page_title: United States dollar
section_title: Continental currency
hierarchical_section_title: United States dollar / History / Continental currency
caption_attribution_description: Continental Currency 1/3-Dollar, Obverse Transcription: No. 438338 ONE THIRD OF A DOLLAR, According to a RESO-LUTION OF CONGRESS, paſſed at Philadelphia February 17, 1776. A ‡ ONE THIRD. ‡
context_page_description: The United States dollar is the official currency of the United States and its territories per the Coinage Act of 1792. One dollar is divided into 100 cents, or into 1000 mills for accounting and taxation purposes. The Coinage Act of 1792 created a decimal currency by creating the dime, nickel, and penny coins, as well as the dollar, half dollar, and quarter dollar coins, all of which are still minted in 2020.
  Several forms of paper money were introduced by Congress over the years, the latest of which being the Federal Reserve Note that was authorized by the Federal Reserve Act of 1913. While all existing U.S. currency remains legal tender, issuance of the previous form of the currency was discontinued in January 1971. As a result, paper money that is in current circulation consists primarily of Federal Reserve Notes that are denominated in U.S. dollars.
  Since the convertibility of paper U.S. currency into any precious metal was suspended in 1971, the U.S. dollar is de facto fiat money.
context_section_description: During the American Revolution the thirteen colonies became independent states. Freed from British monetary regulations, they each issued £sd paper money to pay for military expenses. The Continental Congress also began issuing "Continental Currency" denominated in Spanish dollars. The dollar was valued relative to the states' currencies at the following rates:
  5 shillings – Georgia
  6 shillings – Connecticut, Massachusetts, New Hampshire, Rhode Island, Virginia
  ​7 ¹⁄₂ shillings – Delaware, Maryland, New Jersey, Pennsylvania
  8 shillings – New York, North Carolina
  ​32 ¹⁄₂ shillings – South Carolina
  Continental currency depreciated badly during the war, giving rise to the famous phrase "not worth a continental". A primary problem was that monetary policy was not coordinated between Congress and the states, which continued to issue bills of credit. Additionally, neither Congress nor the governments of the several states had the will or the means to retire the bills from circulation through taxation or the sale of bonds. The currency was ultimately replaced by the silver dollar at the rate of 1 silver dollar to 1000 continental dollars.
caption: Continental one third dollar bill (obverse)
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