Early American currency

Early American currency went through several stages of development during the colonial and post-Revolutionary history of the United States. John Hull was authorized by the Massachusetts legislature to make the earliest coinage of the colony (the willow, the oak, and the pine tree shilling) in 1652.

Because few coins were minted in the Thirteen Colonies, which later became the United Colonies and then the United States, foreign coins like the Spanish dollar were widely circulated. Colonial governments, at times, issued paper money to facilitate economic activities. The Parliament of Great Britain passed currency acts in 1751, 1764, and 1773 to regulate colonial paper money.

During the American Revolutionary War, the colonies became independent states. No longer subject to monetary regulations of the British Parliament, the states began to issue paper money to pay for military expenses. The Continental Congress also issued paper money during the revolution — known as continental currency — to fund the war effort. The unchecked printing of fiat money by state and continental governments, driven by the demands of war, led to rampant inflation and the phrase "not worth a continental," as the currency rapidly lost value. By the end of the war, these paper notes became effectively worthless. Additionally, British counterfeiting teams contributed further to the decreased value. By its conclusion, only a few counterfeiters had been caught and preemptively hanged, for the crime. The failure of the continental currency underscored the risks of fiat money, prompting the United States to adopt a bimetallic standard of gold and silver under the Coinage Act of 1792 to ensure a stable and trusted monetary system.