the u.s. government fixed the ratio at 15:1 with the coinage act of 1792, when it became clear the "continentals" that were issued, backed by nothing, were rapidly devaluing. approved by the states in 1778, the articles of confederation gave both the states and congress the authority to coin money. during the american revolutionary war, the continental congress issued paper currencycalledcontinentalsto help fund the war. continentals, which were not backed by a physical asset like silver or gold, quickly lost value. both the colonies and congress issued enormous amounts of debt certificates to cover their war expenses, which resulted in therapid depreciationof all forms of paper currency.
United States