, 1874-04-21


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EARLY AMERICAN CURRENCY.
The work OH " American Currency" by Prof..
Sumner, Of Yale College, which has Just boon
published, gives some curious facts in regard to
the Colonial attempts to "mako money" with
tho printing press. It was not until 1000 thnt
ahiuplasters woro issued. Boforo that time,
howovor, judlcious use Of bartor-currency
had oi1octually rid the country Of those banofui
metals, silver and gold. When d dobt could bo
paid in beaver -skina aud musket-bal1s (one Of
those paesod for farthing), and corn and
almost everything elso spocie was Of courso
loardod md kept out Of circulation. All y ro-
ducts wero alogaltendcr. In 1869, thc'' pine-
troe coinage" was established In Massachusetts.
Tho Inv forbade its expectation. But wampum
aud other things circulated too. Tho worse
currency drove out tho bottor, and tho silver
emission Of paper money. Tic fact has moral.
Tho aruly sont to Canada was to bo paid out of
the booty. 1t got none. To pay the soldiers,
$1,000 WAS issued. in notes Of from Is. to .E5,
receivable for taxoB. There was foeblo attompt
to rodcom these bills at once. but they wcro
disposed Of by tho aoldiery at one-third discount
Tho whole issue at this time WAS 100000. OF
this sum, .e10,00 WAS burned ut tho Treasury
i'll 1851. Future Secretaries Of the Treasury,
who "rotiro" greonbaclzs, will please no.
tico this otrectual safegu ard against re-
issue. In 1902, tho Gonoral Court Or
dored that tho bills should bo taken at
tho Treasury ut per cont adyanco over COLI,
and promised to rodoem thom within twclyo
months. Tho paper WIS at par for twonsy years
thereafter. at about this time, Connecticut
merchants adopted curious scalo Of prices.
They sold their waros for "pay," tspay ns
monoy" "money," aud "trustiug." 'pay"
was bnstor-currency at the legal rates. "pay 81
money" was bartor~currenoy at one.thirl dis
count "Money" was New England or Spanish
coin, with wampum for small change. ''Truat-
ing was credit. 4 knife worth Cd. in coin sold
for Sd. in "pay as money" for 12d in 'pay."
aud for something moro when credit wus given
There was war again in 1709, with tho usual
result OF moro paper. About 100000 was is-
suod. In It'll, Gl0.oo0 more woro put forth.
Tho most stringent laws wore passed to mako
this logal-tondor at par, but it deprcciatcd, as
q matter OF course. Tho time of redemption
was changed, from your to year. This unsettled
values still more. 4 banlk-eurroncy "founded
ou land was tho next experiment. It failed.
III 1715, Boston merchants potitioned for ''moro
money" Tho Assembly gayo them moro rags
instead. It issued 100000 Of bills "becauso
bills were scarce" by 1720, bills were scarce
again. So moro Of them wore sot at1oat. 1t
ia the old, old story. all over again. Imitation
on intlation.-then crash and bankruptcy.
yoar aftorwards In 1721, frosh lot OF E100, 600
waa thrown upon tho market. At the same tirno,
the buying aud selling Of silver was prohibited.
In 1726, England obliged tho Massachusetts Bay
Colony to redeem this last aum. Tho Colony ut
once issued EGO, 900 in new notcs. The stereo-
typed reason justified it," because bills wore
scarce" III 17S0 bank-notos founded on land"
were again tried. Tho ycar after, u new bank
issued bills redoomable In specie. Soon after III
Assembly issued 5000 in shiuplaaters to'pay
tho Governments running expenses, much III
We have boen issuing grecnbaoAs latoly,
Finally, when ai1 the paper WIS at heavy dis
counts. tho ransom Of Louieburg onabod Mas
saohusetts to redeem her promises to pay.
Tlere WIS opposition to this dood Of Justice. It
VAS said that trade would DO ruined. Trade was
ruined, but it was in Rhode Island and Now
Hampshire, which clung to their paper currency
anl saw their business absorbed by tho "allyer
Colony" Just before this assumption Of spccio
payments Q749-50), bodybuilding aud tishori on
had declined mud people wore knowing away"
Business revived at onco under the stimulus Of
spocio. The Colony grew moro prosperous
daily.
In 1712, South Carolina issued paper promises
to pay. War was tho cause. Tho bills foil
ono-third the first yoar, and D half tho scooud
mud then sank steadily lower. TAe story OF the
Continental currency IL threalbaso, but Prof.
Summon groups Bomo frosh facts around 1t.
When 1t was first proposed to Issue tho notos,
poletiah Webster argued In fayor OF taxation,
but tho Logau OF the Continental Congress-
asked, ln whito heat OF wrath, whether that
body would tux tho people when it could 60 to
the prluting-oitlco aud got cart-load Of .nouoy!
About 1880, tho bil!s coaBea to circulate. a bur-
bor's shop III Philadelphia WAS paper
cd With them. A dog coated with tar,
in which numbers Of notoa wsro atuck,
WAS paradoa through tho atroota. An
Aoou VI this ourreuoy waH fairly out of tho way,