History Daily 1264: America’s First Paper Money
Dec 10, 2025
In 1690, after a failed attack on Quebec, Massachusetts forged history by creating the first paper currency in the Western Hemisphere. Tensions were high due to the Dover raid and conflicts among English, French, and Native tribes. Governor Bradstreet proposed paper money when angry troops returned unpaid. What started as emergency currency became a lasting solution, reshaping financial practices. The drama of military failures and innovative solutions unfolds in a captivating tale of survival and commerce.
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Dover Night Raid Sparks Wider Conflict
- A Penacook woman and warriors slipped into a Dover cabin and killed colonists in revenge for past English slavings.
- The attack enraged colonists and contributed to rising conflict with French-backed native groups.
Paper Pay Enabled Dual Military Campaigns
- Sir William Phipps proposed paying soldiers with paper letters of credit to finance simultaneous campaigns.
- The scheme let Massachusetts field two armies for the cost of one by promising future payment instead of immediate coin.
Port Royal Captured Without a Fight
- Phipps captured Port Royal easily after finding the fort undefended and negotiated a surrender with minimal resistance.
- He then ordered looting when he believed the French cheated, returning to Massachusetts hailed as a hero.