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 skins necktie was not merely something which the new england colonist used to trick a native out of some choice skins the heads were actu actually idly recognized in the colonies as the coin of the realm A massachusetts chu order in council of 1037 1637 made wampum full legal tender up tip to a shilling nt lit the rate of six mack black bends beads or three white heads beads to a penny and a connecticut settler was authorized by law to tiny pay taxes ancs in wampum up lip to ten tell pounds sterling in an identical way tobacco was established ns as the money of virginia rice of south carolina wool of rhode island lind and rum in many places the value or of each of this miscellany of trinkets and vegetables was always reckoned in terms of pennies shillings and pounds of the english monetary system the colonists brought along small amounts of metallic money when they came across and as this accumulated it circulated freely among the people traffic with the spanish colonies froug 1 rought lit in some of their coin but trade as a whole was handle handicapped because of the lack of an lid adequate equate currency the demand for money was so persi persistent tent that a ml mint nt was set up in new england but opposition by the home government soon put a stop to that due to the he lack of metallic money the colonial governments fell into the practice of printing paper money As there any other circulating medium the paper based parsed for a time as it if it were the real article however no wever since the issuing governments could maintain no adequate rescues for redeeming the notes its as they fell due and as the colonies found the device so easy that there was a n constant temptation to put out more the notes fell in value when depreciation went so far as to appall appal the authorities anew set of bills would be put out with the officials sw swearing that this if time me it would be different and the issue isme would be confined to what could be redeemed but the promises even when backed by good intentions were never kept at length the english merchants complained that they were mere haidn having difficulties difficult les making collections for goods wild sold find and delivered because of 0 the variable currency the english then yielded and sent over a quantity of silver and bronze and put the colonies on a sound metallic basla basis so it stood when tae ans gave cave their famous tea party wars are financed in three ways by taxing borrowing or inflating taxation Tip eltion was not aval available lalle to the american revolutionists because the crecli stating cause of the war wn was the objection object inn of the colonists to taxation borrowing was impossible except to a slight light extent with france because the new country had bad not established its credit the only feasible means of financing finan cinK the war therefore was by inflation by issuing irredeemable paper currency anil and that Is precisely what was done |