The Continental Colors Flag, also known as the 'Grand Union Flag,' is considered to be the first national flag of the United States of America,previously that of the United Colonies of North America, until 1777.
According to the traditional account, the original flag was made in June 1776, when a small committee — including George Washington, Robert Morris and relative GeorgeRoss — visited Betsy and discussed the need for a new American flag.
This version of the US flag was said to have been carried by William Batchelor of the 3rd Maryland Regiment at the Battle of Cowpens, January 17, 1781, and this arrangement of stars has come to be known as the '3rd Maryland design.'
The 'Betsy Ross' circle of 13 stars are in the inner ring to identify the original 13 colonies, and an outer circle of 24 stars identify the states that have joined the union since that time. This flag was one of many that were made to celebrate the upcoming First Centennial.
There are many, many versions of the Great Star flag. This flag flew over the Capitol dome for at least six months of 1818. The pattern was designed by Captain Samuel Chester Reid of the United States Navy.