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Creation of a common currency in United States?

When was the first time in the United States that the nation was binded by a common currency across the country.

2 Answers

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  • OPM
    Lv 7
    1 decade ago
    Favorite Answer

    That is a tough question. The United States had always required payment in specie, until 1975 when it finally let the dollar float relative to gold. So in a sense, we have always had a national currency, at least since 1792. However, it was rare for individuals to actually use specie. It was more common for them to use privately or state issued bank notes. This was true until the Civil War. In 1865, in the final days of the war, a tax was placed on private bank notes effectively ending their existence and creating the transition to checks. At that point, a national currency did exist, however, it would disappear again with the creation of Federal Reserve Notes, which were separate obligations upon each Federal Reserve Bank and not the entire system. Recent Federal Reserve Notes are drawn against the entire system and not against specific Federal Reserve Banks, except for $1 bills which are bank specific instead of a national currency.

  • 1 decade ago

    I think it was after the Civil War when the south was defeated.

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