The history  of  dollar begins in 1519 in the Bohemian town Jachymov  (Joachimsthal in German).  The new rich deposits of silver were found near that town. When silver
began to be mined silver coins were minted from it. This coins were named after the town Joachimsthaler, which was soon abbreviated to thaler or tolar. These coins were stable in value and soon began circulate through  the whole Europe. In Netherlands the name changed to daler and when it reached England it finally turned into dollar. From Europe it continued to Mexico and  finally to
 United States
 

Here are some examples of thalers from different places and years.
	Joachimsthaler 1520.

Ryan Gavin: The Dollar Sign

During the westward expansion of the United States new supplies of money were transported from the East to the Banks in the West in money bags. These bags were labeled with an interlocking U and S to mark them as property of the United States government. After being repeatedly dragged across and thrown on the floor, the bottom of the U would wear away. This left behind an S with two vertical lines through it. This is the dollar sign that we recognize today.

references

Professor Ellis's EC 101 class Lecture.

Catherine  Donovan:  Why American Paper Currency is Green

When people look at American dollar bills, a common thought is "why are they green?" Although not an exact answer can be given, the Bureau of Engraving and Printing has presented three reasons for the color choice. The simplest reason relates to the fact the green pigment which was used for large-sized banknotes was the most readily available color choice when small-sized banknotes were brought in to circulation in 1929. The second reason relates to the fact that America, when choosing the color of the currency, wanted to be represented as a strong state. As is the feeling today, a state that has the reputation for being healthy is more likely to attract investors. It was thought that the color green represented strength and constancy. Finally, action had to be taken to prevent counterfeiting. The problem of counterfeiting dates back to the mid-1800's, consequently the same time that photography was becoming more accessible and popular. At that time, for the most part, banknotes were printed in black ink, with a tinge of color. Counterfeiters soon realized that the color on the banknotes could be erased. After the color was removed, the bills were photographed, multiplied, and then colored with the appropriate shade. It was found when developing permanent ink, that the shade of green was the least likely to be altered because it was the most resistant to chemical and physical changes. In 1876, the Bureau of Engraving and Printing took over the job of printing banknotes from private companies. The green color was kept for uniformity reasons, and then the color was retained for the long run since it had become the traditional color of the currency.

references

Information for this report was taken from two websites, which are maintained by the Bureau of Engraving and Printing. The sites' addresses are: http://www.bep.treas.gov/document.cfm/18/108 http://www.bep.treas.gov/document.cfm18/101

Kristina Raevska:
Phony $200 Bill with Bush Picture Used in Kentucky
 

 February 1, 2001 10:58 am EST DANVILLE, Ky. (Reuters) - Talk about funny money. 

Police in Kentucky are looking for a customer who succeeded in paying for a $2 order at a fast-food restaurant with a phony $200 bill featuring a picture of President George W. Bush and a depiction of the White House with a lawn sign saying, "We like broccoli."
Authorities say the female cashier at a Dairy Queen in Danville even gave the culprit $198 in real money as change. "Essentially, the story is that somebody at a drive-in ordered some food and passed a $200 novelty deal with George Bush on it," Danville Police Detective Bob Williamson said. "At a distance it looks like a real bill, it's got the green color," Williamson said when asked how the cashier possibly could mistake it for genuine money. The cartoonish bill was accepted on Sunday evening by the Dairy Queen cashier despite having Bush on one side and an oil well on the other. The phony bill also depicted the White House lawn with yard signs reading "U.S. deserves a tax cut," "No more scandals" and "We like broccoli," the last apparently referring to Bush's father's admitted dislike for the vegetable. No U.S. currency has a picture of Bush, let alone a reference to liking broccoli.

 Because there is no actual $200 currency, the culprit could face a charge of theft by deception but not counterfeiting, Williamson said.
 

References

http://www.madeofmoney.com/trivia.html

 Mark  Michalek: Dollarization

 

Two of my closest friends have given one year of their lives to volunteer for a non-profit agency based in Ecuador. In one email from my friend Tom he wrote: "it is amazing how any symbol or reminder of the United States automatically triggers hope for the Ecuadorian people. Most of the boys and girls, women and men my partner worked with had no idea what dollarization meant form an economic stand point, but instead they associated it with the U.S.A and our prosperity and hence hope which was enough for them.

 
References

Two great friends Matt and Tom Davis