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Where is Money Made?

Posted by The New N Used Link Team on Tuesday, July 2, 2013 Under: Business

 

We all love money because in this world that we live it would be almost impossible to live a normal life without money. We use it to buy food, for services almost everything we own comes through money....but the main question is how did this paramount element come about and where is it currently made?


Money is anything that is commonly accepted by a group of people for the exchange of goods, services, or resources. Every country has its own system of coins and paper money. In the past, people would barter which is the exchange of a good or service for another good or service, a bag of rice for a bag of beans. However, what if you couldn't agree what something was worth in exchange or you didn't want what the other person had. To solve that problem humans developed what is called commodity money. Metals objects were introduced as money around 5000 B.C. By 700 BC, the Lydians became the first in the Western world to make coins. Countries were soon minting their own series of coins with specific values. Metal was used because it was readily available, easy to work with and could be recycled. Since coins were given a certain value, it became easier to compare the cost of items people wanted. In our modern era we mainly use banknotes (often known as a bill, paper money or simply a note) which is a type of negotiable instrument known as a promissory note, made by a bank, payable to the bearer on demand. When banknotes were first introduced, they were, in effect, a promise to pay the bearer in coins, but gradually became a substitute for the coins. Banknotes were originally issued by commercial banks, but since their general acceptance as a form of money, most countries have assigned the responsibility for issuing national banknotes to a central bank. Paper currency first developed in Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song Dynasty. The usage of paper currency later spread throughout the Mongol Empire. European explorers like Marco Polo introduced the concept in Europe during the 13th century. Paper money originated in two forms: drafts, which are receipts for value held on account, and "bills", which were issued with a promise to convert at a later date.

Most banknotes are made from cotton paper with a weight of 80 to 90 grams per square meter. The cotton is sometimes mixed with linen, abaca, or other textile fibres. Generally, the paper used is different from ordinary paper: it is much more resilient, resists wear and tear (the average life of a banknote is three years), and also does not contain the usual agents that make ordinary paper glow slightly under ultraviolet light. Unlike most printing and writing paper, banknote paper is infused with polyvinyl alcohol or gelatin, instead of water, to give it extra strength.

Most banknotes are made using the mould made process in which a watermark and thread is incorporated during the paper forming process. The thread is a simple looking security component found in most banknotes. It is however often rather complex in construction comprising fluorescent, magnetic, metallic and micro print elements. By combining it with watermarking technology the thread can be made to surface periodically on one side only. This is known as windowed thread and further increases the counterfeit resistance of the banknote paper. Banknotes last on an average of three years until they are no longer fit for circulation, after which they are collected for destruction, usually recycling or shredding. A banknote is removed from the money supply by banks or other financial institutions because of everyday wear and tear from its handling. Banknote bundles are passed through a sorting machine that determines whether a particular note needs to be shredded, or are removed from the supply chain by a human inspector if they are deemed unfit for continued use – for example, if they are mutilated or torn.

 

 

Notable mints

  • Austrian Mint - established in 1397 and produces the Vienna Philharmonic gold bullion.
  • Birmingham Mint (United Kingdom)
  • Casa da Moeda do Brasil
  • Casa da Moeda de Portugal
  • Currency Centre, Ireland
  • Dahlonega Mint (United States of America)
  • Fábrica Nacional de Moneda y Timbre, Spain
  • Franklin Mint (United States of America)
  • India Government Mint
  • Istituto Poligrafico e Zecca dello Stato, "Printer Institute and State Mint", Italy, the first mint to produce bi-metallic coins in recent times
  • Japan Mint
  • Joachimsthal Royal Mint,Czech Republic, (Jáchymovská královská mincovna in Czech language)
  • Kremnica mint,Slovak Republic, (Mincovňa Kremnica in Slovak language), established in 1328 is the oldest continuously-operating mint in the world.
  • Casa de Moneda de México, established in 1535, is the oldest mint in the Americas.
  • Monnaie de Paris (France)
  • Perth Mint (Australia)
  • Philadelphia Mint
  • Royal Australian Mint
  • Royal Canadian Mint
  • Royal Dutch Mint
  • Royal Mint of the United Kingdom
  • Saint Petersburg Mint (Russia)
  • Singapore Mint
  • Soho Mint (United Kingdom)
  • Swissmint, Switzerland
  • United States Mint

In : Business 



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