when was paper money first used in the us
Early American currency 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.
Banknote The idea of using a durable lightweight substance as evidence of a promise to pay a bearer on demand originated in China during the Han Dynasty in 118 BC, and was made of leather.[4] Although Carthage was purported to have issued bank notes on parchment or leather, at least before the city's destruction in 146 BC, making Carthage the oldest known user of lightweight promissory notes.[5][6][7]The first known banknote was first developed in China during the Tang and Song dynasties, starting in the 7th century. Its roots were in merchant receipts of deposit during the Tang Dynasty (618–907), as merchants and wholesalers desired to avoid the heavy bulk of copper coinage in large commercial transactions.[8][9][10] During the Yuan Dynasty, banknotes were adopted by the Mongol Empire. In Europe, the concept of banknotes was first introduced during the 13th century by travelers such as Marco Polo,[11][12] with European banknotes appearing in 1661 in Sweden.