Money, or the lack thereof, was a persistent problem in colonial America. The colonists were under the control of Great Britain, where the legal tender was both gold and silver, known as a bimetallic system. Yet British coins circulated only rarely in the colonies. The colonists had an unfavorable balance of trade with the mother country, meaning that the value of the goods they imported from England greatly exceeded the value of the goods exported back.
How was the Revolutionary War paid for?
Early American currency - Wikipedia
France and Great Britain spent 1. Spain increased its military spending from million reales in to over million reales in The economic warfare between Great Britain and the colonists began well before the colonies declared their independence in Regulations from the crown were met with fierce opposition from the colonists.
Early American Colonists Had a Cash Problem. Here's How They Solved It
But, how many pennies does it take to make a dollar? The United States dollar as we know it came into existence with the passage of the Coinage Act in which based the dollar on a decimal system and said that coins would be a certain number of one-hundredths of a dollar—half-dollar equals fifty cents, quarter-dollar equals twenty-five cents, etc. Prior to that, however, the dollar had a different structure.
A shortage of money was a problem for the American colonies. England did not supply its colonies with sufficient coinage and prohibited them from making their own. The early settlers brought coins from Europe but they went quickly back there to pay for supplies. Without enough money, the colonists had to barter for goods or use primitive currency such as Indian wampum, nails, and tobacco. In time, some Spanish, Portuguese and French coins appeared in the colonies as a result of trade with the West Indies.