Life in Revolutionary America

Money in Colonial America

IN the year 1690, the Massachusetts Bay colony made the 1st paper money in the colonies. Many years the Spanish Dollar Coin was the "unofficial" national currency. Soon trade began between the colonies and the coins became scarce. Then the colonies started to print thier own paper money known as the "Continentials."

The Continentals didn't have a backing in gold and silver. (We have this today.) Instead of gold and silver the colonies would have future taxes. If the coloinies won their independence they can keep the tax money and use it for themselves. If they lost the war the taxes would go to England. That was they would backup the continentals.

Since the colonies were making different kinds of paper money, the money didn't stand for the same amount. Even if you were famous, the fake money that you made was as fake as your neighbors.

In the year 1781, the Continental Congress chartered the first bank the nation had. They called the bank,"Bank of North America." The Bank of North America was built in Philadelphia. In 1785 the Continental Congress declared the first dollar as the unit for national currency. Till this day we still use the dollar bill as the first unit of national currency.

Colonial Currency, Penns:4 pounds,1777

"To counterfeit is Death" I inscribed on the back of this Colonial note. Counterfeiting and inflation were considered to be the , "ills of paper money."

Continental Currency, one-third dollar,1776

Benjamin Franklin printed this note, which was issued to finance the American Revolution. Backed solely by the promise of tax revenues upon victory, "Continentals" were quickly devalued, leading to the popular expression, "not worth a Continental."

Colonial Currency, Massachusetts, 12 pence, 1776
Paul Revere engraved this note from the Massachusetts Bay Colony. An image of a codfish, which symbolized prosperity for the Massachusetts fisheries, is depicted on the front side of the note.

Colonial Currency, Georgia, $4, 1776

The Spanish Milled Dollar was the most common denomination used in Colonial currency. More plentiful than British pounds, Spanish Milled Dollars became the unofficial denomination in the colonies.