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The Distribution of Congressional Spending During the American Revolution, 1775-1780: The Problem of Geographic Balance

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Author Info

  • Farley Grubb

    ()
    (Department of Economics,University of Delaware)

Abstract

Resources to fight the War for Independence from Great Britain (1775-1783) were to be provided to the U.S. Congress by the individual states based on each state’s population share in the united colonies. Congressional spending, however, largely flowed to where the theater of war was located. Thus a geographic imbalance in revenue and spending arose. Because much of the spending was through issuing paper money, geographic variation in inflation as well as in general economic activity resulted. This in turn affected the relative strength of each state’s attachment to the union with ramifications on maintaining political unity.

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File URL: http://www.nber.org/papers/w14267
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Bibliographic Info

Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 08-21.

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Length: 38 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:dlw:wpaper:08-21.

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Postal: Purnell Hall, Newark, Delaware 19716
Phone: (302) 831-2565
Fax: (302) 831-6968
Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
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Keywords: American Revolution; War Finance; Fiscal Federalism; Paper Money; Continental Dollar;

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  1. Farley Grubb, 2007. "The Continental Dollar: How Much Was Really Issued?," NBER Working Papers 13047, National Bureau of Economic Research, Inc.
  2. Farley Grubb, 2008. "The Continental Dollar: What Happened to It after 1779?," Working Papers 08-09, University of Delaware, Department of Economics.
  3. Rousseau, Peter L., 2006. "A common currency: early US monetary policy and the transition to the dollar," Financial History Review, Cambridge University Press, vol. 13(01), pages 97-122, April.
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Cited by:
  1. Farley Grubb, 2011. "State Redemption of the Continental Dollar, 1779-1790," NBER Working Papers 17209, National Bureau of Economic Research, Inc.

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