How to Design Money

Because of a coin shortage, in 1866, the U.S. Treasury printed a slew of small denomination bills. As the person overseeing the production of those 3-, 5-, 10-, 25-, and 50-cent notes, Spencer Clark, the Superintendent of the National Currency Bureau, could influence the bills’ images. As a result, when a document from Congress said that Clark (no first name) should be on a bill, although it referred to William Clark from the Lewis and Clark expedition, Spencer Clark selected himself.

The front of a Spencer Clark five-cent note:

The back of the five-cent note:

Responding, a (reputedly) furious U.S. Congress mandated that, “…no portrait or likeness of any living person shall be engraved or placed upon any of the bonds, securities, notes, or postal currency of the United States.” However, because the new law did not prevent existing five-cent notes with Spencer Clark’s image from circulating, legislation also prohibited all notes worth less than 10-cents.

Since then, we’ve conveyed a clear message about our identity through the past presidents, mostly male political figures, and occasionally a female goddess with long hair, that adorn our coins and notes.

For their currencies, recently, the UK and Mexico chose two rather different kinds of monarchs.

Currency Images

Royal Monarchs

After Queen Elizabeth’s death, the new King’s face replaced his mother’s on UK currency:

At the same time, the 14 Commonwealth nations that were British colonies, ranging from Australia to The Bahamas, had to decide whether to depict the King on their currency. A “No” would display a new political identity that separated them from the past.

Butterfly Monarchs

Meanwhile, taking a huge leap away from politics, Mexico selected Monarch butterflies on one of its 100-peso notes:

With butterflies and a 17th century female poet on its currency, Mexico’s message was inclusivity.

Our Bottom Line: The Best Currency Design

Summarizing, one expert suggests that varied size, different colors, user friendliness and durability are the basics of good currency design.

1. Size: Size should vary, depending on denomination.
2. Color: Denominations would also have a different color. Then we could easily distinguish them (and not worry about mistakenly giving someone a $10 rather than a $1).
3. Functionality: Here is where security details enter the picture. Then, we can add the need for the texture and size that assist the visually impaired.
4. Composition: Plastic (polymer) bills are more durable.
5. Symbolism: Currency could provide a history lesson. Or, like Mexico’s butterflies, they can represent the “essence” of the country.

My sources and more: Thanks to the IMF, here and here, for inspiring today’s post. From there National Geographic had more to tell us about currencies and 99% Invisible, on currency design. But Atlas Obscura had the best story.

Please note that “Our Bottom Line’ was published in a past econlife post.