The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1883-12-08

dlums OF exchange.
In the interval between the calling ot
the first Congress and the ratification Of
the Constitution in some of the newly
formed States, absolute paper money was
issued by Congressional authority.
The paper currencies of the colonies
however, were not always money. There
were specie banks, loan banks and land
banks whose issues were professedly guar
anteed as their names imply, by specie
loans and lands. But, notwithstanding
their diverse forms, they were each and al
obnoxious to the British government. From
the founding of the first mint in Boston in
1862 to the issue of paper money by New
York in 1771 every effort the colonists
made to supply themselves with mediums
of exchange was frowned upon by the home
government. In 1858, for the second time,
Governor Andross compelled the Boston
Mint to be closed, and the instituting OF
it formed one of the principal charges
against Massachusetts for which the char
ter of that colony was revoked in 1851.
Summers american Currency" says:
In 1920 the Royal Instructions forbade the
Governor of that colony to sign any acts for
emitting bills, and in 174O the British Parlia-
ment declared the old Joint Companies Act
(passed after the South Sea Bubble in 1720)
to be of force in the colonies. This compell-
ed the banks to wind up.
Minot's "History of Massachusetts
says:
II ~ = ,-oo, 1-Ao o,.;.;,o+od tbo oft for ,.ao,
ulating and restraining bills of credit in the
colynies, by which no such money was allowed
except for the current expenses of the year,
and in case of invasion. But in no case was
it to be made legal tender for the payment
of debts, on pain of dismission from Office of
any provincial governor who might assent to
it, and perpetual disability of his again serv-
ing in any public employment
British financial tyranny, there is good
reason to believe, was one of the main
causes of the American Revolution Prof.
Sumner says;
The Land Bank (which was founded in 1880
was the most prominent factor in the politi-
cal movements of the next ten years, and even
later it turns up from time to time cause of
perplexity to the government and the suryiv-
ing stockholders.
After its overthrow by British machina-
tions and oppressive edicts, another Land
Bank was instituted, which met with a
similar treatment from the home govern
ment, for we are told
The Governor (of Massachusetts, made war
on this bank with all his energy, as unlawful
and pernicious, contrary to the act of Parlia-
ment and to his Instructions. Finding that some
civil and military officers were engaged in it,
he removed them. This called forth a protest
from Samuel Adams and John Choate as an
invasion of personal liberty. There can be
no doubt that the bitterness engendered by
this conflict was one cause of the revolution.
This view is confirmed by Horace Twells,
an eminent English fnancier of this CEN
tury, who says:
In an evil hour the British government
took away from America its representative
money; commanded that no more bills of
credit should be issued; that they should
cease to be alegal tender, and collected all the
taxes in hard silver. This was in 1773. This,
the real cause of the disaffection of the Amer
lean Colonies, is passed over by most histo-
rians.
Remembering the knowledge and ex-
perience the colonists had of the use of pa
per money, it may be asked, Why did they
not issue it instead of promises to pay
money to meet the expenses of the war of
the revolution The answer is obvious.
Congress had not the power so to do, at
that period in our history. 1t could not
even command it could only assert that,
at an underlined time, the Continental cur
rency would be redeemed in coin issued by
another nation. Nothing but the staunch-
est patriotism would have accepted and
honored it as a medium of exchange In
addition, at the time it was issued, the new
States, Just freed from the financial tyran-
nv of Britain, had used their liberty to es-
tablish banks Of issue, and the country was
flooded with their various paper mediums
of exchange, of all kinds, so that there was
really little room left for the currency is
sued by Congressional authority. In ad-
dition to that, the British government de-
scended to the meanness of stimulating the
forging of it in vast quantities, which in
the then undeveloped state of art and
science, was easily accomplished. Under
such circumstances, it is no wonder that
the currency to which the people not only
here, but in Europe, are largely indebted
for their present liberties, was, of necessity,
in the end repudiated