<P> Early American currency went through several stages of development during the colonial and post-Revolutionary history of the United States . Because few coins were minted in the thirteen colonies that became the United States, foreign coins like the Spanish dollar were widely circulated . Colonial governments sometimes issued paper money to facilitate economic activities . The British Parliament passed Currency Acts in 1751, 1764, and 1773 that regulated colonial paper money . </P> <P> 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 . </P> <P> There were three general types of money in the colonies of British America: specie (coins), paper money and commodity money . Commodity money was used when cash (coins and paper money) was scarce . Commodities such as tobacco, beaver skins, and wampum served as money at various times and places . </P>

When was paper money first used in the us