COLONIAL AMERICA. Continental Currency. $55. Issue of January 14, 1779 (final issue). PCGS 30 Very Fine.

Ex Heritage Auction 141204 (24 January 2012) lot 33003.

Issued by the Continental Congress to fund the Revolutionary War, Continental currency suffered from extreme depreciation–both due to the number of bills issued, and due to large-scale counterfeiting performed by the British in New York. Last issued in 1779, they traded at just 1/40 face value by 1780, and soon after ceased to circulate. In the early 1790s, after the U.S. Constitution was ratified, they could be exchanged for treasury bonds at 1% of face value. Benjamin Franklin noted that the depreciation ended up functioning more or less as a tax to pay for the war.