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TeachMeFinance.com - explain Rag money historic definition... Rag money -- A colloquial name for depreciated paper money. This name was applied to the United States note (greenback) when it circulated at a discount prior to the resumption of specie payments in 1879. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.