— Ch. 1 · Paper Money And The Continental Collapse —
United States Department of the Treasury.
~3 min read · Ch. 1 of 6
On the 22nd of June 1775, the Second Continental Congress issued two million dollars in bills of credit. This decision came just days after the Battle of Bunker Hill during the American Revolution. Delegates in Philadelphia had no power to levy taxes or secure funds from foreign governments. They promised redemption in coin based solely on faith in the revolutionary cause. By May 1781, that paper currency collapsed at a rate of five hundred to one thousand against hard currency. Protests swept through the colonies as citizens realized their money was worthless. The phrase not worth a Continental emerged from this financial disaster.
Hamiltons Debt Assumption Plan
Alexander Hamilton took his oath as first secretary of the treasury on the 11th of September 1789. He served as George Washington's aide-de-camp during the Revolutionary War before this appointment. Hamilton submitted a report to Congress laying the foundation for national financial health. He insisted upon federal assumption and dollar-for-dollar repayment of the country's seventy-five million dollar debt. Hamilton stated that the debt of the United States was the price of liberty. His policies inspired investment in the Bank of the United States which acted as the government's fiscal agent. His portrait now appears on the obverse of the ten-dollar bill.Sophia Holmes And The Theft Prevention
In 1861, Sophia Holmes became the first Black woman employed by the Treasury Department. She worked as a janitor under Secretary of the Treasury Francis Spinner while earning fifteen dollars per month. In 1862, she prevented a major theft exceeding two hundred thousand dollars from the department. Holmes discovered a box filled with U.S. currency including several thousand-dollar bills. She reported the find directly to Secretary Spinner who subsequently honored her actions. President Abraham Lincoln commended her work and the federal government rewarded her with a lifetime appointment as a messenger.