Among the many things the United States needed to do after gaining independence from Britain was to establish its own money.When a new U.S. Constitution was approved in 1788, it provided for a legislative branch that was to meet in congress in two-year sessions to consider the business of the country.
The Second Congress convened on March 4, 1791 and took up matters that had not been resolved in the first term, including the country’s currency standards. The Coinage Act of 1792 established the United States Mint and set the United States dollar as the nation’s unit of money.
U.S. Dollar Becomes Currency Standard
Up until this time, various foreign currencies had been used in commerce, the British pound sterling and the Spanish silver dollar chief among them. The Second Congress pegged the US dollar to the Spanish currency, saying that it was to have “the value of a Spanish milled dollar as the same is now current."
Philadelphia Mint and Regulating Government Authority Established
The law was passed by congress and signed by President George Washington on April 2, 1792, establishing a mint in Philadelphia, at that time the nation’s capital, and giving congress regulating authority over coins.
It also made the United States one of the first countries to use a decimal system for currency and established legal tender laws.
The 1792 Act remains the basis for US currency regulations today, although it has been modified or superseded by dozens of subsequent pieces of legislation.
Modern Congressional Involvement in Coin Design, Value and Proposals
With its power established by the 1792 Act, congress has gotten involved in everything from the design of coins and bills to their actual worth in relation to standards like gold and silver. It has also approved (or rejected) proposals from presidents, including Franklin Roosevelt’s prohibition of private ownership of gold coins and bullion (1934) and Richard Nixon’s 1971 removal of the US from the gold standard, to the Collectible Coin Protection Act of 2014, aimed at strengthening penalties for making or selling fake numismatic collectibles.
Collect Coins and Currency to Share in History
The history of money is full of fascinating tales of adventure and intrigue, and collecting coins and currency is a great way to share in them. They feature memorable people, places and events and often have beautiful designs that stand on their own as artwork.
The Great American Coin Company® offers a wide selection of collectible U.S. coins and paper currency as well as currency from around the world. We keep adding unique collectibles as they become available, so be sure to visit us frequently. And while you’re there, be sure to visit our blog for interesting and timely articles about currency and precious metals.
