01/14/2026
Two hundred fifty years ago today, the Continental Congress took steps to combat the counterfeiting of American bills of credit, and to fight the rumors that people who accepted them as payment would not receive the silver coins promised to them – instead being arrested and sent to jail.
This continental currency was the first paper money that the colonies created. Rather than being legal tender, they substituted for payment in coin. Since the united colonies were not minting their own coins and could not yet afford to do so, this usually took the form of a promise that the bearer could exchange the bill for Spanish currency. British loyalists quickly began printing counterfeits to deflate the currency and circulated rumors that the money was no good. For the next two years, that measure was quite successful.
Therefore, on January 11, 1776, the Continental Congress declared:
“Whereas it appears that several evil disposed persons, in order to obstruct and defeat the efforts of the United Colonies in the defense of their just rights, have attempted to depreciate the bills of credit emitted by the authority of this Congress,
Resolved, therefore, That if any person shall hereafter be so lost to all virtue and regard for his country, as to ‘refuse to receive said bills in payment,’ or obstruct or discourage the currency or circulation thereof, and shall be duly convicted by the committee of the city, county, or district, or in case of appeal from their decision, by the assembly, convention, council or committee of safety of the colony where he shall reside, such person shall be deemed, published, and treated as an enemy of his country, and precluded from all trade or in*******se with the inhabitants of these colonies.”
This measure deterred the efforts of British loyalists only slightly, but as the war progressed, citizens gradually gained confidence in the use of local money. Strengthening their economy was an important step in winning the war. And that’s the way it was.