The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1843-01-06
50 o ltGirII.
From the GiGbe.
PAPER MONEY.


national industry and economy, recorded in the
history OF ihIs county, 1t is believed, was in the
Province OF Massachusetts, in the year l1ll. En-
hauS,ed by Indians wars, and called upon by the
mother country 10 AID in the conquest. Of Canada
and newfoundland, they, in an evil hour, resolved
in the General Assembly 10 issue bills Of credit 10
the amount of forty thousand pounds
The fist elect of This measure, recorded by
Hutchinson in his History of Massachusetts,, writ
ten many years previous 10 the new paper money
era, was an enormous and unprecedented rise in
the price of all the htcessares of life, so lhri this
sudden increase Of money only rendered it more
difficult TO procure them, 10 remedy this, the
court issued an order regulating their prices, in
consequences of which, the hCIdcrs Of provisions
shut their stores, al refused 10 sell Another Oh
der then passed the Court, $40 impress provisions,
in whose possession socver and for this purpose
TO open all doors and enter. This effected gen
eraI compliance" Thus we see the first emission
OF paper money led 10 series Of outrageous al
lacks on the rights and liberties of the citizens.
In lib, only two years alter, the historian pro-
ceecs 10 state that, "As soon as they were deIly-
cred from enemies without, contention arose
from new cause, the effects Of which were left
many years together, The bills Of credit were the
cause of this contention. So many bills had been
issued TO deiruy the charges Of the war particularly
The large sum Of forty thousand pounds for the
Canada expedition, that they were become the
sole instrument and measure of commerce, and
silver and gold we're entirely banishcd, OF two in
sirnmcnlS,onc IN use In particular State only the
other with the whole commercial world it is easy
TO determine which will lease that particular Stale,
and which remain. The currency Of silver and
gold cnllrely Disappeared The price Of every thing
bought and sold was 10 longer compared there
with, but with the paper bills, or rather the mere
ideal pounds, shilllngs and p'nCe. The rise of
exchange with England and all ohcl countries was
not attributed TO the true cause the want Of fixed
staple medium, but 10 the general bad state of
trade. 1t is thought that increasing the paper bills
would eniycn and reform trade" Does not this
experience and these notions directly apply 10 the
present state Of things in the United States.
The historian proceeds 10 state that the qucs-
lion of paper money divided the Province into par
ties, and In Il great measure superseded all pcIiii-
cal distinctions founded on great fundamental prin-
Cip'cs. These parties were animated by feelings
Of hitter hosti!il, before unknown, for the subject
was one which involved the pecnniary and personal
interest Of every man in The community. Tie
patty in favor Of calling in The l of crcdi, main.
tanned the injustice Of paving creditors with de-
prcciatcd nOncr, while those m favor Of new
emissions dwelt on the hardship of debtors hcoa
Obliged To pay in specie debts contracted under the
paper regimen, There never was period in the
history Of the Province so ridugLt with distraction
and luminosity.
"'The trade &C the province Declined There
WIS general cry Of want Of money, and sc, bills
oicrcdI, which were the only money, were con.
lnually drp'cciuing The depreciation was gre
vious 10 all creditors, but particularly TO the clergy
md widows, and orphans, whose estates consisted
IT money on interest, which lcua reduced To one
half its former value, they often found themselves
in Il state Of actual poverty and wait. Executors
and administrators, and all who were possessed of
the effects Of others in trust, had slror. irnpla.
lion TO retain them. The influence Il bad cur
rcncy has Oh the morals OF the people, j. greater
than is generally imagined. Numbers Of schemes
for private aud public emissions Of bills were pr
posed rs remedies, the OaIy clccluul che the
utter abolition Of the bills, was omitted" Would
not one suppose the historian was giving pic
lure Of or own lines, ly Gniclpalion'
1t appears that a majority Of the General Asscmb-
" was in favor Of he "crcdit svsem,' aud That
the Governor and Council almost invariably oppos
ed its extension. "lhc Council" continues the
historian, "welc fond Of peace; the House were
less avcrse TO war The charges Of carrying it on,
they said, would he no burden 10 the Province
That the charge should be no burden seem, 10 be
paradox; but wild opinion had filed the
mind. ola great part of the people of the Province
that il the bills Of credit could be issued, the nd
vanagcs TO trade would be so great tia, the taxes
by which II, distant periods they we've TO he drawn
in again, would not he felt" Her. we have the
sum and substance Of all the arguments Of the
great credit system mongcrS in n nutshell. II is Of
this pcrnh The historian remarks. "The Ilassa.
chuse> Province afforded subject for some part oi
the madness of The people Of England in this re-
marhable years " Gste idadS had an imaginary
raiue Sc. rpoa them. sometimes higher, and some.
times lOrer. amt coq'iaunIi Gfor1ipg suijeci
for bubticS among OuTSclrcs." Abor, this time,
the famous Capt. Corasus, tie great original Of our
land spectators, advertised all Nova Scotia, aud
a considerable portion Of the province Of Maine.
hohat the time con ehend d il the SlassacII So
charter or patent for sale and laid ou divers large
cities, on paper. focs and frauds Of this kind
will always be the result of increasing the quantity
of money beyond the real wants Of community
Having no useful or legitimate employment. il
viii lie wasted on impracucalc schemes, or mis-
chlevous bubbles
Finding. what is always the issue Ct similar en-
pedienls, that the emission of bills Of credit for
forty thousand pounds only increased the scarcity
of money, and involved necessity fore more the
General Assembly passed bill for issuing one
hundred thousand more. 10 which was appended
this wise provision, that "to prevent their dcpre.
citation, they prohibited the buying and selling, or
barerrg, Of silver and gold at higher iaics than .
sci by act Of Parlihmcnt" this historian makcs the
following just observation on this absurd prohibit I
tom "Sncl an act can no more he executed Than |
m act 10 stop the ehhng and flowing Of the sea-
The depreciation of their currency would not .
wilhslandmg, have been as visible by the rise Of
exchange with iur ign countries, and lcen as SEN
sihy felt BY every creditor among themselves 1t /
would probably carry away and keep out all sill
yer ard gold"
In 1927 matters had only gone on from bid 10
worse, MS is invariably the ease with the "grcat
credit sys'cm.' According TO The historian. "Ihc
trade Of the province heing in bad state, there
being general complain; If scarcity of money,
the old spirit revived for increasing the currency
hy further emission of bills of credit. u wouH