History of the Indian Rupee

To understand the reason, and perhaps necessity, for the conception of the Currency act of 1764, one must have a grasp of the economic situation in the American colonies prior to 1764. The currency used in the American colonies has always revolved around, specie or the two types of paper currency, legislatively issued legal tender or land bank notes (Finkelstein 39). Foreign specie was far more common than British specie, due to an export prohibition of British specie and an unfavorable balance of trade between the American colonies and Britain that drained whatever British specie

Ogedei laid the foundation of prosperity and brought master craftsmen of various fields from China (Doc.4). By bringing in skilled artisans from China, Ogedei increased the amount and quality of goods for both regional and foreign trade. Francis Balducci Pegolotti explains how the lord of Cathay would purchase silver from foreign merchants and give them paper money in exchange. Merchants were then able to use this currency to buy silk and other goods (Doc.7). As we know from Marco Polo, Cathay was being controlled by the Mongols during this time (Doc.2). Being an Italian businessman, Francis Balducci Pegolotti’s description of this trading process accurately represents foreign trade with Mongols. This system of paper money created by the Mongols facilitated trade and allowed the merchants to easily purchase items at a fixed price as well as not having to carry a burden. Despite these benefits, paper money contributed to the fall of the Yuan Empire because the value of notes were doubted. Similar to the trading cities established by Latin Europe, economy was entirely dependent on local and long-distance trade. Both these trading cities and the Mongol Empire relied on trade to fuel their

and learned from them. By the 10th century mills that produced the paper could be found in Persia,

Even before the creation of the Federal Reserve, banks were used by the public just as we use them today. Deposits were made into savings accounts. Loans were taken out to mortgage a home or finance a new business. Banknotes were issued and spent when the public borrowed from the banks. Borrowers spent these banknotes just as paper money is spent today. These bank notes were valued as money since they were backed by the promise that they would be exchanged on demand for either gold or silver.

Between the time of the American Revolution and the Civil War the U.S. had no national paper currency. Chartered banks and their privately issued notes proliferated. Countless banks issued paper money in a bewildering variety of denominations and designs—more than ten thousand different kinds by 1860. Counterfeiters flourished amid this anarchy, putting vast quantities of bogus bills into circulation. The Continental was America’s currency. In Stephen Mihm’s, A Nation of Counterfeiters, Mihm weaves a historically based tale of how a shady lot of counterfeiters thrived under the American capitalist system, and then explains how the federal government effectively dismantled the archaic monetary system and in turn ended the counterfeit economy it sustained.

There was pushback from the Federal Government, President Grover Cleveland included, wanted to keep the money supply fixed in gold, held in the hand of the government (Doc D). Monopolization of the wealth supply was pandemic in the United States in the late

In 1811, when the first bank of the United States concluded, many banknotes were distributed, but banks were not keeping enough silver and gold to collect when requested. Large number of notes were handed out with different values and collections all at the same time as a result counterfeiting was easy. Congress handled and funded the second bank of the United States in 1816 which were allowed the state bank to issue money but its amount did not authorize

Jackson’s pet banks were wildcat banks and they excessively printed notes, rendering them useless. The federal government was in a predicament when they were used to purchase land from the government. Jackson issued the Specie Circular (Coinage Act) in 1836 which was carried out by Van Buren. The order made gold and silver the only acceptable payment for public land. By May 1837, New York banks stopped accepting all paper currency.

was worth more than 600,000 silver coins from Japan. This document was written by a British

hundred twenty-three dollars in legal tender was promptly reduced to ashes and smoke” (P. 29). Chris

Another problem plaguing the economy of Britain was that the Americans continued to issue a large amount of paper bills. The British felt the effective way to halt the issuing of the bills was to put in place a Currency Act. They saw the paper money as "greatly depreciating

For Americans firsts 70 years private entities and not the federal government issued paper money. Notes that was printed by the states chartered banks which could of been exchange for gold and silver. From the founding of the United States passage of National Banking Act 8,000 different countries issued currency which created a widely money supply facilitated rampant counterfeiting. By establishing a single national currency the National Banking act eliminated the overwhelming variety of paper money circulating throughout the country and created a system of banks chartered by the federal government rather than by the states. The law also assisted the federal government in financing the Civil War. Before gold and silver was discovered in the west the United States lacked sufficient quantity of precious metals for minting coins. A 1793 law permitted spanish dollars and other foreign coins to be a part of the American monetary system. Foreign coins was not banned until 1857. The highest bill ever produced by the United States Bureau of Engraving and printing was the $100,000 gold certificate. The money was printed between December 18, 1934 and January 9, 1935 with the picture of President Woodrow on the front. The notes wasn’t available to the public they were only use for transaction

bank notes but did not aware that they did not have enough gold or silver

Colonial paper money is perhaps one of the most fascinating aspects of colonial America in the 1700s. The lack of specie in the colonies is a well documented phenomenon and, in New England it’s effect was heavy, and led to the issuance of paper money. This paper will investigate the successful implementation of paper currency as endogenous money to grow colonial money supply and stimulate economic activity in the early American economy. Additionally this paper will argue loss of faith in the governments backing the paper bills, as opposed to a shock to the money supply was the rationale for inflation of colonial New England currency. New England colonial paper currency will be the predominant focus, but this paper will also examine the Pennsylvania pound. New England colonial currency experienced a considerable amount of inflation in the latter years of 1740. This can be attributed in part to large amounts of paper money issuance and the funding of King George’s War. Alternatively, this essay will argue that the bulk of the inflation experienced was due to a loss in faith of the governments backing.

     In the present day, the world's economy is ever-changing and adjusting. Many different reasons control the reasons for this. The future of currency is something that can only be predicted and is not guaranteed. However, there are many determing factors behind the changes that can take place. Asia and North America are two continents that have economies that have recently changed or are in the midst of change.