When paper money was issued in America, it became the first authorized paper money to be issued by a government in the Western world.
The Massachusetts Bay Colony financed a military expedition to Canada in 1690 by issuing bills of credit. Other military campaigns were financed by other Colonies in a similar way.
Revolutionary War state issues
The states also issued money during the American Revolution to cover their governmental and military expenditures.
Some of these notes carried messages freighted with propaganda, like the Maryland issue of July 25, 1775, which depicted George III trampling on the Magna Charta while setting fire to an American city, and American Liberty trampling on slavery while backed by a large army.