Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1876-01-27
COLONIAL PAPER CURRENCY.

COIOnIH
bills in June, 1909. This colony did
not suffer so disastrously from the evil.
OF irredeemable paper money for the
reason that the amount issued prior to
the Revolution did not exceed 1876.
600. The colony wisely kept u, a
wholesome taxation, so that provision
was made for calling in the earlier is.
sues in one and two years. They were
made legal tender, except in cases Of
special contract, and were received in
payment of public dues at 5 per cent.
premium. The British Lords of Trade
in l74O protested against the legal ten
der feature Of these credit bills, re-
minding the colonists that it was con-
trary to an act of Parliament in the
sixth year of the reign Of Queen Anne.
The tender clauses were judiciously re-
pealed. The Connecticut currency,
however, sympathized with the depre-
ciation Of the bills Of the neighboripy
colonies, and sunk after the expedition
against Louisburg to one-fifth its nom-
inal value. DIR. Benjamin Trumbull
and other local historians have charac
terized this depreciating currency as a
public fraud, because of q constant tax on
the sober and Industrious, for which
they received no benefits; as a source of
oppression; Of public and private iuius-
tice, and especially injurious to the NOR.
ais of people.
New York began issuing colonial pa.
per money June 8, 1909, and increased
the volume TO S9l4,4O7. The pretext
for these issues was necessity deb
tors necessity, To meet the heavy costs
Of war and to supply the need Of a cir
culating medium. The bills were for
short Ieriod received at the treasury at
an advance of q per cent. from their
date Of issue, and were Cancelled when
paid in. They were to he accepted in
payments of debts as gold and silver.
Heavy taxes, including tax ON slaves,
were levied from year to year, to pro-
vide fund for the redemption of these
bills. In 1887 New York went into the
loan-bank business and printed bills to
be loaned for twelve years at 5 per cent.
per annum. Quarrels Of intense bitter
ness between Governor Clinton and the
Assembly over supply bills and the cre-
alton and disbursements Of paper mon
ey resulted, as usual, in the triumph of
the latter. The depreciation in this COL
ony never much exceeded one half, ow
ing to the general repayment of the
loans and the Judicious cancellation of
returned bills.
Rhode Island first engaged in the pa
per money manufacturing business in
August, l7l0. War debts and the scar.
city Of silver coin were the excuses for
entering upon system whose distract.
ing influence brought disaster for a
whole century upon the political, social,
and commercial interests Of the people.
In l7l5 bank of bills, in the language
OF the times, was printed aud loaned to
all borrowers willing to give 5 per cent.
interest and mortgage security for the
return Of the principal in ten years.
This was simply an invitation to every
spendthrift and TO all the inhabitants
to get in debt by mortgaging their pro-
perty, when the true policy was to get
out of debt and stay out. To encour-
age borrowing the interest on loans was
made payable in hemp aud fax.
Whenever funds were needed bv the
Treasury to meet current expenses the
printing presses were started, and the
required sum struck off. How easy
How simple No tax collector; no taxes.
In l542 the depreciation had reached
eleven pounds for one of good money
In 1855 the emissions were swelled to
924O, 600 in one year. and this in a col.
ony whose population was estimated for
the same year at $4,000. Memorials
from the MERCHANTS Of Newport, setting
forth the ruiIious tendencies of paper
bills, were unheeded. The orders of
the British Council forbiddiny such
emissions were disregarded. More mon-
ey was demanded by the multitude of
debtors who wanted to get rid Of the
obligations Of debts without paving
them. Excuses were never lacking for
increasing the currency. There were
French and Indian war debts 10 be paid.
forts, jails. and court houses to be built,
and, Of course, always q scarcity Of coin
after an inferior currency had driven it
out Of circulation. Political parties
were divided on the paper money ques-
tiou, but as a majority of the legisla-
tors. as well as voters, we're debtors, the
infiationists carried the DAY.
When Massachusetts, got rid Of her
rotten paper money, aud had returned
TO Q coin currency, the West India Trade
Of New England passed at once to Bcs.
ton. Before this it had been carried on