This variant of “The Eleven-Card Trick” was first devised by Gene Gordon and marketed by him as “The Dizzy Dollar” no later than 1958 (see The Linking Ring, Vol. 38 No. 2, Apr. 1958, p. 139). The routine is included in Gene Gordon's Magical Legacy by Gordon and David Ginn, 1980, p. 272. Gordon gives Edward Victor's “Eleven-Card Trick” as the basis for his routine using bills.
The “Eleven-Bill Trick” was popularized by Fred Kaps and is frequently credited as his adaptation of the Victor “Eleven-Card Trick”. Kaps is said to have learned Victor's routine from Michael Skinner at the 1974 Convention at Monte Carlo, organized by IBM 190. If Kaps did not also learn of Gordon's “Dizzy Dollar”, he seems to have reinvented it from the Victor routine, following the same route Gordon did.
See also Eleven-Card Trick.