Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-07-28
COLONIAL CURRENCY.
iTlis Law, TIL XIII MEVtEs, AND
M. uNMAKEs MONEY l.l, E Ks.
John Davis Discusses the I'fpsr Moncy,
Of PENNSYLVANIA Hnd Iiiaatratqa
la, his Posltloa ny tby Facts of Ills
fAsil tory, i,bs,s.... .s.i...

A correspondent Ia very NpxiopS tpa
| shall discuss the colonial currency o
Pennsylvania, "of which the peopl,
have heard 10 much and know 30 III,
tie Believing tia good thing to do
/ will indulge IN short discussion o
IT, IN. lH1.0
The paper money of Pennsylvania
was both success aud failure Il
succeeded az long as II possessed th,
quality OF legal tender, II failed whcr
the British government withdrew rror
II that quality Its use was compelled
by the absence OF coin which had beer
drawn away by the British trade Me-
talic money, being an exportab)c ar
tlcle, was alwaysa fugitive In those
colonial days 1t was usually absent
, when most needed, II could not bc
relied upon rs circulating medium,
nor could II even be trusted M basis
for paper money, Hence, having nc
coin, Pennsylvania adopted legal ten
der In l193 IL came 10 an end through
nm act OF the British Parliament, which
deprived 1t OF the quality OF legal ton
der. o
Being called before committee OF
Parliament, Dr. Franklin described
the Pennsylvania system us follows;
pennsylvania, before II made any
paper money, was totally stripped OF
It's gold and silver though they had
from time to time, like the neighbor-,
Ing colonies, agreed TO take gold and
silver coins at higher nominal values
in hopes OF drawing money into and
retaining II for the internal use OF the
province. During that weak practice
silver got up by degrees to ss. Cd. per
ounce long before paper mon
ey was made, The difficulties for want
OF cash were accordingly very great,
the chief part OF the trade being car
ried on by the extremely convenient
method OF barter, when, In l793, paper
money was first made there lin Penn
sylvania), which gave new life TO busi-
ness promoted greatly the settlement
of the new lands (by lending small
sums to new beginners, on easy inter-
est, to be paid by installments), where.
by the province has 80 greatly increas-
ed In inhabitants that the export from
thence thither to England is now
more than tenfold what II then was
y - y
ut seems hard, therefore, to draw
all their real money from them and
then refuse them the poor privilege of
using paper instead, The British bank
bills being payable In cash upon sight
by the drawer is, indeed, circum-
stance that cannot attend the colony
bills, for the reason just above men
TONED, their bullion being drawn from
them by the British trade; but the
legal tender being substituted in It's
place is rather greater advantage
TO the possessor, since he need not be
ut the trouble of going to n particular
bank or banker TO demand the mon
BY"
Governor Pownall, colonial governor
of Massachusetts, discussing the sub
iect In hand said: i
VI will venture to say that there
never was n wiser or better measure-
never one calculated TO serve the in
erests of an increasing country; that
here never was u measure more stead
ly persued or more faithfully cxecu-
ed for forty years together than the
oan office in Pennsylvania, founded
nd administered by the assembly of
hat province" @
Peter Cooper, OF New York, one OF
he most intelligent and successful
business men America ever produced,
iscussed the colonial money as fol
Dws: --''''''.- ---'-'---.
"These colonial notes being adopted
y all the colonies, led TO nm unex-
ected degree of prosperity, so great
hat when Franklin was brought be-
ore the Parliament OF Great Britain
nd questioned as to the cause OF the
'onderful prosperity growing up in
he colonies, he plainly Stated that the
luse was the convenience they found
| exchanging their various forms Of
Lbor one with another by the paper
loney which had been adopted; that
lis paper money was not only used In
ie payment Of taxes, but In addition
had been declared legal tender, 1t
,se two and three per cent above the !
lr Of gold and silver as everybody =
referred its use. One of its advan-
Iges was its security against theft, as
could be easily carried and hidden,
, account Of its having no bulk, as ,
! kinds Of specie must necessarily !
ave, After Franklin explained this .
} the British government as the real
fuse Of prosperity, they Immediately !
Isscd laws forbidding the payment Of :
.xes in that money. This produced !.