Creating the United States

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During the American Revolution the Continental Congress issued paper currency to finance the Revolutionary War. These notes, called “Continentals,” had no backing in gold or silver, but were instead backed by the “anticipation” of tax revenues. Easily counterfeited and without solid backing, the notes quickly lost their value, so that the term “not worth a Continental” became common slang. After the war Congress and the state governments continued to produce money contributing to what Madison referred to as the “mortal diseases” of the government under the Articles of Confederation and resulting in calls for a new federal constitution to strengthen the national government.
During the American Revolution the Continental Congress issued paper currency to finance the Revolutionary War. These notes, called “Continentals,” had no backing in gold or silver, but were instead backed by the “anticipation” of tax revenues. Easily counterfeited and without solid backing, the notes quickly lost their value, so that the term “not worth a Continental” became common slang. After the war Congress and the state governments continued to produce money contributing to what Madison referred to as the “mortal diseases” of the government under the Articles of Confederation and resulting in calls for a new federal constitution to strengthen the national government.