The Continental Colors, known as the American Grand Union Flag is technically America's first official flag. The Continental Colors American Grand Union Flag features a field of 13 alternating red and white stripes, with the British Union flag in the canton. At least at the time. (At the time of the flag's design in1775 the St. Patrick's Cross wasn't part of the British Union Jack.)
The design of the Grand Union flag is similar to the flag of the British East India Company. Actually similar is a fairly considerable understatement. Certain East India Company designs that were in use at the time were essentially identical to the Grand Union. The only real difference being the number of stripes varied from 9 to 15 on the East India Company flags.
The Continental colors were not exactly a design coup in creativity when it comes to a separatist upstart country. But none other than George Washington proposed the design, so it's safe to say his authority played a larger role than aesthetics did. The design may actually shine a light on the complicated colonial politics of the time, and how national identity can take a little time to establish.
By keeping the Union Jack, Washington believed the flag signified that the colonies fully retained their allegiance to Great Britain, yet contested the method of government that America would run by. History would prove this to be an overly optimistic sentiment in the end with the Crown having quite a different opinion of the rebels and their brand of loyalty.
Beyond essentially being vexillological plagiary, however, certain "branding" issues of a practical nature began quickly popping up.
One such incident is by far the most famous. The flag was flown at garrisons and as a naval ensign throughout the navy and was even flown by George Washington's army at Prospect Hill on New Year 1776 where the British mistook it for a surrender flag which ended up being a testament to the curious and confusing design choice.
The Colors was first flown on December 3, 1775, on the USS Alfred in Philadelphia for the Continental Navy.
The First Flag Act of 1777 remedied the problem once and for all by replacing the British Union Jack in the canton of America's national flag with the blue field and white stars representing "a new constellation" that we have today. So the Continental Colors were required nearly as fast as they were erected.
The flag was afterward occasionally used as a symbol of Anglo-American friendship and shared interests throughout the 19th and 20th Centuries. However today it serves more as an interesting historical piece.
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