Continental currency was now largely unsuccessful and headed towards collapse. There was an abundance of counterfeited notes in circulation that eventually aided to it's demise. On January 2nd, 1779, Congress stated that these bills "had been extensively counterfeited and particularly of late in New York, and spread through the country, enhancing the price of provisions and injuring our currency.'' On March 18th, 1780, Congress, alarmed at the great and rapid depreciations of its bills, which now stood at 40 for 1 in coin, proposed to retire them by means of taxes to be levied by the states.
During this time the United States had only three banks but more than fifty different currencies in circulation: English, Spanish, French, Portuguese, script issued by states, cities and stores. It is easy to understand the that this sort of economy was instable and wide open to corruption, and counterfeit. In addition, the value and exchange rate was often outdated or unknown.
Politicians and supporters of a central bank argued that if the nation was to grow and prosper, it needed to establish a universally accepted standard coinage. Further they proposed that this would best be provided by a United States Mint, aided and supported by a national bank and an excise tax on goods and services.
During this time the United States had only three banks but more than fifty different currencies in circulation: English, Spanish, French, Portuguese, script issued by states, cities and stores. It is easy to understand the that this sort of economy was instable and wide open to corruption, and counterfeit. In addition, the value and exchange rate was often outdated or unknown.
Politicians and supporters of a central bank argued that if the nation was to grow and prosper, it needed to establish a universally accepted standard coinage. Further they proposed that this would best be provided by a United States Mint, aided and supported by a national bank and an excise tax on goods and services.
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