9781422287477

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An example of colonial-era paper money, issued in Philadelphia in 1776. Nearly 50 years earlier, riots broke out in the city over the issue of paper money.

The Paper Money Riot

T rading in paper money was rare in colonial America. Since there was little wealth in America, paper money often had little value. There were no great reserves of gold to give value to the paper money that was exchanged in place of precious metals. However, as the colony of Pennsylvania grew, more paper money was needed in circulation. In busy Philadelphia, which had grown into the largest city in America, people needed paper money to buy food, clothes, tools, and other goods. In 1726 King George appointed Patrick Gordon, an army officer, as governor of the colony of Pennsylvania. The king cautioned Governor Gordon to be careful not to print too much paper money without true assets to give value to the currency . Doing so would mean that the

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