What Were the Origins of U.S. Currency?
Wars are expensive and it was the Civil War that provided the impetus for the United States Government to issue its first Federal paper currency in late 1861. That was far from the first paper money seen in the United States, though. Currency was issued beginning in 1690 (primarily by the individual Colonies) and the Continental Congress issued notes beginning in 1775 to pay for the costs associated with the Revolution. Rapid inflation following the Revolutionary War rendered most of these Continental Notes nearly worthless and undermined the public’s confidence in paper currency. It would be 80 years before the Federal Government would again issue paper money.
https://blog.collectors.com/2016/11/collecting-u-s-currency-basics-part-1/
