The History of Money

The following is a brief history of Money in the United States birth to present. Various references were used in compiling this information

The first money used in what is now the United States of America was Private Money.

Various types of paper money were in use in all of the American Colonies, issued while they were still under English rule.

Beginning in the mid-1775, the Continental Congress authorized the issuance of currency to finance the Revolutionary War. This became known as Continental Currency. But the Continental Currency depreciated to a point where it cost more to print than it would buy. The depreciation of this money is the source of the expression “not worth a Continental.”

After the Constitution was ratified, the coinage system of the United States was established. The first coins of the new country were struck in 1793 at the Philadelphia Mint.

In 1815 the Government issued Treasure Notes. They did not circulate as money, except a few of the small denomination notes of $5, $10, $20 & $30 Dollar.

During the period of 1793-1861 the United States was virtually blanketed by issues of State Bank Notes. This was the result of the States granting to many private banks in their jurisdiction the authority to print and circulate their own Money.

Congress past the act of July 17, 1761, which permitted the Treasure Department to print and circulate paper money. These first United States Notes are known as Demand Notes, the Legal Tender Notes followed them in 1862. From 1761 all currency issued by the United States Government has remained valid.

Though all the changes in the money in circulation in the United States, Private Money has remained legal.