USA Federal Reserve 5 dollars 1914

$55.00

USA, Federal Reserve, 5 dollars, 1914, Face: 2-B New York, Face: Lincoln portrait, Back: Columbus and the Pilgrims, signatures: White-Mellon, blue seal, P359b, two small spots at edge on different sides, aF

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Description

This is part of the first series of Federal Reserve Notes.

The Federal Reserve System was established because people in government were spooked by swings in the gold and silver prices. Value of the money on hand could drop in a moment. How can you plan under those circumstances. A system of humans each making sol

The USA got into the paper money business during the Civil War. Everyone was hoarding coins, they had to do something. Once they started they found that they kind of liked what paper money did to the economy.

Aside from China, other governments started using circulating “banknotes” starting in the 17th century AD. The practice became general in the 19th century. In the 20th century value of paper money in circulation far surpassed the value of coinage. In the 21st century paper money is fading and credit transactions are growing.

Paper money, meaning the promise of a government to pay a set amount, and the paper promise allowed to circulate at will, was probably first used in China in the 12th century AD. At that time the merchants and governments of Europe were just writing letters to each other about what they owed.