# American History Told by Contemporaries/Volume 2/Chapter 13

CHAPTER XIII — COMMERCE AND CURRENCY
85. Official Protection of Pirates (1698) BY GOVERNOR THE EARL OF BELLOMONT
Bellomont was governor of New York and Massachusetts, and set himself to root out the profession of piracy. — Bibliography: Palfrey, New England, IV, 167-195; Channing and Hart, Guide, § 105.
I HAVE wrote largely of the General State of this Govern$^t$ in letters of this date, this is particularly to informe your Lord$^{ps}$ in relation to Pirates and the proceeding of the late Gov$^r$ Fletcher to encourage and protect them, which I have [been] industrious to discover in obedience to repeated orders and instruct$^{ns}$ which I have received from His Maj$^{ty}$ , most strict in the matter, and I find that those Pyrates that have given the greatest disturbance in the East Indies and Red Sea, have been either fitted from New-York or Rhode Island, and mann'd from New-York. The ships commanded by Mason, Tew, Glover and Hore, had their commissions from the Gov$^r$ of New York. The three last from Fletcher, and although these Commissions (which are on record here) appear to be given only against the Kings enemies ; yet it was known to all the inhabitants of this City that they were bound to the Indies and the Red sea, it being openly declared by the said Commanders, whereby they raised men and were quickly able to proceed, and so notoriously publick that it was generally believed that they had assurance from Coll : Fletcher, that they may returne with the spoyle to New York and be protected, as it will now plainly appear, by the protections he did give to them, at their return, and the rewards they gave him for them. It is likewise evident that Tew, Glover and Hore, had commissions granted them by Coll : Fletcher when none of them had any ship or vessell in Colonel Fletcher's Govern$^t$ , yet they had Commissions and were permitted to raise men in New-Yorke, and the design publique of their being bound to the red sea, And Capt$^n$ Tew ​that had been before a most notorious Pirate (complained of by the East India Company) on his returne from the Indies with great riches made a visit to New York, where (although a man of most mean and infamous character) he was received and caressed by Coll : Fletcher, dined and supped often with him, and appeared publickly in his coach with him, and they exchanged presents, as gold watches ettc. with one another, all this is known to most of the City, and on this Coll : Fletcher gave him his Commission. Mason s ship returned under the command of one Coats, about the year 1693, and the crew having shared the booty came into this Govern$^t$, and received incouragement, and had protections given them by Coll : Fletcher as will appear by the deposition N$^o$ 1. of one Burgesse one of the Pyrats, and by N$^o$ 2. the deposition of Edward Taylor another of the Pyrates, Your Lordships will plainly see the bargain that was made by him (in behalf of the ship's crew) with Coll : Fletcher and M$^r$ W$^m$ Nicoll one of His Ma$^{ty's}$ Councill and the rewards they were to have, and did receive from the said Taylor and company. I have indeed promised on my honour to intercede with His Ma$^{ty}$ by your Lord$^{ps}$ for the said Burgesse and Taylors pardons ; otherwise, I should not have been able to have had their evidence and made this discovery, and therefore I must pray your Lord$^{ps}$ favor therein, that they may have the benefit of my promise to them, which hath occasioned their criminating themselves, and I believe it much less criminal in men of their loose principles to act such things, then in a Govern$^t$ to give them such encouragement & impunity. And Coll : Fletcher received for his favour to that ship's crew, their ship which he sold to Coll : Heathcote for eight hundred pounds, besides what private presents report saith were made to his Lady and daughter ; and besides his reward for particular protections which, I find were commonly rated at one hundred dollars p$^r$ man, and besides gratifications to his breaker M$^r$ Nicoll of His Maj$^{ties}$ Councill and other small rewards to his Clerk Daniell Honan, as doth appear by the said depositions. I have likewise discovered that protections were publickly exposed to sale at the said rates, to Pyrats that were of other companies and I have already gain'd some originals of which I have sent the copies; inclosed N$^o$ 3. by which your Lord$^{ps}$ may see Coll : Fletchers art to get money, and how far he was from suspecting or prosecuting these Pyrats, when their guilt made them seek and buy the protection, that the lawes give all honest men, and which such had a right and claime to without purchasing Coll : Fletchers hand and seal for a further assurance, but ​this I submitt to your Lordships consideration. It is indeed suggested that Coll : Fletcher took bonds from these protected Pyrates that they should not depart the province without Lycence, but I am informed, several had lycence but whether they were only colourable securities from men of invisible Substances, or what the certain condition of them was, I cannot learne, for that the said bonds are not deposited any where on behalf of His Maj$^{ty}$ nor can I find that any of the Pyrats or their bonds were ever prosecuted. Instead thereof, I find that the last mentioned protections were purchased and no bonds given for them. I also find one Coll : Bayard of His Maj$^{tys}$ Councill was broker for Coll : Fletcher in the procuring them, and your Lord$^{ps}$ will perceive what reward Coll : Fletcher and what Coll : Bayard had for their favour to these Pyrats, and the manner of their battering by the inclosed depositions N$^o$ 4 & N$^o$ 5. . . .
I had likewise certain information since my arrival here, that five sayle that were seen and supposed to be Pyrates, were hovering on this Coast, and one of them landed some men on the Jerseys (as the Gov$^r$ of the Jerseys acquainted me) and Enquiry, who was in the Govern$^t$ , of which, when they were informed, they went on board and departed, not daring to come under my Govern$^t$ with the same assurances of safety they had before experienced, so that the alteration of the Govern$^t$ is comonly reputed here to be a great loss to Coll : Fletcher on this account. On these proofs, I summoned His Maj$^{ty's}$ Council on the 8th day of May and communicated my instructions about Pyrats, and the aforesaid evidence in relation to Coll : Fletcher and M$^r$ W$^m$ Nicoll ; and the Gentlemen of the Councill then present did expresse their abhorrence of these practices and were of opinion with me that the whole evidence should have the seal of the province affixed, and be transmitted home to His Majesty, with Coll : Fletcher a prisoner. . . .
P. S. — Since my closing the foregoing I believed I had an opportunity to surprise and take a considerable number of Pyrates expected on board His Maj$^{ty's}$ ship Richmond and gave instructions and took the best measures I could in order thereto, as your Lord$^{ps}$ will find by the inclosed copy of my letter to the Lords of the Admiralty, with the copies of the papers refered to therein, which although it had not the success I expected, yet was all that could be done therein, and which I hope will meet with your Lord$^{ps}$ approbation. I have just now found the records of the Commissions to the Pyrats and made discovery of the bonds the Pyrates entered into to Coll : Fletcher when he granted ​them Commissions, and they appear so fraudulent that it is a manifestation that he was made acquainted with their design of Pyracy. . . .
E. B. O'Callaghan, editor, Documents relative to the Colonial History of the State of New-York (Albany, 1854), IV, 306-310 passim.
86. A Plea for Protective Duties (1704)
Such appeals as this below were frequent in colonial times. — Bibliography : Weeden, Economic and Social History of New England ; Channing and Hart, Guide, § 133.
CONSIDERATIONS HUMBLY OFFERED, WHY NAVAL STORES CANNOT BE BROUGHT IN GREAT QUANTITY'S FROM HER MAJESTY'S PLANTATIONS, UNLESS ASSISTANCE BE GIVEN BY THE GOVERNMENT.
[19 May 1704.]
1st Planters, proprietors, or Trading people will not make it their business to provide such Goods, nor bring them in the usual way of Trade unless they have a prospect, they shall have sales for them at such rates, as may afford them profit, their cost & Charges considered ; if there be no such prospect then they will bring them only when they can be secure of Gaine by some particular contract with the Navy officers or other persons.
2nd This is verified by what has past in relation to Naval Stores from the plantations, Several have offer'd to bring them upon a Contract made, or Charter granted or other advantages, but few or none have been brought as other Comodities to be sold at a Comon Markett Thō it was foreseen above 50 Yeares Since ; that it would be dangerous to depend entirely upon the Northern Crownes, for Naval Stores, and was then taken into Consideration Now to be supplied from the Plantations, yet few have been brought, tho in those parts there is great plenty of Timber for building of Ships, and also to produce Pitch, Tarr & Rozin, and a Soil capable to afford hempe.
3$^{ly}$ Upon which it may be concluded that no Methods can be effectuall, for the bringing in, of great quantity's, but such as may give ​encouragement, to the Trading people, to bring them upon the same foundation, as they bring other Commodities from other parts viz$^t$
Hopes of making proffit, by trading & dealing in them which cannot be, unless these Comodities be eased of the great burthen, which lyes on them, by the great wages paid to labouring men on the Plantations, and the high freights given to Ship Masters, for Goods brought from those parts, which being farr above the rates which are paid for the same Sorts of Goods if they come from Norway or the Baltick, deprives the traders of making proffit by these Goods from the Plantations, and gives a priority to those from the North.
4$^{ly}$ The Northern Crownes are our Competitors in this Case, the advantages they have cannot be overcome, by a Charter, in which most of the proposalls that have been made do center, Corporations must have Governours, Directors, book keepers & Agents, the Charges will amount to at least ten P Cent, which must be added to the Cost, and other necessary Charges, and give a Further advantage to our Competitors, by which they will be enabled to undersell our Traders in these Commodities, and yet Subsist & make profit, because they will be eased in these Several Charges & outgoings : Charters cannot remove, nor decrease the Cloggs that lye on this Trade, but rather increase them unless the Swedes & Danes and all others could be excluded from bringing those Goods into England.
Therefore
Unless these Comodities from the North can be Charged with a great Custome, and those from the Plantations be eased from all Custome : or her Majesty be graciously pleased to cause these goods to be brought freight free to the Planters or owners, or to give to them some recompense at a Certain rate P Tunn for what they may bring, as may equallize the Charge of freight.
The Naval Stores from the North will always hinder their being brought from the Plantations, as Comodities in the way of Trade, which only can cause a large importation of them for the use of our Navigation in General, hinder the Exportation of our Coyne to the North and prevent the inconveniencies that may happen, by our dependance upon these Crownes.
William L. Saunders, editor, The Colonial Records of North Carolina (Raleigh, 1886), I, 598-599.
87. A Case of Smuggling (1739)
Kennedy, who appears to have forwarded this account, was collector of the port at New York, receiver of quit-rents, and member of the Council. He married into the Schuyler family and removed to England. — Bibliography : Channing and Hart, Guide, § 105. — For the political question of smuggling under the Navigation Acts, see below, Nos. 131, 146.
| ARCHIBALD Kennedy Esq : qui tarn &$^c$ against The Sloop Mary & Margaret Thomas Fowles Reclaiment | $\scriptstyle {\left.{\begin{matrix}\ \\\\\ \ \end{matrix}}\right\}\,$ | In the Court of Admiralty New York Case |
The latter end of August 1739, some caskes of foreign Gunpowder and Molasses being found on board a Pilott boat the same with the Pilott boat were seized and information being given that the same Gunpowder and Molasses were imported in the Sloop Mary and Margaret from S$^t$ Eustatia, and unladen from her between Sandy Hook and the Narrows and put on board the said Pilot boat the said Sloop Mary and Margaret was also seized (she being then come into the Harbour of New York) and a lybell filed against her in the Court of Admiralty for importing into the Colony of New York the said Gunpowder (being of the production and manufacture of Europe) from S$^t$ Eustatia the same not having been bona fide laden in Great Britain &$^c$ and for unloading the said goods before Report or Entry &$^c$ As by the Libell N$^o$ 1. To this Libell Thomas Fowles appeared and claimed the Sloop Mary and Margaret as Owner thereof, and put in a plea to the Instruction of the Court of Admiralty containing in substance that the whole Colony of New York is divided into twelve counties, and that there is no part of the said Colony but is contained in the said Counties or one of them and that the Court of Admiralty has no Jurisdiction of any matter done within any of the said Counties but ought to be determined by the Common Law And that the said Sloop was seized on shore within the City and County of New York, As by the said plea N$^o$ 3. which plea being overruled a plea in Barr was filed averring that the Gunpowder &$^c$ was not imported in the said Sloop nor unladen from the said Sloop at any place within the Colony of New York and put into the said Pilott Boat as by the said plea N$^o$ 4. To this plea the Advocate General Joined issue, and witnesses were examined who fully proved the matters ​charged in the Libell as by the depositions from N$^o$ 8 to N$^o$ 17 appear, The Witnesses being examined and publication past Fryday the 26 of Oct$^r$ was appointed for the hearing of the Cause. But before the day of hearing the said Thomas Fowles (finding the facts charged in the Libell fully proved) applyed to the Supream Court for a prohibition suggesting the statutes of the 13th and 15th of King Richard the second, and the 2$^d$ of Henry the 4th the aforesaid Libell and plea to the Jurisdiction of the Court of Admiralty, and that the said Court of Admiralty refused to admit the said plea as by the said suggestions contained in the prohibition N$^o$19 appears, upon the argument of this matter it was insisted upon and shown by the Advocate General and the Council for the informant that the whole Province of New York was not contained within the 12 counties, for that the greatest part of Hudsons River and particularly the place where the Gunpowder, is said to be unladen from the said Sloop is not within either of the Counties tho within the province and shewed the Act of Assembly for dividing the province into Counties &$^c$ N$^o$ 20. Whereby it appears that the two next adjoining counties to the place where the said Gunpowder &$^c$ : was unladen are bounded by the Water And that tho the said Sloop was seized on Shore within a County yet it was for matters done out of any County and within the Admiralty Jurisdiction. But notwithstanding these and many other Arguments used and Authorities shewn the Judges granted the prohibition N$^o$ 19.
If the prohibition in this Cause was well issued no breach of the 15th Car : 2$^d$ Cap 7. can be tryed in the Admiralty (but must be tryed at Common Law by a Jury who perhaps are equally concerned in carrying on an illicit trade, and its hardly to be expected that they will find each other guilty) for if the importation into the province makes the breach of the Act, and no part of the province but is within one of the Counties And whatever is done within the County cannot be tryed in the Admiralty, but must be tryed by the common Law, consequently no breach of that Act can be tryed any way but by a Jury.
E. B. O'Callaghan, editor, Documents relative to the Colonial History of the State of New-York (Albany, 1855), VI, 154-155.
88. A Defence of Paper Money (1724)
Burnet was governor of New York and New Jersey, and was later transferred to Massachusetts. This is a fair statement of the attitude of the colonists. — Bibliography : Palfrey, New England, IV, 497-526; Henry Phillips, Paper Currency ; A. McF. Davis, Provincial Banks ; Channing and Hart, Guide,§§ 105, 106.
I AM very sensible of the disadvantage I lye under in writing upon this argument, and the misfortune it is to any cause to have already appeared in an odious light, as I am but too well convinced is the case of paper money Acts in the Plantations, by your Lordships last words in your letter of the 17th of June — That Bills for encreasing of Paper money will meet with no encouragement — I hope your Lordships will not think it presumption in me even after this declaration to endeavor to give you a more favorable opinion of such Acts and if I go too far in this, it is owing to the encouragement your Lordships have given me by receiving what I have offered on all occasions in so kind a manner and admitting the best constructions that my weak Reasoning will bear
I have already in my letter of the 12th of May last used several Arguments to justify the Paper Act in New Jersey, and therein I observed how well the Bills of New York keep up their credit and the reasons why they have not fall'n in value as those of Carolina and New England and that under a good regulation these Acts are both of Service to the Trade of the Plantations and of great Britain, for which that I may not repeat I beg leave to refer to my said letter of the 12th of May last and desire your Lordships would again take into your consideration when you are to determine your opinion on this present Act. —
But there are many things there only hinted at which I shall now lay before your Lordships and in which I shall cheifly argue from what is to be gathered from experience in Great Britain itself from observing the nature of credit and the events it has under gone, and in this I hope I may be the more patiently heard because what experience I have was purchased at no very cheap rate
Credit ought to be supported if it is possible, both by reason and common opinion. Reason tho ever so strong will not always do alone in the Beginning if common opinion is against it but it will carry all before it at the long run : Common opinion or humor will generally do for a time without reason nay, against it But then it is often attended with vast mischeif and danger — Of this we have a fatal Instance in the ​famous south Sea Scheme, which being left to common opinion without any restraint has produced the most terrible effects possible. If there had been a possitive Law, making all Bargains for South Sea Stock above some fixed Price as 150. void and making it a legal tender at 100 all these mischeifs would have been avoided but this would have been called compulsive Paper Credit, yet because in Reason it is worth so much as long as the Nation stands and because the Parliament has always kept their engagements all clamors against this would soon have blown over and no enemies would have been found to it but Brokers
To make this appear it is enough to prove, that at the bottom all the present voluntary credit stands upon this very foundation at last & no other
It is very certain that there is no proportion between the Specie & the great quantity of Bank Bills and Bankers Notes, commonly current who lend their notes on the several Branches of Government Securitys and seldom at a Rate under par very often above par When the Government is safe this would do when there is any danger, Common opinion pulls down her own work & Bankers break in abundance, and the Bank itself is put to Extremitys. An Instance of this I remember at the time of the Preston affair — The Bank would have broke in a few days, if the victory there had not happened as soon as it did
And the Reason was plainly this because when they had paid away all their Specie they had nothing left but Exchequer Notes, and such other Securitys to exchange for their remaining Bank Notes and these would have been at such a discount that they must have broke, and compounded for such Payment at the Best
Thus it is plain that the foundation in Reason of the credit of the Bank it self, not to speak of Private Goldsmiths is the Government Security remaining at Par and yet the Parliament is so good as to provide an interest on these Exchequer Bills, and to pay the Bank so much more per cent for circulation whereas in fact when foul weather comes the Bank is a Staff of Reed and must lean on the Government to prop itself up and so increase the load instead of easing it
And this humour keeps up the imaginary value, when there is no real accasion for it ; all Government Securities being at the same time com monly above par But upon any ill News the like Humor beats down all voluntary credit, in the same manner as it does Exchequer Bills &c and really carries the General Discredit as much further than it ought as it had advanced credit beyond its reasonable bounds before and if once the Bank had broke, then all this would have appeared to a demonstration . . . ​From all which I beg leave to conclude, that is not the names things get for the present but the real nature of them, that will be found to hold against all events & that in the instance of Paper money where it is regulated by just Laws and where the Publick have not acted contrary to them their credit is in reason better established than the credit of any private Persons or Society and that the method used to catch the common opinion of mankind by offering them their money when they please is nothing but a fashionable Bubble which People are every day sufferers by when a Banker breaks & that even the best founded Societys can not maintain their Credit when there is the Greatest need of them. But that all Credit finally centers in the Security of y$^e$ Governm$^t$
I take the liberty further to observe to your Lordships on how many occasions the Government of Great Britain has found it impracticable to raise all the money wanted within the year from whence all the present debts of the nation have arisen : The same necessity lyes often upon the Plantations where frequently a sum of ready money is wanted, which it would be an intolerable Tax to raise at once, and therefore they are forced to imitate the Parliament at home, in anticipating upon remote funds. And as there is no Bank nor East India company nor even private subscribers capable of lending the Province the money they want at least without demanding the extravagant Interest of 8 P$^r$ Cent which is the common Interest here, but would ruin the publick to pay since this is a Case there is no possible way left to make distant funds provide ready money, when it is necessarily wanted, but making paper Bills to be sunk by such funds. Without this Carolina would have been ruined by their Indian War Boston could not now support theirs nor could any of the Provinces have furnished such considerable Sums to the Expeditions against Canada Nor could at present any of the necessary repairs of this Fort be provided for, nor the arrears of the Revenue be discharged, which is done by this Act in a Tax to be levyed in 4 years nor indeed any publick Service readily and sufficiently effected
And I may add one thing more that this manner of compulsive credit does in fact keep up its value here and that it occasions much more Trade and business than would be without it and that more Specie is exported to England by reason of these Paper Bills than could be if there was no circulation but of Specie for which reason all the merchants here seem now well satisfied with it
E. B. O'Callaghan, editor, Documents relative to the Colonial History of the State of New-York (Albany, 1855), V, 736-738 passim.
89. Paper Money Forbidden (1740)
This official prohibition of paper money merely put a stop to the practice; it was renewed in the Revolution (see No. 208 below). — Bibliography as in No. 88 above.
WHEREAS, for preventing the many & great Inconveniences that had arisen in some of his Majesty's Colonies & Plantations in America, by passing Laws for Striking Bills of Credit, & issuing out the same, in lieu of money, the respective Governors & Commanders in chief of his Majesty's Colonies and Plantations for the time being, have been particularly instructed not to give their Assent to or pass any such laws for the future, without a Clause be inserted in such Act, declaring that the same shall not take Effect, until the said Act shall have been approved and confirm'd by his Majesty his Heirs or Successors : And whereas notwithstanding such his Majesty s Commanders to the said Governors in that behalf, Paper Bills of Credit have been created & issued in his Majesty's said Colonies & Plantations by Virtue of Acts of Assembly there, making it obligatory on all Persons to take such Bills of Credit, in payment for Debts, Dues & Demands . . . and a great Discouragement has been bro on the Com'erce of this Kingdom by occasioning a Confusion in Dealings and a lessening of Credit in those Parts : And whereas an humble Address was presented, the last Session by the House of Commons, to his Majesry, That he would be graciously pleased to require & command the respective Governors of his Colonies & Plantations in America, punctually & effectually to observe his Maj$^{tys}$ Royal Instructions not to give Assent to or to pass any Act, whereby Bills of Credit may be issued in lieu of money, without a Clause be inserted in such Act, declaring that the same shall be approved by his Majesty :
It is therefore his Majesty's Will & Pleasure, & you are hereby also further required & comanded under pain of his Majesty's highest displeasure and of being removed, from your Governm$^t$ punctually & effectually to observe his Majesty's Royal Instruction not to give Assent to or pass any Act, whereby Bills of Credit may be issued in lieu of money without a Clause be inserted in such Act, declaring that the same shall not take Effect, until the said Act shall be approved by his Majesty, his Heirs or Successors.
William A. Whitehead. editor, Documents relating to the Colonial History of the State of New Jersey (Newark, 1882), VI, 96-98 passim.