who invented american paper money?

Question

Was there a single person who came up with the American paper dollar or note? Why was it invented instead of coins?

Answer 1

The federal government. It used to be redeemable for gold.

Answer 2

Early colonists still used English money as a currency. At the development of the individual colonies, coins were made first, then paper money. Each of the 13 colonies made/stamped their own currency and set it's own value. After the Constitution was ratified, each state's money was not recognized in all the newly created Republic, thus trade was restrictive.

"When the framers of the U.S. Constitution created a new government for their untried Republic, they realized the critical need for a respected monetary system. Soon after the Constitution's ratification, Secretary of the Treasury Alexander Hamilton personally prepared plans for a national Mint. On April 2, 1792, Congress passed The Coinage Act, which created the Mint and authorized construction of a Mint building in the nation's capitol, Philadelphia. This was the first federal building erected under the Constitution. President George Washington appointed Philadelphian David Rittenhouse, a leading American scientist, as the first Director of the Mint. Under Rittenhouse, the Mint produced its first circulating coins -- 11,178 copper cents, which were delivered in March 1793." US Mint

"Bureau History

"The establishment of the Bureau of Engraving and Printing can be traced as far back as August 29, 1861, to a single room in the basement of the main Treasury building where two men and four women separated and sealed by hand $1 and $2 United States Notes which had been printed by private bank note companies. Gradually, more and more work, including engraving and printing, was entrusted to the organization. Within a few years, the Bureau was producing fractional currency, revenue stamps, government obligations, and other security documents for many federal agencies. In 1877, the Bureau became the sole producer of all United States currency. The addition of postage stamp production to its workload in 1894 established the Bureau as the nation’s security printer, responding to the needs of the U. S. government in both times of peace and war. Today, the Bureau is the largest producer of U. S. government security documents with production facilities in Washington, D.C. and in Ft. Worth, Texas."
US BEP

Answer 3

Well, they had paper money shortly after the nation was born but each state printed it's own and set its value. This, among other things crippled the economy and had the colonies struggling to survive. The Founding Fathers got together and wrote the Constitution in which the U.S. government is given the responsiblity of producing currency. Alexander Hamilton was the first Secretary of the Treasury so I guess you might give him credit. He is, after all, the only person to appear on American paper money that wasn't a President.
Paper money is cheaper to produce but doesn't last nearly as long. You don't ever run into issues where the money becomes worth less than the material it's made of, like pennies have now done.

Answer 4

On March 10, 1862 the first United States paper money was issued. The denominations were $5, $10, and $20. They became legal tender by Act of March 17, 1862. The inclusion of "In God We Trust" on all currency was required by law in 1955. The national motto first appeared on paper money in 1957 on $1 Silver Certificates, and on all Federal Reserve Notes beginning with Series 1963. Paper money originated in China. I hope this helps answer your question.

Answer 5

i htink it was invented so people can hold it in the air so it will fly away and other people can take your hard earned money and spend it on some cheap trash that will end up in the trash after two hours. i believe that a group of people worked together to make bills because they didn't like the idea of 5 dollars in change in thier wallet a the time it got heavy.

Answer 6

Ben Franklin had a lot to do with it , was a group of Gov officials , every colony had thier own so to make things easier they started making federal monies

Answer 7

Andrew Jackson, replaced gold and silver with paper.