I open my wallet, finger a $20 bill, pull it out and hand it to
the farmer. In return I load my bag with fresh apples and pears,
or beets and squash. The paper note is lightweight, compact,
easily folded and stored. It is accepted anywhere in the
country, for any purchase, any time. This reliable currency did
not always exist. Between the Revolutionary War and the Civil
War, most people preferred carrying gold and silver coins for
transactions. The paper money was locally printed by banks,
merchants, states, and cities; one never knew if it would hold
its value or if it would be accepted by folks in the next town
over. In 1861, the federal government began its efforts to
convert the country to a uniform currency. On demand notes were
issued in $5, $10, and $20 denominations, and could be redeemed
for the equivalent in gold “on demand”. In 1862, the first $1
bill was issued as Legal Tender. The National Banking Act of
1863 established a national banking system, and with it a
uniform national currency. Under th