r e t u r n , t he
t r a ve l e r r e c e i ve d a n o t e wh i c h c o u l d b e
u s e d as mo n e y . Ou t of t he s e no t e s de-
v e l o p e d t h e b a n k no t e . T h e g o l ds mi t hs
s o o n di s c o v e r e d t h a t al l de pos i t s we r e
n o t c a l l e d b a c k a t t h e s a me t i me . T h e y
c o u l d gi ve o u t mo r e b a n k n o t e s t h a n
t he y h a d de pos i t s , a n d st i l l b e a b l e t o
fulfill t he i r obl i ga t i ons . Th u s , t h e sec-
o n d i mp o r t a n t f unc t i o n of t h e b a n k de-
v e l o p e d, t o t a k e a n d e x t e n d c r edi t .
T h e hi s t or y of a t h i r d f unc t i on of
b a n k s g o e s b a c k t o mo n e y - c h a n g e r s .
Wh e n c oi ns b e c a me p o p u l a r , so ma n y
a ut ho r i t i e s h a d t h e r i g ht t o ma k e t h e m
t h a t i t wa s di ffi cul t t o d e t e r mi n e t he
v a l u e of coi ns . Mo n e y - c h a n g e r s b e c a me
a c o mmo n f e a t ur e i n ever y ma r k e t .
T h e y e x c h a n g e d o n e k i n d of c oi n f or
a n o t h e r , g a v e c oi ns i n r e t u r n f or pr e-
c i ous me t a l s , o r we i g h e d a n d me a s u r e d
mo n e y t o d e t e r mi n e i t s va l ue . T h e mo n -
e y- c ha nge r s of a f ew h u n d r e d ye a r s a g o
c h a r g e d a n o mi n a l f ee f or t he i r ser vi ces,
b u t s o o n t he y, t o o , b e g a n t o c he a t , a n d
38
THE SAME PART OF COUN-
TERFEIT MONEY MAGNIFIED
t he ma n o n t h e s t r eet wa s n o b e t t e r off
t h a n h e h a d b e e n wi t h o u t t h e m. Ba n k s
we r e set u p t o d e t e r mi n e wh i c h c oi ns
we r e g o o d a n d wh i c h we r e b a d . Ev e n t u -
al l y, t h e s i mpl es t wa y t o d o t hi s p r o v e d
t o b e f or t h e b a n k s t o ma k e t h e mo n e y
t he ms e l ve s . Us ua l l y, t he s e b a n k c oi ns
we r e mo r e r e l i a bl e t h a n l oc a l gove r n-
me n t coi ns .
F r o m t h e ol d mo n e y - c h a n g e r s wh o
c a r r i e d o n t he i r bus i ne s s o n a b e n c h
o r t a b l e i n t h e ma r k e t pl a c e , we get
o u r wo r d , b a n k . T h e La t i n wo r d f or
b e n c h is bancus, f r o m wh i c h t h e En g -
l i sh wo r d , b a n k , wa s de r i ve d. Du r i n g
t h e s i xt h c e n t u r y i n ol d Fl o r e n c e , it wa s
t he c u s t o m f or a b a n k e r t o b r e a k hi s
b e n c h o r t a b l e wh e n h e wa s f or c e d t o go
o u t of bus i ne s s . Ac c o r d i n g l y , t he wo r d ,
b a n k r u p t c y , wh i c h si gni fi es t h a t o n e h a s
i nsuf f i ci ent f unds t o me e t hi s obl i ga-
t i ons , c o me s f r o m t h e La t i n a n d me a n s
b r o k e n b e n c h .
To d a y , t h e f unc t i ons of t he b a n k
c o mb i n e t he j o b s of t h e Me s o p o t a mi a n
pr i es t s ( s t o r i n g t h e mo n e y s a f e l y) , t he
gol ds mi t hs , a n d t h e mo n e y - c h a n g e r s .
Ba n k s i n t h e bus i ne s s of b o r r o wi n g ,
l e ndi ng, e x c h a n g i n g , a n d c a r i n g f or
mo n e y h a v e b e c o me a n i ns t i t ut i on
f or de a l i ng i n mo n e y a n d c r edi t .
You can learn to detect
counterfeit coins by very
*L\ .. - \ ' / * simple tests. Drop the
m\ WIM^ ? * 7'
co
'
n o n a
^
Iarc
'
sul
"f
ace
-
Genuine coins have a
bel l -l i ke ri ng; most
counterfeit coins sound
dull., Feel the coin. A counterfeit coin, because it is
usually made of lead instead of silver alloy, feels
greasy. The edges of genuine coins (right) are even
and regularly toothed; the edges of false coins (left)
are usually fuzzy, uneven, or missing in spots.
I n t h e Un i t e d St at es , t h e r e a r e ove r
fifteen t h o u s a n d b a n k s e mp l o y i n g a b o u t
hal f a mi l l i on p e o p l e . T h e bi l l i ons of
dol l a r s a n d c r e di t n e e d e d by t he ec on-
o my c o me l ar gel y f r o m s avi ngs t h a t h a v e
b e e n a c c u mu l a t e d i n b a n k s . Ba n k s t a k e
t he s e s avi ngs , p l u s t hei r o wn c a pi t a l ,
a n d p u t t h e mo n e y t o wo r k e i t he r
t h r o u g h di r ec t i nve s t me nt s , o r b y l end-
i ng f unds a n d c r edi t t o o t h e r bus i ne s s e s
a n d p e o p l e . T h r o u g h t h e b a n k s , t h e cur -
r e n c y mi n t e d o r p r i n t e d b y o r d e r of t h e
Tr e a s u r y De p a r t me n t is di s t r i but e d i nt o
bus i ne s s c ha nne l s .
An y b o d y c a n s t a r t a b a n k i n t he Un i t e d
St a t e s if h e c a n me e t
c e r t a i n r e q u i r e me n t s
e s t a bl i s he d b y l a w A
b a n k ma y b e o wn e d b y o n e p e r s o n, o r
a g r o u p of i ndi vi dua l s . A b a n k h a s t o
h a v e a u t h o r i t y t o o p e r a t e , o r c a r r y o n
i t s bus i ne s s , t h r o u g h a " c h a r t e r . " Th i s
c h a r t e r is t h e official p e r mi s s i o n g r a n t e d
e i t he r b y t h e s t a t e or t h e Fe d e r a l Go v -
e r n me n t . I n t h e Un i t e d St at es , we a r e
How is a
bank started?
39
In Mesopotamia, before the birth of Christ, priests
guarded the temple treasures and the treasures of
flers in special hiding places in the temples.
s a i d t o h a v e a d u a l s ys t e m of b a n k i n g .
An y b a n k wi t h t he wo r d " Na t i o n a l " i n
i t s t i t l e h a s b e e n gi ven a c h a r t e r b y t h e
F e d e r a l Go v e r n me n t . An y b a n k wi t h
t h e wo r d " St a t e " i n i t s n a me h a s re-
c ei ved i t s c h a r t e r f r o m o n e of t h e s t at es .
Gr e a t p r e c a u t i o n is t a k e n t o p r o t e c t
de pos i t or s ' mo n e y , i n-
Why is your
d u d i t h e r e q u i r e
.
money safe
t
, , ,
.L u 11 me n t t h a t e a c h b a n k
in the bank?
mu s t h a v e a c e r t a i n
a mo u n t of c a p i t a l b e f o r e b e i ng g r a n t e d
a c ha r t e r . B a n k e mp l o y e e s a r e s c r e e n e d
car ef ul l y f or t hei r ho ne s t y. I n l a r g e
During the Middle Ages, travelers and
merchants deposited their coins and
precious metal with goldsmiths who had
safe storage facilities. In return, they
received a note which could be used as
"money."
b a n k s , a r me d p a t r o l s a r e k e p t i n t h e
hal l s a n d n e a r t h e do o r s . Yo u r s avi ngs
a r e a l s o i n s u r e d a g a i ns t pos s i bl e l oss or
t hef t u p t o $ 1 0 , 0 0 0 by t h e F e d e r a l De -
pos i t I n s u r a n c e Co r p o r a t i o n e s t a bl i s he d
i n 193 3. Be y o n d t h a t a mo u n t , t h e b a n k ' s
c r edi t , i nc l udi ng t h e abi l i t y t o b o r r o w
f r o m o t h e r b a n k s , p r o v i de s t h e ma i n
p r o t e c t i o n.
B a n k s a r e a l s o s u p e r v i s e d a n d
c h e c k e d r e g ul a r l y t o ma k e s ur e t h a t
t he i r bus i ne s s is c o n d u c t e d a c c o r d i n g t o
r e g ul a t i o ns . T h e n a t i o n a l b a n k s a r e su-
p e r v i s e d b y t h e a g e n t s of t h e Co mp t r o l -
l er of Cu r r e n c y i n Wa s h i n g t o n , D. C.
L
40
aday, the basic functions of the bank combine,
among many more complicated ones, the functions
of the priests, the goldsmiths, and the changers in
respect tQ**> o ney.
lichen the authority to coin money became the privi-
lege of many, money-changers became a necessity
and a common feature in every market.
T h e s t a t e b a n k s a r e s upe r vi s e d by t h e
b a n k i n g d e p a r t me n t of t he s t a t e wh e r e
t he y a r e l oc a t e d.
Fi na l l y, al l b a n k s a r e r e q u i r e d b y l a w
t o p u t a wa y i n r e s e r ve p a r t of t hei r cli-
ent s ' mo n e y t o ma k e s ur e t h a t suffi ci ent
f unds a r e a l wa y s a v a i l a b l e t o me e t t he
ne e ds of t ho s e wh o ma y r i ght f ul l y de-
ma n d t he i r mo n e y .
Who can
borrow money
from a bank?
An y o n e c a n b o r r o w f r o m a b a n k if h e is
a g o o d c r e di t r i s k. A
g o o d c r e di t r i s k de-
p e n d s o n t h e c ha r a c -
t er , t he c a p a c i t y, a n d
t h e c a pi t a l of t h e o n e wh o is a p p l yi ng
f or a l oa n. Th e s e a r e k n o wn t o b a n k e r s
as t h e t hr e e " C' s . " If y o u wa l k i nt o a
b a n k a n d a s k f or a l o a n , t he b a n k e r wi l l
mo s t l i kel y q ue s t i o n y o u t o find o ut
s o me t h i n g a b o u t y o u r c h a r a c t e r , t h e
s or t of p e r s o n y o u ar e, y o u r r e p u t a t i o n ,
s t a n d a r d s of ho ne s t y, a n d t h e t r ai t s t h a t
affect y o u r r e l a t i ons hi ps wi t h o t h e r peo-
pl e.
Al s o e v a l u a t e d is y o u r c a p a c i t y t o
ma k e g o o d us e of t he mo n e y or c r edi t
a va i l a bl e t o y o u i n t he f o r m of a l oa n.
Ar e y o u c a p a b l e of p a y i n g b a c k t he
l o a n b e c a u s e y o u h a v e a g o o d j o b ? Ha v e
y o u bui l t u p , ove r t he year s , ha b i t s of
i ndus t r i o us ne s s a n d di s c i pl i ne?
Ca p i t a l c o n c e r n s t h e we a l t h y o u al -
r e a d y pos s es s wh e n y o u a r e a p p l yi ng f or
a l oa n. I t ma y b e i n v a r i o u s f or ms , in-
c l udi ng a ho us e , a c a r , i ns ur a nc e , a n d
o t h e r k i nds of we a l t h. T h e c a pi t a l y o u
h a v e a c q u i r e d r ef l ect s y o u r abi l i t y t o
s ave, a n d t o p a y b a c k a l oa n.
If o n e is a g o o d c r e di t r i s k, it of t en
p a y s t o b o r r o w mo n e y . If, f or e x a mp l e ,
b y b o r r o wi n g $ 2 , 0 0 0 y o u c a n s t a r t a
41
bus i nes s , y o u ma y b e a bl e t o p a y b a c k
t h e l o a n, p l us t he i nt er es t c h a r g e d by
t h e b a n k , a n d stil l h a v e y o u r bus i ne s s
t o ma k e a pr of i t .
What is
interest?
T h e c o mp e n s a t i o n r e c e i ve d f or p u t t i n g
y o u r mo n e y i n a b a n k is
c al l ed " i nt e r e s t . " Ba n k s a r e
wi l l i ng t o p a y f or t he us e of
mo n e y l eft i n t he i r c a r e f or a speci f i ed
l e ng t h of t i me . A b a n k is a bl e t o d o t hi s
b e c a u s e i t c a n i nves t y o u r mo n e y , o r
l e nd i t a t a pr of i t t o s o me o n e el se d u r i n g
t h e p e r i o d wh e n y o u h a v e n o n e e d f or i t .
Th i s d o e s n o t me a n t h a t if y o u p u t $ 5
i n t h e b a n k , official s of t h a t i ns t i t ut i on
i mme d i a t e l y t a k e t h a t s e l f s a me bi l l a n d
s eek t o l e nd i t at a pr of i t t o a n y o n e wh o
h a p p e n s t o c o me a l o ng . I t does , ho w-
ever , me a n t ha t , s i nce al l de p o s i t o r s d o
n o t wi t h d r a w t hei r mo n e y f r o m t h e
b a n k a t t h e s a me t i me , a b a n k ne a r l y
a l wa ys h a s f unds o n h a n d f or i nvest -
me n t , o r l e ndi ng, at a hi g he r r a t e of
i nt e r e s t t h a n y o u , as a de p o s i t o r , get f or
k e e p i ng y o u r mo n e y i n t h a t b a n k .
Wh e n y o u p u t s o me mo n e y o n " t i me
de p o s i t , " wh i c h me a n s t h a t y o u r f unds
a r e de p o s i t e d wi t h t h e u n d e r s t a n d i n g
t h a t y o u c a n n o t wi t h d r a w t h e m a t wi l l ,
y o u a r e p a i d i nt er es t . Un d e r t hi s t yp e of
a c c o u n t , k n o wn as a " s a vi ngs a c c o u n t , "
t h e b a n k r es er ves t h e r i ght t o r e q ui r e
t hi r t y da ys ' no t i c e b e f o r e y o u r mo n e y is
t o b e wi t h d r a wn . I n a c t u a l pr a c t i c e ,
h o we v e r , f unds i n a s avi ngs a c c o u n t a r e
p a i d vol unt a r i l y b y t h e b a n k s wi t h o u t
s uc h not i c e .
Sa vi ngs a c c o u n t s , o r t i me depos i t s ,
a c c o r di ng l y, p a y i nt er es t t o de p o s i t o r s
f or t h e us e of t hei r mo n e y . I n o t he r
wo r d s , as a n e x a mp l e , if y o u p u t $ 1 0 i n
a b a n k , y o u ma y find t h a t t hi s a mo u n t
h a s g r o wn t o $ 1 0 . 4 0 at t h e e n d of o n e
ye a r . T h e b a n k , i n t hi s s i t ua t i on, wo u l d
h a v e p a i d y o u 4 0 c ent s , or 4 p e r c e nt ,
f or t h e us e of y o u r mo n e y d u r i n g t h a t
ye a r .
Bu t if a p e r s o n p u t s hi s mo n e y i n
" d e ma n d de p o s i t , " wh i c h me a n s t h a t hi s
mo n e y is d e p o s i t e d wi t h t h e u n d e r s t a n d -
i ng t h a t h e c a n wi t h d r a w i t a t wi l l , n o
i nt er es t is p a i d b y t h e b a n k . Th i s is un-
d e r s t a n d a b l e b e c a u s e , f o r s u c h a c -
A modern check form with symbols printed in magnetic ink for sorting and
counting at the bank and clearing houses by means of electronic machines. The
stub (at left) is held by the owner of the account for bookkeeping purposes.
No, /7f
FOR L'*-L i-yy-e"- i--
bal. bro't. ford.
am'tdeposited
total
am't.this check
bal.carcl. ford.
Dollars
/S"
/ 9 0
cents
C
. '
cc
c 0
i2p>C
GITV, STATE. JUec. / S ^ r
ANYTOWN BANK
ORDER CvjAs^f. Q. (*?7?j2/f
5Q-226
213
/%9^y ,^^'-^h:
/
i^f y^Cf^.^ ^ ^ W- 4 J g " DOLLARS
: 0BB- 0EEE1' : Efi 0055 BUn 70E. - ' 0000015000. -
1
42
Mr. White of Krumville, N. Y., who has an account with the Red Bank in Kingston, New York, mails a check
in payment of a bill to his creditor, Mr. Black, in Miami Beach, Florida. Mr. Black deposits the check at his bank,
the Green Bank of Miami, which credits his account with the amount. Green Bank now sends the check to the
Federal Reserve Bank in Jacksonville, Florida, which, after clearing the check, sends it on to the Federal Reserve
Bank in New York City, which, after clearing it, sends it to the Red Bank in Kingston, which debits Mr. White's
account and sends the canceled check back with the monthly statement to Mr. White of Krumville.
The Federal Reserve Bank's function on an out-of-state banking level is that of a clearing house, which is
like a banker's bank. Here, banks get charged for all checks the clearing house presents to them for payment
and get credit for all the checks they send in.
c o unt s , t he b a n k mu s t k e e p o n h a n d t h e
b ul k of t h e de pos i t s f or pos s i bl e i mme -
di a t e p a y me n t . Suc h f unds ar e, t her e-
f or e, no t ge ne r a l l y a va i l a bl e t o t h e b a n k
f or l e ndi ng o r i nv e s t me nt .
A c h e c k is a n o r d e r t o t he b a n k r e que s t -
i ng i t t o p a y mo n e y o u t of
k> y
u r
a c c o u n t t o s o me b o d y
el se. I t is a n o r d e r a g a i ns t
y o u r d e ma n d d e p o s i t s , t r a n s f e r r i n g
s o me of y o u r mo n e y t o s o me o n e wh o
h a s sol d y o u t hi ngs o r r e n d e r e d y o u
ser vi ces.
T o d a y , mi l l i o n s of p e o p l e h a v e
mo n e y i n t h e b a n k s . T h o s e wi t h c he c k-
i ng a c c o u n t s ( d e ma n d d e p o s i t s ) a r e
gi ven c h e c k b o o k s b y t h e b a n k . Wh e n -
ever a n y o n e h a s t o p a y mo n e y t o s ome-
one , h e ma y wr i t e o u t a c h e c k i ns t e a d
of p a y i n g i n c a s h. Of c our s e , t h e p e r s o n
wr i t i ng t h e c h e c k mu s t h a v e o n de pos i t
i n t h e b a n k a t l eas t as mu c h as t he c h e c k
r e pr e s e nt s .
T h e c h e c k is a n i nt e r e s t i ng devi ce.
Wi t h a f ew s t r oke s of t he p e n t o i ndi -
c a t e t he a mo u n t , a n d y o u r s i gna t ur e , a
c h e c k is ge ne r a l l y a c c e p t e d l i ke mo n e y .
I t is r eal l y a pi e c e of p a p e r wh i c h ma y
b e us e d wi t h o u t t he us e of a c t u a l cur -
r e nc y. I n a d d i t i o n t o b e i ng a c o n v e n i e n t
wa y t o p a y bi l l s, t h e us e of c he c k s al s o
r es ul t s i n a p e r s o n a l b o o k k e e p i n g sys-
t e m f or t h e de pos i t or . Th i s b o o k k e e p i n g
s ys t e m is i n t h e f o r m of c h e c k s t ubs .
Af t e r h a v i n g filled i n a c he c k, a s t ub is
43
k e p t b y t h e i s s uer o n wh i c h h e h a s l i s t ed
t h e n a me of t h e p e r s o n o r firm i n wh o s e
n a me t he c h e c k wa s i s s ued, t h e a mo u n t
of mo n e y i nvol ve d, t h e p u r p o s e f or
wh i c h it wa s i s s ued, a n d finally, t he
a mo u n t stil l r e ma i n i n g i n t h e c h e c k i n g
a c c o u n t .
\
e c t i n g
Co i n c ol l e c t i ng is t o d a y o n e of t h e
mo s t p o p u l a r x r f al l h o b b i e s a n d t he
n u mb e r of i ndi vi dua l s e n g a g i n g i n t hi s
f a s c i na t i ng p a s t i me is f as t i nc r e a s i ng.
I t is a l s o o n e of t h e mo s t a n c i e n t h o b -
bi es . T h e Ro ma n s , s o me t wo t h o u s a n d
ye a r s a go, a l r e a d y c ol l e c t e d Gr e e k
pi ec es b e c a u s e t he s e we r e c o ns i de r e d
be a ut i f ul l y ma d e a n d de s i gne d. T h e
P o p e s of t h e t h i r t e e n t h a n d f o u r t e e n t h
c e nt ur i e s we r e c oi n c ol l ec t or s , as we r e
ma n y k i ng s a n d n o b l e me n . T h r o u g h o u t
hi s t or y a n d unt i l t h e p r e s e nt da y, pe o-
pl e h a v e c ol l e c t e d be a ut i f ul l y ma d e a n d
r a r e c oi ns v a l u e d a t t h o u s a n d s of dol -
l ar s , a n d , al s o, i nt e r e s t i ng set s v a l u e d a t
a dol l a r o r l ess.
What is
numismatics?
Nu mi s ma t i c s is t h e s c i enc e of c oi ns a n d
me d a l s , a n d a c o i n
c o l l e c t o r i s c a l l e d a
n u mi s ma t i s t . Y o u d o
n o t h a v e t o s t udy t h e s c i enc e t o s t a r t a
c ol l ec t i on, n o r k n o w al l t h e p h a s e s of i t ,
b u t o n c e y o u get i nvol ve d, y o u wi l l di s-
c o v e r a f a s c i na t i ng h o b b y . Wh e r e v e r
hi s t or y wa s ma d e , mo n e y a n d c oi ns we r e
i nvol ve d, a n d a c o mp l e t e c ol l e c t i on of
PORTRAITS OF HEADS OF STATE
OF FOREIGN COUNTRIES
KING GEORGE III,
GREAT BRITAIN,
TWO PENCE
(A "CARTWHEEL")
KING ALFONSO XIII,
SPAIN,
50 PESETAS
FLYING HORSE (PEGASUS),
ITALY,
10 LIRE
LION,
EAST AFRICA
1 SHILLING
SOME "ANIMAL COINS" OF THE WORLD
UNITED STATES COINS STILL IN CIRCULATION
LINCOLN CENT INDIAN HEAD CENT
V
JEFFERSON NICKEL
ROOSEVELT DIME
WASHINGTON
25 CENTS
BUFFALO NICKEL MERCURY DIME
LIBERTY STANDING
25 CENTS
44
JAGUAR,
URUGUAY
1 PESO
CHICKEN,
IRELAND,
1 PENNY
BEAVER,
CANADA,
5 CENTS
FRANKLIN
HALF DOLLAR-
WILL BE REPLACED
BY KENNEDY HALF COLLAR
SHOWN ON TITLE PAGE
LIBERTY STANDING
HALF DOLLAR
U.S. commemorative coins can make a beautiful collec-
tion. We show you just a few of them. Special catalogues
are available from the Superintendent of Documents.
1915 PANAMA
PACIFIC EXPOSITION
HALF DOLLAR
1918 ILLINOIS
CENTENNIAL
HALF DOLLAR
1920 PILGRIM
TERCENTENARY
HALF DOLLAR
'IF? ^
1921 MISSOUR
CENTENNIAL
HALF DOLLAR
1922 GRANT
MEMORIAL
HALF DOLLAR
1915 PANAMA
PACIFIC EXPOSITION
$50 GOLD PIECE
1925 STONE MOUNTAIN
MEMORIAL
HALF DOLLAR
1928 OREGON TRAIL
EMORIAL
ALF DOLLAR
;- i BOOKER T. WASHINGTON
HALF DOLLAR
WOODEN NICKEL
coi ns of t h e wo r l d, o r of a c o u n t r y , c a n
b e r e a d l i ke a hi s t o r y b o o k . If y o u a r e
i nt e r e s t e d i n hi s t or y, y o u wi l l s t a r t b y
c ol l ec t i ng wh a t e v e r c oi ns y o u c a n get .
Co i n c ol l ec t i ng c a n b e c o me a v e r y cos t l y
h o b b y , b u t it do e s n o t h a v e t o b e so.
Y o u mi g h t b e g i n wi t h a c oi n f r o m e a c h
c o u n t r y a n d t h e n a d d ot he r s . Y o u
mi g h t s t a r t wi t h c ol l ec t i ng c u r r e n t c oi ns
a n d t h e n t r y t o get o l de r ones . S o me pe o-
pl e a r e i nt e r e s t e d i n c oi ns f or t he i r de-
si gn a n d t h e pi e c e of a r t t he y r e p r e s e nt .
T h e y mi g h t s t a r t c ol l ec t i ng t h e c oi ns
t h a t t h e y c o ns i de r es pec i al l y beaut i f ul .
T h e r e a r e p e o p l e wh o c ol l ec t c oi ns be-
c a u s e t he y a r e i nt e r e s t e d i n pe r s ona l i t i e s
a n d t he i r l i kenes s es . T h e y mi g h t s t a r t
c ol l e c t i ng me d a l s a n d c oi ns wi t h p o r -
t r ai t s of gods , ki ngs , a n d wh o e v e r el se
wa s o r is c o ns i de r e d i mp o r t a n t e n o u g h
t o b e p r e s e r v e d f or pos t e r i t y o n a c oi n.
Wh a t e v e r y o u r i nt er es t , it is g o o d t o
s t a r t b y c ol l e c t i ng a l ot of c oi ns . Wh e n
y o u h a v e a c q u i r e d mo r e k n o wl e d g e a n d
f eel i ng f or t h e m, y o u c a n s peci al i ze.
A ver y i nt e r e s t i ng s pe c i a l i z a t i on is a col -
l ec t i on of Un i t e d St at es coi ns , al l coi ns ,
o r e v e n o nl y o n e d e n o mi n a t i o n , f r o m
e ve r y ye a r . Y o u wi l l b e s ur p r i s e d h o w
v a l u a b l e s uc h a c o mp l e t e c ol l e c t i on c a n
be. Y o u c a n e ve n s t a r t i mme d i a t e l y b y
l o o k i ng at t h e ye a r s t he c oi ns i n y o u r
p o c k e t h a v e b e e n mi n t e d .
T h e a g e of a c oi n do e s n o t a l wa ys set i t s
va l ue . S o me c oi ns of
How i mpor t ant ^ ,
r
a n c i e n t Gr e e c e a n d
is t he a g e
of a coi n?
R o m e
'
f o r e x a m
P
l e
>
a r e s ol d c he a p l y t o-
da y, whi l e s o me Un i t e d St a t e s pi eces
mi n t e d i n 1 9 1 4 sel l f or mu c h mo r e . T h e
r e a s o n f or t hi s is t wo f o l d. T h e r e is mo r e
d e ma n d f or t he Ame r i c a n c oi n f r om col -
l ect or s , a n d f ewer Ame r i c a n c oi ns of
t ha t y e a r a r e avai l abl e.
When is a coin a
collector's item?
T h e v a l u e a n d de s i r a bi l i t y of a c oi n as a
c ol l e c t or ' s i t e m a r e
d e t e r mi n e d by t he
a n s we r s t o f o ur
q ue s t i o ns : 1 ) H o w ma n y coi ns of t he
p a r t i c u l a r i s s ue we r e mi n t e d ? 2 ) Ab o u t
h o w ma n y of t h a t i s s ue h a v e di s ap-
p e a r e d f r o m c i r c ul a t i o n? 3 ) H o w mu c h
i n d e ma n d is t he c oi n t o c o mp l e t e set s?
4 ) Wh a t i s t he c o n d i t i o n of t he c oi n?
I n r e g a r d t o h o w ma n y of a pa r t i c u-
l a r i s s ue we r e mi n t e d , i nf o r ma t i o n is
a v a i l a b l e f r o m b o o k s a n d ma g a z i ne s .
F o r Ame r i c a n coi ns , t h e Offi ce of t he
Di r e c t o r of t h e Mi n t i s s ues a b o o k l e t
ent i t l ed, Domestic Coin Manufactured
by Mints of the United States, wh i c h
ma y b e o r d e r e d f or 2 0 c e nt s f r om
t h e S u p e r i n t e n d e n t of D o c u m e n t s ,
Wa s h i n g t o n 25 , D. C.
BUFFALO NICKEL
As f or t h e s e c o n d q ue s t i o n, a n u mb e r
of c oi ns a r e l os t e a c h y e a r t h r o u g h fires,
s hi pwr e c ks , floods, a n d c ar el es s nes s .
T h e s u p p l y mi n t e d i n a gi ve n y e a r t e n d s
t o di mi ni s h, t hus ma k i n g t h o s e t h a t re-
ma i n r a r e r , a n d mo r e v a l ua b l e .
T h e p o p u l a r i t y a n d , c o n s e q u e n t l y ,
t he des i r abi l i t y, of a c oi n a t a gi ven t i me
t e nds t o b e g a u g e d b y t h e p r i c e q u o t e d
by c oi n de a l e r s . T h e na t i o n- wi de p o p u -
l ar i t y of a c oi n is a l s o r e p o r t e d b y ma g a -
zi nes p u b l i s h e d t o s e r ve c oi n c ol l e c t or s
a n d numi s ma t i s t s .
T h e c o ndi t i o n of t h e c oi n i s i mp o r t a n t
i n d e t e r mi n i n g i t s
v a l ue . Th i s c ondi -
t i on i s cl assi f i ed i n
s ever al c a t e gor i e s .
He r e a r e t h e ma i n
o ne s : " Pr o o f c o n d i t i o n , " a s a p p l i e d t o
Un i t e d St a t e s coi ns , i ndi c a t e s t h a t t h e
c oi ns h a v e g e ne r a l l y b e e n p u t a s i de b y
t he mi n t i t sel f f or t he benef i t of col l ec-
t or s . Th e s e c oi ns ma y b e o b t a i n e d f r o m
y o u r l oc a l b a n k . T h e y a r e c o mp l e t e l y
ne w, u n c i r c u l a t e d , n e v e r h a n d l e d e x c e p t
b y mi n t e mp l o ye e s , h i g h l y p o l i s he d
wi t h o u t a n y si gns wh a t s o e v e r of we a r .
Th e y a r e ge ne r a l l y st i l l i n t he i r or i gi na l
wr a p p i n g s .
Co i n s cl assi f i ed i n "fi ne c o n d i t i o n "
h a v e b e e n c i r c ul a t e d v e r y l i t t l e; l i nes
How does the
condition of the
coin affect
its value?
a n d eagl e' s wi ngs a r e stil l c l e a r l y seen.
T h o s e c o n s i d e r e d " g o o d " o r " ve r y
g o o d " a r e r el at i vel y u n s c r a t c h e d , s hi ny,
a n d n o t wo r n b y t o o mu c h h a n d l i n g ,
n o r ma r r e d b y exces s i ve c i r c ul a t i on.
A s y o u p r o g r e s s wi t h y o u r h o b b y , you' l l
l e a r n h o w t o c l e a n
How shoul d you
. . . y o u r c o i n s . B e
cl ean coins?
J
c a r e f u l h o w t h e
c l e a n i n g i s d o n e i n o r d e r n o t t o affect
t h e ba s i c c o n d i t i o n of t h e pi ec es . A sil-
ve r c o i n c a n b e b r o u g h t b a c k t o a l us-
t r o us g l e a m b y us i ng b i c a r b o n a t e of
s oda . R u b gent l y, a n d t h e n wa s h i n c l e a r
wa t e r . Ho u s e h o l d a mmo n i a is a l s o ef-
f ect i ve i n r e s t or i ng s p a r k l e t o y o u r coi ns .
Bu t , a g a i n, be car ef ul n o t t o r u b t o o
h a r d . Th e s e di r e c t i ons a p p l y t o c om-
p a r a t i v e l y n e w coi ns . Ol d one s s houl d
n o t b e c l e a ne d a t al l . Yo u ma y d a ma g e
t h e m, a n d t h u s i mp a i r t he i r val ue.
O r d i n a r y c o p p e r c o i n s a r e b e s t
c l e a ne d b y r u b b i n g l i ght l y wi t h a c h a m-
oi s c l o t h a n d a l i t t l e oi l . Ma k e s ur e t ha t
y o u r e mo v e onl y t he s ur f a c e di r t , not
a n y of t h e c o p p e r i t sel f.
On c e y o u h a v e b e g u n y o u r c ol l ec t i on,
y o u b e c o me c o n -
c e r n e d a b o u t st or -
age. Yo u c a n k e e p
y o u r c oi ns flat on t r ays . Or you ma y
How should you
keep coins?
WASHINGTON QUARTER
HALF DOLLAR
(LIBERTY STANDING)
The illustrations on
these two pages give
you enlarged segments
from U.S. coins to help
you find the mint marks
which are important for
the collector; the value
of the coin may depend
on them.
LIBERTY HEAD (MORGAN) DOLLAR
47
COIN ENVELOPE
COIN-HOLDER WITH
ADHESIVE BACKING
COINS IN
ENVELOPES
CAN BE STORED IN METAL BOXES
wa n t t h e c o n v e n i e n c e of e n v e l o p e s
b o u g h t f r o m de a l e r s f or s t or i ng t he
coi ns . Th e s e e nv e l o p e s ma y b e filed i n
s mal l b o x e s , wi t h t h e ne c e s s a r y i nf or ma -
t i on a b o u t e a c h p i e c e wr i t t e n o n e a c h of
t he e nve l ope s . Of c our s e , t he r e a r e a l s o
t he c oi n b o a r d s wi t h pl as t i c sl i des wh i c h
e n a b l e y o u t o i ns pe c t mo r e easi l y b o t h
si des of t h e pi eces . Th e s e ma y b e p ur -
c h a s e d f r om gift s ho p s a n d d e p a r t me n t
s t or es or , if y o u a r e h a n d y , y o u c a n
ma k e o n e your s el f .
I n t hi s c o u n t r y a l one , t h e r e a r e o v e r
400 coi n cl ubs,
Where can you get

, ,
. one ot whi c h you
i nf ormat i on . .
about clubs? may want t o vi si t
f or i nf o r ma t i o n.
If y o u b e c o me a me mb e r , y o u c a n ex-
c h a n g e s o me of y o u r c oi ns f or o t he r s of
g r e a t e r i mp o r t a n c e t o y o u at t he t i me.
Ne ws p a p e r s , h o b b y ma g a z i n e s , a n d t he
cl assi f i ed t e l e p h o n e di r e c t o r y wi l l l i st
l oc al c l ubs a n d c oi n de a l e r s .
T h e l a r g e s t o r g a n i z a t i o n s e r v i n g
t h o s e i nt e r e s t e d i n c oi ns is T h e Ame r i -
c a n Nu mi s ma t i c As s o c i a t i o n , r e a c h e d a t
P . O. Bo x 5 7 7 , Wi c h i t a , Ka n s a s . Th e r e
a r e mo r e t h a n t hi r t y t h o u s a n d me mb e r s
f r o m ever y s t at e, a n d f r om ma n y for-
ei gn c ount r i e s . T h e a i m of t he as s oci a-
t i on is t o p r o mo t e a n d e n c o u r a g e t he
c ol l e c t i on a n d t he s t udy of coi ns .
Of s peci al i nt er es t t o c oi n c l ubs a n d
c ol l e c t or s is t h e Ch a s e Ma n h a t t a n Ba n k
Mo n e y Mu s e u m c o n t a i n i n g mo r e t h a n
sevent y- f i ve t h o u s a n d s pe c i me ns , o n e of
t h e l ar ges t c u r r e n c y c ol l ec t i ons o n di s-
pl a y i n t hi s c o u n t r y o r a b r o a d . I t is l o-
c a t e d i n t he R C A Bui l di ng, Ro c k e f e l l e r
Ce n t e r , i n Ne w Yo r k Ci t y.
48
H O W A N D WH Y WO N D E R
Produced and approved by noted authorities, these books
answer the questions most often asked about science, na-
ture and history. They are presented in a clear, readable
style, and contain many colorful and instructive illus-
trations. Readers will want to explore each of these
fascinating subjects and collect these volumes
authentic, ready-reference, basic library.
5030 ANTS AND BEES
5031 WILD FLOWERS
5032 DOGS
5033 PREHISTORIC MAMMALS
5034 SCIENCE EXPERIMENTS
5035 WORLD WAR II
5036 FLORENCE NIGHTINGALE
5037 BUTTERFLIES AND MOTHS
5038 FISH
5039 ROBOTS AND
ELECTRONIC BRAINS
5040 LIGHT AND COLOR
5041 WINNING OF THE WEST
5042 THE AMERICAN
REVOLUTION
5043 CAVES TO SKYSCRAPERS
5044 SHIPS
5045 TIME
5046 MAGNETS AND MAGNETISM
5047 GUNS
5048 THE MOON
5049 FAMOUS SCIENTISTS
5050 OLD TESTAMENT
5051 BUILDING
5052 RAILROADS
5053 TREES
5054 OCEANOGRAPHY
5055 NORTH AMERICAN INDIANS
5056 MUSHROOMS, FERNS AND
MOSSES
5058 COINS AND CURRENCY
5060 THE FIRST WORLD WAR
5001
5002
5003
5004
5005
5006
5007
5008
5009
5010
5011
5012
5013
5014
5015
5016
5017
5018
5019
5020
5021
5022
5023
5024
5025
5026
5027
5028
5029
DINOSAURS
WEATHER
ELECTRICITY
ROCKS AND MINERALS
ROCKETS AND MISSILES
STARS
INSECTS
REPTILES AND AMPHIBIANS
BIRDS
OUR EARTH
BEGINNING SCIENCE
MACHINES
THE HUMAN BODY
SEA SHELLS
ATOMIC ENERGY
THE MICROSCOPE
THE CIVIL WAR
MATHEMATICS
FLIGHT
BALLET
CHEMISTRY
HORSES
EXPLORATIONS AND
DISCOVERIES
PRIMITIVE MAN
NORTH AMERICA
PLANETS AND
INTERPLANETARY TRAVEL
WILD ANIMALS
SOUND
LOST CITIES
WONDER BOOKS
New York 10, N. Y.
4?
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