Massachusetts Issues First Paper Money

Summary

Colonial Massachusetts struggled with specie shortages during King William's War against French and Native forces in the late 17th century. The General Court authorized the printing of bills of credit to pay soldiers after a failed expedition to Quebec. On February 3, 1690, the colony issued the first paper currency in the Western Hemisphere, with notes redeemable for coin at a future date. These bills circulated locally despite initial skepticism and risks of counterfeiting. Other colonies soon followed the precedent amid similar fiscal pressures. The innovation addressed immediate wartime needs while establishing a new form of colonial finance.

Why It Matters

This marked the beginning of widespread paper money use in the Americas, influencing later colonial and U.S. monetary systems during the Revolution and beyond. It demonstrated colonial self-reliance in economic policy against British restrictions on coinage and laid groundwork for fiat currency concepts in emerging nations.

Sources

1. Today in History February 3 | Massachusetts Bay Colony, Encyclopædia Britannica. Accessed 2026-07-08.