Show beads made coin of the realm by massachusetts order in year 1637 the earliest american money was wampum that being a string of shells an indian wore around his neck when he dressed up the red skin s necktie was not merely something which the new england colo used to trick a native out of some choice skins the beads were actually recognized in the colonies as the coin of the realm A massa chu order in council of 1637 made wampum full lega legal tender up to a shilling at the rate of sis six black beads or three white hite beads to a penny and a connecticut settler was authorized by law to pay taxes in wampum up to ten pounds ster ling in an identical way tobacco was established as the money of vir nir g nia rice of south carolina wool ool of rhode island and rum tn in many places the value of each of this thili miscellany ny of trinkets and vegetables was ahna always s reel ned in terms of pennies shillings and pounds of the english monetary system the colo n ats brought along small amounts of metallic money when uben they came ffrost and as this accumulated tt it circulated freela among the people with nith the spanish colonies brought in some of their coins but tride trade as a whole hole was hand capped because of the lack of an adequate curr currency enci the demand for money was so persistent that a mint was as set i ip p in new angland t tut ut tion ba b the home government soon put a stop to that due to the lick lack of metallic money the colonial governments fell into the practice of printing paper money As ther gasn t any other cir culat ing med urn um the paper pissed passed for a time as if it were the real article however since the issuing govern ments could maintain no adequate ade quite reserves for redeeming the notes as they fell due and as the colonies found the device so easy that there was a constant temptation to put out more the notes fell in value IN V hen dei del re recia clation tion went so far as to appall the authorities a new set of b Us ils would be put out with the officials sw sa eiring caring thit that th it th s ti time m e it would be different and the is issue sue would be confined to whit could be redeemed but the promises even when hen backed by good intentions were never kept at length the english merchants complained that they were having difficulties les making collections for ghods sold sid and delivered lecause 1 because of the variable currency the english then yielded and sent over a quan of silver and bronze and put the colonies on a sound metallic ta si sis so it stood ft i hen ae I 1 bostom an ans gave their famous tea party IN ars are financed in tl ree ways by taxing faxing borrowing or inflating taxation was not available to the Ameil con revolutionists because bei ause the p eni ecil biting cause of the war w u is the objection of the colonists to tax atlon borrowing was impossible except to a slight extent with france because the new country had not es tabi shed its cred t tl TI e only teas feas ibie ible means meins me ins of financing tle tl e war therefore there fole foie was bv inflation by bissu ing irredeemable paper currency ant an I 1 that is what was done |