Before long confidence in the Continentals had sunk so low that by 1780 they were not even worth one cent. No further paper money was issued by the United States for over eighty years.
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The government wasn’t issuing paper money in the time period you’re referencing because the private banks were issuing paper currency.
We didn’t have a uniform currency in the nation during those 80 years. If banks like Mechanics Bank or Manhattan Bank were where you put your deposits, those were the banks issuing your paper banknotes, notes that were supposedly redeemable in specie.(coin money)
That changed briefly during the financing of the Civil War, a war like no other, a war that changed the financial position of the US forever. Inflation ruled the day.
The post war inflation didn’t last and deflationary policies were implemented to suck up all the greenbacks in circulation.(These policies led to populist movements from 1870-1900)
Paper money has been mismanaged at times, but has been part of our financial system since the Colonial time period.
The move away from paper money is ongoing, and will continue as long as consumers and merchants continue to use plastic & digital currency.
People that like a safe monetary position over the next two decades, will hold Federal Reserve Notes outside of the financial system, just like they store food & ammo
“People that like a safe monetary position over the next two decades, will hold Federal Reserve Notes outside of the financial system, just like they store food & ammo.”
Or Metal...