History Daily

America’s First Paper Money

Dec 10, 2024
In December 1690, a failed raid on Quebec spurs Massachusetts Colony to create the first paper currency in the Western Hemisphere. The tensions with the Penacook tribe and chaotic conflicts highlight the urgent need for military funding. As the English army faces mutiny over unpaid soldiers, the revolutionary idea of printing money emerges. This shift from coins to paper money not only resolves immediate financial crises but also revolutionizes banking and commerce in colonial America and beyond.
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ANECDOTE

Penacook Raid on Dover

  • In 1689, a Penacook woman sought shelter in Dover, only to betray the colonists.
  • She facilitated a deadly raid in revenge for past enslavement by the English.
ANECDOTE

Phipps' Acadia Expedition

  • Following raids, Sir William Phipps proposed an expedition against the French in Acadia.
  • Soldiers were paid with letters of credit, a precursor to paper money.
ANECDOTE

Sack of Port Royal

  • Phipps successfully captured Port Royal but broke the surrender terms.
  • He allowed his soldiers to ransack the city, stealing property and destroying resources.
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