<P> During the American Revolution , the colonies became independent states . Freed from British monetary regulations , they issued paper money to pay for military expenses . The Continental Congress also issued paper money during the Revolution , known as Continental currency , to fund the war effort . Both state and Continental currency depreciated rapidly , becoming practically worthless by the end of the war . This depreciation was caused by the government printing large amounts of currency in order to meet the demands of war . </P>
<P> During the American Revolution , the colonies became independent states . Freed from British monetary regulations , they issued paper money to pay for military expenses . The Continental Congress also issued paper money during the Revolution , known as Continental currency , to fund the war effort . Both state and Continental currency depreciated rapidly , becoming practically worthless by the end of the war . This depreciation was caused by the government printing large amounts of currency in order to meet the demands of war . </P>
when was paper money first used in the us
when was paper money first used in the us
During the American Revolution
During the American Revolution