Currency Act of 1792

The Currency Act of 1792 was a law enacted by the U.S. Congress to control the issuance of paper money by individual states. It prohibited states from printing their own currency and restricted them to using only coins or national banknotes approved by the federal government. The goal was to create a stable national economy by preventing inflation and confusion caused by multiple currencies. This act laid the foundation for a unified national monetary system, ensuring that currency was consistent and backed by the government, which helped facilitate trade and economic growth in the early United States.