When America first declared its independence, how did ex-colonists begin using new American currency without problems of acceptance, actual weight to the currency, or initial reputation?

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How was a new government just able to declare, “This shall be the money we use”, and have citizens accept it as well as use it to pay for goods? Especially when it was newly made and had no weight?

(spoken as a non American)

In: Economics

5 Answers

Anonymous 0 Comments

What other options did they have? The colonies were rather precious metal poor. None of the colonies were able to produce their own currency and imports of silver or gold coinage was limited.

Colonial copper coinage was issued in the late 1700s.

With no other options, they could declare anything was money, and they kind of did: Continental Currency was printed en masse and was rendered almost worthless, but eventually got redeemed (they paid the militias that were fighting the British with them) for pennies on the dollar.

Once that got settled out, it went back to precious metals. Gold and silver are worth their weight in gold and silver, worldwide.

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