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Colonial coins vs colonial paper money: Which played a more important role during the revolution?
Dennis88
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I own two Colonial paper money pieces (and trying to complete a 13 piece set...eventually) and have some interest in colonial coins (although I do not own any). I'm also a student of American history and this question just came up to me.
Which of the two (coins vs paper money) had an overall larger impact on the revolution and why? Paper money was usually issued by the state, while coins came from a large number of different sources. However, the latter were usually in lower denominations, while paper money was issued in various denominations, as it is in our time. These, however, were much higher denominations than coins.
Our, to ask a different question, was the issuance of paper money by the various states important in the revolution?
Dennis
Which of the two (coins vs paper money) had an overall larger impact on the revolution and why? Paper money was usually issued by the state, while coins came from a large number of different sources. However, the latter were usually in lower denominations, while paper money was issued in various denominations, as it is in our time. These, however, were much higher denominations than coins.
Our, to ask a different question, was the issuance of paper money by the various states important in the revolution?
Dennis
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Russ, NCNE
Worry is the interest you pay on a debt you may not owe.
<< <i>I own two Colonial paper money pieces (and trying to complete a 13 piece set...eventually) and have some interest in colonial coins (although I do not own any). I'm also a student of American history and this question just came up to me.
Which of the two (coins vs paper money) had an overall larger impact on the revolution and why? Paper money was usually issued by the state, while coins came from a large number of different sources. However, the latter were usually in lower denominations, while paper money was issued in various denominations, as it is in our time. These, however, were much higher denominations than coins.
Our, to ask a different question, was the issuance of paper money by the various states important in the revolution?
Dennis >>
Great question! I dont know the answer, all the references I have seen are either for coins or currency, none compare the two. Whats in your 13 piece set?
Toward the end, it took $40 in "old" money to equal $1 in the final issue of Continental currency, a devaluation of over 90 percent. In 1778, General Washington complained, "It takes a wagon load of money to pay for a wagon load of supplies."
A few notes from my collection can be seen HERE.
my early American coins & currency: -- http://yankeedoodlecoins.com/
Colonial coins were mostly coppers (that is, small change); there were some gold and silver coins around, but the Continental Congress paid its army and bought supplies with paper money.
The US was cash-poor from the time the first settlers arrived through about the end of the 19th century - commerce was primarily conducted through IOUs (whether it was Continental Currency, broken banknotes, promissory notes or Greenbacks), not gold or silver coins.
Check out the Southern Gold Society
I think a case can be made for either. As DaveG noted, the Continental Congress paid its army and bought supplies with paper money. However, the lack of trust in the value and backing of this paper money, by merchants and soldiers alike, presented a real problem. Meanwhile, citizens not directly engaged in the war effort went about their daily lives using barter, IOUs, small denomination copper coins, Spanish silver, and whatever else was available.
Was the issuance of paper money by the various states important in the revolution?
I think YES is the easy answer.
However, both of these questions address a rather complicated situation. Doing a quick search, I found general statements that provide some contextual information such as -
The shortage of coins in Colonial America seriously hindered the conduct of business. Few British coins reached the Colonies, but colonial shipmasters brought in foreign money. The most common money in circulation in America was the Spanish milled dollar. Its value varied from colony to colony. To overcome this serious handicap to business, paper money was issued by the various colonies. Odd denominations were frequently printed because of the lack of small change. Many bills were not printed on the reverse side. In order to discourage counterfeiting, each bill was usually numbered and signed individually by hand. Much of the cost of the Revolutionary War was met by the issuance of paper currency. Over two hundred and fifty million dollars in paper currency was issued by the Continental Congress and about two hundred million dollars by state governments. The rapid depreciation of this paper led to the well-known phrase “not worth a Continental.” From 1775 to 1779, the Continental Congress issued $241,552,780 worth of Continental Currency in eleven different printings. Because coins were so scarce during the American Revolution, these bills and the state issued notes were practically the only money in circulation. Anyone refusing to accept the money was branded a traitor and a Tory.
(From "Revolutionary War & Colonial Currency", a document with no additional sources cited, found here.)
But Google is your friend.
Here.
Here.
Here.
And here.
(Edited for clarity.)
People saved all coinage of gold, silver and copper as real money. While paper
money funded the war, It was hard money that the people really wanted, even if
it was English money. I should know, I was there when it happened.
Camelot
One bright spot for New England was the influx of silver to pay for the 1745 Louisburg expedition. Lousiburg had several effects on the Revolution.
1) The colonalists had more money than before.
2) They now had sucessful military experience against a foreign power.
3) They were mightly ticked off when England returnes Lousiburg to the France in 1748.
<< <i>I own two Colonial paper money pieces (and trying to complete a 13 piece set...eventually) and have some interest in colonial coins (although I do not own any). I'm also a student of American history and this question just came up to me.
Which of the two (coins vs paper money) had an overall larger impact on the revolution and why? Paper money was usually issued by the state, while coins came from a large number of different sources. However, the latter were usually in lower denominations, while paper money was issued in various denominations, as it is in our time. These, however, were much higher denominations than coins.
Our, to ask a different question, was the issuance of paper money by the various states important in the revolution?
Dennis >>
When you say "colonial coins," what are you referring to? The Nova Constellatio, Massachusetts, Connecticut, Vermont and New Jersey coins were all issued after the Revolution was over.
TD
<< <i>
<< <i>I own two Colonial paper money pieces (and trying to complete a 13 piece set...eventually) and have some interest in colonial coins (although I do not own any). I'm also a student of American history and this question just came up to me.
Which of the two (coins vs paper money) had an overall larger impact on the revolution and why? Paper money was usually issued by the state, while coins came from a large number of different sources. However, the latter were usually in lower denominations, while paper money was issued in various denominations, as it is in our time. These, however, were much higher denominations than coins.
Our, to ask a different question, was the issuance of paper money by the various states important in the revolution?
Dennis >>
When you say "colonial coins," what are you referring to? The Nova Constellatio, Massachusetts, Connecticut, Vermont and New Jersey coins were all issued after the Revolution was over.
TD >>
Tom makes an excellent point. Most of what collectors call colonial coins were issued after the Declaration of Independence so they should not be properly called "colonial". Also, many of these coins are actually privately issued tokens.
Worry is the interest you pay on a debt you may not owe.
Well used and rather scarce because of it.