The History of U.S. Currency

In order to finance the Civil War, Congress authorizes the U.S. Department of the Treasury to issue non-interest-bearing Demand Notes. These notes earn the nickname “greenbacks” because of the green ink on the back. All U.S. currency issued since 1861 remains valid and redeemable at full face value.

The first $10 notes issued by the U.S. federal government are Demand Notes, featuring President Abraham Lincoln’s portrait, fine-line engraving, and intricate geometric lathe patterns. Each Demand Note was immediately redeemable in gold or silver “upon demand” at seven specific banks around the nation. The Treasury issued Demand Notes in 1861 and 1862.

The Treasury seal first appears on currency during the Civil War. While the color and style of the seal changes over the years, the internal seal remains essentially the same to modern day with a key, scales, and stars.

After the Treasury issued Demand Notes, Congress authorizes a new class of currency known as “United States notes” or “Legal Tender notes.” These notes replace Demand Notes. They continue to circulate until 1971. Similar to Demand Notes, they are nicknamed "greenbacks."

The Treasury seal first appears on currency during the Civil War. The federal government issues the first $1 Legal Tender" notes. These banknotes feature a portrait of Secretary of the Treasury Salmon P. Chase.

By 1862, the Demand Notes incorporate fine-line engraving, intricate geometric lathe work patterns, a U.S. Department of the Treasury seal, and engraved signatures to aid in counterfeit deterrence. To this day, U.S. currency continues to add features to deter counterfeiting.

Congress creates the Office of the Comptroller of the Currency (OCC) and National Currency Bureau to handle the newly created National Bank Notes.

American money has depicted Liberty and Justice as allergorical figures. On interest-bearing notes of 1863, Justice can be seen holding her scales. She appears on the right side of a $50 bill from 1880 holding a sword and shield.

Congress establishes a national banking system and authorizes the U.S. Department of the Treasury to oversee the issuance of National Banknotes. This system sets Federal guidelines for chartering and regulating "national" banks and authorizes those banks to issue national currency secured by the purchase of United States bonds.

The first $100 and $500 national bank notes feature John Trumbull’s paintings “Declaration of Independence” and “Surrender of General Burgoyne.” Both paintings now hang in the U.S. Capitol Building.

The United States Secret Service is established to deter counterfeiters, whose activities diminish the public’s confidence in the nation's currency.

The 1869 series of United States notes features the first use of George Washington’s portrait.

The Bureau of Engraving and Printing begins engraving and printing the faces and seals of U.S. banknotes. Before this, U.S. banknotes were produced by private banknote companies and then sent to the Bureau of Engraving and Printing for sealing, trimming, and cutting.

Congressional legislation recognizes the U.S. Department of the Treasury’s Bureau of Engraving and Printing (BEP) with specific allocation of operating funds for fiscal year 1875.

Congress mandates that the U.S. Department of the Treasury solely performs the engraving and printing of notes, bonds, and other securities of the United States. 

The U.S. Department of the Treasury issues silver certificates. Legislation directing an increase in the purchase and coinage of silver authorizes the creation of the certificates.

Former United States Senator Blanche Kelso Bruce is the first African-American to have his signature on American paper currency. He becomes the Register of the United States Treasury in 1881.

$1 silver certificates feature Martha Washington in their 1886 and 1896 series.

The U.S. Department of the Treasury begins issuing Treasury notes.

Emmanuel Ninger is arrested for counterfeiting banknotes. Nicknamed “Jim the Penman” by the U.S. Secret Service, Ninger uses only a pen and a brush to counterfeit money. While his work is convincing, he is caught because the ink dissolved on one of his counterfeits.

In 1896 US released a series of silver certificates with neoclassical designs. They were referred to as the "Educational Series". The $1 note had allegorical figures of history instructing the youth. Two dollar notes had figures of science presenting the children, Steam and Electricity, to adults, Commerce and Manufacture.