The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-11-19
Early Colonial Experiences Of Paper
Revolutionary scrip-Ihe Con-
tineptal Congress.
Tho Paper Of Later Days-The Grand Green
back Climactsric The Sincws that
Shock and Shattered the Rebellion,
Interesting, Instructive and Elk
hausffve Statistics.


eoncy while this republic the verge OF dsso-
hutton and strainng every nerve to sustain itself
from the funment OF Tie dire prophecies uttered
confidently By Its monarchical enemies Is trembling
under the shock OF war; the area OF destruction
widening, thrones toter and tho oppressed peoples
are preparing for grand EFFORT for the recovery OF
their rights ana liberties. AS wars cannot be prose.
cuted for any length of time without increased taxa
ton, commercial distress and great financial dis
turbapce as their inevitable consequences, the
nations engaged In armed conflict and
those preparing for possible conflicts must
resort paper money as means
OF sustaining their fleets ana armies. France and
Germany have already adopted tins last resort
of bankrupt treasures and other nations, less rich
In resources, must soon follow their example IL Is,
then, eminenty proper at this time 10 review the
financial history OF our great struggle for existence
80 that in watching the course or events in Europe
we may be able to how far her governments have
proftcd by the Lessons taught by our experience In
the perplexing field OF finance; but as the subject Is
wide one, "a wen as OF the highest Importance, it
will be necessary to notice the nrst appearance Of
paper money as q circulating medium ON this Con-
tinent, the colonial epoch, the continental money
system, and the earlier efforts OF our republican gov
eminent to meet the demands OF commerce by sup
plying larger amount Of The circulating medium
than was afforded BY gold and silver coin.
THE FIRST AMERICAN MONEY
OF which there IS any account was wampumpeage,
or wampum. This material was manufactured by
the Indians, and was OF two sorts-blnck, made OF
the poquahock or quobougn and white, made OF
periwnkles. Many Of the shells OF which 1t was
made came from Long island. II served as o me.
dium OF exchange, and It's value was at different
times fixed by law. In l643 Massachusetts made 1t
legal tender for any not exceeding forty shil-
hngs-the white at eight and the black at four
tvoo Cnnn
quite as inconvenient as POSTAGE currency at later
period and was finally abolished by law IN 1862 as
legal tender. Nevertheless, It was many years be-
fore ceased to he regarded with favor in the more
remote settlements. The second venture In the deld
Of financial enterprise hair o century later was
made by backwoodsmen OF the Western States, Who
having long suffered from lack Of The circulating
medium, resorted TO any exceedingly simple and.
for the time being, elective method OF relieving tho
hgntness OF the pioneer money market.
The fiat or u small stock jobbing backwoods COM
munity--whether located on 'lhe dark and bloody
groundr OF Kentucky within the confines or
mountainous Pennsylvania, history sayeth not
made the skin Of the raceoon legal tender 1t was
not convenient currency certainly, but 1t was I'M
doubtedly more dimcult TO counterfeit than tho
modern greenbaek. Houses we're bought with 1t,
estates as large German prncipalties were sold
for it, prudent housewives boarded II, and misers
or the bankable BIN. Had IL not been for the fact
that the colonies Of New York and New England
ouarreled with the English settlements on their
northern border in 1890, and despatched an expeit
ton to rad on the Kanucks Of the PERIOD 1t Is
quite probable that the unfortunate coon family
would have had to supply the circulating medium
for heightened period in the history OF the Ameri-
can settlements; but fortunately for them and
their descendants, in that year OF our Lord the
troops of the warlike colonies returned from
Canada after the expedition IN mutnous
spirit. They demanded payment for their services.
Colo was scarce and the soldiers were clamorous.
The government WISHED. to- impose direct
tax on the colonsts put such measure required
time and delays were dangerous. Under the cir
cuustances brilliant country nnancer conceived
the idea OF issuing paper money! HIS name IS not
recorded which is matter Of regret, as he deserves
canonizaton az the father of the modern shlnplaster
sufficient quantity OF the new money being
printed IL was issued to the people, IL was the
first appearance Of paper money. law was passed
ordering the treasurer OF the colony to receive it in
payment for and to allow the holder Of II five
per cent per annum interest. II soon fell into dis
credit however ana circulated at one-third Of its
face value People were very dstrusfu OF 1t, not
because they lacked faith In the ability OF tho colony
TO redeem it, but because some OF the Leather
money! invented by his gracious Majesty James Ii.
of England haa found its way TO America, ana,
being yalueess lett an inheritance OF suspicion on
all money not gold, silver or "copper" But, neyerthe-
less, IL was sought after whenever the period ap-
preached the payment OF taxes, rs the interest OF
five per cent added to the principal and received
for public dues. II ultimately became the medium
OF exchange. and tended to establish a un form
currency throughout the colonies.
But there was growing feeling OF dissatisfaction
In the colonies in regard 10 this lrredeemable and
deprecated currency. Massachusetts,. In 174o,
nvailed Itself OF the opportunity Afforded by the
paymentby England Of the costs OF outfit and ex-
pense attending the expedition against Louisburg,
In l745, to reaecm the paper currency, which was
found to be an incubus. 1t was redeemed at one
eleventh OF It's face va.uc-a loss which fell wholly
on the people. Being measure OF public necessity,
however, no disturbance followed. The example Of
Massachusetts was speedily followed by other OF the
colonies
IN DIR. FRANXLIN's AUTOBIOGRAPHY
an ample account is gwen Of the origin and progress
OF paper currency in Pennsylvania. about this
time, 172G," gays the Doctor, 'tliere was cry
among the people for paper money! only
el50oo nelng extant the province, ana that soon
10 be sunk. The wealthy inhabitants opposed any
addition being against all paper currency, from the
apprehension That 1t would depreciate rs it had
done in New England, TO the Injury OF all creditors
We had discussed this point In our junto when
was on the side OF an addition, being per-
suaded that the first small sum. struck In
l723 had done muGa good by increasing the
trade, employment Of q Diiii.ber OF inhabitants IN
The province, s,ncc now saw an The old houses In
ma bled anu many new ones building; whereas
remembered wen when first walked about the
streets OF Philadelphia eating my roll | saw many
Di the houses N Walnut street between Second aud
Front streets with bills their doors ITO be let.n
and many LIKEWISE IN Chestnut street and other
streets which made me think the Inhabitants Of the
another 10.
ihc unn,y OF TINS currency became by time |
anu experience so evident that tho principles |
upon winch TWAS founded we're never
afterwards much disputed; so that IL grew TO
hiiyuye thousand pounds. snd In 1899 90 eighty
thousand pounds-iaoc, building and Inhabitants
oil tue While increasing, though / now think, there
are units beyond which the quantity may be hurt