July 4. Why American Colonial Currency Made Reference to the Spanish Peso

At your July 4 party, ask why most American colonial paper currency made reference to its valuation in Spanish pesos.

The colonies had their own and very different currencies. Most, however, had in common their reference to their value in equal sums of Spanish pesos.

There was little or no silver or gold in the colonies. The Spanish peso was the only currency in common use at the time denominated in silver. Thus, a paper dollar issued by a colony would frequently read “worth 1 Spanish peso.