What did was the original U.S. currency? Why did the U.S. choose paper as their currency? Where did the dollar start from? The dollar didn’t actually start out as paper, but as a silver coin. It was because gold and silver were hard to find so they went from coins to paper. The dollar has first appeared in 1785. The “paper money” was worth 100 cents. U.S. was the first to make their currency the dollar. The Dutch and German called coins, "Joachimstaler,” named after their town and shortened it to thaler many years later, the changed the sound to from thaler to daler. Soon the English used that word as well, and change to the current word, dollar. During this, people could change from dollars to coins or reversed.
The problem with this was that U.S. did not have a lot of gold and silver to exchange equally. People would often make up their own rules and have the value of the dollar higher than it’s supposed to be. This caused a lot of problems due to not knowing how much the dollar was exactly worth. Years later, Congress passed the “National Bank Act of 1863.” People then accepted paper money as their currency.
Source:
http://googolplex.cuna.org/12433/5spot/story.html?doc_id=548
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