Rhode Island pound facts for kids

An early £2 paper bill from the Colony of Rhode Island, dated August 15, 1737.

The pound was the main type of money used in Rhode Island until 1793. Before the United States had its own currency, each colony and later each state often used different kinds of money. Rhode Island's pound was one example of this early American money system.

Early Money in Rhode Island

At first, people in Rhode Island used British money, called sterling, and coins from other countries. But then, in 1710, the colony started printing its own paper money. This was done to help with trade and make it easier for people to buy and sell things.

The Value of Colonial Money

The new paper money was also called "pounds, shillings, and pence" (or £sd). However, it was not worth as much as the British sterling money. For example, one Rhode Island shilling was only worth about nine pence of British sterling. This meant you needed more Rhode Island money to buy the same thing you could with British money.

Different Kinds of Paper Money

Over time, the value of Rhode Island's paper money changed a lot.

• The first paper money they made was called "Old Tenor".
• This "Old Tenor" money lost its value over time. So, in 1740, Rhode Island introduced "New Tenor" notes. These new notes were worth four times more than the old ones.
• Later, in 1763, both the "Old Tenor" and "New Tenor" money were replaced again. The new money was called "Lawful money". This new money was meant to be more stable and reliable.

From Colonial Pounds to U.S. Dollars

During the American Revolutionary War, Rhode Island, like other states, issued Continental currency. This money was also in pounds, shillings, and pence, but it was also linked to the Spanish dollar. One Spanish dollar was equal to six shillings of this new currency.

After the United States was formed, the "Continental currency" was replaced. The new money for the entire country became the U.S. dollar. This happened at a rate where 1,000 continental dollars were worth just 1 U.S. dollar. This change helped create a single, unified money system for the new nation.