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

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  • Farley Grubb

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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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14267.

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Date of creation: Aug 2008
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Handle: RePEc:nbr:nberwo:14267

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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?," NBER Working Papers 13770, National Bureau of Economic Research, Inc.
  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," Working Papers 11-08, University of Delaware, Department of Economics.

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