The Historical Evolution of the U.S Monetary System

ign="center">confusing in the beginning years that involved the
A vital and central role has been played byframing of the Constitution. At that time, it was
monetary system of the United States, whetherpreferred by various economists and experts that
it is an age of debit and credit cards, or thethe federal system should be given the highest
tobacco and gold were used as some of thepower and authority to run and monitor the
forms of money in the barter trade. Thus, themonetary system of the country, and therefore,
American experience of money has been verya centralized monetary system should be
rich as it developed significantly in different era ofestablished in the country. In this regard, the
human life. In the past, the thirteen colonies andconcept of a national currency, as well as, the
the Continental Congress were responsible for thesignificance of a single chartered bank was
issuance of paper currencies, as well as, a varietyconsidered by the framers that bestowed most
of foreign coins that played a crucial role in theof the power to the Federal government.
development of monetary system of the United(D’Arista, pp. 63-67)
States.On the other hand, other framers of the
Controversies have been a major part of the U.S.Constitution preferred of a decentralized
monetary system, as it developed and expandedmonetary system that should provide powers to
from its beginning of a decentralized system, andthe states to run their systems individually. In this
today, as a more centralized system can beway, every state would be having different notes
observed in the monetary system of the Uniteddue to their individual chartered banks. In this
States. Moreover, general doubts related to theregard, the concept of a single national currency
banking power have been another reason for theand a single chartered bank was argued and
gradual development of this system. In addition,rejected by these framers of the Constitution.
extensive legal debate was involved andAfter the long debate, the right of coining money,
responsible for the every change that occurred inas well as, its regulation was given to the Federal
this system. In specific, the liberties of state, asGovernment by the framers. States were not
well as, federal governments have always beenallowed to introduce their own money or make
the center of attraction of these debates.any arrangements for the issuance of paper
Moreover, the freedom of an individual or citizencurrency. At this stage, the financial system was
of the United States has been given dueless involved with the federal government, as
importance during the different processes ofspecified by the Constitution. On the other hand,
decision-making. (Wood, pp. 19-23)Congress was given the major rights for different
On the other hand, the gold has played a vital andprocesses of financial system of the country, and
prominent role in the economic development, andthe regulation, minting, as well as, the responsibility
in other words, the monetary system of theof circulation of money in different states was
United States. However, now less importance isgiven to the Congress.
given to the role of gold, which was once aReport this article
foundation stone of the monetary system. InThis article is free for republishing
specific, the importance has reduced due to itsSource:
non-utilization as a medium of exchange, as wellRepublish this article
as, regulator of supply of money, which was the
responsibility of gold in the monetary system ofAsk a Question About this Article
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of the reasons that changed the perception ofdetermine if an individual person has been insured.
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The considerations related to the establishment ofarea, won't they end up staying up late playing
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