In 1777 the American government adopted legislation for a new flag of the United States. The legislation stated: "That the flag of the thirteen United States be thirteen stripes, alternate red and white; that the union be thirteen stars, white in a blue field, representing a new constellation." This style of design has remained the basis of the flag of the United States ever since.
There was no specification of how the stars on the blue field should be arranged and thus there were a variety of variants, however this version with the stars arranged in a circle was the most common variant of the flag that existed at the time. This flag was commonly seen during the American Revolutionary War.