The name given as “DOLLAR”
The day of 6th July is of deep importance to the Americans. Not because any big issue took place. But today is the day when the term “Dollar” was accepted by the Continental Congress in the year 1785. The term “Dollar” had already been in common usage since the effective colonial period. Where it reference was to eight-real coin used by the Spanish in New Spain.
The term “Dollar” uncovers its origin back to the name of a European coin, named as “Thaler”. Which is a German term meaning “Valley” and refers to the exact location of the mines from which it was originated. At this time the Americans wanted complete independence from the Britishers as well as their monetary units, namely Pound.
Even though the dollar was adopted in 1785, it wasn’t until 1792 after a bill was passed which laid the foundation of the mint. Later on, it wasn’t until 1794 when the first American dollars began to appear in existence and also in circulation.
Why the $ symbol only?
With respect to the symbol “$” for the dollar, there are many theories one of such being as how it was chosen to represent the dollar.
One of the expert’s thesis suggests that the symbol is a combination of the letters p and s, which at that time was an abbreviation for the peso.
Another theory suggests that the symbol was based on the letters U and S, which stands for the United States. As it was a controversial topic, another theory remarks that the symbol is representative of the Pillars of Hercules which appeared on the Spanish dollar. However, what it actually meant and why this symbol was used only is yet behind the closed doors.
The World War Scenario:
The World War 2 transformed the world into a new era making huge social, economic as well as political reforms. It destroyed various European and Asian economies while leaving the United States’ economy relatively unharmed. This is the major reason to why America is the most powerful nation in the world.
As European governments exhausted their gold reserves and borrowed to pay the United States for war material. The United States accumulated large gold reserves.
Later on seeing its position in the world scenario the US lifted up the value of 1 dollar thereby adding up to the value of its currency. This combination gave the United States significant political and economic power following the war.
And the consequences: The US Dollar, then and now, serves as International reserve currency. Its biggest advantage to the US is that the country is less likely to face financial crisis.
Thus it is of no doubt to say that the mighty power of US lies in its currency which has enabled the country to enjoy all the powers effectively in every aspect.