Not Worth A Continental
After the American Revolutionary War began in 1775, the Continental Congress began issuing paper money known as Continental currency, or Continentals. Continental currency was denominated in dollars from $1⁄6 to $80, including many odd denominations in between. During the Revolution, Congress issued $241,552,780 in Continental currency.
A primary problem was that monetary policy was not coordinated between Congress and the states, which continued to issue bills of credit. "Some think that the rebel bills depreciated because people lost confidence in them or because they were not backed by tangible assets," writes financial historian Robert E. Wright. "Not so. There were simply too many of them."Congress and the states lacked the will or the means to retire the bills from circulation through taxation or the sale of bonds. Another problem was that the British successfully waged economic warfare by counterfeiting Continentals on a large scale.
Continental currency depreciated badly during the war, giving rise to the famous phrase "not worth a continental".
Not Worth A Continental
After the American Revolutionary War began in 1775, the Continental Congress began issuing paper money known as Continental currency, or Continentals. Continental currency was denominated in dollars from $1⁄6 to $80, including many odd denominations in between. During the Revolution, Congress issued $241,552,780 in Continental currency.
A primary problem was that monetary policy was not coordinated between Congress and the states, which continued to issue bills of credit. "Some think that the rebel bills depreciated because people lost confidence in them or because they were not backed by tangible assets," writes financial historian Robert E. Wright. "Not so. There were simply too many of them."Congress and the states lacked the will or the means to retire the bills from circulation through taxation or the sale of bonds. Another problem was that the British successfully waged economic warfare by counterfeiting Continentals on a large scale.
Continental currency depreciated badly during the war, giving rise to the famous phrase "not worth a continental".