| In 1690, the Massachusetts Bay Colony stared | | | | The Continental Congress of 1776 authorized the |
| issuing paper money. But tensions between the | | | | minting of the first silver coins. But when the |
| Colonists and the British began to escalate, and | | | | French bullion didn't arrive, the initiative was put on |
| the British passed the Currency Act of 1764, | | | | the back burner. |
| which made it illegal to print Colonial money. | | | | Copper coins were being produced by |
| Before the Revolutionary War, with no currency | | | | Massachusetts, New Hampshire, Vermont, |
| of their own, the colonies had to rely on foreign | | | | Connecticut, and New Jersey during the 1780s. |
| currencies, and many European coins circulated | | | | But the need for a national currency was critical. |
| freely. But the most popular were the Spanish | | | | And when Congress convened in 1792, it was one |
| silver dollars called pieces of eight. These coins, | | | | of the top items on the agenda. |
| which were minted from recently discovered | | | | The Coinage Act of that same year established |
| South American silver in Mexico, were legal tender | | | | standards for coins to be minted in America and |
| in America up until 1857. | | | | authorized a Director of the Mint and his salary. |
| A further hardship for the Colonists was the | | | | The words "United States of America" and the |
| Currency Act requirement that taxes be paid to | | | | year of the coinage were both to be included on |
| Britain in gold or silver. Prior to the Currency Act, | | | | all American coins. In Philadelphia, building of the |
| poverty and unemployment were virtually | | | | first U.S. Mint began. |
| unknown in the Colonies. After passage of the | | | | Coin production and circulation was inconsistent at |
| Act, many colonists were made destitute by their | | | | first, due to the lack of a steady supply of bullion. |
| tax obligations -- a condition which paved the way | | | | But the U.S. Mint in Philadelphia issued 1,748 |
| for revolution. In 1775, the Continental Congress | | | | Flowing Hair silver dollars in October of 1794. |
| started issuing a paper currency called the | | | | Because the design was discontinued the next |
| Continental in order to finance the Revolutionary | | | | year, only about 150 to 200 Flowing Hair silver |
| War. | | | | dollars remain. Consequently, they are very |
| With inadequate reserves of silver or gold to back | | | | valuable. |
| up the Continental, it was never widely adopted. | | | | A 1794 MS60 coin would fetch more than |
| Many people, including Thomas Jefferson, did not | | | | $500,000. The Draped Bust silver dollars produced |
| believe that fiat money -- currency which is | | | | between 1795 and 1804 are far less valuable. |
| backed by the promise of the government to | | | | In 1834, the U.S. Mint struck several 1804 silver |
| accept it for payment of taxes -- was truly | | | | dollars to be used as gifts for foreign dignitaries, |
| viable. So when the French promised to send a | | | | including the King of Siam and the Sultan of Oman |
| shipload of silver bullion for coinage, production of | | | | and Muscat. Today, these are among the most |
| the Continental stopped. | | | | rare and valuable coins in the world. |