The first national flag of the United States, known as the Continental Colors, retained the Union Jack in the canton. The flag act of 1777 mandated that stars replace the British Union flag to which the act referred to as “a new constellation”. The act, however, failed to lay down a firm design as to how the stars should be arranged and manufacturers of “Old Glory” incorporated their own placement of the stars.

Further Recommended Reading

The Stars and the Stripes: The American Flag as Art and as History from the Birth of the Republic to the Present

A Grand Old Flag: A History of the United States Through its Flags