New-York tribune., 1918-04-21

"a
though it facilitated commerce it did
but little toward arresting the surrep-
titious acquisition and disposal of gold
and silver by the exploiters of the New
World. Smuggling, clipping, counter
feiting, buccaneering, robbery, piracy,
the violation of sepulchre, every Of
fence in the criminal calendar, was
committed for possession of the COW
eted metals and their unlawful convey
ance to other mints than those of either
Spain or it's viceroyalty. Circulating
money became so scarce within bow
shot of the mint of Mexico that for
small sums the old Aztec copper and
cacao moneys were again employees;
it was so scarce in the important city of
Santo Domingo that leather notes were
resorted to; while in less commercial
centres country produce was obliged to
do duty for coins. An entire century
has to be skipped before another set of
money vicissitudes intrudes itself upon
the attention.
Cortes plundered Mexico in 1924;
the Plymouth Brethren established
their settlement in Massachusetts,
about 1924; and with them begins a
new history of money in America. Be-
fore that time and for many years
afterward the medium of exchange in
the north was produce; but money
which cannot be counted is barbarous
medium of exchange and lends but linn
order to count with precision and
equity the counters must be alike, and
in order to be alike their fabrication
must be controlled by law. When So
ciety has reached this phase of evolu-
tion it may without the least hesita-
tion safely throw. overheard all that it
previously knew about money; for
now money has become legal institu-
ton and the only kind of knowledge
concerning it worthy Of acquisition is
knowledge of the laws and their
bearing. To guard against war or in
surrection the counters should be
valuable for other purposes than coins;
valuable in foreign commerce, and
/ easily carried or hidden.
England Followed
Spain's Example
Following the examp pie of Spain, the
mint laws of England provided that all
of its coins should be struck in the
mother country. This provision rem
dered coins in the colonies so scarce
that country pay" had to be employed
as medium of exchange. When the
Spanlsh-American buccaneers sent their
metal for sale in New England, Boston
during the commonwealth Of Cromwell
1862, set up a Colonial mint, which the
British authorities, reign of William
and Mary, promptly closed. In 1862
Maryland started mint in Baltimore
! The royal authorities again interfered
but the demand for coins was so We
hement and threatening that for long
time after these suppressions surrep-
tltleus issues of Colonial coins were
/ connived at; when trade again flour
lshed. At length the royal govern
ment put its foot down with violence
the Pine Tree coins were melted, trade
was again paralyzed, and the era OF
paper money began. In South Caro-
lima private land bank was started
about 1880, another in Massachusetts,
in 1885. Then the Colonial government
tried its own hand at note issues based
on landed security, an experiment
often tried and always followed by
failure and disaster. These, too, were
forbidden by Parliament; when q
contest arose on the vital subject of
money which only ended (for a time)
with the Revolution.
About 1740 so much Spanish-Amer-
lean silver bullion found its way to the
North that "Silver Bank" was or
ganized in the Bay State. In 1742 the
royal government put it down. The
bullion must go to London and there
submit to the exactions and delay Of
the royal mint or remain unmoneved.
To issue notes upon bullion was an
evasion of the mint laws.
Restrain
Colonists
Denied the privilege of issuing notes
upon the security either of land or
bullion, the colonists, driven to the
wall, began to issue notes upon credit
and such was the urgent demand for
some kind of counters that for a
lengthy period, both before and after
the Revolution, q considerable propor-
tlon OF the paper circulation had but
little other basis than such as the
lssuers chose to give it by restricting
the issues within prudent bounds and
promptly cashing them upon demand.
10 the honor of the banking fraternity
this was the almost universal practice.
and it proved of great assistance both
to trade and the progress of the War
of Independence.
But among the many banks in the
states and before bank laws and bank