The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1923-03-08

National Bank of Seattle.
The colony 81 Massachusetts IN
1890 In order 10 pay soldiers who
had returned from an unsuccessful
expedition against Canada. issued
the flint government paper 20 circu.
late Ra money IN this country. The
public treasury was empty and the
soldiers would not wait for tho col.
lection Of taxes 10 meet their de-
mandn
This currency ala not pass a. par
bocAufe u was not legal tender. ~
was not payable a. any particular
time ana was nouiuterc6t bearing
Later, In 1899. these bills were
made legal tender IN all payments
and receivable Tor taxes az per
cent better than silver and were
redcemablo In silver al the end Of
one year.
A. Horace White says IN his
Money ana Banking. yet this was
a fatal experiment. It's apparent
success Ha means Of posipOning
taxes led 10 disorders far worse
than the commodity currency Of the
earlier period II spread 90 the
other colonies Ike an epidemic.
Nearly an the Colonial governors
we're at variance with their lcRls.
laturcs concerning BILLS OF credit
Acting under Instructions Of the
lords Of trade. they repeatedly We,
tOcd tho papefmoney bills.
Then the legislatures refufed 10
provide for tho support Of the local
governments They stopped the hal'
aries 81 tho governors and allowed
the public buildings and barracks
to go TO decay. This source Of irri.
tation against the mother country
has been grossly neglected by his
toriana In general. but not By Mr
Felt. the historian OF Massachusetts,
currency. who assigns Il It's proper
place among tho causes which led 10
tho separation"
We might think that the people Of
that day did not realize the results
which were bound 20 come from tho
issuance Of these bills Of credit. were
Il not IA fact that there was violent
20 such means Of rails
Ing money even AZ that early date
by the Colonial merchants and
money lenders.
Thomas Paine wrote IN 1856
There are n set Of men who 40
about making purchases upon
credit. and buying estates that they
have not whrtrwilhni TO pay for.
and having done this their next
step f. 20 I'M tho newspapers with
paragraphs OF tho scarcity OF money
and the necessity Of paper ennis.
sion. then 60 have legal tender I'M
der the prctcnso Of supporting IS
credit. and when out. TO depreclnts
Il rs fast hs they can. get deal
OF Il for little price and cheat
their creditors. and this II the con.
else history Of paper money
schemes
Laws were passed In great variety
10 compel people 10 sell their prop
erty At tho same price for bills OF
credit rs for silver Such laws were
necessary or II would have been
Impossible to get anyone 20 hcccp,
The bills in exchange for things ~
value at anything like the same
price nH for silver.
The usunl course OF events where
bills Of credit were issued was ms
follows" Faiys white. "nl Emission:
% disappearance of specie. ra
counterfcttInF; 40 wearing on, Of
bills, 90 calling IN and replacing
worn and coupiorfci,cd Issues with
new ones: Gi extending the time for
old ones 20 run. especially those
which had been placed on loan: On
depreciation: 80 rcpudiation OF early
issues In part and tho emission OF
others called new tenor. Or. Doug.
lass says that Massachusetts, had
Rt ono time old tenor. middle tenor.
now tenor first. new tenor second
Rhode Island had an Indefinite mum.
Der OF tsnors"