American production of hemp was encouraged by the government in the 17th century for the production of rope, sails, and clothing. (Marijuana is the mixture of dried, shredded flowers and leaves that comes from the hemp plant.)
In 1619 the Virginia Assembly passed legislation requiring every farmer to grow hemp. Hemp was allowed to be exchanged as legal tender in Pennsylvania, Virginia, and Maryland.
Domestic production flourished until after the Civil War, when imports and other domestic materials replaced hemp for many purposes. In the late nineteenth century, marijuana became a popular ingredient in many medicinal products and was sold openly in public pharmacies.
During the 19th century, hashish use became a fad in France and also, to some extent, in the U.S.
Marijuana Timeline | Busted - America's War On Marijuana | FRONTLINE | PBS