Beautiful Bills

What is the color of money? And why should we care? Each country has its own currency, usually in coins and paper money. The paper money, in particular, has a variety of colored security threads woven through the parchment in order to foil potential counterfeit artists. Watermarks and colored ink are also included in the design. The more intricate the patterns, the less likely it will be that someone be able to pass off a duplicate as the original.

The earliest use of paper money occurred in approximately the seventh century, in China. At that time, people were very suspicious of it as a means of currency (as opposed to silver or gold coins). Inflation and uncertain value eventually resulted in bankruptcy of the state.

In the United States, paper money was originally issued by the Massachusetts colony in 1690. Because the colonies had not declared independence from the British Empire yet, the currency was in pounds, not dollars. The first dollars were printed in the 1760s. Again, this was before America gained its independence, so the actual value of the dollar ended up being uncertain. Moreover, it was an easy target for counterfeiters.

Because of this initial failure of paper money, the United States government did not issue official paper currency again until the mid-1800s. Congress officially authorized paper money in 1961, and President Lincoln founded the Secret Service in 1865, the primary purpose of which was to track down counterfeiters.

With respect to United States currency, the front of paper money is printed predominantly with black ink, and the back with green ink. This has led to the term of endearment, "greenbacks" for U.S. Dollars. Other countries employ additional colors of ink, beyond just green and black, in printing their paper money. Before the advent of the Euro, I found it fascinating to travel through Europe and examine the various bills of each country, from francs (France) to lire (Italy). Just across the border, Canada's currency is a beautiful contrast to ours, too.

In 1929, the American dollar bills with which you are familiar began their circulation. Shortly thereafter, in 1945, the government stopped printing bills larger than $100. For more information, and to see some photographs of the big bills no longer in circulation, see this great Hub: http://hubpages.com/_signupasap/hub/The-Big-Bills

The Bureau of Engraving and Printing produces printed currency in the United States, whereas the United States Mint creates coinage. The Treasury Department is responsible for transferring the currency and coins to the various Federal Reserve banks and branches throughout the country. The Federal Reserve releases the money based on banks' demands, which flows from public needs for cash. The system for release and retirement of money is complex and deserves its own article for a full discussion and examination.

Starting in 1990, the United States government added new features to paper currency in denominations from $5 to $100 to thwart the advancing technology of color copiers used by counterfeiters. The additions include a clear polyester thread with the denomination identified on it. These can be read from either side of the bill, when held up to the light. Microprinting is also added. To the naked eye, the printed words are so small they look like a straight line. Magnified, however, one can see phrases, such as "The United States of America."

The older, less technologically advanced currency will eventually be retired from circulation as it is replaced through the Federal Reserve system.

In our increasingly cash-less society, its interesting to take a minute and examine the currency that the government works so hard to create and defend. Besides, there's a big difference between seeing an account balance on a sheet of paper and having the ability to hold all those bills in your hand.