Paper Currency and Its Future Currency has long been used as a tool to purchase things like goods and services. The many transactions of these early times involved the exchange of both coins and paper. However, in our modern era of cell phones and plastics, these primitive methods of payment may be coming to an end. With the introduction of credit cards and easy payment via cellular, this outcome may not be very far off. Credit cards, in many cases, are more reliable and secure than that of paper currency. Many card companies today aren’t aiming towards making paper currency obsolete, instead then are seeking to exterminate it entirely; having only there method of payment. On the other hand, paper currency does have its perks. An example …show more content…
As a major upcoming financial service, Visa dominated this early market by establishing partnerships with major banks throughout the country. Soon after, other financial service holders came online including MasterCard and American Express. Paper and coin based payment has always reigned supreme when it came to paying for goods and services on demand. Early forms of paper currency were known as banknotes and could be traced back to early Asia during the Tang Dynasty. Merchants would complain over the heaviness of carrying around coins and would instead be found using paper banknotes as a method of both payment and credit. It wasn’t until the late 17-century that English banks began printing their own modern version of paper currency. As time went on, method of security were added to banknotes by having them made out of paper that was then combined with materials such as cotton and plant fibers. Also intricate drawings were added as a way to prevent counterfeit. The physiological tendencies that conspire with credit have to do with a person’s sub conscience which allows them to purchases things that they normally couldn’t afford. According to Emily Birken and her article on the manipulations of credit, credit cards pose a serious threat to a person’s wellbeing in the case of going into debt. Birken uses the term present bias as way to label this phenomenon. The message that she gives is that
Credit cards have become increasingly popular world-wide, making it easier to buy now and pay later but are they actually helping or hindering someone’s credit? “Maxed Out” by James D. Scurlock demonstrates how credit cards can hurt someone’s credit, while “Why Won’t Anyone give Me a Credit Card” by Kevin O’Donnell demonstrates how someone may have financial stability to pay off a credit card, but still be consistently denied one by the credit card companies. Owning credit cards is not the problem; the problem is being irresponsible with it.
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.
Every day we buy things, and to purchase these items, most of us use credit cards or bills. Do we use pennies for virtually any transactions? The answer is no, we don’t. Consequently, the penny is far and away the least useful monetary value we have. Pennies are inefficient and should be cut out of the currency. The rationale behind this conclusion is simple: the price tag of minting a penny is more than one cent. Unfortunately for the penny, two other reasons prove that we require it no longer. The first reason is that not only will the removal of pennies make us more effective, it will drop prices similar to what happened in Australia and New Zealand when they abolished their “pennies”. The second is that we know that we do not need it
Ever since 1690, when the first paper money was issued by the Massachusetts Bay Colony, paper money has been constantly changing. Throughout the history of the United States paper money, the United States has gone through different types of currency. The different types of currency ranged from State Bank Notes to Gold Certificates to National Bank Notes to Silver Certificates to Federal Reserve Bank Notes, and now ending with Federal Reserve Notes. However, in the mean time counterfeit money had been gaining circulation and “thirty-six percent of the dollar value of known counterfeit currency passed in the U.S. was produced overseas, particularly in Colombia, Italy, Hong Kong, the Philippines and Bangkok” (Fun Facts About Money). In
According to Eric Hoover, the lure of easy credit on college campuses causes students to be burdened with needless and unscrupulous debt. In his essay, “The Lure of Easy Credit Leaves Students Struggling with Debt,” Hoover effectively argues his position through significant references and by successfully rebutting the opposition. Hoover explains how college students are not prepared to deal with the financial responsibilities associated with managing credit cards and why credit debt companies specifically target college students. Hoover also discusses the problems of new legislation created to eliminate chapter seven-bankruptcy relief and its subsequent effect on college students with outstanding
Issuing currency was not just limited to the banks now there were many other industries that could as well such as the railroad industry. These issues of banknotes created some major problems. One problem was that because of the different currency there was different sizes and designs on them which made them confusing to read at times. Another problem was that many of the notes traded at a discount, this means that it trades for less than its face value. The amount that the note would be discounted was determined by two key factors. The first was the distance between the issuing bank and the paying bank. The second was the perception the paying bank had about the issuing bank. To try to bring some standard to this, printers would publish banknote reporters. These banknote reporters would allow businessmen to have a better way of measuring the value of the currency that was out there (Philadelphia). Even though there were these banknotes it was still
Smith begins his argument in the previous sentences, stating that paper money and banking “enable the country…to increase very considerably the annual produce of its land and labour” (305). The medium of paper money allows exchange to speed up and production increase and the commerce and industry of a country are improved. This gives the topic of paper money a positive connotation. However, he juxtaposes this with his next statement, saying that paper money makes commerce and industry “somewhat augmented” and “cannot be altogether so secure” (305). His meaning by this is paper money only creates a market that is larger in size, and it introduces the negative qualities that exchange has always been prone to: insecurity and corruption.
The history of paper money in the United States is a fascinating topic. For much of history, money itself was valuable, because it was made of gold or silver or another precious resource. In order to use paper money, a government must have a way of backing it, or giving it a perceived value that people can trust. One particular thing to consider in this broad topic is how this system affected national debt. The government started this system to pay off debt, but in reality it only caused more debt.
“The average American owns 3.5 credit cards and $15,799 in credit card debt… totaling consumer debt of $2.43 trillion in the USA alone.” (Beckner). Debt forces many people into depression and worrying lives. People struggle to discover happiness through financing goods, but struggle even more to find a way out of debt. Through consumerism, people lose their finances in department stores, car dealerships, and much more. Most of the possessions people buy with credit cards become impractical within a few months. The void they search for is never really filled. Consumerism is just a way to get the economy going, without thinking of a person’s individual finance
Many countries all over the world have already started moving towards a cashless society, and the use of electronic payment methods are becoming more and more popular, however, becoming a completely cashless society will be problematic. Transactions made electronically can all be traced, and there are advantages and disadvantages to certain security aspects. The elimination of tangible money will introduce contradicting cost savings and added costs, as well as convenience but the system is unreliable in emergency situations. There is no doubt that electronic money will continue to exceed the use of cash, however it is unlikely that notes
In today’s economy, cash or a credit card is needed to meet the basic human needs. It is an apparent fact that we need cash or credit cards to purchase items such as food, clothing, and to buy gas. Also, when you are out shopping and discover that you have used all the cash in your possession, it is then that you realize that the advantage of having a credit card. Furthermore, with cash, you are restricted to the amount in your wallet or purse; however, a credit card allows you to pay for your purchase at a later date. Both cash and credit cards can be useful when you manage them wisely. While cash and credit cards are similar in that they both are readily accessible, used for goods and services at the time of purchase, they are dissimilar because of theft, high- interest rates, identity theft.
Throughout history there has been much speculation about a cashless society. With a cashless society in the near future there are many benefits, as well, as many negative implications. Society without cash will lose the benefits of the most liquid asset in the world. Without cash there would be no instant payments for goods and services. It is important that, if society moves toward a cash free economy, the benefits must out weigh the negative aspects in the end. There are major social and economic benefits to a cashless society such as reduction in cash related crimes and monetary benefits. There are major negative implications with a cashless society such as privacy issues and losing the liberty of cash. A cashless society could only be
Visa Inc. (VN) operates the world’s largest retail electronic payments network and manages the world’s most recognized global financial services brand. Visa has more branded credit and debit cards in circulation, more transactions and greater total volume than any of their competitors. They facilitate global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities. They provide financial institutions, their primary customers, with product platforms encompassing consumer credit, debit, prepaid and commercial payments. Visa Net, their secure, centralized, global processing platform, enables them to provide financial institutions and
We take the position that digital currencies are a fad. As argument, we try to clarify the definition of currency in general and explain what a "digital currency" really mean. Than we examine the arguments for the digital currencies and at the end we present the evidences of perils of digital currency.
The move to use electronic cash in an ironically termed society dubbed “cashless”; there are many issues that include