Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1877-06-21
Our Currency-Banks and Banking,
Past and Present.

The medium of exchange adopted
upon the landing of the Pilgrims on
Plymouth Rock, 1890, in their traffic
with the natives, consisted of beads
or wampum, made from the peri
Wrinkle and clam-shell. There was
neither restriction upon nor limitation
to its manufacture, and it was receiv-
ed as legal tender to the amount of
I'D Afterward it became the
prevailing currency among the pic.
neers, and affords the first example
we have Of the evil results arising
from initiation, though in avery primi-
tive degree The she'll substitute was
soon over. abundant, deprecated in
value, then worthless, and abolished
as a nuisance in 1850.
From beads the colonists took to
barter supply the deficiency; at one
time muskct balls were used for
change, at farthing apiece. These
were legal in any sums below 12d.
There were some features in the
barter currency of that day peculiar
ly characteristic of a much later
period When the common products
of the land were made legal tender,
no one would pay specie. This was
boarded to pay exports, which moth
ing but coin would satisfy, and the
lesser value applied to liquidate in
aebtedness; thus steadily and surely
impoVerishing the standard of circu-
lating medium. Or, if any one com
modify lawfully paid certain obliga-
ton to individual, State, or nation,
the poorest article of the kind was
selected. Many amusing incidents in
this connection arc related Of those
early times.
The urgent need of the new country
was capital-solid substantial money
for the legitimate transaction of bust
ness; and having but little of this, the
momentouS problem, even with Mr..
Winthrop, was whether, being unable
to have both, it were not better to do
without foreign luxuries and retain
the specie. This. view has its apph.
cation in many financial stress long
subsequent to the colonial day.
1t has been often reiterated, and it
appears incontrovertible, that the
losses occasioned by irredeemable
currency largely exceed the gains de-
rived from importation. The surest
protection to Industrial interests, to
the general veal Of the people, the
greatest good to all, is to keep a
proper amount of national capital in
coin circulation, and manufacture, or
learn to do without such articles as
are obtained only at the risk of Grip
ping the resources, the energies, the
progressive features of the country.
Massachusetts, in 1862, started y
mint at Boston, to make what is
known as "Pine Tree" coinage. The
metal was chiefly procured through
traffic with the buccaneers of the West
Indies, who at that early date carried
on a profitable trade with the colonies.
This coin was below the standard of
European money, the issue illegal and
though continued in operation thirty
years the coins were all dated 1862.
A mint was established in Mary
land in 1861, but nothing is known Of
its history. A bank was proposed in
Massachusetts in 1855, but this, also,
is obscure. In Hutchinson's History
of Massachusetts Bay, however, it is
recorded that this colony, in 1890, is
sued "paper notes" to defray the ex-
penses of an expedition against Cana
da. The issue at first was moderate,
and promptly redeemed upon MATURE
ty; but III 1904 the redemption was
postponed two years, then Indefinite
ly. Upon this, other isues were made
for the current expenditures of the
colony, and still others to loan to less
fortunate communities. When once
the scheme was in operation, and the
tone of the people in harmony with
the movement, the cost Of production
being light, it was deemed well
enough to make the amount sufficient
to cover all purposes. The ability to
pay coin for this currency never once
entered into the calculation, and the
result was in keeping with the cir
cumstances. Mr.. Hutchinson, in his
chronicle of that period, tells us,
'there were special hard times in
Massachusetts in 17l5." He further
asserts, "that of all those issues not
one dollar in one hundred was ever
redeemed"
This was the first experiment with
paper substitute for coin, and tho
this proved disastrous, the country
still smarting under the depression,
steps were Immediately taken to re-
peat the hazard.
Rhode Island, Connecticut, New
York, and New Jersey issued paper
money in 1909; Pennsylvania in 1928;
Maryland in l734,while Virginia used
tobacco warehouse receipts for cur
rency till 1865. North and South
Carolina also issued paper notes early
in their history.
OF all the issues at that time put in
circulation Massachusetts alone at
tempted to meet her obligation, and
she only at eleven 10 one.
The first Continental Congress met
in Philadelphia, September 5, 1874,
and deliberately proceeded TO do
what many a Congress has since done
Just what it should not. With no
PLAUSIBLE excuse, trade was thrown
away when it should have been re-
tanned. 1t was decided that after
December, 1874, nothing should be
imported to any part of the British
Empire, and from September, 1775,
nothing should be exported from the
same.
The short.sightedness of this legis-
lation was soon apparent. On the
eve Of a great war English goods
were needed for the army, and came
around from the Continent and the
West Indies, while tobacco and lum>
Der in exchange took a similar round
about course.
The Second Congress, May lo,l776,
made war but had DO power to tax or
borrow, and as the only available