16

EARLY PAPER CURRENCY.

liquors retailed in the colony. It was to continue
in force from 1714 to 1734, and the money arising
thereby, appropriated to discharge the public debts,
as subsequently directed. Nearly the whole ses-
sion of 1714, was consumed in discussing the sub-
ject. Governor Hunter informed the assembly,
that he would pass no law until provision was
made for the relief and support of government.
The assembly finally yielded, and passed an act¹
"for paying and discharging the several debts and
sums of money claimed as debts of this colony to
the several persons therein named, and to make
and enforce the currency of bills of credit, to the
value of £27,680 for that purpose; also to make
void all claims and demands made, or pretended to
be due from this colony, before the first of June,
1714, and to prevent this colony from being in debt
for the future." The several sums appropriated,
were to be paid in bills of credit, the claimants to
accept them in full satisfaction of what was respect-
ively due to, or claimed by them. The bills were
to be accepted in all payments of debts, as gold or
silver, thereby constituting them a legal tender.
The loss of such debt, and a perpetual bar from
its recovery, was the penalty for refusing such
payment. Any person who should offer to sell any
kind of property, and refuse to sell the same unless

¹ Sept. 4, 1714, known as the "1st Long Bill."

EARLY PAPER CURRENCY.

payment be made in coin, was fined from 40s. to
£50, and costs, according to the value of the arti-
cle offered. The bills were not issued before this
act, as well as the act laying the excise, were con-
firmed by her majesty, which was accomplished in
June, 1717.

The statute excluded all who were not expressly
named therein, from recovering any claim for debts
due by the colony, before the 1st of June, 1714, and
objections were justly urged against its approval.
An explanatory act was therefore passed in 1715,
which provided that nothing in the said act, which
had excluded *all future demands* whatsoever, should
be construed to hinder, bar, or exclude any person
having any just claim or demand, from pursuing
and obtaining relief.

For the purpose of repairing the fortifications,
and for other necessities of government, an act was
passed on the 5th of July, 1715, levying duties on
certain articles, authorizing the emission of bills
of credit to the value of 15,000 ounces of plate,
equal to about £6,000, to be current for five years,¹
and to be canceled by the treasurer retaining annu-
ally, in the first instance 3,000 oz. of plate from the
revenue arising from taxes. It was enforced with-
out the royal approval. The lords of trade refused
to submit it to the king, because it seemed repugnant

¹ Afterwards extended to nine years.

18

EARLY PAPER CURRENCY.

to the act of parliament, settling the rates of foreign
coin in the plantations. By the latter act, pieces of
eight were not to pass for more than 6s., whereas
by the New York enactment an ounce of plate was
valued at 8s. Should the royal approval, said they,
be given, the other governments on the continent
would immediately do the same thing, and the in-
tent of the act of parliament would be wholly
evaded. To which objection the governor replied
that the bill was framed after the same manner as
to the value of coin, with that for the payment of
the public debts, which his majesty, by means of
their lordships' recommendation, had approved:
that the matter could in no way affect the neighbor-
ing colonies, because they had never yet complied
with the proclamation. The bills having become
widely dispersed before the objections of the lords
of trade were communicated, and on account of
the bad results which would ensue both to the credit
of the colony and to commerce, from a disallowance,
it was permitted to lie by, until the expiration of
the time fixed for the currency of the bills issued
under its authority.

Under the provisions of the law passed in 1715,
commissioners had been appointed to adjust and
state the several debts still due by the colony. They
now laid their account before the assembly. It
having been resolved to discharge the whole and to
raise such sums as would be necessary for this and

EARLY PAPER CURRENCY.

other purposes, a law was passed¹ raising and putting into the hands of the treasurer several quantities of plate, and making bills of credit to the value of 41,517 oz., equal to £16,607; and for sinking them a duty of 1¼ oz. of plate was laid on every ton of wine, and 2½ grs. on every gallon of rum, brandy, and other distilled liquors imported for 17 years.

A vigorous remonstrance was made against the passage of this act, by merchant-traders and others, for the most part non-residents of the province, partly from opposition to the excise, and partly from the more general encouragement to trade to the prejudice of the few who had so long monopolized it. An agent was employed to procure, if possible, its disallowance. Gov. Hunter urged his personal protest against their objections to the bill, which he characterized as the most unexceptionable that was ever passed. The lords of trade referred the remonstrance to the lords justices, who reviewing the action of the legislature, and the necessities existing for the currency, were unanimously of the opinion that the act should be confirmed; at the same time recommending that the governor be enjoined not to give his assent to any other bill of this nature, and to transmit semi-annually, accounts of the produce of the funds appropriated for sinking the bills of

¹Dec. 23, 1717. Known as the "2d Long Bill."

20

EARLY PAPER CURRENCY.

credit, and the amount of the bills accordingly sunk.

Under the operations of this law, the currency
being based on so solid a fund as that of the excise,
trade and navigation were favorably affected. The
bills of New York were twenty-five to thirty
per cent better in New England than their own,
being equal to silver, and in some of the neighbor-
ing provinces, fifty per cent better.

The administration of Governor Burnet began
on the 17th of September, 1720. A supply for five
years was granted him, and a law passed¹ directing
to be printed forthwith, bills of credit to the value
of 5,000 oz. of plate (equal to £2,000). It subse-
quently appearing that the revenue was insuffi-
cient for the large amount of these, and other bills
required annually to be canceled, owing partly to
a deficiency in the duties, their currency was con-
tinued by later enactments, to Sept. 1, 1733, and
in the meantime increased taxes were levied.

In 1723 and 1724,² acts were passed “for raising
and levying 5,350 oz. of plate (about £2,140), and
for striking bills of credit to that value;” also, “for
raising and levying the sum of £6,630,” mainly for
the payment of government charges, the greater
part to supply the deficiency in the revenue, which

¹ Nov. 19, 1720.

²July 6, and July 24.

EARLY PAPER CURRENCY.

arose from the arrears of fees due to the auditor
general; the balance, for promoting a trade with
the Indians, which was encouraged by keeping up
a constant supply of traders at the public expense.¹
The currency of these bills was restricted to three
years.

The trade of the colony at this time was chiefly
with Great Britain and the British plantations in
the West Indies, although it extended to Madeira,
Curacao, Surinam and the French Islands. That to
the West Indies was wholly to the advantage of
New York, while that to Madeira was to our loss,
the province consuming more wine from thence
than could be purchased with its commodities. The
money imported from the West Indies was not
sufficient however to preserve a specie currency,
a large amount being necessary to balance the ex-
change with Great Britain. It seldom remained
here long, so that the currency consisted wholly of
paper bills and a few Lyon dollars.² The value of
the former was equal in New York to coin in Lon-
don, an ounce of Spanish pieces-of-eight being
worth but sixpence more than a paper bill of eight
shillings, and an ounce of Spanish silver in London
being generally worth three or four pence sterling
more than the coin.

Many of the bills in circulation, and particularly

¹ *Col. Docs.*, v. 701.

² *Col. Docs.*, v, 686.

22

EARLY PAPER CURRENCY.

those of the smaller denomination became in time
so defaced and torn as to be illegible and almost
worthless. On four separate occasions¹ therefore,
new issues amounting to £19,000 were made and
lodged in the state treasury to be exchanged for
bills of this description. The preamble of the act
of 1726 cites, that the service of signing these re-
issues was to be *gratuitous*.² These bills are distin-
guished from the others by an oval blank at the
top, in which the date of the original bill is writ-
ten.

For the space of ten years (1724 to 1734) no new
bills of credit were created excepting those last
described. In the spring of 1734 the governor
recommended several measures for putting the
colony in a better state of defence. The position
of affairs in Europe indicated a rupture between
England and France. With a view to these contin-
gencies he urged the erection of proper fortifications
on the frontiers, and in the harbor of New York.

His suggestions met the approval of the legis-
lature, and after a long preamble citing the various
causes which had heretofore called for the issue of
paper money, and assuring the public that the
credit of the colony was still unimpaired, that the

¹July 24, 1724, £3,000; Nov. 11, 1727, £3,000; Oct. 17, 1730,
£3,000; Oct. 25, 1739, £10,000.

²An allowance of £8 was usually made for numbering and
signing the bills.

EARLY PAPER CURRENCY.

campaign in Canada could not have been carried
on without the help of a paper credit, and that it
would be impracticable to fortify the colony unless
the same expedient was made use of, it was enacted¹
that bills of credit to the value of £12,000 should
be printed and lodged in the treasury.

This measure much gratified his excellency who
hoped by the patronage it carried, to weaken the
opposition which was then existing. The standing
instruction from the king required however, as has
been already stated, a clause in every bill, suspend-
ing its operations until his majesty's approval could
be known. In order that none of the governor's
aims should be thwarted, his friends in the council
induced the house to appoint a committee to meet
them and prepare an address requesting him on
account of urgent necessity to pass the bill. It
was immediately prepared, and on the next day
presented and passed, but not without opposition.

The bills issued by this act, were to be current
for twenty-two years, and to be canceled by a duty
on tonnage or goods, and a tax on slaves.

Trade had for some time been on the decline.
Merchants having the means, chose rather to make
loans at eight per cent, which was considered an
excessive rate, than to engage in commerce. Be-
sides, imports were considerably taxed, being charg-
ed with almost the whole support of government.

¹ Nov. 28, 1734.

24

EARLY PAPER CURRENCY.

The merchants suggested a tax on lands, but the members from the country being in the majority, prevented the adoption of such a plan. There was a disposition to increase the currency by a new emission of paper money, but the great poverty of the province and its inability to bear further taxation was given as the excuse. The opposition was made in reality by the moneyed interest, for it was generally understood that it was postponed to create a *loan* at a lower rate of interest than money commanded.¹

The spring session of 1737 found the province involved largely in debt which had arisen from an insufficiency of former revenues. Amounts were due the late governor, the chief justices and other officers, for salaries, to the amount of about £9,000. The lieut. governor, who was then acting, urged the immediate attention of the house to the matter, intimating that unless aid was provided, the people would have an opportunity of electing new representatives. After waiting about a month for their favorable action and no relief tendered, he summoned them to his council chamber, and in a short speech dissolved them.

The new assembly had a spring session of only a few days. At its reopening in the fall, the lieut.

¹The present legal rate of interest (7 per cent) was established by law in 1738. It was proposed in the assembly, to make it 6 per cent, but the council altered it to 7.

EARLY PAPER CURRENCY.

governor again commended an honorable revenue for the support of the government. This session, which was a long one, resulted in the passage on its last day,¹ of an act emitting bills of credit to the amount of £48,350, which was a consequence unanswerable to the late election. Still, the assembly wishing to place itself as not countenancing prodigality, assured his excellency that he was not to expect that they either would raise sums unfit to be raised, or put what they should raise in the power of the governor to misapply if they could prevent it; nor would they make up any other deficiency than they should conceive fit and just to be paid, or continue what support or revenue they should raise for any longer time than *one year*. Much to the annoyance of the governor, they did not omit to act up to their determination, and the system thus inaugurated was continued by subsequent assemblies, although every argument was employed to induce a return to the former custom of granting supplies for five years.

This law was different from any of the preceding in several important particulars. As it contemplated an increase of the circulating medium, which had become quite reduced,² the currency of the neighboring colonies having become the chief medium of

¹ Dec. 16, 1737. The act was known as the "Loan Bill."

² Small change was so scarce that coppers were imported from England as a profitable speculation.—Col. Docs., vi, 117.

26

EARLY PAPER CURRENCY.

trade, the sum of £40,000 was reserved as a *loan*, to be distributed among the several counties in the following proportions:

<table><tr><td>New York, ...... £ 0,000</td><td>Kings, ...... £2,400</td></tr><tr><td>Suffolk, ......... 3,000</td><td>Richmond, ... 1,600</td></tr><tr><td>Dutchess, ......... 2,000</td><td>Orange, ...... 2,000</td></tr><tr><td>Albany, ......... 5,000</td><td>Ulster, ...... 4,000</td></tr><tr><td>Queens, ......... 6,000</td><td>Westchester, .. 4,000</td></tr></table>

the interest of which was annually applied to the support of government. The office of "loan commissioner" was created, and the commissioners were required to loan the amounts thus apportioned on the security of mortgage on real estate, at an annual interest of five per cent, for the term of twelve years, in sums not to exceed £100, nor less than £25. They were also authorized to loan sums for one year, on the security of good plate at six shillings per ounce. At the expiration of the time allowed for the circulation of these bills, they were to be returned to the treasurer, and canceled. The sum of £8,350, appropriated for the payment of government debts, was to be sunk in part by certain taxes due from several counties, and the balance from interest accruing on the £40,000 loan.¹

The currency of the bills emitted in 1714 and 1717, amounting to £44,287 was now soon about to expire.

¹ The bills of 1734 of the denomination of 10 and 5 shillings, and of 1737 of the denomination of 40 shillings, were counterfeited in Ireland.

EARLY PAPER CURRENCY.

About one half of the amount was still in circulation. Gov. Clark, well aware that the assembly would attempt to extend the term, as well as the excise act, for a sufficient number of years to allow of the extinction of the bills, endeavored to force the house to abrogate the system of yearly supplies for the support of government, as well as the special application of the funds. He perceived the necessity the assembly would be put to, and repeatedly assured the lords of trade that he would on no consideration yield until he had "brought them to their senses." He intimated to the legislature, therefore, that he would pass no bill allowing such an extension, unless a supply for at least five years was granted; whereupon the house resolved not to pass even the *annual* supply bill, without assurances that the paper money of the dates above mentioned, and the excise bills, should be continued for some years. Clauses were attached to the supply bill to this effect, and a committee appointed to inform the governor of their action. The next day he summoned the assembly, and reviewing their action, informed them that they had taken such "presumptuous, daring, and unprecedented steps," that he could not look upon them without astonishment, nor with honor suffer them to sit any longer.

Writs for a new election were issued returnable on the 27th of March 1739. Scarcely a week elapsed from the opening of the session before the bill

28

EARLY PAPER CURRENCY.

which had occasioned the late rupture was intro-
duced, considered soon after, and passed. Appre-
hending that it might not receive the governor's
approval, the assembly passed a resolution to sup-
port the credit of the paper emissions of the colony,
and especially those of 1714 and 1717, declaring at
the same time, that they did not doubt but that future
assemblies would do the same. The lieut. gov-
ernor, highly indignant, at once prorogued this
body also with the following speech:

"Gentlemen: — I come to put an end to this
session, and to give you a short recess. I was
in hopes, and I believe every reasonable man ex-
pected that at this juncture you would seriously
have laid to heart the true interests of your coun-
try by showing your duty and loyalty to his majes-
ty in supporting his government in an honorable
manner."

The prorogation was for one week. The day
following their reassembling, the bill entitled "An
act further to continue the duty of excise and the
currency of the bills of credit emitted thereon," was
read a second time (having been introduced and
read on the previous day) and committed to a com-
mittee with instructions to add clauses for the
emission of new bills of credit to be exchanged
for those which had become torn and defaced. It
went rapidly through the two houses, and on the

EARLY PAPER CURRENCY.

25th of October, 1739,¹ received the lieut. governor's *assent*, with this brief message:—"I am come to give my assent to the bills that are ready for it, as the highest instance I can give of my care for the credit and welfare of the colony, and the confidence I have in your honor."

The reverse in the governor's determination was induced by several circumstances. He was convinced that the country was quite unanimous in approving the course of the assembly, and that a new election would only result, as it had already, in the return of men not otherwise minded than their predecessors. Again, there were appearances of a rupture between England, France and Spain, and he wished to avail himself of the assembly's present sitting, to place the province in a proper state of defence; and finally, because the assembly had become still more resolute in their intentions, from a recent example in the province of New Jersey, where the governor had given his consent to a revenue bill whereby the money was all *specially* applied.² To these reasons should be added, personal necessities, the usual supplies having been so long

¹ The bills emitted by this act have been already alluded to—see p. 22.

² In former acts no applications had been made of the funds, except for the salaries of treasurer and members of assembly:—the remainder being generally appropriated "for the support of his majesty's government."

30

EARLY PAPER CURRENCY.

withheld that the governor had even sold some of
his estates to enable him to support the govern-
ment.¹ He apologized to the lords of trade for
his unexpected action, on the ground of the prece-
dent set in New Jersey, but asked their favorable
allowance of the bills on account of the feeling ex-
isting in the province, assuring them that he had
thereby secured a greater state of quiet than had
been known for forty years before.

On the representations of London, Liverpool and
Bristol merchants, in June, 1739,² a series of resolu-
tions were introduced in parliament, praying his
majesty that an account might be prepared of the
rate at which gold and silver coins were taken and
paid in any of the British colonies in America; also
of the amount of paper bills issued in any of said
colonies since the year 1700, the provisions made
for sinking them, and the amount canceled: to
which resolutions, the commissioners of trade and
plantations responded,³ laying before parliament
returns quite full, which had been received in an-
swer to inquiries, from eleven of the colonies.

The proceedings excited the attention of most of
the provinces, and their agents in London were in-
structed to petition the house of commons for a

¹ *Col. Docs.*, VI, 160.

² *House of Common's Journals*.

³ March 28, 1740.

EARLY PAPER CURRENCY.

hearing in the matters referred to, and to use their
best endeavors to procure the postponement of any
unfavorable bill. The subject was temporarily dis-
posed of by declaring that the instructions of his ma-
jesty, and the laws of parliament, regarding the rates
of foreign coins in the plantations had not been
observed. The instruction was renewed not to allow
any bill to pass, whereby bills of credit might be
issued in lieu of money, without a clause inserted
declaring that the act should not take effect until
approved by the king.

It has been already noticed that these instructions
were not strictly enforced in the colony of New York,
and the same was probably true in respect to other
colonies; accordingly in 1744 the complaint was
renewed that large emissions of bills of credit had
been made, notwithstanding the "instructions,"
and that more were intended. Whereupon leave
was granted to bring in a bill to prevent the issuing
of paper bills of credit in the British colonies and
plantations in America, to be legal tenders in pay-
ments of money, which bill having had its first
reading was indefinitely postponed.

No public measures were taken in the general
assembly of New York to controvert these proceed-
ings in parliament, but her interests were neverthe-
less well cared for. It had been rumored in the
assembly before the conclusion of the fall session of
1745, that such a measure was before the house of

32

EARLY PAPER CURRENCY.

commons. The credit of our bills was quite unimpaired and it was not conjectured that any objections could be urged against them in parliament. No copy of the bill under consideration had been seen here, and it was not until after the adjournment when one was borrowed from a neighboring colony, that the last clauses which were especially offensive, were fully comprehended. Indignation was at once aroused in every mind, for to use the words of the committee, "If all the parts of the legislature in every colony and plantation should be obliged and enjoyned (as by the said clauses are directed) to pay strict obedience to such orders and instructions as should from time to time be transmitted to them or any of them by his majesty or his successors, or by or under his or their authority, it would establish such an absolute power in the crown, in all the British plantations, as would be inconsistent with the liberties and privileges inherent in a Englishman whilst he is in a British dominion."

Without delay a meeting of several members of the council and merchants resident in New York was called, and it was determined not to allow such measures to go through parliament without at least a protest. Funds were advanced to employ a solicitor and counsel in London to oppose the bill before the committee of the house of commons. The general assembly at its next session fully recognized these proceedings, officially acknowledging

EARLY PAPER CURRENCY.

the services of the agents, and refunded the amounts advanced for their services.

To defray the expense of carrying on the war against the French and Indians, in conjunction with the Eastern colonies, a law was passed in 1746 (May 3) to raise a supply of £13,000 by a tax on estates real and personal, and to emit bills of credit for the like sum. The amount was to be canceled in three years by an annual tax, in the proportion indicated in the following table:

<table><tr><td>New York,.....</td><td>£1,444</td><td>8s.</td><td>11½d.</td></tr><tr><td>Albany,........</td><td>622</td><td>3s.</td><td>9½d.</td></tr><tr><td>Kings,...........</td><td>254</td><td>18s.</td><td>0½d.</td></tr><tr><td>Queens,...........</td><td>487</td><td>9s.</td><td>5½d.</td></tr><tr><td>Suffolk...........</td><td>433</td><td>6s.</td><td>8d.</td></tr><tr><td>Richmond,.......</td><td>131</td><td>6s.</td><td>3½d.</td></tr><tr><td>Westchester,...</td><td>240</td><td>14s.</td><td>8½d.</td></tr><tr><td>Ulster,...........</td><td>393</td><td>18s.</td><td>9½d.</td></tr><tr><td>Orange,...........</td><td>144</td><td>8s.</td><td>10½d.</td></tr><tr><td>Dutchess,........</td><td>180</td><td>11s.</td><td>11½d.</td></tr></table>

A new issue was soon after made, and for the same purpose. The colony's funds had been anticipated and exhausted, and a heavy tax remained unpaid. To use the language of the assembly, "it was constrained, but with the greatest regret," to make a further issue at this time.

A scheme for the conquest of Canada was again brought forward. Orders had been sent over by the British government directing the colonies to raise

5

34

EARLY PAPER CURRENCY.

as many volunteers as the time would permit, to join
the regular forces from England. The governor
recommended that the most ample provision should
be made and in the most speedy manner. The as-
sembly perceiving that the movement was popular
with the people, seconded most enthusiastically the
demand for men and means. "Willing rather to
exceed than to fall short in supplies on this important
occasion" they promptly enacted,¹ that the sum of
£40,000 should be raised by an annual tax of £5,000
on real and personal estate, and that to answer the
immediate payment of the sums required, bills of
credit to the full amount should be issued. This
amount proving insufficient, the following year,²
another act was passed, creating £28,000 to be paid
by a yearly tax of £3,500.³

Circumstances growing out of the control and dis-
bursement of these funds, occasioned controversies
to which in point of bitterness, modern political war-
fare affords no parallel. The assembly assumed the
right of judging of the necessities of the colony, and
moreover took advantage of the demands and actual
necessities of the government to secure for their own
friends positions of power and influence. Governor

¹ July 15, 1746.

² Nov. 25, 1747.

³ Bounties were raised for volunteers, and the exportation of provisions suspended. The neighboring Indians also were incited to aid in the enterprise.

EARLY PAPER CURRENCY.

Clinton, anxious to carry out the wishes of his gov-
ernment, was compelled to make concessions, and
explanations of the manner in which funds and pro-
visions previously granted had been applied. The
bill was passed, but the distribution of the means for
carrying on the expedition was intrusted to commis-
sioners.

The governor, on the advice of the council,
assented to the act notwithstanding the opposing
"instructions," because the extraordinary occasion
seemed to require it, and then dissolved the general
assembly. In his letter to the lords of trade of this
date, he recounts his grievances, and deprecates the
growing power of the assembly, and suggests as a
remedy the repeal of the acts issuing bills of credit
and reissuing these bills under such conditions as his
majesty should think proper.

This disagreement between the governor and
general assembly continued for several years. The
former attempted a restoration of the appropriation
of supplies for the government for five years as in
the times of Hunter, Burnet, &c., which was success-
fully resisted by the latter, as were efforts to rein-
vest the governor with certain privileges now claimed
by the assembly. On a subsequent occasion the
treasurer refused to furnish the governor with a
statement of the accounts of the colony or of the
bills of credit, in order to enable him to respond to
a demand from the crown.

36

EARLY PAPER CURRENCY.

Between the years 1748 and 1752 there was peace
between France and England. The long contests
for possessions in America had resulted partially
favorable to the latter. Vast amounts of money
had been expended by the colonies for the honor
of the crown. New York alone had contributed up
to this time more than £81,000 without demand-
ing or receiving any reimbursement,¹ as had
been the case in some of the other colonies. The
amount which she had issued since the com-
mencement of the bills of credit system, although
quite large, had not yet brought about the dis-
astrous consequences which had befallen some of
the neighboring provinces where proper precau-
tions for canceling had not been taken. The
emissions and reemissions in Massachusetts alone
from 1702 to 1740 amounted to £1,442,500, and
at the latter date £230,000 were still outstanding.
Its depreciation was alarming. In 1700 the colonial
pound was worth $2.90 of Massachusetts money;
in 1727, $1.48; in 1734, 91 cents; in 1738, 78 cents,
was finally reduced to ⅓ of a pound sterling.² In
respect to the colonies in general, the following
table exhibits the rate of exchange for £100 sterling
at two different periods.

¹Two small grants were subsequently made by the British parliament.

² *Essex Inst. Hist. Coll.* 1, 128.

EARLY PAPER CURRENCY.

37

<table><thead><tr><th></th><th>1740.</th><th>1748.</th></tr></thead><tbody><tr><td>New England,</td><td>£525,</td><td>£1,100,</td></tr><tr><td>New York,</td><td>160,</td><td>190,</td></tr><tr><td>New Jersey,</td><td>160,</td><td>180, & 190,</td></tr><tr><td>Pennsylvania,</td><td>170,</td><td>180,</td></tr><tr><td>Maryland,</td><td>200,</td><td>200,</td></tr><tr><td>North Carolina,</td><td>1,400,</td><td>1,000,</td></tr><tr><td>South Carolina,</td><td>800,</td><td>750,</td></tr><tr><td>Virginia,</td><td>—</td><td>120, & 125.</td></tr></tbody></table>

The result of unsafe and extravagant issues in the eastern provinces was the passage of an act by parliament in 1751, regulating and restraining paper bills of credit in Rhode Island, Connecticut, Massachusetts and New Hampshire, and preventing the same from being a legal tender. The enactment forbade the use of such money except for yearly government expenses, and in case of invasion, and not at all as a legal tender for debts. Any governor who should sanction a law having a different significance should be deprived of his office, and ever after be ineligible to public employment.

The interim of peace between England and France afforded an opportunity for maturing new projects for conquest in America. France having no frontier coast, set about consummating a plan to possess the St. Lawrence and the Mississippi, and to establish a line of forts through the interior of the country. These operations were looked upon as

² Gough on Banking.

38

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encroachments, and on the complaint of the Ohio
company, whose province had been trespassed upon,
Governor Dinwiddie, of Virginia, called for desist-
ance. An unsatisfactory return having been receiv-
ed, a regiment was immediately raised and marched
to the disputed territory.

Towards defraying the expense of this expedition
New York advanced £5,000. The French were
not unsuccessful and war was considered again
commenced.

Three operations were decided upon: the first,
an attack on Fort du Quesne, the second on Fort
Niagara, and the third on Crown Point. The gov-
ernor requested means to build another fort on the
Hudson, and additional fortifications on the fron-
tiers. But under the provisions of the late act of
parliament any new issue of paper money was for-
bidden. Taxation was already oppressive, and a
strong feeling existed against any further burden of
this nature. These circumstances, said the gener-
al assembly, "render it impracticable for us to raise
such further sums as appear necessary, in any other
manner than by paper emission. But to emit bills
of credit without making them a lawful tender we
are confident will be absolutely useless, and without
effect, for we are fully persuaded that no man in
the province will be willing to accept that for mon-
ey which he knows that another may refuse to re-
ceive as money from him, and if a law even under

EARLY PAPER CURRENCY.

this restriction must have its execution suspended till his majesty's pleasure can be known, this his majesty's loyal colony may fall a prey to some ambitious, avaricious enemy before any return can be made." In answer to which objections the governor recommended the legislature to pass a law with the suspending clause, "the bills to be declared not a legal tender for debts contracted in Great Britain." The house refused to adopt his suggestion, and an adjournment was made. In the meantime advices were received from England, a proclamation for reassembling was issued, and soon after hearing and considering the governor's speech a bill was introduced and subsequently passed,¹ raising by tax £45,000, issuing for immediate use bills of credit for the like amount. They were put on the same footing as other bills of the province, and their currency continued until Nov., 1761.

The disastrous campaign of 1755-56 now opened. As a preliminary, Forts Beausijour and Gaspareau in Nova Scotia, were taken by some eastern troops, thus subduing the French in that province, but a succession of defeats followed, which more firmly established the French domination in America. The expedition against Fort du Quesne was a failure. Fort Edward was lost, as were Forts Granby and William Henry. Forts George and Oswego

¹ Feb. 19, 755.

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were taken and demolished. The only defeat of
the opposing forces was that at Lake George. The
plan for connecting the northern and southern pos-
sessions by a line of forts succeeded, and the
French now held undisturbed possession of all the
country west of the Alleghany mountains.

In prosecuting this campaign heavy drafts were
made on the resources of New York. Paper money
enactments followed each other in rapid succession.
Besides the amount authorized on the 19th of
February, ten thousand pounds were issued May 3d,
eight thousand pounds Sept. 11th, ten thousand
pounds April 1,1756, and fifty-two thousand pounds
additional at the same date. This addition of £125,
000 to the debt of the province in two years, affect-
ed materially the character of the currency, and
created some alarm in the general assembly. Un-
able to cancel the bills as they became due, they
were repeatedly extended. A committee of the
the house was instructed to bring in bills "for es-
tablishing a stamp office on vellum parchment and
paper which should be charged with duty," and
another "for laying an excise on all teas of foreign
growth which should be sold by retail in the col-
ony." Both measures were adopted.

The losses and disappointments of the last cam-
paign greatly discomforted the crown and parlia-
ment of Great Britain, and their pride and courage
arose in proportion. Mr. Pitt had just been placed

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at the head of a new ministry, and his active spirit
invigorated all with whom he became engaged.
In a circular to the colonial governors he informed
them of his majesty's determination to send a large
force to America to operate against the French,
and called upon them to raise as large a force as
possible.

However much the provinces may have been dis-
heartened and borne down by previous misfortunes,
their sympathies seemed at once engaged. To the
call the general assembly of New York responded
as follows: "With the utmost satisfaction we re-
ceive his majesty's directions for making an irrup-
tion into Canada, and we cannot entertain the least
doubt that every colony on the continent will most
heartily cooperate with, and second his majesty's
intentions by a vigorous exertion of their utmost
strength." They agreed without hesitation to make
effectual provision for levying, clothing, and paying
such a body of troops as the number of inhabitants
would allow. The plan was to raise 20,000 provin-
cials, the king furnishing arms, ammunition, tents,
and provisions. The number apportioned to New
York was 2680 men, for the clothing and paying of
whom £100,000 were emitted¹ in paper money, to
be canceled by a nine years' tax.

The struggle then began, and its results are mat-
ters of well known history. Success attended it

¹ March 24, 1758.

6

42

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through. It commenced by taking from the French, Louisbourg, then Fort Frontenac and soon after Fort du Quesne. Fort Stanwix was built, and Ticonderoga taken. The French were again defeated at Niagara, the fort taken, and finally Quebec fell.

Further appropriations were called for as the war advanced. A second issue of £100,000 of bills was made in 1759,¹ to be cancelled with the last, and in the same year² the sum of £150,000 was, at the request of Gen. Amherst, advanced to the British contractor's agent in America for supplying the army, for the immediate payment of which, paper money was emitted, on the credit of sets of bills of exchange drawn at 60 days, for 375,000 Spanish milled dollars. In 1760³ the sum of £60,000 in further payment of the expenses of the 2680 men was added to the amount already issued, making a total of £410,000.

The amount of paper money in circulation had become large. In some of the colonies, and indeed in New York, the provisions for canceling as the bills matured, were not always adequate. It was ascertained upon an examination by a committee of the general assembly, that above £600 which should have been redeemed, were still in circulation. In some of the neighboring provinces such neglect was so serious as to constitute one of the chief causes of

¹ March 7th.

² July 3d.

³ March 22.

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depreciation, and was likewise the occasion of frequent and urgent complaint by British creditors. The agent of New York informed the general assembly that upon the complaints of divers merchants trading in Virginia, the lords commissioners of trade and plantations seemed determined to adopt the plan of the act passed during the reign of the late king, for regulating and restraining the paper currencies of New England, and to propose that the same should be extended over all the other colonies of North America. Despite our remonstrances against such a proceeding, parliament passed "an act to prevent paper bills of credit hereafter to be issued in any of his majesty's colonies or plantations in America from being declared to be a legal tender in payment of money, and to prevent the legal tender of such bills as are now existing from being prolonged beyond the periods limited for calling in and sinking the same."

The New York assembly, through their agents in England and Governor Moore, applied to the crown to have these restrictions removed, because the bills then in circulation would be sunk in 1768, and the country left without any medium for commerce, there being but little silver, on account of the interruptions of the Spanish trade. Governor Moore wrote also to the lords of plantations requesting instructions as to how far he might be authorized to give relief to the people in this case, so as to put them upon a

44

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footing with the neighboring colonies where the cir-
culation of the paper credit was extended to more
distant periods. The latter recommended that the
governor be released from the restriction of not
assenting to any law for issuing paper bills of credit
whatever; that if found necessary a further sum of
£250,000 might be issued under proper regulations
and restrictions, but they refused to remove the re-
strictions of the legal tender, as that could not be
done without the interposition of parliament.

The only currency that had up to this date been
made a legal tender in the province of New York,
consisted of Lyon dollars, and the paper bills of
credit.¹ The former at this date (1768) were rarely
seen, and the currency of the bills already issued
would expire, as above stated, in the fall of 1768,
after which time therefore there would be no legal
tender. To relieve this serious difficulty, the gene-
ral assembly passed an act making gold and silver
coin a legal tender, fixing no value other than that
for which they passed current in the common course
of business; but as this would conflict with an act
passed in the 6th of Anne, in regard to the value of
different species of money, the governor refused
his assent. Debtors became exposed to the malice
of their creditors, and a clamor soon arose which
induced the assembly, notwithstanding the recent

¹The bills of the neighboring colonies were never made a legal tender in New York.

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act of parliament, to pass a law emitting paper
money to the amount of £120,000. It was similar
to the preceding, except in one or two particulars.
First, it was not to take effect until after the 1st of
Nov., 1769, which would afford an opportunity to
submit it for royal approval. Secondly, the inter-
est of five per cent was to be paid on the whole
capital for the first four years, and in the fifth year
one tenth part of the capital to be sunk, and con-
tinued in the same proportion every succeeding
year. To this act, on the petition of the assembly
and council, the governor gave his assent; first, be-
cause the money could not be disposed of without
the concurrence of the governor and council, and
secondly because it had the effect of establishing a
revenue for a number of years, an approach to a
luxury which had not been recently enjoyed, and it
was thought best not to despise it. The royal ap-
probation was, on the same grounds, strongly urged
in its behalf. There was some delay in responding
to the communication of Governor Moore, and in
the meantime Lt. Governor Colden succeeded to
his office. He urged an approval of the measure which
the assembly seemed to "have much at heart," stat-
ing that unless it was granted it would be difficult
to make them continue the provision for the sol-
diers quartered in the province, after Massachusetts
and South Carolina had both absolutely refused to
do it. Having waited more than a year for the as-

46

EARLY PAPER CURRENCY.

sent of the king; a new bill was introduced and passed, similar in its provisions with the last *with-out* the suspending clause, but providing that the bills should not be issued before the first of June following. There was a disposition to avoid all legislation of a public nature until the governor should give his assent to this bill, which he accordingly did, and for which he was afterwards severely reproved. The committee of the privy council, to whom both bills had been referred, reported unfavorably, and they were finally rejected on account of their inconsistency with the late act of parliament relating to legal tenders. An intimation was at the same time held out that parliament would probably pass a law enabling the legislature of New York to carry into execution the law for which they seemed so desirous. Such an act was passed the same year.¹

In the fall of 1770 the £120,000 bill was again introduced, amended, and passed on the 16th of February following.² The money was loaned among the several counties for 14 years, at five per cent.

¹An act to enable the governor and council and assembly of his majesty's colony of New York to pass an act of assembly for creating and issuing upon loan, paper bills of credit to ascertain amount, and to make the same a legal tender in payment into the loan offices and treasurer of the said colony.

²These bills were extensively counterfeited, so that a law was passed in 1773 substituting new bills. The matter of devising suitable devices &c., was referred to a committee. In the assembly

EARLY PAPER CURRENCY.

The general assembly continued its sittings until April 3d, 1775, when the country was in a state of revolution. The provincial congress of New York which succeeded the general assembly, arose out of a recommendation of the continental congress for each colony to organize a government for itself. It assembled on the 20th of April, 1775, and continued its session until January, 1778. It administered the government of New York during that period, and its resolutions and orders constituted our laws. In conducting the great struggle of the revolution, it experienced in common with other provinces and the continental congress the exceeding difficulty of procuring money for the subsistence of a suffering army.¹ Early in its session a committee was appointed to take into consideration the expediency of emitting a paper currency, which committee immediately prepared and presented (May 30, 1775) an elaborate report.

The conclusions formed were, that there was a smaller amount of gold and silver in this colony than in several others, and that it would be imposssi-
the following was proposed: "an eye in a cloud, —a cart and coffins, —three felons on a gallows, —a weeping father and mother with several children, — a burning pit, human figures forced into it by fiends, and a label with these words—Let the name of the money maker rot." The penalty of the law — capital punishment —was in several cases carried out. *See* papers of that date.

¹ During the Revolution our revenue officers were in the hands of the British.

48

EARLY PAPER CURRENCY.

ble to collect a sufficient sum without issuing a paper currency of some sort. Three modes were proposed by which it could be issued. First: that every colony should strike for itself the sum apportioned or to be apportioned by the continental congress.

Second: that the continental congress should strike the whole sum necessary and each colony become bound to sink its proportionate part.

Third: that the continental congress should strike the whole sum and apportionate the several shares to the different colonies, every colony becoming bound to discharge its own particular part, and all the colonies to discharge the part which any particular colony should be unable to pay.

The first proposition was disapproved of because the money issued would not have a general credit; the second was objectionable because default might be made by some of the colonies in sinking the amount assigned to it. The third was conceded to have the advantage of a higher and more general credit than either of the former, and the convention on the recommendation of their committee adopted it, and instructed our delegates in congress accordingly. The plan was not adopted by the continental congress, and the provincial congress resorted to an issue of £45,000 on the 2d of Sept., 1775. Other issues followed increasing the amount to £300,000.¹

¹May 5, 1776, £55,000; Aug. 30th, 1776, £200,000. In 1799 an act was passed canceling all bills issued by this congress of the denomination of one dollar and under.

EARLY PAPER CURRENCY.

Concerning the precise objects for which these
sums were appropriated it is not necessary to make
an account. The country was flooded with the
emissions made by the several colonies and by the
continental congress, and the evils produced were
incalculably great. The country was unable to re-
demt its currency and the depreciation was ruin-
ous. The whole amount issued in New York from
1709 to the last issue in 1786 was not large, and the
special and repeated methods of taxation adopted
for its extinction were as successfully carried out as
the resources of the country would allow.

In 1781 an act was passed establishing the rate
of depreciation of continental bills of credit, in the
settlement of accounts.¹

After the adoption of our state constitution in
1777, only two laws were passed making bills of
credit; one in 1781,² for $411,250 to pay the propor-
tion called for by congress towards the expenses of
the war, and the other in 1786,³ for £200,000 to be
loaned at 5 per cent, for the purpose of increasing
the currency.

¹ See table at the end of this work.

² March 27.

³ April 18th.

54 EARLY PAPER CURRENCY.

Currency limited to May 31, 1711.

Commissioners for canceling, the signers and treasurer.

Number canceled not known.

1709.—November 1.

Amount, £4,000 or 14,545 Lyon dollars.

Form: This indented Bill of........Shillings, due from the Colony of New York to the Possessor thereof, shall be in Value equal to Money, and shall be Accepted accordingly by the Treasurer of this Colony for the time being, in all Publick Payments, and for any fund at any time in the Treasury. Dated, New York the First of November, 1709, by order of the Lieutenant Governor, Council, and General Assembly of the said Colony.

Signed by Robert Walters, John De Peyster, Robert Lurting, and Johannes Jansen, or any three of them.

Description: The same as of June 8.

Number and division of the bills:

400 bills, each of £5.

400 do. 50s.

800 do. 25s.

Currency limited to Nov. 30, 1712.

1709.—November 12.

EARLY PAPER CURRENCY.

55

Form: This indented Bill of.......Ounces of Plate, or........Lyon dollars, due from the Colony of New York to the Possessor thereof, shall be, in value, equal to Money; and shall be accepted accordingly, by the Treasurer of this Colony for the Time being, in all publick Payments; and for any Fund, at any Time, in the Treasury. Dated in New York, the first Day of November, One Thousand Seven Hundred and Nine, by order of the Lieutenant Governor, Council and General Assembly of the said Colony.

Signed by Robert Walters, Robert Lurting, Johannes Depeyster, and Johannes Jansen, or any three of them.

300 bills, each of 20 Lyon dollars.

<table><tr><td>300</td><td>do.</td><td>16</td><td>do.</td></tr><tr><td>300</td><td>do.</td><td>8</td><td>do.</td></tr><tr><td>337</td><td>do.</td><td>4</td><td>do.</td></tr></table>

Currency limited to Feb. 28, 1713.

1711.—July 26.

Amount, £10,000.

Form: This indented Bill of........Coyned Plate, due from the Colony of New York, to the Possessor thereof, shall be in Value equal to money, and shall be accepted accordingly, by the Treasurer of this

60

EARLY PAPER CURRENCY.

by the Treasurer of this Colony, for the time being,
in the Treasury, Dated in New York, the tenth
day of November, One Thousand Seven Hundred
and twenty; by order of the Governor, Council and
General Assembly.

Signed by David Provoost, John Jansen, Jusboac
Kip, Gerardus Beekman or any three of them.

Description: Impressed on the right side, about the middle of the side with the arms of the city of New York.

6,001 bills, each of 2 pwt. 12 grs. of plate.

4,000
do. 3 " 18 " do.
4,000
do. 6 " 6 " do.
4,000
do. 7 " 12 " do.
1,714
do. 8 " 18 " do.

Currency continued to Sept. 1, 1733.

Commissioner for canceling, the treasurer.

Amount canceled, £1,896 8s. 6d.

1723.—July 6.

Amount, £2,140 or 5,350 ounces of plate.

Form: This indented Bill of........ Ounces, and
........Pennyweight of Plate, due from the Colony
of New York to the Possessor thereof, shall be in
Value equal to Plate, and shall be accordingly ac-
cepted by the Treasurer of this Colony for the Time
being, in all publick Payments, and for any Fund at
any time in the Treasury. Dated in New York, the

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second Day of July, One Thousand Seven Hundred and Twenty-three; by order of the Governor, Council and General Assembly.

Signed by David Provoost, Johannes Jansen, Jacobus Kip, John Cruger, Gerardus Beekman, or any three of them.

Description: Impressed on the middle, with the arms of the city of New York, and on the top of each, the quantity of plate represented.

243 bills, each of 11 oz. 5 pwt. of plate.
299 do. 8 " 15 " do.

Currency limited to July 1, 1726.

Commissioners for canceling, the treasurer and signers.

Amount canceled, £2,122 10s. 0d.

1724.—July 22.

Amount, £3,000.

Form: This indented Bill, due from the Colony of New York, to the Possessor, shall pass current in all Payments, for ..., conformable to Law made by the Governor, Council and Assembly of the said Colony, Dated the Twenty-second Day of July, One Thousand Seven Hundred and Twenty-four.

76

EARLY PAPER CURRENCY.

1775.—September 2.

Amount, £45,000 or $112,500.

Form: This bill shall pass current in all payments in this Colony for... Spanish milled dollars, or the value thereof in gold or silver, according to the resolution of the Provincial Congress of New York, the second day of September, 1775.

Signed by Robert Ray, John Sebring, Evert Bancker, John Reade, John Broome, Jeremiah Brewer, Eleazer Miller, Thomas Tucker, William Denning, Abraham Brinckerhoff, Garrit Abeel, Abraham Livingston, Anthony L. Bleecker, William Mercey, or any three¹ of them.

Description: Impressed with the arms of the city and such other devices as the committee shall direct.²

<table><tr><td>5,000</td><td>$10 bills.</td></tr><tr><td>5,000</td><td>5 do.</td></tr><tr><td>5,000</td><td>3 do.</td></tr><tr><td>5,000</td><td>2 do.</td></tr><tr><td>10,000</td><td>1 do.</td></tr><tr><td>5,000</td><td>50 cent do.</td></tr></table>

Currency limited ½ to March 1, 1776; ½ to March 1, 1777.

¹ Afterwards reduced to two.

² Counterfeited in Westchester county.

EARLY PAPER CURRENCY.

77.

The amount canceled of this and the two succeeding issues, was £133,477 17s. 8d.

Printed by J. Holt.

1776.—August 13.

Amount, 200,000 or $500,000.

Form: This bill shall pass current in all payments in this State for........Spanish milled dollars, or the value thereof in gold or silver, according to the resolution of the Convention of New York, on the 13th day of August, 1776. *Excepting* those of the denomination of ¼, ⅛, or ⅛ of a dollar, which were in the form following:

This bill shall pass current in all payments in this State for Two shillings (or one shilling or six pence), being equal to (¼ or ⅛) of a Spanish milled dollar or the value thereof in gold or silver, according to the resolution of the Convention of New York, on the 13th day of August, 1776.

Signers not named.

Description: Same as last, with the addition "tis death to counterfeit."

<table><tr><td>20,000</td><td>$10 bills.</td></tr><tr><td>20,000</td><td>5 do.</td></tr><tr><td>20,000</td><td>3 do.</td></tr><tr><td>20,000</td><td>2 do.</td></tr></table>

LIST OF ACTS.

1709.—June 8: An act for the currency of bills of credit for five thousand pounds.

Nov. 1: An act for the currency of bills of credit for four thousand pounds.

Nov. 12: An act for the currency of bills of credit for ten thousand ounces of plate, or fourteen thousand five hundred and forty-five Lyon dollars.

1710.—Nov. 25: An act to retrench the growing interest of bills of credit.

1711.—July 26: An act for the currency of twenty-five thousand ounces of plate.

1714.—Sept. 4: An act for paying and discharging the several debts and sums of money claimed as debts of this colony, to the several persons therein named, and to make and enforce the currency of bills of credit, to the value of twenty-seven thousand six hundred and eighty pounds, for that purpose; also to make void all claims and demands made, or pretended to be due from this colony, before the first day of June, one thousand seven hundred and fourteen, and to prevent this colony from being in debt for the future.

EARLY PAPER CURRENCY.

86

1715.—May 19: An act explaining the act of 1714.

July 5: An act for a supply to be granted to his majesty for supporting his government in the province of New York, and for striking bills of credit for that purpose.

1717.—Dec. 23: An act for paying and discharging several debts due from this colony, to the persons therein named: and for raising and putting into the hands of the treasurer of this colony, several quantities of plate, to be applied to the public and necessary uses of this colony, and to make bills of credit to the value of forty-one thousand five hundred and seventeen ounces and a half of plate, for that purpose.

1720.—Nov. 19: An act for continuing the currency of bills of credit to the value of six thousand ounces of plate for and during the time therein mentioned.

Nov. 19: An act for a supply to be granted to his majesty for supporting his government in the province of New York, during the time therein mentioned, and for repealing an act of the general assembly of this province, for a supply to be granted to his majesty for supporting his government in the province of New York, from the first day of July which shall be in the year of our Lord, one thousand seven hundred and twenty, until the first day of July, one thousand seven hundred and twenty-one.

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1721.—July 27: An act for the further continuing the currency of bills of credit to the value of six thousand ounces of plate, for and during the time therein mentioned.

1722.—June 22: An act for making more effectual, an act entitled, an act for a supply to be granted to his majesty for supporting the government in the province of New York etc. (passed Nov. 19, 1721.)

July 7: An act for continuing the currency of bills of credit to the value of three thousand ounces of plate, till the first day of July which will be in the year of our Lord, one thousand seven hundred and twenty, to the first day of July, which will be in the year of our Lord, one thousand seven hundred and twenty-four.

Nov. 1: An act for raising the quantity of three thousand ounces of plate, for the effectual sinking and canceling bills of credit to that value.

1723.—July 6: An act of raising and levying the quantity of five thousand three hundred and fifty ounces of plate, for the uses therein mentioned, and for striking and making bills of credit of that value.

1724.—July 24: An act for raising and levying the sum of six thousand six hundred and thirty pounds, for supplying the deficiencies of his

88

EARLY PAPER CURRENCY.

majesty's revenue, and for the several uses and
purposes therein mentioned, and for making of
bills of credit to be issued for that value.

July 24: An act for making bills of credit, and putting the same into the treasurer's hands, for changing therewith such bills of credit of this province as are torn and defaced.

1725.—Nov. 10: An act for continuing bills of credit struck and issued in the year one thousand seven hundred and twenty, to the value of five thousand ounces of plate, to be current until the first day of July, which will be in the year one thousand seven hundred and twenty-seven.

1726.—June 17: An act for the further continuing the currency of bills of credit, struck and issued in the year one thousand seven hundred and twenty, to the value of five thousand ounces of plate, until the first day of July, one thousand seven hundred and twenty-eight.

1727.—Nov. 11: An act for striking bills of credit to the value of three thousand pounds, and putting them into the treasury, to be exchanged for shattered, torn and defaced bills struck and issued by virtue of the several acts therein mentioned.

EARLY PAPER CURRENCY.

1728.—Aug. 31: An act to continue the currency of bills of credit struck and issued in the year one thousand seven hundred and twenty, to the value of five thousand ounces of plate until the first day of July, one thousand seven hundred and twenty-nine.

1729.—July 12: An act to continue the act last mentioned for one year.

1730.—Oct. 17: An act for striking bills of credit to the value of three thousand pounds, and putting them into the treasury, to be exchanged for shattered, torn and defaced bills struck and issued by virtue of several former acts.

Oct. 17: An act for the further continuing the currency of the bills of credit struck and issued in the year one thousand seven hundred and twenty, to the value of five thousand ounces of plate during the time therein mentioned.

1732.—Oct. 14: An act to repeal the act, and to cancel the bills of credit therein mentioned, and to grant unto his majesty several duties for supporting his government in the colony of New York, until the first day of September, which will be in the year of our Lord, one thousand seven hundred and thirty-seven.

12

90

EARLY PAPER CURRENCY.

1734.—Nov. 28: An act to strike and make current bills of credit to the value of twelve thousand pounds, on the funds, and for the uses therein mentioned.

1735.—Nov. 8: An act to revive, enforce and continue the currency of bills of credit therein mentioned until the end of the year one thousand seven hundred and thirty-nine.

1737.—Dec. 16: An act for emitting bills of credit for the payment of the debts, and for the better support of the government of this colony, and for other purposes therein mentioned.

1739.—Oct. 25: An act further to continue the duty of excise, and the currency of the bills of credit emitted thereon; and to strike some new bills for exchanging such old ones as are or may be unfit to circulate.

1740.—Nov. 3: An act to cancel the bills of credit emitted in the year 1715, 1720, 1723, 1724.

1743.—Dec. 17: An act to prolong the currency of bills of credit emitted by virtue of an act entitled, an act for emitting bills of credit for the payment of the debts and for the better support of the government of this colony, and for other purposes therein mentioned.

EARLY PAPER CURRENCY.

Sept. 1: An act explaining the last mentioned act.

1746.—May 3: An act for raising a supply of the sum of thirteen thousand pounds, by a tax on estates real and personal, for the more effectual fortifying this colony; for the emitting bills of credit for the like sum for the immediate answering the necessary services, and for sinking and canceling the said bills at the several short periods therein mentioned.

July 15: An act for raising a supply of forty thousand pounds, by a tax on estates real and personal, for carrying on an expedition against the French in Canada; for emitting bills of credit for the like sum, and for sinking and canceling the said bills in short periods, and for other purposes therein mentioned.

1747.—Nov. 25: An act for raising a supply of twenty-eight thousand pounds, by a tax on estates real and personal for defraying the expense of several services necessary for the defence of the frontiers and annoyance of the enemy: for emitting bills of credit for the like sum, and for sinking and canceling the said bills in short periods.

1748.—April 8: An act for the more effectual canceling the bills of credit of this colony.

92

EARLY PAPER CURRENCY.

1750.—Nov. 24: An act further to prolong the currency of bills of credit emitted by virtue of an act entitled, an act for emitting bills of credit for the payment of the debts, and for the better support of the government of this colony, and for other purposes therein mentioned.

1753.—July 4: An act to amend an act entitled, an act for the more effectual canceling the bills of credit of this colony.

July 4: An act further to continue the duty of excise, and the currency of bills of credit emitted thereon, for the purposes in the former act, and herein mentioned.

1755.—Feb. 19: An act for raising a supply of forty-five thousand pounds by a tax on estates real and personal, for putting this colony into a proper posture of defence, for furthering his majesty's designs against his enemies in North America, and other, the purposes therein mentioned; for emitting bills of credit for the like sum, and for sinking and canceling the said bills in short periods.

May 3: An act for paying and subsisting eight complete companies of one hundred effective men each, officers included, to assist in conjunction with the neighboring colonies in erecting one or more forts nigh Crown Point, within his majesty's dominions: for raising the

EARLY PAPER CURRENCY.

sum of ten thousand pounds, for and towards
the said services, and for making current bills
of credit to the amount thereof, and other the
purposes therein mentioned.

Sept. 11: An act for raising the sum of eight thousand pounds, to be contributed to the colony of Connecticut, towards the expense of a reinforcement of two thousand effective men, now levying in the said colony, for the army destined against Crown Point under Major General Johnson; and for emitting bills of credit to the amount of the said sum of eight thousand pounds, for making immediate payment.

1756.—April 1: An act for the payment of the debts due from this colony, and for other purposes therein mentioned.

April 1: An act for raising, paying and subsisting one thousand seven hundred and fifteen effective men, officers included, to be employed in conjunction with the neighboring colonies on an expedition for reducing the French fort at Crown Point, and carrying on an offensive war against the Indians who infest the western frontiers of this colony, and other purposes therein mentioned.

July 9: An act more effectually to suppress and prevent the counterfeiting of the paper currency of this colony.

94

EARLY PAPER CURRENCY.

Dec. 1: An act (continuing the act of Dec. 16, 1737).

1757.—Dec. 24: An act (continuing the act of Dec. 16, 1737).

1758.—March 24: An act for raising, paying, and clothing, two thousand six hundred and eighty effective men, officers included, for forming an army of twenty thousand men, with the forces of the neighboring colonies, to invade the French possessions in Canada, in conjunction with a body of his majesty's regular troops and other purposes therein mentioned.

Dec. 16: An act (continuing the act of Dec. 16, 1737).

1759.—March 7: An act for raising a supply of one hundred thousand pounds, for levying, paying, and clothing, two thousand six hundred and eighty effective men, officers included, for forming, with the forces of the neighboring colonies, an army of twenty thousand men, to invade, in conjunction with a body of his majesty's regular troops, the French possessions in Canada; for emitting bills of credit for the like sum, and for sinking and canceling the said bills in short periods.

July 3: An act for emitting bills of credit to the amount of one hundred and fifty thou-

EARLY PAPER CURRENCY.

sand pounds, to enable his majesty's general to
pay the debts contracted, and to carry on his
majesty's service in North America, and for
sinking the same within twelve months.

1760.—March 22: An act for levying, paying, and
clothing two thousand six hundred and eighty
effective men, officers included, for forming an
army of twenty thousand men, with the forces
of the neighboring colonies, to reduce in con-
junction with his majesty's regular troops, Mont-
real, and other posts belonging to the French
in Canada, for emitting bills of credit for the
sum of sixty thousand pounds, and for sinking
the said bills in short periods.

Nov. 8: An act (continuing the act of Dec.
16, 1737).

1761.—Dec. 31: An act (continuing the act of Dec.
16, 1737).

1762.—Dec. 11: An act (continuing the act of
Dec. 16, 1737).

1763.—Dec. 13: An act (continuing the act of
Dec. 16, 1737).

1770.—Jan. 5: An act for emitting the sum of one
hundred and twenty thousand pounds, in bills

96

EARLY PAPER CURRENCY.

of credit to be put out on loan, and to appropriate the interest arising thereon, to the payment of the debts of this colony, and to such public exigencies as the circumstances of this colony may from time to time render necessary. (Repealed by the king, Feb. 14, 1770).

1771.—Feb. 16: An act (title, same as last).

1773.—March 8: An act to remedy the evil this colony is exposed to from the great quantities of counterfeit money introduced into it.

1774.—March 9: An act to prevent the depreciating the paper currency of this colony.

1775.—April 3: An act to amend (the act of Feb. 16, 1771) so far only as it relates to the county of Suffolk.

1779.—Feb. 26: An act to cancel certain bills of credit of this state (of the denomination of $1 and under issued by the provincial congress).

1780.—March 1: An act to cancel the defaced bills of credit at this state.

June 20: A supplementary act to the act entitled, an act approving of the act of congress of the 18th day of March 1780, relative to the finances of the United States, and making provision for redeeming the proportion of this state

EARLY PAPER CURRENCY.

of the bills of credit, to be emitted in pursuance
of the said act of congress.

Oct. 7: An act to procure a sum in specie,
for the purpose of redeeming one sixth part
of the bills emitted on the credit of this state,
pursuant to the act of congress of the 18th day
of March, 1780, for discharging the interest of
such bills, and for other purposes therein men-
tioned.

1781.—Feb. 22: An act for the better establishing the rate of exchange between the bills emitted upon the credit of this state, pursuant to the act of congress of the 18th of March, 1780, and the continental currency theretofore issued.

March 27: An act for emitting moneys upon the credit of this state.

July 1: An act to repeal such of the laws
of the state which make several emissions of
bills of credit a legal tender.

1785.—March 14: An act for canceling the bills of credit therein mentioned.

1786.—April 18: An act for emitting the sum of
two hundred thousand pounds in bills of credit
for the purposes therein mentioned.

May 1: An act supplementary (to the
above).

13

102

INDEX.

Depreciation of Bills of Credit in New York, 42.

scale of depreciation established in New York in 1781, 49.

Difference between New York and sterling money in 1695, 10.

Dollar, dime and cent, adopted in New York in 1799, 50.

Early currency of New England, 3.

currency of New Netherland, 1, 2.

revenue of New York, 8.

Exchange, rate of, in 1740 and 1748, 37.

Excise Act passed in New York, 15.

First currency in use in America, 1.

Gold and Silver made a legal tender in New York, 44.

Indian Corn, a legal tender in Maryland, 4.

Interest at seven per cent established in New York in 1738, 24.

Internal tax levied in New Netherland, 9.

Introduction of Paper Money into America, 5.

Legal Tender, Domestic products made legal tender in Pennsylvania, 4.

Tobacco and Indian corn, legal tender in Maryland, 4.

in New York, 44.

first established in New York, 16.

paper money forbidden as a legal tender in the colonies, 37,
43.

bills of the neighboring colonies not a legal tender in New York, 44.

gold and silver made legal tender in New York, 44.

act sanctioned by parliament in 1770, 48.

bills of the provincial congress and continental congress made legal tender, 50.

acts making paper money a legal tender repealed, 50.

Legislature regulates the value of the current coin in New York, 11.

LeRoux, Chs., engraver of New York bills, 66.

Loan Bill first passed, 25.

Loan Commissioner's office created, 26.

Long Bill passed in New York, 16.

Lyon Dollars, their value, 14.

Massachusetts first introduces paper money in America, 5, 6.

INDEX.

103

Merchants of New York petition for increase of currency, 10.

Mint, Gov. Stuyvesant proposes to establish a mint at New Amsterdam, 2.

Earl Bellomont and Gov. Dongan suggest mint at New York, 9.

Money, petition to raise the value of, in 1642, 2.

Musket balls, currency in Massachusetts, 3.

New England Early Currency, 3.

wampum introduced as a currency, 3.

New York Early Currency, 8, 9.

early revenue, 8.

Paper Money, its introduction into America, 5, 6.

first issue in New York, 13.

Parliament passes an act regulating the value of coins in America, 12.

proposition to forbid the issue of legal tender bills in the colonies, 31.

regulates and restrains the issue of Paper Money in the colonies, 37, 43.

sanctions a legal tender act in New York, 46.

Peltry, the first currency of America, 1.

Pieces of eight, their value in New York, 10, 12.

Proclamation of Queen Anne, regulating the value of coin in the colonies, 11.

Razier, Isaac, introduces wampum into New England, 3.

Seven per cent interest established in New York, 24.

Stamp office established in New York, 40.

Tax, internal, when first levied in New Netherland, 9.

Tobacco as currency in Virginia, 4.

made legal tender in Maryland, 4.

Wampum, the first currency of America, 1, 3.

how made and its value, 1, 2.

introduced into New England, 3.

Zenger, John Peter, printer of the New York bills of credit, 66.

Zewan, or wampum, the first currency of America, 1.