In contrast to the sooner act, this act did not prohibit the colonies in dilemma from issuing paper funds but it surely forbade them to designate their forex as authorized tender for general public or private debts. That prohibition produced pressure among the colonies along with the mother country and has from time to time been seen being a contributing Think about the coming on the American Revolution.
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Continental forex depreciated terribly over the war, offering rise on the popular phrase "not really worth a continental".[fifty two] A Principal issue was that financial policy was not coordinated amongst Congress and also the states, which ongoing to issue payments of credit history.[53] "Some imagine that the rebel expenditures depreciated simply because men and women shed self-assurance in them or because they weren't backed by tangible belongings", writes economic historian Robert E.
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This depreciation of colonial forex was hazardous to creditors in Excellent Britain when colonists compensated their debts with revenue that experienced missing worth. The British parliament handed various currency functions to control the paper dollars issued because of the colonies. The Act of 1751 restricted The difficulty of paper income in New England.
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