The colonists used almost anything for barter:

• Corn
• Codfish
• Coonskins

Then "tobacco" became the first backing of a currency.

It worked like this; a tobacco farmer would store his tobacco in a warehouse and would get a receipt, which has value. This was before independence.

Now that farmer could assign that receipt to a provisions company in order to get food and other necessities of life. The provisions company owner may assign that same receipt to his supplier to purchase his supplies.

So you might say that tobacco was the first backing of any currency, i.e. the tomacco receipts. Britain would not allow the colonists to print any money, besides there was not enough gold to back the currency. Of course as the price of tobacco rose and fell the value of those receipts also rose and fell.

What is Gold?

• It does not rust or tarnish.
• It is in relateively short supply.
• 99.4% of the people of the world crave it.
• It is beautiful to the eye.
• An ounce of gold can make a wire 50 miles long
• It can be pounded out so this than an ounce can cover 100 square feet.

After the Soverign States gained Independence from Britain (United Kingdom), it was not until 1870 that the States went on the gold standard. This meant that any American could go to the bank with his paper money and exchange it for gold. Then in 1933, Presidnet Roosevelt took the 48 States off the gold standard.

I am getting ahead of myself.