DOLLAR HISTORY

Dollar History

Dollar History

Introduction

U.S. dollars (abbreviation: USD Symbol: $) is the currency of the United States. The U.S. dollar is also held as an official and legal tender in some other countries. These include Bonaire, the British Virgin Islands, Ecuador, El Salvador, Liberia, the Marshall Islands, Micronesia, East Timor, Palau, Panama, Saba, Sint Eustatius and the Turks and Caicos Islands. United States Dollar is the monetary unit of the United States, one of the major reserve currencies in the world. Apart from United States of America, dollar is a currency that is also used in Australia and Canada, as well (Hacker, Jacob, 2006).

Discussion

Dollar History

The origin of the single currency of the United States of America is in 1690 when the country consisted of several British colonies. At this time, there were colonies working as suppliers of raw materials, among other things, tobacco and cotton, very valuable. The 13 colonies collected customs on their borders, making it difficult to trade strongly. In addition, the British currency was not accepted, the British pound was forbidden. Within the American colonies, there were different currencies for trade. One of the colonies, the “Massachusetts Bay Colony "(today the U.S. state of Massachusetts with a capital of Boston) was the first colony, which took its own paper money to finance the military. The other colonies followed suit (Hacker, Jacob, 2006).

The British tried to prevent the emergence of restrictions from the mother country independent industry and finance. In 1704, the minting of coins was prohibited in all colonies. To continue to pursue trade can be served the settlers of Spanish or Dutch currency. In this context, emerged the concept of U.S. dollars, derived from the European name " Gold ". Silver coins were of Spanish origin as "Spanish dollars" (Spanish Dollar) refers. In 1775, broke the American War ...