The US penny is nearing its final days

The US Treasury Department has begun phasing out the production of the penny, the nation’s smallest denomination coin. The move, first reported by The Wall Street Journal on May 22, follows an order from President Donald Trump aimed at cutting costs tied to outdated government spending.

Pennies, composed of 97.5% zinc and 2.5% copper plating, now cost about 3.69 cents each to produce—nearly four times their face value. A decade ago, that figure was just 1.3 cents. Rising metal prices and manufacturing costs have driven the spike, Treasury statistics show.

The US Mint will continue to produce the coin only until its supply of metal blanks runs out. Officials estimate this shift will save taxpayers US$56 million annually in reduced material costs. Further savings are expected once minting facilities are converted for other uses.

As one chapter of US currency comes to a close, it’s a fitting moment to look back at how American money has developed over time. The history of American currency is a fascinating one, evolving from early colonial coinage to the greenbacks and bills we use today. Curious what the end of the penny says about the money that made America? Click through and discover more.

Earliest colonial coinage

Early American colonists either bartered or used foreign coinage while they were under British rule. After the Massachusetts Bay Colony established a mint in Boston in 1652—but without notifying or seeking permission from the British government—coins began to be issued in denominations of 3 and 6 pence and 1 shilling. Aware of the illegal activity, the mint was closed on orders from London in 1682. Pictured is the 1652 pine tree shilling.

Colonial currency

Pictured: a 12 shilling colonial currency note issued by New Jersey dated December 31, 1763.

Continental currency

During the American Revolution, the colonies became independent states and no longer subject to arbitrarily imposed monetary regulations by the British Parliament. The States began issuing paper money known as Continental currency, in part to fund the war effort. This 8-pence bill dated October 1778 was engraved and printed by Paul Revere, also to become a Founding Father and who three years earlier had famously made a midnight dash on horseback to alert the colonial militia of the approach of British forces before the battles of Lexington and Concord.

Bank of North America

On July 4, 1776, the Second Continental Congress unanimously adopted the Declaration of Independence. By May 1781, Continentals had become so worthless that they ceased to circulate as money. A mechanism was put in place so that the valueless bills could be exchanged for treasury bonds—at 1% of face value! Financier and Founding Father Robert Morris was instrumental in creating the first financial institution chartered by the United States, the Bank of North America, in 1782.

Adoption of the dollar sign

In 1785, the United States officially adopted the dollar sign. The symbol evolved from the Spanish American figure for pesos.

"Flowing Hair" dollar

The first US silver dollars, the so-called "Flowing Hair" variety, were pressed in 1794. A very rare coin, an example was auctioned at Sotheby's in 2015 for almost US$5 million.

Coinage Act and United States Mint

In 1792, Congress passed the Coinage Act, which established the United States dollar as the country's standard unit of money. Following its ratification, the United States Mint was created. The first mint facility was built in Philadelphia (pictured).

First US$1-dollar bill

The first 1-dollar bill issued as a Legal Tender Note appeared in 1862, with a portrait of Salmon P. Chase, the Secretary of the Treasury who served under President Abraham Lincoln.

1804 silver dollar

Curiously, the 1804 silver dollar was struck by the Mint of the United States not in that year but in the 1830s or later. An example also came up in auction at Sotheby's in 2015, with an estimated value of between US$8-10 million.

George Washington's debut

A portrait of George Washington appeared for the first time on a dollar bill in 1869, the 1-dollar note.

Lincoln cent

In 1909, in honor of President Abraham Lincoln's birth centennial, the Lincoln cent was minted and issued out. Sometimes called the Lincoln penny, this was the first US currency to feature a portrait of the 16th president of the United States, and the first that included the motto "In God We Trust" (the motto only appeared on banknotes from 1957 onwards). Curiously, the Lincoln portrait is the only presidential representation that faces to the right on a coin.

The William McKinley 500

This is the obverse of a rare 1934 US$500 Federal Reserve Note, featuring a portrait of President William McKinley, the 25th president of the United States who served from 1897 until his assassination in 1901. The Treasury minted several versions of the US$500 bill depicting McKinley. The bill was discontinued in 1969 and remaining examples are now collector's items.

Roosevelt dime

The Roosevelt dime, or 10-cent piece, honors the 32nd president's fight against polio, of which he was diagnosed in 1921. The coin was minted in 1945, seven years after Franklin D. Roosevelt had founded the March of Dimes, a nonprofit organization that works to improve the health of mothers and babies.

African American Treasurer

To date, the signatures of four African-American men have appeared on US currency: Blanche K. Bruce, Judson W. Lyons, William T. Vernon, and James C. Napier (who in fact was of mixed race). These individuals all served as Registers of the Treasury. The fifth African American to have their signature reproduced on a Federal Reserve Note was Azie Taylor Morton, the 36th Treasurer of the United States during the Carter administration. She remains the only African-American woman to hold that position.

Non-presidential honor

The first 10-dollar bill appeared in 1861 as a Demand Note. The current bill, issued in 2006, features a portrait of Alexander Hamilton, who served as the first US Secretary of the Treasury. He is is one of two non-presidents to be featured on US paper currency.

The Benjamin Franklin 100

The other non-US president afforded the distinction of appearing on a banknote is Founding Father, inventor, and diplomat Benjamin Franklin. His portrait has been on the obverse of the 100-dollar bill since 1914. The bill was redesigned in 2009, the reverse featuring an image of Independence Hall in Philadelphia—the first building outside of Washington, D.C. to be seen on any denomination.

Sources: (The U.S. Currency Education Program) (JM Bullion) (Biography) (Investopedia) (Los Angeles Times) (Smithsonian) (Money Factory)