The Continental Dollar: How Much Was Really Issued?

Abstract

The U.S. Congress issued paper money called Continental Dollars to finance the American Revolution. The story of the Continental Dollar is familiar to all --a lot were issued and hyper-inflation ensued. However, the details of this story are less well known. Scholars even disagree over how much was issued --disagree by over 50 percent. Meaningful monetary analysis of the Continental Dollar cannot proceed given this confusion in the data. Evidence is gathered here to reconcile past estimates and establish the exact amount and time path of Continental Dollars emitted thereby overcoming the entropy that has crept into the historical record.

The Continental Dollar: How Much Was Really Issued?

“…Therein the Treasury explicitly identifies the emissions of 20 May 1777 and 11 April 1778 as comprising the additional authorization dates listed above with a cumulative total of $41.5 million emitted. 15 The Treasury subtracted this sum from the $50,000,400 authorized on 14 January 1779 when tallying up the cumulative net new emissions outstanding as of 2 September 1779-which was then stated to be $159,948,880.…”

“…20 Breck,Historical Sketch,pp. 8,15;Ratchford,American State Debts,p. 37; Benjamin Franklin (Oberg,Papers of Benjamin Franklin,v.…”