Colonial and Continental Currency
Colonial currency in America consisted of a mixture of foreign coins, locally issued paper money, and commodity-based exchange systems used throughout the 17th and 18th centuries. Because the colonies suffered from a chronic shortage of British coins, merchants and settlers often relied on Spanish silver dollars, barter, tobacco notes, and paper bills issued by individual colonies to facilitate trade. Each colony typically produced its own currency, leading to a wide variety of notes and values in circulation. These paper issues were often backed by taxes, land, or future revenues, but excessive printing sometimes caused depreciation and inflation. Colonial currency played a crucial role in the economic development of British America and helped finance military campaigns, public projects, and daily commerce before the establishment of a unified national monetary system following the American Revolution.
Colonial currency was issued by individual regional governments before and during the Revolution using British denominations (pounds, shillings, and pence). Continental currency was issued nationwide by the Continental Congress starting in 1775 in new dollar units to fund the Revolutionary War, ultimately collapsing in value and inspiring the phrase "not worth a Continental".
Key Differences ...
Issuing Authority: Colonial money was printed or authorized by separate local colonial governments (like Massachusetts or Pennsylvania). Continental money was authorized by the unified Continental Congress.
Time Period: Colonial currency dates from 1690 through the start of the Revolution. Continental currency was strictly issued between 1775 and 1779 during the war.
Denominations: Colonial notes used traditional British units like pounds, shillings, and pence, alongside foreign coin values. Continental notes were denominated explicitly in Spanish-style decimal or fractional dollars (ranging from $1/6 to $80).
Backing and Value: Both suffered from inflation due to over-printing, but Continentals had zero backing in gold, silver, or stable tax power at first, making their total collapse famous
