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Before the American War for Independence, few coins were minted in the colonies. and
often foreign coins like the Spanish dollar or Dutch "wampum" were widely circulated.
Even though Colonial governments issued paper money to foster economic activity, the
British Parliament passed a number of colonial "currency acts" to regulate the colonial
economy.
Front and Back of a Colonial Bill worth three pence
The colonists, to avoid British control, learned quickly how to barter for goods without
specie (precious metals). Commodities like tobacco, animal skins, and dried fish
allowed the colonists to trade for services without needing gold or silver. Yet, as the
colonies grew in population, it became obvious that a standard form of currency was
needed. The first illegal colonial mint was established in Boston, Massachusetts in
1652. It would become the first of many.
First United States (US) Mint in Philadelphia, PA
The Declaration of Independence officially freed the colonies from British monetary
regulations, and they began to issue paper money, called Continental Currency, to
pay for rapidly growing military expenses. Unfortunately, as there was nothing to back
this currency, it became worthless
by the end of the war.
To address these and other
problems, the United States
Constitution, ratified in 1788,
denied individual states the right
to coin and print money. The First
Bank of the United States,
chartered in 1791, and the
Coinage Act of 1792, established
the first official United States Mint
began the era of a national
American currency.
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