The term "Penny" is a hold over from when we were still using English money - back in Colonial days. Actually anybody's money was good, back then: Dutch, French,, Spanish, even private coinage... things were unregulated then. But, the English coin was the standard, with the Spanish stuff coming in second.
When it was decided that this nation needed its own monetary system, we hybridized the French (and to a lesser degree the Spanish) standards of the time, which were fractional decimal systems (based on ten). We were having no part of that British stuff, with its farthings and quids and pences, no sir!
After the American government came into being, there was a pressing need for indigenous coin for distribution. The first was struck (halfdismes), from 75$ worth of silverware from G. Washingtons own home! But, for decades after this country was founded, Spanish money freely circulated and was considered by many to be more reliable than American coin.
Ever heard the saying, "2 bits, 4 bits, 8 bits a dollar?
Well, a "bit" was a fractional equivalent of the Spanish 'real' or 'peso', which was actually divided into 1/8ths (technically that makes it based on the octal system). The 'real' was known by most as a 'dolar,' after a similar European coin, the 'thaler'coin. Confused yet? Here's the scoop:
From Thalers to Dollars
The history of the dollar is a story involving many countries in different continents. The word dollar is much older than the American unit of currency. It is an Anglicised form of "thaler", (pronounced taler, with a long "a"), the name given to coins first minted in 1519 from locally mined silver in Joachimsthal in Bohemia. (Today the town of Joachimsthal lies within the borders of the Czech republic and its Czech name is J