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

exclusively through Newport. wha
more striking historical illustration Q
the effects Of irredeemable paper upo
tthe commerce Of a colony or country
In 1894 the earlier issues of old teno
bills were received in payment OF take
at the rate of 23s for one of lawful mon
ey. About the same time the court
decided that one Spanish milled dolla
was equivalent to seven pounds of olt
tenor bills of credit. In other words
the old Rhode Island cu7uy va.
worth lessthsn 6ve eests on the dollar
and soon ceased to be useful except a.
cigar fighters. The total aggregate is
sues to the date of independence wa,
81, 1,l94,570.
The colony of New Jersey passet
through a paper money experience quit.
similar TO that of New York. Their,
was this difference, however, that ir
New Jersey executions for debt were
stayed until the Assembly could vote q
new issue of paper money, which
the creditor was compelled to accept il
pay ment of bis dues. The bills wers
made q tender under harsh penalties
and for altering or counterfeiting them
the punishment was death. Though
printed for the most part by DR.. Frank
lin, they were 80 coarsely and clumsily
executed that the counterfeits, of which
there was an immense food, could not
be distinguished from the original bills.
The total amount emitted by the colo
ny was 990O,OOO. The amount was
kept down because Of the persistent op.
position Of the colonial Governors and
the British Government to all loan
banks aud paper legal tenders, on the
substantial ground that they were
alike ruinous to the interests of British
merchants and destructive TO the colo.
NAL trade.
In 1913 the colony of North Carroll
na, being liz debt on account Of the In.
dian wars of the year before, concluded
to make its evidences of debt circula.
ting medium. The colony's bills of cred
it, as well as those of South Carolina,
then in circulation, were made a legal
tender for the discharge of all debts
PAYABLE in rated commodities. There
was no provision made by special tax
or sinking fund for the redemption Of
these promises. No fund for the pay.
ment nor time for payment was provided
or specified in the note for Immediately
issues. The old emissions
were redee med With new emissions and
promises TO pay. The latter were to be
by all whom the colony owed
at par, but not from those who owed
The colony. If member of the Lower
House made motion derogatory to the
credit of the new bills, he forfeited his
right to ait in the assembly.
Counterfeiting was punished with
whipping, pillory, the cutting off of
ears, branding with hot irons, and was
declared felony. without benefit Of cler-
gv. The inevitable loan bank system
was adopted. which, Of course, robbed
the currency of the essential function
or Office of all good money to measure
values accurately. Notwithstanding the
immense issues of paper. there was such
u scarcity Of money that warehouses
were built in each county in which, to
store pitch, tar, turpentine, rice and
other articles received for taxes in kind.
La l747 the paper in circulation, called
old proclamation currency, passed at
I he rate for Z. for /, and was exchanged
by the authorities on these terms for
the new issues. A poll-tax and a tax
on wines and spirituous liquors wasim.
posed to provide fund for sinking the
accumulating parer. Nevertheless it
deprecated to one-tentb, and subse-
luently to ne-fourteenth its face value.
The colonial period, during which North
Carolina issued $4,000 of bills Of
credit. was period of perpetual fiuctu-
alton in prices and exchange, through
which commerce was corrupted i'm its
sources and confusion in expressions of
value made universal
Pennsylvania began the emission of
colonial currency in l723, in the face of
opposition on the part of
the most intelligent classes. The ex.
periments with paper money in other
colonies had resulted disastrouslv. But
borrowers abounied, and they were
gwen the privilege of going in debt on
Agreeing to pay back oue-eighth of the
sum borrowed. with interest, each wear.
These loaned bills Of credit were made
/ lawful tender, under severe penalties
Ind forfeitures, and were to be received
Is coin in all payments.
Although counterfeiting this paper
vas punished with loss of ears and be-
ng sold into slavery. counterfeit bills
exceeding the amount Of notes in cir.
were printed in Ireland and i'm.
ported into the colony. The larger
,olouial issues were made in eontraven.
ion Of the instructions of the Lords Of
Trade, through the influence, chiefly. of
who enjoyed for thirty years
The profits os printing these parer pro.
misses. During the five years succeed.
ing Braddoek's defeat the emissions
reached almost half a million rounds.
These excessive issues were Intellectual.
~ resisted by the royal Goveruors-
These Of l77S bore the appropriate de-
vice Of the Walnut street Jail. which
they were printed TO erect. This iail,
when the British held possession of
Philadelphia, became kind of Libby
prison. in which captured Americans
were tortured. Robert Morris died
here while incarcerated for debt after
the loss Of credit and fortune. The
aggregate amount Of PENNSYLVANIA CO.
lonial bills was 81, 500, 600, q depr.cia.
tion OF more than one-half was preven-
ted by continued taxes and excise duties
for their redemption and BY judicious
Maryland added ESQ. 600 10 the "a.
Ter currency Of the colonies. The value