The Francis Hopkinson flag story isn't as quaint and charming as the Betsy Ross tale, though it is just as unfounded and unproven. Nevertheless, if we're looking to give rightful credit for the first American flag, we can't ignore Hopkinson.
Although he's not as famous in American lore as Betsy Ross, Hopkinson was no inconsequential figure. He was a representative of New Jersey in the Continental Congress and was also a signer of the Declaration of Independence. Later, he pushed for the ratification of the Constitution in Pennsylvania and wrote several influential articles that helped accomplish this. Hopkinson was a real Renaissance man: In addition to being a politician, he was a lawyer, musician and poet. And on top of all that, he also happened to dabble in artistic design.
Hopkinson contributed to the design of numerous important symbols and seals for the United States in the nation's infancy. Among them are the seal of New Jersey, the Continental Board of Admiralty seal, the seal of the American Philosophical Society, the Treasury seal and even the Great Seal of the United States. And although Hopkinson is an acknowledged designer of these things, it's possible he hasn't gotten credit for the most notable of his designs -- the American flag.
In 1780, the esteemed Hopkinson wrote a letter to the Board of Admiralty in which he claimed he designed the American flag. As compensation, he requested a quarter cask of the public wine. The board forwarded this letter to Congress, but a few weeks later, Hopkinson sent a new request to the Board of the Treasury, asking for 2,700 pounds ($3,985) for his flag design instead. The Treasury Board then rejected Hopkinson's request, saying the flag was a collaborative effort and that Hopkinson was "not the only person" who contributed to the design [source: Leepson].
Though Hopkinson's request for payment was ultimately denied, the response he got at least recognized that he did have a hand in the design. Unfortunately, we may never be sure how much Betsy Ross or Francis Hopkinson had to do with the first American flag.