^o,jQL^t^ 
 
 1^=^ 
 
 J3 
 
 t)r. Wtlltem DavJE 
 
 at. Paul. Minn. 
 
 iir 
 
AN 
 
 HISTORICAL ACCOUNT 
 
 OF 
 
 MASSACHUSETTS CURRENCY 
 
 BY JOSEPH B. FELT 
 
 Crescentem sequitur cura pecuniam 
 Majoruraque fames . 
 
 HOBACE. 
 
 Medio tutissimus ibis — ■—^. 
 
 Otid. 
 
 BOSTON: 
 
 PRINTED BY PERKINS & MARVIN. 
 
 1 839. 
 
EMENDATA. 
 
 page. Line. 
 
 61. Omit"ffcj«," 30 
 
 70. Supply " are," next to '^ profits," 23' 
 
 95. Read ".Assembly," for "they,'" 31 
 
 109. Read " JoAit," for " Jonathan," 25 
 
 153. Read "given," for "give," 32 
 
 156. Read " It is," for " This," 13 
 
 156. Supply "June," before "5," in the margin, .... 21 
 
 184. Read " less," for " wider and greater," .... 28 
 
 187. Read " least," for " last," 27 
 
 224. Read "price," for "prices," 14 
 
HISTORICAL ACCOUNT 
 
 MASSACHUSETTS CURRENCY. 
 
 INTRODUCTION. 
 
 The subjects of history are various as the deeds and 
 relations of man. Their interest proceeds from causes, 
 artificial as well as real. Some of them hold a pre-emi- 
 nence in adaptedness to call up the deep thoughts of 
 genius and give wing to the lofty aspirations of poetry and 
 eloquence. Others of them sustain an humbler rank. 
 Though needful to be adduced, that there be no lack of 
 symmetry in the representation of a Commonwealth, yet 
 they allow no extensive scope to the eiforts of intellect 
 and to the ornaments of imagination. To the latter class, 
 belongs the topic of the succeeding pages. However 
 relating to objects which exert almost a magical influence 
 over the desires, toils and attaclmients of society, still, in 
 itself considered, it is far from possessing the fabled power 
 of Midas, who made gold of every thing he touched. 
 
 The term currency^ has been variously defined. Hume 
 thus explains it, — '• The instrument which men have 
 agreed upon to facilitate the exchange of one commodity 
 for another." This appears to be defective. It is more 
 applicable to modern practice than to former. Commodi- 
 ties were themselves anciently sold one for another, and 
 so served all the purpose of the more precious metals. 
 Coin is to money as species to a genus. The latter is any 
 substance to which public authority has assigned a fixed 
 
 2 
 
 3G5S80 
 
10 
 
 HISTORICAL ACCOUNT OF 
 
 value, while the former may be only a part of this assign- 
 ment. 
 
 Cm-rency, in application to the different periods of our 
 State, denotes whatever has been adopted, as a medium of 
 exchange, by general consent and practice. Such a con- 
 struction may seem rather too broad, when we come to 
 ascertain what it includes. It may appear to our associa- 
 tions of mind, familiar with a system of trade, considerably 
 unlike that of our ancestors, as outre or incongruous. 
 Still, it is not without the justification of facts. The 
 Rev. John Cotton, while pleading the cause of one of his 
 flock, who was charged with acting more like the wolf 
 than the lamb, remarked — " That is called current money 
 which every man will take." It is well known, that 
 substances, adapted as a medium of circulation or standard 
 value, have been essentially different in various ages and 
 nations. In Italy, the ancient mode of estimating articles 
 of property, was by cattle. Hence, the word, ' pecunia,' 
 in their language, was from pecus, flock or herd ; though 
 it has long been translated, money. Hence, also, as Pliny 
 assm-es us, the first coin of the Latins was stamped with 
 a cow. The Greeks had similar ideas of money. We 
 read in Homer, that the brazen armour of Diomedes was 
 estimated at nine oxen, and the golden armour of Glaucus, 
 at one hundred. Numa Pompilius had currency manufac- 
 tured of wood and leather. The last of these was used 
 for a similar pm-pose by Frederic II., at the siege of Milan ; 
 by John of France, while' paying for his ransom to Ed- 
 ward III., and by James among his subjects in Ireland. 
 It should be remarked, that such medium of John had 
 each of its pieces set off with a small silver nail. The 
 Lacedemonians trafficked by means of iron bars, quenched 
 in vinegar. So did the primitive Britons employ similar 
 formations of this metal, with the addition of tin plates 
 for the same object. Fruit and cocoa, among the Mexi- 
 cans, are paid for other things of value ; and maize, before 
 their country was discovered by Europeans, served the 
 like end. Almonds and shells in India, purchase the 
 necessaries of life. The last of these two currencies ai'e 
 
MASSACHUSETTS CURRENCY. 1 1 
 
 common in some nations of Africa ; while salt-bricks and 
 beads, are of similar use in another of its kingdoms, which 
 is Abyssinia. Besides these items. Smith, in his Wealth 
 of Nations, says, that iron nails in a village of Scotland, 
 di'ied cod in Newfoundland, sugar in several of the West 
 India islands, and hides in other countries were substituted 
 for coin. If looking nearer home, we have the fact, that 
 in the first days of the ' Old Dominion,' tobacco would pur- 
 chase the most valuable commodity. From 100 to 150 lbs. 
 of it, bought many a good wife. At a later period, before 
 our Western States were favored with steam navigation, 
 horses, cattle, and hogs, were regularly exchanged for 
 goods. 
 
 These examples show, that money or currency, is a 
 convertible term, not absolutely confined to any one mate- 
 rial ; that, among distinct nations and in several periods, it 
 may refer to substances as diverse, as those of the animal, 
 vegetable and mineral kingdoms. Hence, we may not 
 exclude from the list of currencies some of the articles 
 adopted as such, by om' fathers before the close of the 
 17th centmy, merely because they do not tally with those 
 to which we have been accustomed. This introduction 
 now brings us to enter on the course immediately in view. 
 As we advance, it is proposed to remark on currency, not 
 merely in its several species, but also in some of its rela- 
 tions. 
 
 Long before any permanent settlements were made on 
 the shores of Maine, there was an extensive commerce 
 carried on with the Indians of that territory by the fleets, 
 which amiually came from Europe for fish and peltry. 
 In such intercom'se, cash was scarcely known. The 
 natives were ready to barter large amounts of skins for 
 beads, knives, hatchets and blankets, and especially for 
 tobacco, powder, shot, guns and strong water. Philanthro- 
 pists, who desired the highest welfare of the red man, and 
 
12 
 
 HISTORICAL ACCOUNT OF 
 
 sought to bring him under the salutary restraints of the 
 gospel, according to the professed purpose of every charter 
 for American colonies, perceived that the most of such 
 merchandize tended to demoralize and render him a dan- 
 gerous neighbor. They petitioned and obtained restric- 
 tions. Their benevolent action, as usual in attempts to 
 suppress gainful but deleterious customs, caused much 
 excitement among the numerous traders, who set more by 
 their own interest than they cared for others' ruin. 
 
 The article of peltry, so abundantly offered by the 
 natives and so eagerly sought by foreigners, was received 
 and passed as cash by the colonists. 
 
 Another commodity, adopted by them from the aborigi- 
 nes, for a similar end, was wampum. This was brought 
 from Manhadoes, afterwards New York, on a voyage 
 thither in 1628. It is thus described by Governor Brad- 
 ford : — " That v^^hich in time turns most to our advantage 
 is, their now acquainting and entering us into the trade of 
 wampom. By which and provisions, we quite cut off 
 the trade both from the fishermen and straggling planters. 
 And strange it is, to see the great alteration it in a few 
 years makes among the savages. For the Massachusetts 
 and others, in these parts, had scarce any, it being only 
 made and kept among the Pequots and Naragansetts, who 
 grew rich and potent by it ; whereas the rest, who use it 
 not, are poor and beggerly." Here we have the position, 
 long assumed by the great body of the civilized, that a 
 circulating medium, aside from the fruits of the field and 
 of the chase, tends to enrich and strengthen a people, 
 confirmed by the experience of men in a state of nature. 
 
 Roger Williams, in his observations on such money of 
 the New England Indians, gives the succeeding account : — 
 " Their own is of two sorts, one white, which they make 
 of the stem or stock of the periwinkle, when all the shell 
 is broken off; and of this sort, six of their small beads, 
 which they make with holes to string their bracelets, are 
 current with the English for a penny. The second is 
 black, inclining to blue, which is made of the shell of a 
 fish, which some English call hens — poquahock ; and of 
 
MASSACHUSETTS CURRENCY. jg 
 
 this sort, three make aii EngUsh penny. One fathom of 
 this their stringed money is worth five shilUngs." 
 
 To witness the good credit of what they deemed their 
 choice riches among the emigrants — superior to themselves 
 only by means of education — must have gratified the 
 natural proprietors of the soil, and afforded them, amid 
 their degradation, a feeling of some independence. 
 
 In passing from this khid of cm-rency, we come to 
 another. Our fathers having at fii-st neither mints nor 
 banks, except those of the earth and ocean, di-ew from the 
 former liberal discounts. 
 
 Of these, was corn. This was used as a generic term, 
 to include several species of grain and even peas. Such 
 and similar productions, together with live stock, lawfully 
 received at the Colonial treasury for public taxes, was often 
 designated by the plirase, "comitry pay." 
 
 Some sj^ecimens show how a mediimi of this kind was 
 applied. 
 
 It was a custom in the old Colony,^ when a sm'veyor 1628. 
 ran the lines of a lot of land, to compensate him with a 3 * 
 peck of corn. 
 
 '•It was propomided, ^ that JVIr. Phillips^ should have 1630. 
 allowed him tlu'ee hogsheads of meale, one hogshead of 13®' 
 make, four bushels of Indian corne, one bushell of oate 
 meale, halfe an hundred of salte fishe ; — for apparrell and 
 other provisions xx'^* or els to have xi""' given him in 
 money per ami to make his owne prouisions, if hee chuse 
 it the rather." "It is ordered that Mr Patricke and Mr Sept. 
 Vnderhill shall have allowed them for halfe a yeare's 
 prouision two hogsheads of meale, foiu: bushells of malte, 
 ten pounds of powder and leade to make shote, also howse 
 roome prouided for them and 15''^' 12* in money to make 
 other prouision from the tyme they begiiie to keepe 
 howse." 
 
 "It is ordered that those of Dorchester, who braught nc, 
 certaine cattell of the merchants of Dorchester, shall pay 
 Nicholas Stower nine bushels of meale or of Indian corne, 
 
 ' Plymouth Colony Records. ^ Rev. George Phillips of Water- 
 
 ' Massachusetts Colony Records. town. 
 
14 
 
 HISTORICAL ACCOUNT OF 
 
 jg3Q or nine lbs of beauer for the keeping of the said cattell 
 
 "^^^^^ according to an agreement." — " Sir Richard Saltonstall 
 
 is fined four busliells of make for his absence from Court." 
 
 These passages give us an idea of the manner, in which 
 
 our ancestors long passed several articles of trade — as we 
 
 do cash. 
 
 Such a paying of grain, as just mentioned, was no 
 unheard of practice in the kingdom, whence the Puritans 
 emigrated. ^ " By the 18th of Elizabeth, it was enacted, 
 that one-third of the rent of all College leases, should be 
 reserved in corn, to be paid either in kind or according to 
 the current prices at the nearest public market. The 
 money arising from this corn rent, though originally but 
 a third of the whole, is, in the present times, according to 
 Dr. Blackstone, commonly near double of what arises from 
 the other two-thirds." 
 
 As examples of the value of currency, the ensuing items 
 are presented. ^ " It is ordered that labourers shall not 
 take aboue 12*^ a day for their work and not aboue 6'^ and 
 meate and drink under paine of 10' ; noe master carpenter, 
 mason, joyner or bricklayer shall take aboue IG"* a day for 
 their worke, if they have meate and drink — and the 
 second sort not aboue 12^ a day under payne of 10' both 
 to giuer and receauer." 
 Oct. "It is ordered that sawers shall not take aboue 12'' a 
 19' scoore for saweing oake boards and 10'^ a scoore for pyne 
 boards, if they haue their wood felled and squarred for 
 them." 
 
 These enactments exhibit a great difference between 
 the prices of labor then and in our day — and thus denote 
 how much more the same amount would procure at that 
 period than it now does. 
 Nov. ^^^^ ^^^^^ authorities, perceiving the legal restrictions on 
 9. the rate of beaver had better be repealed, comply with 
 such expediency. " Whereas the vsuall rate of beauer 
 hath beene after 6' the pound, it shall be hereafter lefte 
 free for euery man to make the best proffitt and improue- 
 
 ' Smith's Wealth of Nations, vol. 1. ' Massachusetts Colony Records. 
 
MASSACHUSETTS CURRENCY. ^ 5 
 
 ment of it that hec can." ^ The price of this article being 1030. 
 thus left free, soon rose, as Governor Dudley informs us, ^^-^^ 
 to 10' and 20' a lb. 
 
 As proof that our ancestors were interested in the pres- 1631. 
 ervation of gold and silver money from unlawful diminu- March 
 tion, as well as of due regard to the administration of 
 justice in their native land — they apprehended one Robert 
 Wright, who had escaped hither from London, being 
 accused of "clipping the king's coyne." 
 
 This sort of money, so introduced to our notice, 
 suggests the ensuing remarks. — ^ The method of keeping 
 accounts by our Colonists, relative to specie '^ as well as 
 other currency, was by pomids, shillings, pence and far- 
 things. It was first introduced in England by William 
 the Conqueror. He ordered the pound of account to equal 
 a pound of silver, and this to be divided either into 
 twelve shillings of twenty pemiies, or twenty shillings of 
 twelve pennies, in accordance with the table of Troy 
 weight. It was not till several reigns after his, that such 
 a pound was denominated a pound sterling. So reduced 
 had this standard become under Charles the First, who 
 granted the Chai'ter of Massachusetts, that a pound of 
 silver was estimated, while he was on the throne, both 
 here and in the mother country, at more than three times 
 what it was in the days of William. Owing to the un- 
 steady and injudicious system of the predecessors of Charles, 
 for the regulation of the cm*rency, as well as to large 
 debts contracted under his father's administration, coin was 
 very scarce when our ancestors emigrated to this country. 
 
 Hence, we have one reason, why they adopted such a 
 medium of exchange, as has been already described. 
 
 This they applied to their judicial as well as commercial 
 proceedings. ^ " Chickataubott is fyned a skyn of beauer June 
 for shooteinge a swine of Sir Richard Saltonstall." 
 
 Perceiving some difficulty with regard to the reception 
 
 > Gov. Thomas Dudley's leUer to applied to articles of provision, in 
 
 the Countess of Lincoln. Massachusetts, till 1775. It began 
 
 ^James Taylor's view of the money to be used here in reference to hard 
 
 system of England. money as soon as 1758. 
 
 ^ The term specie, or species, was * Massachusetts Colony Records. 
 
]g HISTORICAL ACCOUNT OF 
 
 1631. of grain instead of specie, the succeeding enactment is 
 made. — " It is ordered that corne shall passe for payment 
 of all debts at the vsuall rate it is solde for, except money 
 or beauer be expressly named." This rule was far from 
 being a dead letter. For over a half century, it continued 
 in full force and operation. 
 
 Ascertaining that there was an inclination in traders to 
 clear the Colony of all coin, bought on speculation for the 
 London market, and also of peltry, on which they could lay 
 their hands, the magistrates see fit to interpose and throw 
 
 1632. Eiround them a legal check. " It is ordered that noe planter 
 March within the limits of this jurisdicon, returneing for Eng- 
 land, shall carry either money or beauer with him, without 
 leaue from the Governor, vnder paine of forfeitinge the 
 money and beauer so intended to be transported." As an 
 example for such a step, with regard to metallic currency, 
 they had an edict of Gtueen Elizabeth for a like purpose. 
 
 While thus vigilant, the civil authorities are careful to 
 enlarge the circulating medium, by promoting the traffic 
 June in peltry. ^ " It is agreed that there ^shalbe a trucking 
 ^- howse appoynted in eury plantacon whither the Indians 
 may resorte to trade, to avoide there comeing to seuerall 
 howses." The fur trade is also farmed or let out in 
 Oct. several parts. Among those who contract for it, was John 
 Pynchon, the promoter and leader of Springfield settlement. 
 For the privilege in his vicinity, he gives £25 a year. 
 As expediency calls for a change in the regulation of 
 1G33. grain, an alteration is made. "The price of corne, for- 
 j*' merly restrained to 6' the bushell, is nowe sett att liberty, 
 to be sold as men can agree." This, not being so satis- 
 factory as anticipated, is reversed, more than six months 
 after, to what it was before. 
 
 One of the instances wherein government agree for live 
 stock, as an item of the common currency, now occurs. 
 "Noddle's Ileland is granted to Mr. Samuel Maueracke, 
 to enioy to him and his heires for euer, yeilding and paye- 
 ing yearely att the Generall Court to the Gouenor for the 
 
 ' Mass. Col. Records. together, in ancient chirography, as 
 
 * Shall, as an auxiliary, and be, as in the above sentence, 
 a principal verb, are often written 
 
MASSACHUSETTS CURRENCY. . J 7 
 
 time being, either a fatt weather, a fatt hogg, or xl' in 1(^33. 
 money, and shall giue leave to Boston and Charles Towne -^'^-' 
 to fetch wood contynnally as their neede requires, from 
 the Southerne parte of the said Ileland." Though the 
 estimated value of these animals was low, compared with 
 what it has been since, yet it far exceeded the price of 
 their kind in the reign of William the Conqueror.^ Then 
 a pasture fed ox was computed at 1* ; a ram or sheep at 
 4'', and other articles in proportion. However the animal 
 items of Maverick's agreement do not come to our ears 
 with such a dignified sound — because use has made it so, 
 — as the other of a pecuniary sort ; still they were part 
 and parcel of a bona fide contract. 
 
 While the circulating medium partook of so great a 
 variety, we have another specimen how well it expended. 
 2 "It is ordered, that maister carpenters, sawers, masons, Oct, 
 clapboard ryuers, bricklayers, tylars, joyners, mowers, &c. 
 shall not take aboue 2' a day, findeing themselues dyett, 
 and not aboue 14*^ a day, if they haue diett found them, 
 vnder the penalty of 5' both to giuer and receaver, for 
 euery day that there is more giuen and receaved. Also, 
 that all others, inferior workmen of the said occupacons, 
 shall haue such wages as the Constables of the said place 
 and two other inhabitants, that hee shall chuse, shall 
 appoynt. Also, it is agreed, that the best sorte of labourers 
 shall not take aboue IS"^ a day, if they dyett themselues, 
 and not aboue 8^ a day, if they haue dyett found them, 
 vnder the aforesaid penalty both to giuer and receaver. 
 Likewise, that the wages of the inferior labourers shall be 
 refered to the Constable and two others as aforesaid." 
 " Mr taylom-s shall not take aboue 12'^ a day, and the 
 inferior sorte not aboue S'\ if they be dyeted, vnder the 
 aforesaid penalty, and for all other Avorke they doe att 
 home proporconably, and soe for other worke that shalbe 
 done by the greate by any other artificer. Further, it 
 is ordered that all workmen shall worke the whole day, 
 allowing convenient time for foode and rest. This order 
 to take place the 12''' of this present moneth." 
 
 > Taylor on the Money System of England. * Mass. Ctalony Records. 
 
 3 
 
13 HISTORICAL ACCOUNT OF 
 
 1633. So quick was the demand for corn, as a substitute for 
 specie, as well as for food, ^ no person is allowed to feed 
 his swine with it, except such as is surveyed by two of 
 his neighbors, and by them judged " unfit for man's meat." 
 Knowing that the prices for mechanical employments 
 were likely to be disarranged by an inordinate charge for 
 imported and other goods, and thereby the currency, as 
 well as resources of the country to be depreciated in real 
 value, the Court of Assistants pass the subsequent law. 
 8. " Whereas by order of Court holden in October last, the 
 wages of workemen were reduced to a certainety in regard 
 of the greate extorcon vsed by dyvers persons of little 
 conscience, and the greate disorder which grewe hereupon 
 by vaine and idle waste of much precious tyme, and 
 expence of those imoderate gaynes in wyne, strong water 
 and other superfluities : nowe, least the honest and con- 
 scionable workemen should be wronged or discouraged by 
 excessive prizes of those commodyties which are necessary 
 for their life and comfort, — wee have thought it very iust 
 and equall, to sett order also therein ; wee doe therefore 
 hereby order, that after publique notice hereof noe persons 
 shall sell to any of the inhabitants within this jurisdiccon 
 any provision, cloathinge, tooles or other commodities 
 above the rate of ^foure pence in a shilling more than the 
 same cost or might be bought for ready money in England, 
 on paine of forfeiting the vale we of the thinge soldo, 
 except cheese, which, in regard of the much hazard in 
 bringing, and wyne and oyle, vinegar and strong waters, 
 which in regard of leakeing may be soldo att such rates 
 (provided the same be moderate) as the buyer and seller 
 can agree. And for lynnen and other commodyties, which, 
 in regard of their close stowage and small hazard, may be 
 afi:orded att a cheape rate, wee doe advise all men to be a 
 rule to themselues in keepeing a good conscience, assureing 
 them, that if any man shall exceede the bounds of mod- 
 eracon, we shall punish them seuerely." This enactment 
 of authorities, who meant to be minded, shows the small 
 progress made by our infant Commonwealth towards the 
 
 * Mass. Colony Records. * This was repealed Sept. 2, 1635. 
 
MASSACHUSETTS CURRENCY. jQ 
 
 independence of other countries, which she has longig33_ 
 
 enjoyed, and would more enjoy, if not indulging fanciful 
 
 wants and hurtful extravagances. It would be legislation, 
 passing strange to our eais in this period, to allow extra 
 encouragement on the products of the dairy and of the 
 orchard, because of the pains and perils of importing them. 
 This is an exemplification of the oft suggested thought, 
 that what the necessities of one age render important, the 
 fullness of another renders trivial. 
 
 ^For a further illustration, as to the worth of money in 1634. 
 judicial service, we have the ensuing order. — " It was *^''^"* 
 concluded, that the Jiuy should have 6*^ a man, and the 
 foreman 12*^, in such cases of controversy as they shall go 
 upon." Pence would hardly spend so well in law now 
 a days. 
 
 With regard to the sumptuary regulation previously 
 related, it appears that every individual did not heed its 
 counsel, or sufficiently dread its uplifted rod. 2" It was Aug. 
 witnessed vpon oath that James Rawlens tooke 8"^ a day, ^• 
 and meate and drinke, for ten dayes worke for one of his 
 servants for weeding corne, contrary to an order of Court, 
 and therefore is to pay 5' for eury day hee hath soe trans- 
 gressed." The law so broken, being found of very diffi- 
 cult application, is repealed the next month. 
 
 While means are thus taken to keep the price of goods 
 and labor within limits, suited to preserve the medium of 
 exchange from depreciating, business is transacted conve- 
 niently with the Indian money. 2" Our neighbours of 12. 
 Plymouth trade this year at Kenebeck, so as Mr. Winslow 
 carried with him into England, about twenty hogsheads 
 of Beaver, the greatest part whereof was traded for wain- 
 pampeage." 
 
 As a sample of what coin or its equivalent would com- 
 mand in travelling, we offer the subsequent injunction. 
 '*'' Noe person that keepes an ordinary shall take above 6*^ Sept 
 a meale for a person, and not above l"^ for an ale quarte for 
 beare out of meale time vnder the penalty of 10' for eury 
 
 ' Plymoutli Colony Records. ^ Winthrop, 1 v. 
 
 =* Mass. Colony Records. ' Mass. Col. Records. 
 
20 HISTORICAL ACCOUNT OF 
 
 1634, offence, either of dyet or beare." While a landlord was 
 
 " '^^ thus tied up to economic rules, he was strictly required to 
 suffer no whiffs nor fumes of tobacco within his premises. 
 So restricted, he had little opportunity to play either 
 Shylock or Falstaff. 
 
 Feeling constrained to increase their means of defence, 
 the General Court pass a law, which wears the appearance 
 
 1C35. of more favor for Mars than for Minerva. ^ '* It is ordered 
 ^/^ that hereafter farthings shall not passe for currant pay. It 
 is likewise ordered, that muskett bulletts of a full boare 
 shall passe currantly for a farthing a peece, provided that 
 noe man be compelled to take above 12"^ att a tyme of 
 them." 
 
 As a matter of general convenience and utility, the 
 succeeding enactment is passed. " It shalbe lawful! for 
 any man to pay his rate to the Treasurer in merchantable 
 corne of the country at v' the bushell. This order to 
 continue till nexte harvest." Though the last clause is 
 here appended, yet the custom, so legalized, of satisfying 
 the Colonial demands with grain, is continued for a con- 
 siderable period of years. 
 
 To keep items of currency within reasonable bounds, 
 according to the fair value of them, both at home and 
 abroad, the ensuing regulations are adopted. '^ Noe Indean 
 corne, (except seede corn*) shalbe solde for above 6' per 
 bushell, vnder the penalty of forfeiture of such corne, or 
 the valewe of it. Merchantable beaver shall passe att x' 
 the pound." 
 
 Vigilant to preserve a salutary balance between the 
 prices of labor and merchandize, and the medium of ex- 
 change, so that neither may injuriously preponderate, the 
 
 Sept. government adopt the succeeding regulation. '' Whereas 
 ^' two former lawes, the one concerning the wages of worke- 
 men, the other concerning the prizes of commodyties, were 
 for dyvers good consideracons repealed this present Court, 
 nowe for avoydeing such mischiefes as may follow there- 
 v]X)n by such ill disposed persons as may take liberty to 
 oppresse and wronge their neighbours by takeing excessive 
 
 ' Mass. Col. Records. 
 
MASSACHUSETTS CURRENCY. 21 
 
 wages for worke, or unreasonable prizes for such necessary 1635. 
 merchandizes or other commodyties, as shall passe from ^^"^ 
 man to man ; — It is therefore no we ordered y' if any man 
 shall offend in any of the said cases against the true intent 
 of this lawe, hee shalbe punished by fine or imprisonment 
 according to the quallity of the offence, as the Court vpon 
 lawfull tryall and conviccon shall iudge." Notwithstand- 
 ing the rod of legislation was thus lifted, as a terror to 
 evil doers, it did not have its intended and full effect. 
 "Josuah Huyes hath forfect V for knyves, and iiii' vi*^ Oct. 
 for scythe, which hee solde for above 1111*1 in the shihing 
 proffitt." 
 
 That ai-ticles, then regarded as luxuries, and an indul- 
 gence in them di-eaded as the precursor of disarrangement 
 and detriment to the medium of exchange, might be dis- 
 couraged in their importation to this Colony, the ensuing 
 regulation is adopted. "For preventing the imoderate 1636. 
 expence of provisions brought from beyond the seas, it is j^' 
 ordered, that whosoever, after three months from the date 
 hearof, shall buy or receive out of any ship, any fruite, 
 spice, shugar, wine, strong water, or tobacco, shall pay to 
 the Treasurer one sixth part of the price or valew thereof, 
 and every person who shall buy or receive any of the said 
 commodyties with intent to retaile the same to others, shall 
 pay to the Treasurer one third part of the valew or price 
 thereof : provided that this order shall not extend to such 
 wine as the deacons of the Chm-ches shall buy or procure 
 bona fide for the Chm'ches' publike vse." 
 
 As a more particular indication of the manner in which 
 grain and peltry were current for public uses, we have the 
 succeeding item, relative to a tax assessed on the several 
 towns. ^" It is agreed that good merchantable corne shall 
 passe for payment in this rate at 5' the bushell, to bee 
 so delivered at Boston at the appointment of the Treasurer 
 to bee called for when the Treasurer please. And it is 
 ordered that the Deputie's debt shalbe paid to him in 
 money or beaver." 
 
 ' Mass. Col. Records. 
 
22 HISTORICAL ACCOUNT OF 
 
 1636. Aware that the board at pubUc houses, if extravagant, 
 ^•""^''^ not only required a corresponding price from the traveller, 
 
 but also put him in the hazard of contracting a taste for 
 similar fare at his own house, and thus promoted a costly 
 mode of living, ever unfavorable to the pecuniary con- 
 cerns of community, our civil fathers thus interpose their 
 
 1637. authority : — " Whearas complaint hath bene also made 
 ^f*^'- that diverse pore people, who Avould willingly content 
 
 themselves with meane dyet are forced to take such dyet, 
 as is tendered them at 12*^ the meale or more ; it is now 
 ordered that every keeper of such Imi or comon victualling 
 house shall sell and alloAve vnto every of their guests such 
 victuals as they shall call for, and not force them to take 
 more or other then they desire, bee it never so meane and 
 small in quantity, and shall affoard the same and all other 
 dyet at reasonable prizes vpon paine of such fine as the 
 Court shall inflict according to the measure and quantity 
 of the ofl"ence." 
 
 Vigilant to keep down, in some respects not yet speci- 
 fied, what they deem extortion, and a foe to sound cur- 
 
 1638. rency, the Assistants take the succeeding step. — " Whereas 
 ^^fo*^ there hath bene divers complaints made concerning oppres- 
 
 sion in wages in prizes of commodyties in smith's worke, in 
 excessive prizes for the worke of druaghts and teames and 
 the like, to the great dishonor of God, the scandell of the 
 Gospel and the greife of divers of God's people both heare 
 in this land and in the land of our nativity, the Court 
 takeing into consideration, hath ordered it that it shalbee 
 duely considered by Mr. Endecott, Mr. Bellingham, Mr. 
 Herlakenden, Mr. Winthrope junior, Mr. Saltonstall, Mr. 
 Bradstreet, Mr. Staughton, Mr. Peters, Mr. Noise, &c. to 
 bring into the General Court their thoughts for the remedi- 
 ing of the same." 
 
 How far the currency would go to meet a principal 
 May 2. expense of legislation, may be perceived in this law : — " It 
 is ordered that every towne shall beare the charges of their 
 owne magistrates and deputies and to alow for a magis- 
 trate 3/6 a day and for a deputy 2/6 a day from the time 
 
MASSACHUSETTS CUIUIENCY. 
 
 23 
 
 of their going out to the Court, vutil their rcturne, for their iQ^g 
 dyet and lodging." ^^-v-^ 
 
 The merchants of England and Irehmd having sent 
 cargoes hither for sale, and thereby drained the colony 
 of its cash, the legislature pass the subjoined resolve : — 
 "Whereas many men in the plantation are in debt and] (549 
 heare is not money sufficient to discharge the same though Oct. 
 their cattle and goods should bee sould for halfe their 
 worth, as experience hath shewed upon some late execu- 
 tions, whereby a great part of the people in the country 
 may be midone and yet their debts not satisfied, though 
 they have sufficient upon an equall valewation to pay all 
 and live comfortably upon the rest. It is therefore ordered 
 that upon every execution for debts past, the officer shall 
 take land, houses, corne, cattle, fish or other commodyties 
 and deliver the same in full satisfaction to the creditor at 
 such prizes, as the same shall bee valewed at by three 
 understanding and indifferent men to bee chosen, the one 
 by the creditor, another by the debtors and the third by 
 the marshall. And the creditor is at liberty to take his 
 choyce of what goods hee will, and if he hath not suffi- 
 cient goods to discharge it, then hee is to take his house 
 or land as aforesaid." 
 
 In reference to this state of depression, the elder Win- 
 throp thus expresses himself: — "The scarcity of money 
 made a great change in all commerce. Merchants would 
 sell no ware, but for money. Men could not pay 
 their debts, though they had enough. Prices of land 
 and cattle fell soon to one half and less, yea, to a 
 third, and after to one fourth part." This is but one of 
 the many scenes of adversity, which our ancestors expe- 
 rienced, while laying the ground work of our political 
 heritage. They strove to render it the means of their 
 personal improvement, and of their greater fitness to receive 
 and use the mercies of Providence. In this they were 
 eminently wise. Well for us, if recent embarassments 
 lead us to imitate their example. It should, also, be a 
 dutiful stimulus for us to know, that our sires breasted 
 higher and stronger waves, stood louder and more deso- 
 
24 
 
 HISTORICAL ACCOUNT OF 
 
 1640. lating storms, than we have been called to meet, and still 
 
 ^"""^^ held on their way commendably and perseveringly. 
 
 Oct. The want of coin enhances the rate of wampum, " It 
 
 is ordered, that white wampompeage shall passe at four a 
 
 penny and blew at two a penny and not above 12'^ at a 
 
 time except the receiver desire more." 
 
 In conformity with a regulation, now becoming more 
 particular and frequent than before, the General Court fix 
 the price of the subsequent articles, as part of the circu- 
 lating medium. Indian corn at 4', summer wheat 6% 
 rye and barley 5% and peas 6' a bushel. Simply con- 
 sidered as aliments of life, it is well known that these 
 products have far more intrinsic worth than the finest 
 gold or the pm*est diamonds. Place the issues of Potosian 
 mines, in ever so large quantities, before a people incapa- 
 ble of procuring supplies for their appetite, and what will 
 they profit them ? To some extent, like Esau, they would 
 exclaim — " Behold, we are at the point to die ;" give us 
 nourishment, silver and gold cannot sustain us. This is 
 an indication, that the practice of former years, for embrac- 
 ing within the range of currency, necessary as well as 
 artificial representations of property, was no great depar- 
 ture from sound discretion. We are told, that while the 
 mania of speculation lately filled many minds with noth- 
 ing but golden dreams, the Messrs. Josephs of New York 
 forwarded a schedule of various stocks to the Rothschilds 
 of Em-ope. The reply of these shrewd bankers was, 
 " We don't think much of a country that imports its 
 bread." This rebuke should be heard and improved by 
 our Republic, so that, however she may not raise grain 
 for currency, she may do it to feed her millions and give 
 stability to her pecuniary interests. 
 
 With reference to the legal premium allowed for the 
 loan of currency, it had been eight per cent., and so con- 
 tinues till a short time after the second charter. The 
 occasional necessities for this period, however, did not 
 always keep Avithin the limits of the statute. 
 1041. To enlarge the funds of exchange and aid to cancel the 
 ^2^^ public debts, the civil authorities let out the wampum 
 
MASSACHUSETTS CURRENCY. 
 
 25 
 
 trade as well as that of fiu", to a certain company. For 154 1. 
 this privilege, the stockholders ai-e to reserve one-twen- -"''^ — 
 tieth of all their peltry for the Colonial treasnry, and also 
 to purcliase whatever wampum the college may have paid 
 to it, if not exceeding at one time the smn of £25. One 
 of the same association is authorized to collect wampum, 
 due the government as tribute, from the Block Island and 
 other Indians. The method here stated, of adding to 
 the cmTency by yearly payments from the natives, as a 
 bonus for the protection afforded them and an acknowl- 
 edgment of their subjection, constituted a considerable 
 revenue. 
 
 To prevent taking advantage of persons,^ forced to pay jy^g 
 the demands upon them in live stock, the Coiu-t adopt the 10- 
 succeeding method : — " Whereas it hath appeared to this 
 Court, that there hath bene much difference in the coun- 
 trey in the appraisement of cattle, which is conceived to 
 arise from the different rules which men have gone by in 
 such appraisements, this Court having weighed the great 
 inconvenience which may follow upon such appraisement, 
 have thought fit to declare what is conceived to bee the 
 true rule to bee followed in such cases, viz : that it is not 
 to bee iudged the market or true price, which some are 
 forced by m'gent necessity to sell a beast for ; but what 
 benefitt may arise by the milke and increase of a cowe, 
 or labor of an oxe, charges of hay &c. considered, and it is 
 desired that all men will endeavour to frame their com- 
 merce according to this rule." 
 
 As a great reduction had taken place in the price of June 
 corn, cattle and other produce, and money was scarce, 
 workmen are required to graduate the price of their labor 
 accordingly. 
 
 ^In order to accommodate persons who drive cattle to 
 Boston, for the payment of public rates, as well as for 
 other purposes, ^ " so that they be weary, or hungry, or fall 
 sick, or lame, it shall be lawful to rest and refresh them 
 
 ■-) 
 
 ' Massachusetts Colony Records. ^ Colony Laws, p. 100. 
 
 ^ This appears to have been after 
 October, 1641. 
 
 4 
 
26 HISTORICAL ACCOUNT OF 
 
 1641. foi* ^ competent time in any open place, that is not com, 
 '■^^'^^ meacloAV, or inclosed for some particular use." 
 
 ^ The civil authorities, constrained to compensate those 
 whom they employed, in the kind they received, order, 
 that 250 bushels of corn shall be delivered to the gmmer 
 of the castle for his salary. 
 
 1642. Among the coins in good credit with oiu" ancestors, are 
 Sept. g^Qii as the subjoined enactment specifies : — " This Comt 
 
 considering the oft occasions wee have of trading with 
 the Hollanders at the Dutch Plantation and otherwise, 
 therefore order, that the Holland ducatoon being worth 
 three gilders shalbee cm'rant at 6' in all payments within 
 this jurisdicon. The rix-doUars being two and half gilders 
 shalbee likewise ciu-rant at 5', and the ryall-of-eight shalbee 
 also currant at 5^" The name of these coins was more 
 frequently heard than they were seen and handled. 
 
 1644. While there was impoverishment of estate, measiu'es 
 ^^' were taken to enrich the intellect. In compliance with 
 
 advice given by commissioners of the United Colonies, the 
 Legislatm'e order, that each family contribute a peck of 
 corn, or 12'^ in money, " to help forward the mainte- 
 nance of poor scholars in the colledge." This option, as 
 to the sorts of circulating medium, was exercised more 
 fully in bestowing the products of the field than in the 
 proceeds of the mine. 
 
 Speaking of an assessment laid on the several towns to 
 defray the country charges, the Coiu-t thus express them- 
 
 1645. selves : — " This levy of £616 15/, each Towne's propor- 
 May tion is, as above expressed. It is determined y*^ each 
 
 Towne shall pay y® one halfe of their rate to y "^ treasiu-er 
 within three months in cattle to be valued by three men 
 indifferently chosen by y*" treasurer and owner thereof, 
 . in beaver, money, Avheate at 4% barley at 4?, rye 3/6, 
 pease 3/6, come 2/8, and y^ other halfe at or before y^ 
 last of y® first month next." 
 
 There was a great and fearful embarrassment as to hard 
 money and every species of exchange. A main cause of 
 this was, that the foundations of all confidence were 
 
 ' Massachusetts Colony Recoids. 
 
MASSACHUSETTS CURRENCY. 27 
 
 broken up, and inhabitants continually emigrated to other 1(545 
 parts, in consequence of the contentions in England ^^^-^^ 
 between the Royalists and Parliament. The head had 
 become confused by jarring elements, and each of its 
 members was deprived of its guide, and compelled to depend 
 on its own resom'ces. Nor did so thick a darkness, resting 
 on the whole face of the comitry, speedily pass away. 
 To this point we have the relation of Governor -Winthrop. 
 " I may report a passage between one of Rowley and his 
 servant. The master being forced to sell a pair of his 
 oxen to pay his servant his wages, told his servant he 
 could keep him no longer, not knowing how to pay him 
 next year. The servant answered him, he could serve him 
 for more of his cattle. But what shall I do (saith the 
 master) when all my cattle are gone ? The servant replied, 
 you shall then serve me, and so you may have yom- cattle 
 again." ^ 
 
 From so distressed a condition of the civilized, we 
 look to one of the instances, in Avhich the riches of the 
 untutored natives frequently took wings and flew away. 
 " Sagamore Raynowet ~ for consenting to y® Narragansetts Oct. 
 was fined ten fathom of wampom, to pay five fathom y' 
 yeare and five fathom y'^ next year, and he was admon- 
 ished never to do the like, if he did, to be cramed." 
 
 With regard to such money, it began to be a common 
 thing for inventories of deceased Colonists to have among 
 their various items of accomit, particular smns of wam- 
 pumpeage. 
 
 For the purpose of preventing the injury of pecmiiary 
 interests, it is enacted, that any individual forging notes of 
 hand, or other paper relative to property, ^" shall stand ia 1(546. 
 the pilory tliree seuerall lecture days, and render double Nov. 
 damages to the party wronged, and disabled to give any 
 evidence or verdict to any Courteor Magistrate." 
 
 That we may have knowledge of the prices at which live 
 stock was estimated, either for a medium of exchange or 
 otherwise, the succeeding rule is presented. "* " For y'' 
 
 > Winthrop, vol. i. p. 220. ^ Colony Laws, p. 155. 
 
 2 Mass. Col. Records. ■• Mass. Col. Records. 
 
28 
 
 HISTORICAL ACCOUNT OF 
 
 1646. avoiding of all complaints by reason of nnequall rates 
 ^'^^ either of towns or persons occasioned through y® want of 
 4. one generall way and rule of rateing through out y*" 
 countrey and y' levies hereafter may bee more easy, equall 
 and certaine ; — It is hereby ordered, y* in all publike rates 
 (till this Courte take further order therein) all sorts of 
 cattle shalbe valued, as hereafter is exprest, — viz : cowes 
 of four yeeres ould and upward £5; heifers and steers, 
 betwixt three and four yeeres ould £4 ; — heifers and steers, 
 between two and three yeeres ould 50% and between one 
 and two yeeres ould 30= ; oxen of four yeeres ould and 
 upward £6 ; horses and mares of four yeeres ould and 
 upward £7; of three yeeres ould £5; betwixt two and 
 three yeers ould £3 ; betwixt one and two yeers ould 40' ; 
 sheepe above a yeere ould 30^ ; goats above a yeare ould 
 8' ; swine above a year old 20' ; ases above a yeere ould 
 40'," &/C. Such estimations were repeatedly made by the 
 General Court. These, just mentioned, are very much 
 below what they were prior to 1640. 
 
 While peltry was desired and sought as a staple com- 
 modity of exchange, the Govermnent, to help supply their 
 ,g.-. exhausted treasury, make the ensuing requisition. ^ " Or- 
 Nov dered that the trading establishments for traffic with 
 Indians shall be contributory to the public charges, 'and 
 pay two pence for every beaver, otter, bear, and moose 
 skin, or forfeit the same." 
 
 That we may have an idea how the shell currency of 
 the natives was prepared for ready exchange, we are pre- 
 
 1648. sented with the ensuing regulation: — ~"It is ordered for 
 triall till the next Court, that all passable or payable peage 
 iienceforth shalbe intire without breaches, both the white 
 and black, without deforminge spotts, sutably strunge in 
 eight knowne parcells, l-^, 3'^, 12*^, 5% in white ; 2^ 6'^, 2/6'^, 
 and 10', in blacke." 
 
 It appears that while coin is rarely met with, our 
 
 1649. exchequer has more of the Indian money than they can 
 2^^ well manage. It is enacted, " that it shall not be in the 
 
 » Colony Laws. 2 Mass. Col. Records. 
 
 Oct. 
 18. 
 
MASSACHli SETTS CURRENCY. 
 
 29 
 
 liberty of any townc, or person to pay peage to their 1549^ 
 country rate, nor sliall tlic Treasurer accept thereof." ^^^ 
 This example of the Government is soon imitated by the 
 people. To arrest the progress of such a consequence, an 
 injunction of the Court is issued. Its words are, — " It is 
 ordered, that wampampeage shall passe current in pay- 
 ment of debts to the vallew of forty shillings ; the white 
 at eight a penny and the black at four — so as they be 
 entire and without breaches and deforming spots, except 
 in payment of countrye rates to the Treasurer." 
 
 As specie still remains inconveniently scarce, one 
 reason for it is the vigilance with which the authorities of 
 England prevent its exportation hither. In the act of 
 Parliament for incorporating the Society to Promote the 
 Gospel in this country, and thus patronize the labors of 
 Eliot, Mayhew and others among the Indians, there is the 
 subsequent clause. Collections are to be made in the 
 Churches of England and from house to house, ^ " provided July 
 the act extend not to the enabling or allowing of trans- ^^' 
 portation of any gold, silver, plate, bullion or other com- 
 modities, prohibited by the laws and statutes of this 
 nation." 
 
 As grain and live stock, collected for Colonial taxes, 
 were customarily brought to the Treasurer for being 
 estimated, and such a practice not giving general satisfac- 
 tion, the Deputies pass the subjoined resolve. ^ " For a 1650. 
 more equal way in the appraising of cattle and other goods ^^^' 
 to be paid in the several Towns for their country rates, 
 and that the Constables be not put to bring such goods to 
 the Treasurer for appraisement," it is required that a fit 
 person be employed in each town for this business. The 
 Magistrates concur, if the Treasm^er appoint one appraiser, 
 the owner of the property another, and the Marshal be 
 the third. 
 
 At this period, a change takes place in the pecuniary 
 concerns of Massachusetts, which is in greater harmony 
 with modern predilections, than others previously named. 
 
 * Hazard. -Mass. Archives — Pecuniary, vol. i. 
 
30 HISTORICAL ACCOUNT OF 
 
 1650. Perceiving that European merchants still drew from this 
 ■-^'-'^^ country the specie, derived from the Dutch, Western 
 Islands, and elsewhere, the Legislature determined to set 
 up a mint of their own. ^ An additional cause for such a 
 piu-pose, is, that our vessels, which traded to the West 
 Indies, took considerable quantities of "light Spanish 
 coyne, whereby many people were cousened, and the 
 Colony in danger of being undone theireby ; " and to 
 prevent this deception, it was deemed requisite to have 
 this coin melted down here, and stamped according to its 
 weight and value. Hutchinson informs us, that our 
 commerce to the YV^est Indies brought home part of the 
 bullion, talien by numerous buccaneers from the Spaniards 
 and circulated there, and this was another call for our 
 fathers to make their own coin. Besides, our ancestors 
 were induced so to do, because they supposed the oppor- 
 tunity for it, more promising than any which might be 
 expected for a long time to come. It was but recently, 
 that Parliament had proposed to exchange the Patent of 
 this Colony for a new one, and thus showed an inclina- 
 tion to draw cords of subjection more closely around the 
 people here. A fui'ther consideration was, that our fore- 
 fathers felt themselves as much justified in being inde- 
 pendent of Cromwell, as he was in throwing olf the yoke 
 of Royalty. Hence it followed, that so far as they could, 
 without coming to an open rupture with him, they 
 declined the commital of themselves to his policy, and 
 acted for the prosperity of their own Commonwealth. 
 
 Their intention to establish a mint, was accompanied 
 with circmnstances which greatly ward off from them the 
 charge of treason, so often brought against^them after the 
 fall of the Cromwell administration, and inconsiderately 
 repeated by Robertson and other historians. Still it is 
 evident, from the manner in which our ancestors subse- 
 quently defended themselves against the charge of exercis- 
 ing a right of the throne, by issuing specie of their own 
 manufactm-e, that they felt the force of the position, that 
 
 ' Massachusetts Archives— Political vol. 
 
MASSACHUSETTS CURRENCY. 31 
 
 coining money in all States belonged to the supreme ic52. 
 power thereof. ~--/^- 
 
 With respect to such an institution the General Court 
 give their own views. ^ " It is ordered, and by the author- ^J^ 
 itye of this Courte enacted, that the printed order about 
 money shall be in force vntil the first of September next and 
 no longer. And from and after the first of September next 
 and no longer, the mony hereafter appointed and expressed 
 shall be the current mony of this Commonwealth and no 
 other, vnless English, (except the receivers consent there- 
 unto. ) In pursuance of the intent of this Coiu'tc herein, 
 be it fm-ther ordered and enacted by the authoritye of this 
 Com-te, that all persons whatsoeuer have libertye to bring 
 in vnto the mint howse at Boston, all bullyon, plate or 
 Spanish coyne, there to be melted and brought to the allay 
 of starhng silver by John Hull, master of the said mint and 
 his sworne officers, and by him to be coyned into twelve 
 penny, six penny, three penny peeces, which shall be for • 
 forme flatt and square on the sides, and stamped on the one 
 side with NE, and on the other side, with the figure xii"*, 
 vi'^, and iii'', according to the valew of each peece, together 
 with a privy marke, which shall be appointed euery three 
 months by the Gouernor, and knowne only to him and 
 the sworne officers of the mint. And fmlher, the sayd 
 master of the mint aforesaid is hereby required to coyne 
 all the said money of good silver of the just allay of new 
 starling English mony, and for valew to stampe two pence 
 in a shilling of less valew than the present English coyne, 
 and the lesser peeces proportionably. And all such coyne, 
 as aforesaid, shall be acknowledged to be the cm'rant 
 coyne of this Commonwealth, and passe from man to man 
 in ail payments accordingly, within this jurisdiccon only. 
 And the mint master for himselfe and officers, for their 
 paynes and labom- in melting and refining and coyning, is 
 allowed to take one shilling out of every twenty shillings 
 which he shah stampe — and it shall be in the liberty of 
 any person who brings into the mint howse any bullion, 
 plate or Spanish coyne, to be present and see the same 
 
 * Mass. Col. Records. 
 
32 HISTORICAL ACCOUNT OF 
 
 1652. melted, refined and alloyed, and then to take a receipt of 
 '■^^''^^ the master of the mint for the weight of that which is 
 good silver alloyed as aforesaid, for which the mint master 
 shall deliver him the like weight in currant mony, viz. 
 euery shilling to weigh three penny troy weight and lesser 
 pieces proportionably, deducting allowance for coinage as 
 before expressed. And that this order, being of so great 
 concernment, may not in any particular thereof fall to the 
 ground, it is further ordered that Mr Richard Bellingham, 
 Mr Wm Hibbens, Mr Edward Rawson, Capt John Leverett 
 and Mr Thomas Clarke, be a committe appointed by this 
 Court to appoint the mint howse in some convenient place 
 in Boston, to give John Hull master of the mint the oath 
 suitable to his place, and to approve of all other officers 
 and determine what else shall appeare to them necessary 
 to be done for the carrying an end of the whole order." 
 
 This document, as will appear from the sequel, was of 
 no trivial results to our Colonial authorities. It also throws 
 light on the hitherto obscure and unsettled question — 
 When did the custom of computing in Old England cur- 
 rency go down in our country ? It is plain from the 
 legislative enactments, that there was a departure in Mas- 
 sachusetts from the method of calculating in Old England 
 sterling, immediately in succession to Sept. 1, 1652. But 
 the appointed standard of om- first coin did not vary so 
 much, in the estimation of our Legislature, from that of the 
 London mint, as it soon did. Still from the alloy, expense 
 and wastage of the bullion here, reckoned by European 
 financiers as 22^ per cent., and also the prejudice in the 
 mother country against our coin, it would be very proba- 
 ble, had we no other proof, that the difference of exchange 
 between om' coin and that of London, speedily amounted 
 to 25 per cent. In addition to this, however, we have 
 the report of a Committee, designated by the General 
 Court in 1654, which expressly states, that our coin passed 
 abroad at the discount of one fourth part of its home value. 
 Hence, there is reason to believe, that no sooner did our 
 coin reach the London market, than it was valued at a 
 rate one quarter lower than theirs, and that thus the 
 
MASSACHUSETTS CURRENCY. 33 
 
 Standard of New England currency was fixed as early as 1652. 
 1G53. True, this pecuniary alteration has been allotted ^^^'"^ 
 to 1690, when our government ordered bills of credit to 
 be emitted. But such an assumption docs not appear to be 
 confirmed by the data already cited. 
 
 Not satisfied with the means of obtaining an increased 
 medium of circulation for purposes of traffic, serious 
 thoughts are entertained of resorting to paper money, in 
 addition to what had been already issued by individuals. 
 This, as well as other concerns of a similar nature, is appa- 
 rent in the ensuing extract. It is a report accepted by the 
 Legislature. Its language is, ^ " What hath bin thought of June, 
 by any for raiseing a Banke or engaging in generall trade 
 or relating to monies in regard of the badnesse of it, or 
 highnesse or lownesse of it, with very many other matters 
 tending to the promoting and well regulating of trade, 
 will by this means be ripened, and things reduced to a 
 more comfortable state, than wee now find." 
 
 In a subsequent apology to the King, our fathers, allud- 
 ing to this period, say, ^^ For some years paper bills passed 
 for payment of debts, which were very subject to be lost, 
 rent or counterfeited, and other inconveniences." 
 
 Relative to the further promotion of the mint. — The 
 following is the oath administered to the mint masters. 
 3 " Whereas you, John Hull and Robert Saunderson, are n. 
 appointed by the order of the Generall Courte, bearing 
 date the 10"' of June, 1652, to be oflicers for the Massa- 
 chusetts Jurisdiccon in New England, for the melting, 
 refyning and cojning of silver, you doe here sweare by 
 the great name of the Euerlasting God, that you will 
 faithfully and diligently performe the duty of your places, 
 that all mony cojned by you shall be of the just alloy of 
 y« English cojne, that euery shilling shall be of due 
 weight, viz. three penny troj weight, and all other peeces 
 proportionably, according to the order of Courte so neere 
 as you can. So helpe you God." 
 
 " At a meeting of the Committee for carrying an end of go 
 
 > Mass. Archives. ^ Massachusetls Archives — Pecu- 
 
 " Mass. Archives— PoUlical vol. Mivy, vol. i. 
 
34 
 
 HISTORICAL ACCOUNT OF 
 
 1652. the order concerning mony, it was determined, — First, 
 -^^^"^^ that there should be a mint howse and all tooles and 
 implements necessary thereto, built and procured at the 
 comitrje's charge, which is in acting and a declaration 
 accordingly made. Second, that warrants should issue 
 out to the constables of Boston for the pressing of Isacke 
 Culljmore for that service, which was done. Third, that 
 another warrant should issue out to the sajd Isacke 
 Culljmore for the empowring him to presse other work- 
 men, carpenters, &c. as may joyne with him in the 
 countrje's service, which was done. Fourth, that the 
 sajd mint howse shall be sett vppon the land of the sajd 
 John Hull, and alsoe it is agreed betwene the sajd Com'® 
 and the sajd John Hull, that whenever either by his death 
 or otherwise the sajd John Hull shall cease to be the mint 
 master, that then the countrje shall have the ground y® 
 howse stands vppon at such prize as two indifferent men 
 equally chosen by the countrje and sajd John Hull or his 
 assignes, shall determine, or else the sajd John on the like 
 termes have the sajd howse as two indifferent men shall 
 judge it to be worth at the choice of the countrje." Here 
 we have a sample of the manner in which our ancestors 
 transacted business. Though not the most loving friends 
 of royalty, yet they had no small spice of it in the execu- 
 tion of their orders. With them, it was no sooner said 
 than done. 
 
 As to the building for the manufacture of coin, it did 
 not call in requisition the talents of a Sir Christopher 
 Wren — nor would it fully compare with many stately 
 piles of our metropolis. It was ordered to be made of 
 wood, to be sixteen feet square, and ten feet high. No 
 doubt that this house, however circumscribed in its mate- 
 rials and dimensions, was then pointed out to the stranger 
 as an object of more than ordinary curiosity. Certainly it 
 did not deserve the rebuke of an adage, common in that 
 day, " Twelve pence laid out on the purse, and only six 
 pence in it." 
 
 Scarcely had the coin of our Colony seen the light, and 
 excited the gaze of unsatiated curiosity, before it was 
 
MASSACHUSETTS CURRENCY. 
 
 35 
 
 beset by the inventions of fraud. Such an evil was i652. 
 speedily taken in hand by the Legislature. Their words -^^^^^^ 
 follow. ^ " For the prevention of washing or clipping of Oct 
 all such peices of money, as shall be cojncd within this ^^' 
 jurisdicon, it is ordered by this Courte and the authoritie 
 thereof, that henceforth all peices of money cojned afore- 
 said, shall have a double ring on either side, with this 
 inscription — Massachusetts, and a tree in the center on 
 the one side — and New England, and the yeere of our 
 Lord, on the other side."- 
 
 With all the exertions of the civil authorities to improve 
 their currency, they were extremely low in funds, and 
 constantly looking for an attack from a Dutch fleet. On 
 this occasion, their language is, "As the comitrje is in 1654. 
 debt, no stock in the treasury, no meanes, at present, 3^^ 
 to raise any, so that workemen cannot be procured to 
 finish the Castle, which yett is necessary forthwith to be 
 done," the several military companies must do it ; one 
 division of them by having each of their soldiers labor 
 tliree days on this fortification, and another by being indi- 
 vidually assessed 4' 6*^. 
 
 Thus troubled for the ^cant of money, our fathers were 
 also troubled about the little which was circulated. They 
 saw, that however they had their coin less valuable than 
 foreign, which rather tended to keej) it at home, still it 
 found vents enough to threaten its almost entire with- 
 drawal from our shores. To hinder a result of this kind, 
 General Court adopt, for substance, the succeeding report 
 of their committee. '^ " Whereas the end of coyning mony 12. 
 within this Commonwealth is for the more easy managing 
 
 ' General Court Records. 6uch a tree, that the battle of Bunker 
 
 - A pine tree appears to liave been Hill was fought by our forces. So 
 
 a favorite sj'mbol with the authorities long ago as when the Britons paid 
 
 of Massachusetts. Tliey used it at taxes to the Romans, they used the 
 
 this time, when expecting that events coin, among others, which had a tree 
 
 would so occur in England, as to on it, and which Camden supposes 
 
 afford them an opportunity of being to be money paid for assessments on 
 
 an independent people. When they wood land. The pine tree, as used 
 
 declared themselves free from British by our immediate ancestors, was 
 
 rule, they had it appointed on the probably more as a sign of perma- 
 
 State flag, April 11, 1776. It con- nency than of tributary subjection, 
 tinned to the adoption of the thirteen ^ Massachusetts Archives — Pecu- 
 
 stripes. Even before this appoint- niary, vol. i. 
 ment, it was under tlie colors with 
 
36 HISTORICAL ACCOUNT OF 
 
 1654. the traficquG thereof within itself, and not intended to 
 ^"^ — '"^ malce retournes to other countrjes, which cannot advance 
 any profitt to such as send it, but rather a fowrth part 
 losse, vnlesse such persons doe oppresse and extort in the 
 sale of theire goods, to make vp the said losse, which 
 practise occasioned heereby (through some men's prefer- 
 ring theire owne gaine before publicke good) doth bring 
 an vndervalue vppon all commoditjes, raised among om'- 
 selues, and vtterly frustrate the end and vse of mony 
 amongst vs." Therefore no coin of this Colony, except 
 20' to pay each individual's expenses, is to be exported on 
 forfeiture of the transgressor's whole estate. They further 
 require, that a searcher for money be appointed in every 
 port of entry. 
 
 Such repeated endeavors to keep specie from being 
 carried out of the country, show how difficult it was to 
 have legal enactments for this purpose strictly observed, 
 when the balance of trade came in conflict with them. 
 Suidas relates the legend, that Juno told the Romans that 
 would they be rich, they must be just. So, Avould any 
 people be just to themselves, and save their coin from being 
 inordinately drawn from them, they must send, at least, as 
 much abroad in commerce, as they have in retm'n. ^ " A 
 country," says Montesquieu, " that constantly exports 
 fewer manufactures or commodities, than it imports, will 
 soon find the balance sinking ; it will receive less and 
 less, till, falling into extreme poverty, it will receive 
 nothing at all." 
 
 In order to meet the exigencies of the time, and to con- 
 tinue the credit of various articles as a legal tender, the 
 Aug. ensuing regulation is made by the government. ^"All 
 contracts for mony, corne, cattle or ffish, shalbe satisfyed 
 in kind, accordinge to covenant, or in default of the very 
 kind contracted for, in one of said kinds." 
 
 Not to lose sight of the simpler money of the aborigines, 
 we present the ensuing article. In the first particular 
 account issued by the Colonial Treasurer for the public 
 eye, by request of Boston gentlemen, who said as to what 
 
 ' Esprit de Loix. ^ Mass. Archives — Pecuniary, vol. i. 
 
 22. 
 
MASSACHUSETTS CURRENCY. 37 
 
 was paid in rates, "how it reached its end is best knowne i655. 
 to them, who had the disposeing thereof," we have these '~5a^ 
 items : — " To so much peage bmuit with the Treasurer's 20. 
 house, £35 10/. By IS strings of peage for tribute, at 6 
 a penny, £45." Thus we have renewed notice, that the 
 currency of the natives was not yet supplanted by the 
 brighter products of the ore, and was still paid as the 
 eai'nest of their fealty. 
 
 As an instance of trouble, wliich frequently attended 
 the bringing of stock to om* metropolis, for the payment 
 of Colonial rates, we have the story of Nicholas Norton, 
 late Constable of Weymouth. " Yoiu: petitioner presented i e 5 5 . 
 cattell here in Boston, which was refused both by the July. 
 Treasmer and Capt. Clarke, and when we had spent two 
 or three days thereabout and none would be received, we 
 droue home the said cattell." There can be little doubt 
 but that this complainant might have traced at least one 
 half of his perplexity to the fact, that his creatures had a 
 very striking resemblance to " Pharaoh's lean kine." 
 
 As a sample how Collectors were forced to receive 1657. 
 almost every article, whether the products of agriculture 
 or maimfactm-e, in lieu of cash, we offer the following. 
 John Dickenson, late Constable of Salisbmy, petitions 
 General Com-t, that, having taken hoards in payment for 
 taxes, from people of his own town, because they had no 
 corn — and Treasm-er would not allow him so much for 
 the boards, as he did — he may have redress. 
 
 To promote a wider diifusion of the Indian money, as 
 well as to prevent the continuance of oppressive monopoly, 
 the commissioners of the United Colonies interpose their 
 authority in the subsequent case. ^ Being informed that 1658. 
 the "Montackett" sachem had liindered the Pequods j^' 
 from getting shells to make wampum, they required him 
 to suffer his red brethren to share in such a privilege. 
 
 It seems that while the chief men of our Colonies were 
 thus endeavoring to have their untutored tributaries deal 
 with even handed justice, some of oiu: own people com- 
 promised between their conscience and covetousness by 
 
 ' Hazard. 
 
33 HISTORICAL ACCOUNT OF 
 
 1(358. paying the public demands in the worst of their tithes. 
 
 ^-^^ Hence an order was issued by our civil fathers, that no 
 
 19. man should attempt to discharge his rates with ' lank ' 
 
 cattle.^ 
 May ' That we may have an impression of the comparative 
 cost, which occurred in the transporting of the grain cur- 
 rency to the j)lace of its deposit, the succeeding charge is 
 exhibited. On a tax of £70 6' 8'', to be answered in 
 "country pay," by the town of Ipswich, Richard Russell, 
 the Treasurer, charged for boatage £3 6*, which was some 
 over 5 per cent. 
 
 The mint renewedly invites our attention. With some, 
 it was the ideal discovery of the alchymist, which was to 
 make riches nearly as abundant here, as they were when 
 Solomon "made silver to be in Jerusalem as stones." 
 
 But whatever speculations were indulged in reference 
 to it, our civil authorities watched over it, with com- 
 ^P mendable vigilance, so that it might benefit their country 
 as much as possible. ^ They say — " The mint master is 
 hereby inioyned of the first bullion that comes to his hand, 
 to coyne two penny peeces of silver, in proportion accord- 
 ing to the iust vallew and alloy of other monys, alowed 
 here, to answer the occasions of the contry for exchange ; 
 that is, the first yeare fifty pounds in such small mony for 
 every hundred pomids by him to be coyned, and for after 
 time, twenty pounds in like mony annually for every 
 hundred pounds, that shalbee coyned, and this order is to 
 continue in force for seaven yeares." 
 
 ^ Stimulated by the example of Massachusetts, the Colony 
 of Maryland establish a mint. They however decide, 
 that their coin, issued from such an establishment, shall 
 be equivalent to English sterling. 
 
 ^ Relative to our own specie, an interesting tm'n was 
 given by Thomas Temple — a warm friend of New England 
 and Governor of Nova Scotia — in conversation with His 
 Majesty, Charles H. Being introduced to the King, while 
 on a visit to ^London, he was permitted to kiss his hand. 
 
 ' Colonial Records. ^ Chalmers. 
 
 ^ Massachusetts Archives — Pecu- ■• Mass. Archives — Political vol. 
 
 niary, vol. i. Life of Thomas Hollis. 
 
MASSACHUSETTS CURRENCY. 39 
 
 This sovereign discoiu-sed with him on the state of affairs i662. 
 in Massachusetts, and discovered great warmth of feehng — '^^ 
 against them. Among other things, he said, that they 
 had invaded his right by coining money. Governor 
 Temple told him, that the colonists thought it no crime 
 to make money for their own use. In course of the inter- 
 view, Mr. Temple took some of our coin from his pocket 
 and presented it to the king. Seeing a tree on one of 
 the pieces, Charles inquired what sort of a tree that was. 
 The immediate reply was, it was the royal oak, which 
 preserved his majesty's life. Such an answer brought the 
 king to good hmnor, and induced him to hear the pleas 
 which the governor made in favor of our colony. It is 
 presumed from the character of Mr. Temple, that on this 
 occasion he intended no deceit, but a pleasant, figurative 
 allusion to a remarkable preservation of his majesty. 
 
 Among the severe trials of our government, was their 1G65. 
 being called to an account by the royal commisioners, 24; 
 who had come hither, respecting their mint. Thus they 
 had the fruit of the dissatisfaction, so openly expressed 
 by the King to Governor Temple. The commisioners 
 declared, according to the generally received opinion of 
 Europe, that the coining of money was a royal preroga- 
 tive, for the usm-ping of which, the act of indemnity was 
 the only salvo. They bore so hard on our civil authori- 
 ties, in this and other respects, that they refused any 
 further conference with them, and made an appeal to the 
 throne. In this docimient we have the ensuing passage : — 
 1" Royal Sir, a just dependance upon and allegiance vnto Aug. 
 your majestye according to the charter, wee have and doe ^• 
 professe and practise and have by our oathes of allegiance 
 to your majesty confirmed. But to be placed vpon the 
 sandy foundations of a blinde obedience vnto that arbi- 
 trary, absolute and unlimited power, which these gentle- 
 men (i. e. commissioners) would impose vpon us, who in 
 their actions towards us, haue carried it, not as indifferent 
 persons towards us. This, as it is contrary to your 
 
 * Massachusetts Colony Records. 
 
40 HISTORICAL ACCOUNT OF 
 
 1665. niajestye's gracious expressions and the liberties of English- 
 ^^^•"^^ men, so wee cannot see reason to submit thereto." 
 
 As a step towards softening the asperity of the King — 
 
 1666 ^^^^^ could ill brook the independence of our ancestors 
 
 Sept. in establishing their mint — they order "two very large 
 
 ■ masts," to be transported to London for his majesty's 
 
 Qp^ navy. They soon add to this present a ship load more of 
 
 11. smaller sized spars.' 
 
 However, given to. understand by the royal agents from 
 London, that their continuance of coining money was 
 contrary to the pleasure of the crown, yet our rulers did 
 not slack in their exertions for its furtherance. Perceiving 
 that the mint masters, Messrs. Hull and Saunderson, made 
 large profits by their employment, they applied to them, 
 by a committee, to pay rent for their use of the building 
 2gg7 and apparatus. A report is made, that those two gentle- 
 Oct. men will allow £40 for past occupation, and £10 annually 
 
 in future, on a lease of seven years. 
 1068. A computation being made, as to the average cost of 
 25^ transporting the produce for taxes, from different parts of 
 the colony to Boston, it was found to be not less than one- 
 tenth. To avoid, in some degree, such loss, the Treasurer 
 is instructed to pay the colonial creditors out of the com- 
 modities collected for rates, in the towns where they 
 reside. 
 Oct. As a reason for repealing an act, for laying a duty of one 
 per cent, on imports and exports, and two pence on each 
 bushel of grain from adjacent colonies, a petition from 
 Marblehead to General Court, holding similar ideas with 
 another from Salem, has the ensuing language : — ^ " If the 
 necessity of y*^ country call for other supply, it may bee 
 raised one mony imported, by causing peices of eight, viz : 
 Pillar Mexico and Seville to bee valued at six shillings per 
 peice and so to pass, which may cause plenty of it amongst 
 us." Such proposals, in one form or another, were fre- 
 quently made in order to regulate the medium of ex- 
 change. 
 
 ' Sir Henry Ashurst and other there, to pay for the expenses of 
 friends of our Colony, bein^r in Lon- sending tliese presents to England, 
 don, are empowered to hire iil,OUO -Mass. Arcliives — Maritime, vol. i. 
 
MASSACHUSETTS CURRENCY. ^J 
 
 The following is the caption of a report made to the i(3(j9_ 
 Assembly relative to a similar subject : — ' '' Being sensible ^J^^ 
 of the great necessitie of money for the more easie and 2. 
 equal carrying on of commerce amongst us, and finding 
 that coyning hath not fully answered the Court's expecta- 
 tions, but there still remaynes great want of a further 
 supply — ." With this introduction, a proposal is made to 
 repeal the law, which forbad all foreign coin, except of 
 the mother country, to pass current ; and to make each 
 piece-of-eight, made of the finest sterling silver at 6% 
 and its halves, quarters and eighths in like proportion, said 
 other money at the same rate. This plan was evidently 
 promoted by the petitions previously mentioned, but was 
 not approved by the magistrates, and consequently delayed 
 to be enforced. 
 
 To meet a change in the negotiations of business, the 1670. 
 subsequent order is passed : — - " Whereas the law titled ^^^ 
 payments doth make corne, cattle and fish equall with 
 money and to be payd as money, when money is indented 
 for, wliich, at that time, when the law was made, was as 
 good as money, but now is otherwise and proveth prejudi- 
 cial! on several accounts," therefore contracts for specie, 
 shall be paid in specie. 
 
 The project for having other foreign coin pass here as 
 well as that of England, being kept on the tapis, and 
 becoming increasingly popular, is now adopted. " Whereas 1672. 
 peeces-of-eight are of more value to carry out of the ^'^^• 
 country then they will yeild to mint into our coyne, by 
 reason whereof peeces-of-eight which might else come to 
 coyning are carried out of the country, It is therefore 
 "ordered by this Court and the authority thereof, that all 
 peeces-of-eight, that are full weight and good silver, that 
 is of six shillings of N. E. money, of Mexico Sevil and 
 Pillar, and so all less peeces of each sort shall passe in this 
 jurisdicon as current as our oune money, peeces-of-eight 
 at six shillings a peece, and all less peeces proportionably 
 thereunto, provided that all such peeces, that shall passe in 
 this jurisdicon have a stampe affixt vpon tliem, which 
 
 ' Mass. Archives — Pecuniary, vol. i. * Colony Records. 
 
 G 
 
42 
 
 HISTORICAL ACCOUNT OF 
 
 2 372 shall be A^^, to evidence that they are of right alloy and 
 
 ^■^-■^ due weisht, and that Mr. John Hull and Mi*. Robert Saun- 
 
 derson, or either of them, bee the persons for the tryall 
 
 and stamping of such money, and that thereby fower 
 
 pence vpon the pound payd for the rest, one fowerth 
 
 thereof to the office and the rest to the country Treasurer." 
 
 Pieces-of-eight under weight of 6' shall pass for so much 
 
 of N. E. money, as they weigh, and " that it be impressed 
 
 vpon the stampe how much each peece doth weigh, in 
 
 legible figm-es with the other letters on the same and of 
 
 the same alloy." 
 
 Notwithstanding the obstructions thrown in the way of 
 
 the mint here by royal authority, it is leased again, in 
 
 J 675. accordance with the subsequent report: — "That the for- 
 
 J"'y mer masters of the mint, Robert Saunderson and John 
 9. 
 
 Hull, doe continue to mint what silver bullion shall come 
 
 in for this seven yeares next to come, if either of them 
 hue so long, and doe receive of those that bring bullion to 
 the mint as a full reward for their pains twelve pence for 
 every twenty shillings, and three pence for the waste of 
 every three ounces of sterling silver that they shall so 
 mint, viz : fiueteen pence in the whole for euery twenty 
 shillings, and the sayd minters are to pay into the Trea- 
 surer of the Country in money twenty pounds per ami. 
 during abouesaid terme." 
 
 So pressing was the want of specie, experienced by the 
 23 ■ government, in consequence of Philip's war, they offer to 
 abate twenty-five per cent, on taxes, payable in grain, to 
 all who advance cash. ^ Dming the same disastrous con- 
 test, such discount reached one half the estimated price of 
 comitry pay. 
 
 A mode, having some approximation to paper currency, 
 is now introduced. It is thus expressed by the Legisla- 
 Nov. ture: — "For prevention of the charge and trouble of 
 ^' transportation of the rates to be leveyed, to the Treasurer 
 of the country, as also matter of convenience, therein 
 appearing, It is ordered, that bills for wages, horses, pro- 
 visions, &/C. being regularly passed to the sayd Treasurer, 
 
 ^ Massachusetts Colony Records. 
 
MASSACHUSETTS CURRENCY. 43 
 
 the Treasurer vpon the desire of persons concerned, shall 1(575, 
 repasse bills to the Constables of such Townes, where •-^-'■^^ 
 sums are due vpon the aforesayd accounts." 
 
 As a means of lessening the difficulties, which attend the 
 specie of the colony, a committee of the Legislature make 
 the ensuing report: — ^"In pursuance of an order to obtain 1G77. 
 the coynage of bullion and stoppage of transportation of 2. 
 money, we have discom'sed Cap. Hull and others, and find 
 no other expedient but the raysing of the valine of our 
 coyns or making our money for future higher by nine or 
 twelve grains, or making the mint free ; for the first, if it 
 be done, three half pence in the shilling and the law for 
 exportation of money duly attended, we hope it may 
 obtain what is desired, — the matter of paying coynage out 
 of the Treasury, we find the charge uncertain, but great, 
 and both expedients attended with difficulty, and there- 
 fore judge them worthy of further consideration. In the 
 mean time, we judge it meet to double the custom of all 
 wines, brandy and rhum imported, which being drawn 
 into the Treasury, part of it may pay the charges of a free 
 mint, if the Court afterwards see meet to improve the 
 same." 
 
 Still perceiving that the finger of royal displeasure was 
 pointed at them, on account of their mint and other con- 
 cerns, the General Comt order, that a peace offering be 
 made to his majesty. ^It consists of these particulars, Oct. 
 "tenn barrels of cranburyes, two hogsheads of speciall 
 good sampe, and three thousand of cod fish." 
 
 To their agents in London, our rulers thus express them- 
 selves: — "As for that particular of our coyning money 1678. 
 with our oune impress, his majesty of his gracious clem- ^^^' 
 ency towards us, hath not been pleased, as yet, to declare 
 his pleasm-e therein. And wee have confidence, that 
 when he shall truly be informed of the simplicity of our 
 actings, the public joy thereof to his subjects here, and the 
 great damage that the stoppage thereof will inevitably be 
 to our necessary commerce and abatement of his majesty's 
 customs yearly accruing by our merchants and navigation 
 
 ' Mass. Archives — Pecuniary, vol. i. ' Mass. Colony Records. 
 
44 HISTORICAL ACCOUNT OF 
 
 1678. ^^'^^ is payd at London, his majesty will not account those 
 — '^^ to be friends to his Crowne, that shall seek to interrupt us 
 therein and for the impress put vpon it, wee shall take it 
 as his majesty's signall ouning of vs, if he will please to 
 order such an impresse as shall be to him most accep- 
 table." 
 
 1680. For several years a plan had been on foot in the Colony, 
 31 a V 
 
 ig^ to have a free mint, or have bullion coined at it without 
 
 any charge to its owner. ^ Reasons assigned by a writer for 
 a change of this kind were, that it would remove general 
 complaint, lessen the languishment of trade, and increase 
 the amount of specie. Among his remarks were these, 
 that foreign coins came from the mint 6J per cent, less in 
 value than they entered ; that the stamp on our money 
 added nothing to its real worth — '' a Spanish Cross in all 
 other places being as well esteemed as a New England 
 Pine ;" that little coin was now made here compared with 
 what used to be, and that of this little a considerable 
 portion circulated in the other colonies. 
 
 1681. Having in view that, among the misdemeanors charged 
 I upon them at St. James, was the oft repeated one of mak- 
 ing money, our Legislature give their agents, bound to 
 London, the subsequent instructions: — ^" You shall be 
 humble suiters to his majesty for the obteyning his Royall 
 grant freely to remit all bypast errors and deviations from 
 the rules of our Charter. And you shall also tender an 
 annuall recognition by vs to be made, as the acknowledg- 
 ment of our allegiance and humble thankfullness to his 
 majesty for his gracious clemency towards vs, to be payd 
 in twenty or thirty Beaver skinns annually, or in any 
 other thing of the groweth of this Colony as his majesty 
 shall please to make choyce on demand at Boston." 
 
 1682. Finding that the measures recently adopted to stop our 
 ^^^' specie from being exported, and to increase it among the 
 
 people, did not succeed, the General Court raise the nom- 
 inal value of a Pillar, Mexico or Sevil piece-of-eight from 
 6' to 6' 8'^, if weighing an ounce of silver, Troy weight, 
 and its parts in the like proportion. 
 
 I Mass. Archives — Pecuniary, vol. i. *Mass. Archives — Political vol. 
 
MASSACHUSETTS CURRENCY. 
 
 45 
 
 As a compensation to the Treasurer of the Colony for i(;84. 
 his constant liability to damage in receiving public claims "jT"^' 
 on the inhabitants in grain, he is allowed 1' on £1, "he i. 
 standing to the loss of measure and charge of warehouse • 
 room." 
 
 A report is made by officers^ of the London Mint to the 1C85. 
 Commissioners of the Royal Exchequer, relative to the ''^"• 
 money of Massachusetts. They state that it Avas 22 J per 
 cent, lighter than that of England, and that thereby much 
 of their own coin was brought hither. They desire, that 
 if the King continue the Boston mint, he would order its 
 emissions to be of equal value with his own specie. 
 They further remark concerning our Legislatm-e, "though 
 they have continued this unwarrantable way of coyning 
 monys ever since y'' year 1652, yet there is no alteration 
 of date appears upon the coyne, but the same date, viz. 
 1652, as at the first coyning of them." With their con- 
 duct thus watched and criticised in London, our ancestors 
 were soon to experience the feared, but deprecated suspen- 
 sion of their Charter privileges. 
 
 This event they soon realize. Though the long estab- 1686. 
 lished form of our Colonial Government had departed, and ^^^y 
 its remains had come into hands of greater reputed 
 royalty, to be modified and administered according to 
 their instructions from the Crown, still the doors of our 
 coining establishment were not yet closed. ~ This institu- j„]„ 
 tion became the occasion of another report from the Earl 15. 
 of Rochester, Lord High Treasurer of England. Such a 
 document advanced, as reasons why the mint here should 
 be abolished, that a similar establishment had been refused 
 to Ireland, even after being allowed to Sir Thomas Vyner 
 and others in 1662, and another to Jamaica in 1679, applied 
 for by the Governor of that Island, the Earl of Carlisle, 
 and that they tended to injm-e the standard of coins, 
 adopted by Parliament. The Committee added, — "As for 
 the second part of Mr. Guy's letter, which directs us to 
 think upon some other inscription more agreable to the 
 
 ' Thomas Neale, Charles Dun- ^ Massachusetts Archives — Pecu- 
 
 combe and James Hoare. niary, vol. i. 
 
4g HISTORICAL ACCOUNT OF 
 
 1686. King's prerogative, to be stampt upon the coyne of New 
 '^' England, if a mint be settled there, wee craue some time 
 to consider of it." 
 
 While the mint here was endangered by such repeated 
 attacks, measures were revived for the promotion of a 
 Bank. The following action was had on this subject by 
 
 Sept. President Dudley and his Council, ^ " Upon the considera- 
 ^^' tion of the great decay of trade, obstructions to manufac- 
 tures and commerce in this Country, and multiplicity of 
 debts and suits thereupon, principally occasioned by the 
 present scarceity of coyne. And for that it is not visible 
 how the same may be remedied, unless some other secure 
 medium be approved than the species of silver, which very 
 injuriously hath been transported into other parts hence. 
 And for as much as it hath been suggested and made 
 appeare to us, that the defects aforesayd may be supplyed 
 with Bank Bills, or credit given by persons of estate and 
 known integrity and rejDutation, which may passe with 
 greater ease and security in all payments of twenty shil- 
 lings or above, than monies coyned. And that other 
 countryes haue found their Banks useful to their great 
 flourishing in trade and wealth. And Bank credit or Bills 
 are of greater value than ready money there. Also, that 
 his Majestie's revenues in this Country cannot be so well 
 answered by the present species of silver, without a great 
 streightening, impayring, and damage to the merchandizing 
 trade and dealings of his Majestie's good subjects in these 
 his territories and dominions. And having perused and 
 considered a proposall, made to us by John Blackwell of 
 Boston, Esq"", on behalf of himself and divers others, his 
 participants, as well in England as in this Countrey," 
 liberty is granted for the Directors, or " Conservatives" of 
 the Bank, to commence the issuing of bills, on security of 
 real and personal estate, and imperishable merchandize. 
 
 This, like other kindred institutions, was hailed as the 
 object of fresh and cheering hope. It was undoubtedly 
 regarded by its advocates as promising them much more 
 of a golden harvest than they realized. As the project of 
 
 ' Mass. Archives — Usurpation, vol. i. 
 
MASSACHUSETTS CURRENCY. 4-7 
 
 enterprizing merchants in both hemispheres, it must have ^^op 
 been viewed as a new bond of union between the Colony s-^v-i^ 
 and its mother kingdom. Experience, however, probably 
 taught them that banking was not so much a sm*er road 
 to wealth than minting, as their sanguine expectations 
 predicted. The history of that age, and of every other, as 
 to commercial countries, has proved that no plans for en- 
 larging the currency of a Commonwealth can really flourish, 
 miless based on the earnings of its honest and industrious 
 population. How long or how far the preceding Corpora- 
 tion continued their operations, we are unable to tell ; 
 because the records of the Presidential government of New 
 England, while having entire copies annually forwarded 
 to London, were left here only in loose and comparatively 
 small fragments. This much, however, is certain, that if 
 it existed, as it very probably did, till the Revolution of 
 1689, it did not survive any longer. As almost an entire 
 stranger among the computed institutions of currency in 
 our country, we quote the ensuing paragraph in relation 
 to it, from a rare tract published in 1714. ^ " About 
 twenty eight years ago, our fathers entered into a partner- 
 ship to circulate their notes, founded on land security, 
 stamped on a paper, as our Province bills, which gave no 
 oflTence to the Government then and at that time, when 
 the prerogative of the Crown was extended further than 
 ever has been since." 
 
 The Bank, to which this refers, had much resem- 
 blance, in its regulations, to one formed in London,^ 1683, 
 which did not keep long in operation. 
 
 Though the administration of Sir Edmund Andros was 
 deemed very oppressive by the most of our Provincials, 
 and though its expenses called for larger fees and greater 
 taxes, yet it did not refuse to accommodate many of the 
 people, in receiving from them country pay for their rates. 
 ^It carried the spirit of accommodation so far, as to permit i687. 
 the public demand on Hingham to be paid in milk pails. 
 Its coffers were kept open for the treasures of the field, 
 
 ' Boston AlheiifEum Tracts, C 121. ^ Massachusetts Archives — Usur- 
 
 * Boston AlhencEum Tracts, B 654. pation, vol. i. 
 
48 
 
 HISTORICAL ACCOUNT OF 
 
 iggg as well as of the mine. One report of the Treasury states 
 its funds thus : — 
 
 Corn remaining unsold, ... £ 938 11/1. 
 Money, 1,340 10/3. 
 
 1687 A considerable means of enlarging the specie circulation, 
 ^"*^ was the arrival of several vessels^ fitted out in Boston and 
 ' elsewhere, with Indian divers, from some Spanish wrecks 
 on the north side of Hispaniola. Such vessels brought 
 from these sunken argosies, treasures of various sorts and 
 amounts. It was from the same source, that Sir William 
 Phips derived his title and his fortune. 
 
 Still, a supply of this kind was nothing near equal to 
 the increased charges to Avhich many persons were sub? ' 
 jected, in defending their lands from being sequestered, 
 because they delayed to pay largely for new deeds of them, 
 
 1688. or in meeting the claims of quit rent on them. ^The 
 inhabitants of Cambridge having been engaged in contro- 
 versy with Edw*^ Randolph, who tried to get a large piece 
 of their territory, thus express themselves in a petition to 
 the throne : — " Royal Sir, we have no way to procure 
 money to defend our cause in the law — therefore unto our 
 Royal master, as the public father of all your subjects, 
 do we make this our humble address for relief." 
 
 ^ With the recovery of their freedom, by the overthrow 
 of the Usurpation, our ancestors renewed their exertions to 
 sustain the Boston mint. ^ They sent a petition to William 
 and Mary, for permission to coin money, as they had done. 
 But this request does not appear to have had a favorable 
 reading, and of course the coining establishment, which 
 seems to have been suspended under the late administra- 
 tion, must soon have received its final quietus. Thus fell 
 an institution, around which the hopes and fears of our 
 fathers long clustered, and against which expressions of 
 regal dissatisfaction had been often uttered. Formed 
 
 > Hutchinson. Narrative of New ^ INlass. Archives — Inter- Charter, 
 
 England Miseries. vol. i. 
 
 * Mass. Province Records. 
 
MASSACHUSETTS CURRENCY. 49 
 
 when the poHtical foundations of England were broken Kjgo. 
 up, and a di-ead uncertainty obscured her prospect, it ^^^^^^ 
 closed when the storm of another revohition had recently 
 swept through her domain, and was scarcely hushed. 
 
 However the mint was thus absolutely terminated, yet 
 the products of its operation were long current in our 
 comitry. Down to the Revolution of our Independence, 
 they were often seen, and passed readily in business trans- 
 actions, with other coin.^ 
 
 Disappointed as to the renewal of their mint, and borne 
 down to the very dust by the burden of debt,^ incurred by 
 the faihu'e of an expedition against Canada, the General 
 Court saw no other choice than to form a Provincial 
 Banlc, and issue paper money. Let their own words tell 
 the cause for such a measure. ^ " Whereas for the main- Dec. 
 taining and defending of their Majesties interest against 
 the hostile invasions of their French and Indian enemies, 
 who have begun and are combined in the prosecution of 
 a bloody war upon the English of their Majesties Colon^'-s 
 and Plantations of New England, this Colony hath neces- 
 sarily contracted sundry considerable debts, which this 
 Court taking into consideration, and being desirous to 
 approve themselves just and honest in the discharge of 
 the same, and that every person who hath credit with the 
 country for the use of his estate, disbursements or service 
 done for the public, may in convenient time receive due 
 and equal satisfaction ; withal considering the present pov- 
 erty and calamities of the country, and, through scarcity 
 of money, the Avant of an adequate measure of commerce, 
 whereby they are disadvantaged in making present pay- 
 
 ' Thomas Hutchinson, afterwards ' Gov. Win. Shirley, in his speech 
 
 Governor, wrote to one of his cor- of 1746, states that the expedition 
 
 respondents in England, Feb. 23, against Canada, in ItiilO, " cost the 
 
 17(il, " I will give Dr. Wliitworth single Province of Massachusetts 
 
 a N. E. shilling and sixpence, which about £50,000, with the loss of an 
 
 1 desire you to present, with my abundance of their young men by a 
 
 compliments to Mr. Jackson. As malignant fever, that raged in the 
 
 there never will be any more coined, camp, and several distempers that 
 
 and no other Colony ever had any happened in their way home, and 
 
 coin, perliaps they will be looked gave this I^rovmce so deep a wound, , 
 
 upon as something of a curiosity." that it did not recover itself in many 
 
 Mr. Hutchinson does not agree with years after." 
 
 Chalmers, who informs us, that -* Mass. Province Records. 
 Maryland had a mint in 1662. 
 
 7 
 
50 HISTORICAL ACCOUNT OF 
 
 1690. nient, as desired, yet being willing to settle and adjust the 
 
 """""^ accounts of said debts, and to make payment thereof, with 
 
 what speed they can," a committee are empowered to 
 
 make an immediate issue of £7,000, in bills from 5* to £5. 
 
 The form of such notes was as follows : — 
 
 No. ("2161.; 10' 
 
 This indented Bill of Ten shillings due from the Mas- 
 sachusetts Colony to the Possesso?^, shall be in value equal to 
 money, and shall he accordingly accepted by the Treasurer 
 and Receivers subordinate to him, in all public payments, 
 and for any stock at any time in the Treasury. Boston 
 in New England, Dec. 10, 1690. By order of General 
 Court. 
 ***##*** Penn Townsend, ") 
 
 * L. S. I Adam Winthrop, S- Committee. 
 
 ******** Tim. Thornton, j 
 
 Thus commenced a method of furnishing a paper cur- 
 rency, regulated by the government, and conducted by its 
 officers, which continued till 1750, excepting some, in 
 bills of small denominations, for change, emitted soon after 
 that year. Notwithstanding all the safeguards which an 
 honest and anxious government threw around such a price 
 of their defeat in Canada, they were mortified and alarmed 
 to perceive, that it failed to have a strong hold on popular 
 confidence. ^ To aid in the prevention of a panic, relative 
 to monied concerns, and ever injurious to community, 
 Sir Wm. Phips came forward and exchanged, at par value, 
 a large amount of his coin for the Province paper. Still 
 he found the common fear stronger than his persuasion 
 and example — greater than the funds of his wealth. The 
 result proved most oppressive, where it always does in 
 similar exigencies. -The soldiers, who smvived the 
 perils and pains of the expedition, the widows and orphans 
 of their companions, who perished in the disastrous enter- 
 prise — were compelled, by want, to receive their dues in 
 public bills, and to part with them at a discount of at 
 
 1 Hutchinson. 2 Boston Athenaeum Tracts. C 55, C C2. 
 
MASSACHUSETTS CURRENCY. ' 5J 
 
 least one third. This opened a new source for speculation, i690. 
 with tiie usual pleas and objections for its being practised. '^^ 
 
 ^It is ordered that the bills out and to be emitted, shall kjcj^^ 
 not exceed £40,000, " which is supposed will amount to May 
 the full of what the country is indebted, and will probably 
 be called in again by the rates already granted." Here 
 was a hopeful anticipation, which was not happily realized, 
 because the protraction of the war prevented. 
 
 In order, however, to commence the accomplishment of Oct. 
 their purpose. General Court require that £10,119 9' in '^^' 
 bills, collected by the Treasurer, be consumed by a com- 
 mittee. Thus began a burning process, which was re- 
 peated over a half century. Curiosity has preserved no 
 residuum of the bills, as the Repository of the Royal 
 Artillery at Woolwich has of the Bank of Eiigland notes, 
 in a case of glass, for the examination of visitors, 
 
 ^ A writer of this period, in describing the unwillingness 
 of many to take the paper currency, asks, " Is the security 
 of one Plantation magistrate [in the West Indies] better 
 than that of all the Massachusetts Representatives ? " He 
 adds, that the French in Canada had more faith in the 
 promise of their government, for they readily took the 
 notes issued from their treasury. 
 
 2 To rectify the diminution of our paper, the ensuing 
 order is passed. " Whereas theire Majesties affaires within 1 692. 
 this Province do require a speedy advance for y*^ defence "'"^ 
 of y^ Province and y*^ prosecution of y® war against theire 
 French and Indian enemies, and there being no stock at 
 present in y'^ Treasmy to supply y^ same, or to defray 
 other y^ necessary charges for support of y*^ government, 
 be it therefore enacted that all Bills of publick creditt 
 issued forth by order of y*" Generall Court of y^ late Col- 
 lony of y® Massachusetts Bay, shall pass current within 
 this Province in all payments equivalent to money, and in 
 all public payments at 5 per cent, advance. And for 
 encouragement to such persons as are possessors of said 
 Bills, to lend them for y*" service of y'^ publick, it is further 
 
 > Mass. Province Records. '' Massachusetts Archives — Pecu- 
 
 * Boston AthenaBuin Tracts, C 55, niary, vol. i. 
 
52 
 
 HISTORICAL ACCOUNT OF 
 
 1692. enacted that they shall be secured by y® publick Taxes 
 ""^^^ and other Revenues, and shall be reimburst in money 
 within twelve moneths." 
 
 This remedy for restoring the paper to a par with specie, 
 had its intended efficacy for about twenty years. ^ The 
 bonus of five per cent, was allowed as often as the bills 
 were brought to the exchequer, though several times in a 
 year, which frequently occurred, because they were re- 
 peatedly issued. 
 
 This, which was more than six per cent, a year, vir- 
 tually contradicts the ensuing representation of Smith, in 
 his Wealth of Nations, — certainly in part, as to Massachu- 
 setts. " The paper currencies of North America consisted 
 not in bank notes payable to the bearer on demand, but in a 
 government paper, of which the payment was not exigible 
 till several years after it was issued. And though the 
 Colony government paid no interest to the holders of this 
 paper, t^iey declared it to be, and in fact rendered it, a 
 legal tender of payment for the full value for which it was 
 issued. But allowing the Colony security to be perfectly 
 good, £100 payable in fifteen years hence, for example, 
 in a country where interest is at six per cent., is worth 
 little more than £40 ready money. To oblige a creditor, 
 therefore, to accept of this money as full payment for a 
 debt of £100, actually paid down in ready money, was an 
 act of such violent injustice, as has scarce, perhaps, been 
 attempted by the governments of any other country, which 
 pretended to be free." Such language evidently shows, 
 that Mr. Smith looked only at the worst features of our 
 Provincial paper currency, and not at its best. Besides, 
 a considerable portion of the Province bills were redeemed 
 sooner than he appears to have supposed. 
 
 With regard to the loan of the bills to government, 
 which a considerable number of merchants in Boston 
 made, it did not operate so punctually, as was anticipated. 
 In the petitions of the latter, they regret, that though the 
 time had expired several months, yet the treasury had no 
 coin to satisfy their claims. 
 
 ' Boston Gazette, Aug. 20 to 27, 1739. 
 
MASSACHUSETTS CURRENCY. 
 
 53 
 
 Among the various evils, aside from those of witchcraft, ^qq^. 
 which attracted public attention, was the counterfeiting of — ■ — 
 tlie hard money. ^ The Legislatiu'c felt themselves called Nov. 
 to deal with this crime more severely than before. Besides ■** 
 other judicial intlictions, those convicted of it were to 
 stand in the pillory and each have an ear cropped. Still, 
 though this and other severer measures were adopted, the 
 organ of acquisitiveness, if we may use a phrenological 
 phrase, had developed itself so inordinately in some, they 
 braved the terrors of justice and aimed to debase the cur- 
 rency for their own gain. 
 
 While thus guarding the medium of exchange by penal 
 enactments, our civil fathers strove to improve it in other 
 respects. They say — -" Forasmuch as the abatement of j 693. 
 Interest hath always been found beneficial to y^ advance- ^""^ 
 ment of Trade and improvement of lands by good hus- 
 bandry," — and they order that the long standing eight per 
 cent, ^interest be reduced to six. 
 
 Of the frequent difficulties, which attended the transpor- 
 tation of country pay for taxes, we select the following : '^ — 
 A constable of Springfield, employed to collect the Prov- 
 ince rates, received 130 bushels of peas. As the water 
 carriage was most preferable, he had to make seven or 
 eight jom'neys to Hartford and two to Boston, before he 
 could get his heavy remittance for the colonial Treasurer, 
 taken on freight. But however such toil was at an end, 
 his chief anxiety begins. His adventure in descending 
 the Falls of Comiecticut River met with a sad mishap 
 and was rendered unsaleable by being wet with the water. 
 
 His townsmen laid his case before General Court, desirins, ^ 
 
 ' °' June 
 
 that as he was in the way of his duty for the public, he 14. 
 
 might not bear the loss. They lent a favorable ear to the 
 
 petition. 
 
 Such a mode of gathering the public rates, being found 
 
 thus inconvenient, and paper money serving the same 
 
 purpose with much greater facility and economy, it appears 
 
 ' Massacliusetts Province Records. us tliat the law of Enjrland reduced 
 
 * Massachusetts Archives — Pecu- the interest there in 1G:2;}, from ten to 
 
 niary, vol. i. eight, and in IGGO from eight to six. 
 
 ^ Essay on the governing causes of ■* Massachusetts Archives — Pecu- 
 
 the Natural Rate of Interest, informs niary, vol. i. 
 
54 HISTORICAL ACCOUNT OF 
 
 1693. to have been last practised in 1694, with the exception of 
 ^""""^ partial restorations, wliich will meet our notice in order 
 
 of date. Thus was grain, as a currency, shut out from its 
 principal com-se of circulation. Still, the custom was 
 clothed, in the view of the aged, with the veneration and 
 attachment of antiquity. Having associated itself with 
 their youth, business and predilections, as well as with 
 those of their fathers, they could not suffer it to depart 
 without wishful looks and heartfelt adieus. 
 
 ^ With a partial reference to the custom so terminated, 
 we adduce an extract from a female traveller: — "They 
 give the title of merchant to every trader, who rates his 
 goods according to the time and specie, they pay in ; viz. 
 pay, money, pay as money and trusting. Pay is grain, 
 pork and beef, &c., at the prices set by the General Court. 
 Money is pieces-of-eight, ryals, Boston or Bay shillings, 
 or good hard money, as sometimes silver coin is called ; 
 also, wampum, viz. Indian beads which serves as change. 
 Pay as money, is provision aforesaid, one third cheaper 
 than the Assembly set it, and trust, as they agree for the 
 time. When the buyer comes to ask for a commodity, 
 sometimes before the merchant answers that he has it, he 
 says, ' is your pay ready ?' Perhaps the chap replies, ' yes.' 
 ' What do you pay in,' says the merchant. The buyer 
 having answered, then the price is set ; as suppose he 
 wants a 6*^ knife, in pay it is 12"^ ; in pay as money, 8**, 
 and hard money, its own value, 6*^. It seems a very 
 intricate way of trade, and what Lex Mercatoria had not 
 thought of." 
 
 1694. The favorite coin of our ancestors — the pine tree money 
 21^' — was still so plenty, ^that £675 of it had been recently 
 
 ordered for remission to Sir Henry Ashurst in London. 
 1697. Though the doors of our mint were closed by the hand 
 j,j * of Royalty, its coins continued, like other specie, subject 
 to legislation. It is enacted, ^ that they pass at the value 
 of their face, if not " diminished by washing, clipping, 
 rounding, filing or sealing." Among the accompaniments 
 
 > Lambert's Colony of New Haven. ^Massachusetts Archives — Pecu- 
 
 Travels of Madam Kniglit. niary, vol. ii. 
 
 -Mass. Provincial Records. 
 
MASSACHUSETTS CURRENCY. 
 
 55 
 
 to this money — ever welcome to the sight of true New 1(597, 
 England men, as one symbol of their by-gone struggle — • — - 
 with Crown prerogative — Sevil, Pillar or Mexico pieces 
 are to pass at G* each, their halves pro rata, but their 
 quarters at IG'^, and the eighths, called reals, at S''. 
 
 So engaged in fixing the standard of their specie, the 
 Court h-enew their care to bar its exportation. While Dgp, 
 there was this tendency in hard money to go abroad, as ''^2. 
 the stream to find its level, it was considerably increased 
 by means which held no sympathy with honest gain. 
 ^ Bucaneers, who had nefariously pushed their fortunes in 
 various seas, secretly brought liberal portions of their 
 ill-gotten wealth to our shores. Among them were Bradish 
 and Kidd,^ imprisoned in our metropolis and thence trans- 
 ported to London, where they paid the forfeit of their 
 crime on the gallows. 
 
 At this date, there was a scarcity of change. Such 1701. 
 an occasion was followed with its usual consequences. V' 
 ^ Regardless of their irregular example and bent on their 
 own convenience and gain, not a few individuals stamped 
 pieces of brass and tin, and palmed them on commu- 
 nity at a penny each. They were speedily commanded 
 by the Legislature to withdraw from their course or be 
 fined and imprisoned. 
 
 To meet the common want, as just indicated, a com- March 
 mittee of General Court report in favor of having Province . 
 pence made of copper. They also propose a bank, to be 
 owned by responsible men, and solely confined to them. 
 But both of these recommendations were negatived by the 
 Council. However thus arrested, they serve as a gauge 
 of prevalent views, then existing, on pecuniary matters. 
 Undoubtedly, the similar institution, formed here in 1686, 
 and also the still flourishing one of London, commenced 
 in 1694, and the like wants of trade at this date as well 
 as in those, produced such movements. 
 
 1 Massachusetts Archives — Pecu- and retained for a time. The ballad, 
 
 niary, vol. ii. commemorative of his career and 
 
 -Hutchinson. Annals of Salem. end, is familiar to the childhood of 
 
 •* While Kidd was in confinement, many yet living, 
 his wife, coming to console him, had ' Massachusetts Archives — Pecu- 
 
 her plate and other property seized niary, vol, ii. 
 
^Q HISTORICAL ACCOUNT OF 
 
 1701. In accordance with the suggestion of the Committee 
 ^^^ last named, it is ordered that pistoles of 4 dwts. 8 grs. pass 
 
 8. in all payments for 26% and foreign gold of 2 dwts. and 
 4 grs. and not inferior to pistoles, for 13' each. 
 
 ^ Following the example of our Province, Barbadoes issues 
 bills of credit on the fund of 3/9 tax for every slave, and 
 Carolina also, on the rates paid for liquors, skins and furs. 
 
 1702. ^The last parcel of Government bills, or Treasury 
 ^^}' notes, as they may be properly called, which had been 
 
 emitted, as previously specified, were reissued in 1702, and 
 amounted to £3,000. These, with others still out, were the 
 only paper currency passing in all New England. How 
 often or how much of it was emitted from the Treasury up 
 to this time, was not particularly recorded among the trans- 
 actions of the General Court. But no doubt the amount 
 of it for such a period, as repeatedly issued and printed, 
 must have been large, for the computation of that day. 
 
 ^ In reviewing the history of their paper currency, the 
 House of Representatives inform us, that the taxes as- 
 sessed from 1692 to 1702, inclusive, were nearly £11,000, 
 one year with another. As it was customary for the 
 Treasurer to pay the public debts with bills, before the 
 taxes were collected, it is very probable, that the emis- 
 sions and re-emissions of such money exceeded £110,000. 
 ^Having been put in circulation before the arrival of the 
 second Charter of William and Mary, they were denomi- 
 nated Old Charter Bills. 
 Nov. ^The public being strongly desirous for more paper 
 ' currency, the Legislature vote to issue £10,000. The 
 cause for such a step is thus given. " Forasmuch as by 
 reason of the extream scarcity of money, and the want 
 of other medium of commerce, the trade of this Province 
 is greatly obstructed, and the aflairs of the Government 
 very much hindered, the payment of the publick debts 
 and taxes retarded, and in great measure rendered imprac- 
 ticable, to the discouragement of souldiers and seamen 
 
 ' Discourse on Currencies. — '• Discourse on Currencies. Let- 
 
 Holmes's Annals. ters from Boston in 1744. 
 
 ^Mass. Provincial Records. * Acts of Massachusetts. 
 3 Mass. Prov. Rec. Dec. 18, 1739. 
 
MASSACHUSETTS CURRENCY. 
 
 67 
 
 necessarily imployed on her Majesty's service in the de-1702. 
 fence of her Majesty's subjects and interest within the 
 Province in this time of war." The bills were to run 
 from 2'. to £5, and to have interest paid on them of five 
 per cent, a year. It is " enacted that the duties of Impost 
 and Excise, granted by this Court shall be a Fund and 
 secm-ity for the repayment and drawing in of the said Bills 
 to the Treasury again, so far as that will reach. And as 
 a further Fund and secm-ity for the same, and for defrey- 
 ing of the further necessary growing charge of the Prov- 
 ince, there is granted to her itiost excellent Majesty a tax 
 of £6,000, to be levied on Polls and Estates both real and 
 personal." 
 
 ^ As there are a few verbal variations in the phraseology 
 of the bills of this emission, from those of the former, we 
 give an example of one, that a comparison may be made. 
 It will be perceived that this latter order of Bills is ex- 
 pressed to agree with the Provincial administration, while 
 the former tallied with that of the Colonial. 
 
 No. ( ). 20^\ 
 
 This indented Bill of Tioenty shillings, due front the 
 Province of Massachusetts Bay in New England, to the 
 possessor thereof, shall he in value equal to money, and 
 shall he accordingly accepted by the Treasurer and Re- 
 ceivers subordinate to him, in all puhlick payments, and 
 for any stock at any time in the Treasury. 
 
 Boston, November the Twenty-first, anno 1702. 
 By order of the Great and General Court or Assembly. 
 
 J. R. \ 
 
 E. H. > Committee. 
 N. B. > 
 
 The means thus provided to redeem the £10,000 in 
 bills, were to be paid in a year, and all the preceding bills, 
 now out, when drawn into the treasury, were to be no 
 more circulated. This was a wise precaution, and had it 
 been subsequently practised, it would have proved a safe- 
 guard to comnumity. 
 
 ' Mass. Archives — Pecuniary, vol. ii. 
 
 8 
 
CO HISTORICAL ACCOUNT OF 
 
 1703. ^ Still intent on meeting the public exigence for small 
 
 ^rP^ chano-e, another proposition is laid before the General 
 March ° ' ^ m ■ 
 
 26. Court, that William Chalkhill, who had been an otticer m 
 
 her Majesty's mint, but then resident at Boston, be con- 
 tracted with to import from England £5,000 worth of 
 copper pence. This appears to have been accomplished. 
 June 2 In reference to the different estimates placed by the 
 American colonies on the same coins, we make the suc- 
 ceeding extract. Col. Robert Q^uarry writes from New York 
 to the Lords Commissioners of Trade and Plantations: — "I 
 thought myself obliged to acquaint your Lordships, that 
 nothing could tend more to the encrease of Trade, and 
 the prosperity and good of these parts of the World, than 
 what your Lordships have proposed, the reducing all the 
 Coynes of America to one standard. It will make most 
 of the money center in England." A Virginian proposes 
 the same step to his correspondent in London, and thus 
 expresses himself, — " which standard, I humbly conceive, 
 should be as near the intrinsick value of sterling as pos- 
 sible." 
 
 1704. In accordance with this plan, which appears to have 
 June i)QQYi extensively discussed in both England and America, 
 
 her Majesty issues a proclamation from the castle at Wind- 
 sor. Its tenor is as follows : — 
 Dec. ^ " We having had under consideration the different 
 ^^ rates at which the same species of Foreign coins do pass 
 in our several Colonies and Plantations in America, and 
 the inconveniencies thereof, by the indirect practice of 
 drawing money from one Plantation to another, to the 
 great prejudice of the Trade of our subjects, and being 
 sensible, that the same cannot be otherwise remedied, 
 than by the reducing of all foreign Coins to the same cur- 
 rent rate within all our Dominions in America : and the 
 principal officers of our mint having laid before us a Table 
 of the value of the several Foreign Coins, whicli usually 
 pass in Payments in our said Plantations, according to 
 their weight, and the assays made of them in our mint, 
 
 ' Mass. Province Records. ^Boston News Letter, No. 34. 
 
 * Mass. Hist. Col. 3 s. vol. vii. p. 226. 
 
MASSACHUSETTS CURRENCY. 
 
 59 
 
 thereby showing the just proportion, which each Coin 1794. 
 ought to have to the other, which is as folio weth." Then "^"^ 
 a description is given which accords with the following 
 Table. 
 
 "A computation made by ^Mr. Newton, master-worker 
 of the mint, according to which all Foreign coins may 
 pass in her majesty's plantations, in proportion to the Rate 
 limited in her majesty's Proclamation, for Pieces of Eight 
 of Seville, Mexico and Pillar. 
 
 Weight and inlrinsick value of ihe following Speciea. 
 
 pwt. gr. 
 
 Value. 
 
 R.ue of the sxul piecea ia 
 pru|K>nion to ihe limit;«iioa 
 made by said pruct.iinaUoo, 
 
 To be takei: for in the 
 Plantatioas. 
 
 Seville ps. of Eight old plate, 17 12 4/6 6/ 
 
 n new " 14 3/7i 4/9i 
 
 Mexico ps. " 17 12 4/6 6/ 
 
 Pillar ps. of Eight, 17 12 4/6| 6/ 
 
 Peru " " 17 12 4/5 5/10^ 
 
 Cross Dollars, ]8 4/4| 5/10^ 
 
 Ducatoons of Flanders, 20 21 5/6 7/4 
 
 Ecus of France or Silver Lewis, 17 12 4/6 6/ 
 
 Crusados of Portugal, 11 4 2/10 3/9i 
 
 Three guilder pieces of Holland, 20 7 5/2i .6/11 
 
 Old Rix dollars of the Empire, 18 10 4/6 6/ 
 
 All halves, quarters, and less pieces, are to pass in proportion to 
 the above rates. 
 
 i4 
 
 £ a 
 
 ^J 
 
 2 Relative to this document. Governor Dudley thus ex- Dec. 
 presses himself in his speech to the Court. ''By the "'• 
 last ships I received her Majesty's proclamation referring 
 to the value of pieces-of-eight and other money, with 
 command to publish the same in both governments in the 
 most solemn manner, and to take care that there be no 
 further inconvenience in that matter, by which I hope we 
 shall see the end of all our complaints of clipping of 
 money, and those rates being the same for all her Ma- 
 jesty's Plantations, I have reason to expect that our supply 
 of money and trade will well proceed in proportion with 
 our neighbours." 
 
 ^However this order of the Queen was particularly 
 given, and promptly enjoined by her Governors in America, 
 
 ' Sir Isaac Newton. *Mase. Archives — Speeches and Messages, vol. i. 
 ' Gouge's American Banking. 
 
gQ HISTORICAL ACCOUNT OF 
 
 1705. yst it does not seem to have been obeyed, except in Bar- 
 badoes. 
 
 ^ Relative to the paper, used for Treasury notes, and 
 imported from the mother country, the Treasurer is re- 
 quested to obtain forty reams in London, every ten of 
 which are to have a different stamp, so that an impression 
 may be visible in the centre of each bill, which, as the 
 order reads, "will prevent any counterfeit, without the 
 agreement of the Stationers and paper officers, which may 
 not be supposed, and that the company of Stationers, who 
 have the sole making of paper in England, be prayed not 
 to use those stamps on any other occasion." 
 
 March Perceiving that hard money was alike subject to the 
 ' arts of fraud with paper, Gov. Dudley issues a Proclama- 
 tion. This says, "As by corrupt, wicked practices of 
 some ill men, the running Coins within this Province are 
 so debased and impaired by rounding and clipping, to the 
 rendering of her Majesty's royal intention impractical," 
 it is ordered, "that no money shall pass by Tale, but 
 what is of due weight according to her Majesty's Procla- 
 mation and the laws of this Province, that all other light 
 money and plate of sterling alloy shall pass and be good 
 in payments by the ounce Troy, pro rata, until the end of 
 the session of this Court in May next, when further con- 
 sideration shall be had thereof." 
 
 June ^ The General Court confirm the Governor's Proclama- 
 tion as to the standard of Coins. "^ 
 
 1706. Various other expedients, for the same end, such as the 
 \^' public reading of a Proclamation by Queen Ann, dated 
 
 March 5, 1705, and sending fac similes of the paper money 
 to every town, were adopted, as a hindrance to the harpies, 
 who lay in wait to prey on the vitals of the body politic. 
 Still, as "love laughs at locksmiths," so did the public 
 defrauder at these methods for spoiling his game. 
 
 "^Not only did such characters put forth their powers to 
 
 ' Mass. Archives — Pecuniary, vol. money and Plate of sterling alloy 
 
 ii. shall pass and be good in pa\-ments 
 
 * Provincial Records. at 7s. oz. The House non-concurred. 
 
 ■•The Council, in their vote for Afterwards they agreed with the 
 
 the Governor's Proclamation, say, Council in this particular. 
 
 March 3, 1705, that all other' light ^Boston News Letter, No. 174. 
 
MASSACHUSETTS CURRENCY. gj 
 
 fill their pockets at the public expense, but also at that of 1707. 
 individuals. Tlie subsequent fact was one of many, "T-TiT 
 which showed that private deposits for money were not so 11. 
 safe as those of modern years, in banking institutions, 
 though these have not always escaped the reach of the 
 plunderer. The brick ware-house of Thomas Palmer on 
 the Dock in Boston, was broken open, and a large iron 
 chest with nine bolts was robbed of its contents, amount- 
 ing to £4,000 or more, in pieces-of-eight and other 
 Spanish and New England coins, and in bills of credit. 
 Several persons were suspected. The Governor issued 
 a proclamation, offering pardon to all confessors of the 
 crime, except the principal and immediate actor, and a 
 reward of ten per cent, for all of the property returned, 
 which was to be paid by the owner. 
 
 ^ As a specimen of pecuniary remittances, the ensuing 1708. 
 is presented. " Any merchants or others that have any g^" 
 money at New York, and want to remit the same by bills 
 of exchange to Boston, let them apply themselves to ]Mi-. 
 Benjamin Faneuil of New York, where they may be 
 supplied." 
 
 At this period, before and afterwards, till the modern 
 system of banking was adopted, almost every family 
 who had money, would keep a pair of scales, to ascer- 
 tain the value of their gold coin which they took and 
 passed. Such advertisements as the subsequent one were 
 common after newspapers began to be printed here. "All 
 kinds of money scales made and sold by Caleb Ray, of 
 Boston." 
 
 While thus energetic to protect the monied interests, 
 our civil authorities, in common with the people, partook 
 of the ruling passion of England, for the dislodgement of 
 the French from North America, as the only permanent 
 security for British empire in these Colonies. They were 
 assured by her Majesty, that her Exchequer should meet 
 the costs of any expedition against the Canadas. Thus 
 encouraged, they soon yielded to her proposal. But such 
 an attempt was not to be made without price. For its 
 
 ' Boston News Letter, No. 211. 
 
g2 HISTORICAL ACCOUNT OF 
 
 1709. commencement, there was but little specie in the country. 
 
 -t'"^' More paper currency must be provided. ^ Accordingly it 
 
 10. is enacted that £30,000 be issued, with £10,000 of the 
 
 former emission. The printer has particular instruction to 
 
 impress a '' scrowle of red ink through the body of the 
 
 bill, the better to prevent comUerfeits." 
 
 1711. After some delay, for want of orders from the Crown, 
 24^ General Hill and Admiral Walker obtain £10,000 more 
 in our bills to supply the land and sea forces. For the 
 amount of both sums, bills of exchange are to be drawn 
 on the Royal Exchequer, at the advance of forty per cent. 
 Thus another quantity of paper, large for the age, is called 
 out by an enterprise, like that which produced the first 
 issue of such money from the Treasury. Both of these 
 occasions were prolific sources of evil to the Province. 
 Had they been crowned with success, they would have 
 been differently considered. Not the least of their unde- 
 sirable effects was fastening upon community a medium 
 of exchange, unaccompanied with a necessary proportion 
 of specie to keep it safe, which finally impoverished 
 thousands, and became the origin of party animosities. 
 Had the event been proportionate to the freeness, with 
 which our fathers pom'ed out their treasure and blood, 
 they would not have again experienced the bitter and 
 fearful disappointment of defeat. But they were yet to 
 make more energetic efl"orts, to endure many hardships, 
 to lose multitudes of lives, and to expend immense sums, 
 before the flag of France was to be struck on the ram- 
 parts, which skirted the North and West of the British 
 Territory. 
 
 ^ Another evil, consequent on the second crusade, as it 
 was here construed — against Canada — was, that it brought 
 the rest of New England and other Colonies under a 
 sort of necessity of emitting bills of credit to pay their 
 quotas of military forces. This was an inlet of much 
 unsafe currency into our jurisdiction, which tended to 
 diminish the value of what Massachusetts issued. 
 
 ^ Massachusetts Archives — Pecu- ^ Discourse on American Colonial 
 niary, vol. ii. Currencies. 
 
MASSACHUSETTS CURRENCY. 
 
 G3 
 
 With regard to the emissions of this Province, there j^n 
 was a further cause, which operated unfavorably to them. -^-^' 
 After their first year, they stood well till 1712. Then 
 they visibly and gradually lost pubhc confidence. This 
 was owing to the manner, in which our government were 
 forced to prolong the period for their redemption. ^ The 
 new emission of 1703 was to be cancelled by taxes on 
 polls and estates, in some over a year. This was as soon 
 as the public rates could be conveniently collected, and 
 therefore not an injudicious step of the government. Other 
 emissions, to 1707, were to be redeemed from one and a 
 half to nearly two years. But in the year just named, the 
 gathering of the taxes,, so that the issues of paper might be 
 recalled, Avas put off for three years ; in 1709, for four 
 years; in 1710, for five years, and 1711 for six years. 
 By such management, the burden of public debt was 
 increased, and the Province bills accordingly multiplied and 
 depreciated. The faith of the people being thus shaken, 
 with regard to this currency, it becomes less and less, to an 
 alarming and injurious degree, as we shall have occasion 
 to notice. At first view, such a change should not have 
 been suffered by government ; but, in practice they had 
 many discouragements and difficulties to prevent their 
 avoiding of its commencement and continuance. The 
 voice of a protracted and expensive war, continually and 
 imperiously demanded of them more money than the 
 inhabitants could pay without much depression, or than 
 they could punctually obtain. They were under such a 
 pressure, that they unwillingly submitted to the evil of 
 burdening a future period with the expenses of the pres- 
 ent ; of rendering the children liable to pay the debts of 
 their fathers. 
 
 - As an example of the worth of money in labor, the 
 following is presented: — Carpenters had 5' a day for 
 building the Town House of Boston, in 1712, with silver 
 at 8^ an ounce. 
 
 As explanatory of a mode in which the paper of other 
 Provinces was circulated in ours, we have the succeed- 
 
 ' Mass. Provincial Records. = Discourse on Colonial Currency. 
 
 ,X 
 
64 HISTORICAL ACCOUNT OF 
 
 1712. iiig '• — ^ " Her majesty's government of the Province of New 
 
 'J^^ Hampshire, have ordered a certain sum of their bills of 
 2. public credit to be deposited in the hands of Mr. James 
 Pemberton of Boston, merchant, to whom all persons, that 
 have any of the said bills, which are worn out and unser- 
 viceable, may repair to have them exchanged." 
 
 Nov. 2 jj-^ order to arrest the downward progress of the credit, 
 sustained by paper currency, there is a repeated enactment 
 that it shall be, at all events, specialties of contract 
 excepted, a legal tender. This measure failed of its pur- 
 pose. Under its long continuance, many debtors delayed 
 their payments so as to meet them with bills, purchased 
 at an increasingly reduced rate. Such management was 
 the spring of numerous litigations. Then they who 
 were no more closely clad with the garb of honesty, 
 than to put it off as expediency might dictate, exhibited 
 their propensity. Then such acquired temporary gain, if 
 that may be called so, which destroys principle, peace and 
 reputation, while those of sterner integrity, lost in their 
 worldly possessions, though increasing in a thousand fold 
 more in habits of moral excellence and in conscious recti- 
 tude. Indeed, it is a wise and merciful provision of our 
 Maker, that mind, in its talents, attaimnents, and especially 
 in its virtuous traits, should be an "immutable measure 
 of the man." 
 
 1714. ^At this period, there were three dominant parties with 
 reference to pecuniary concerns. One, adopting the prin- 
 ciple of antiquity, — " nil utile, quod non, honestum — 
 nothing is useful, but what is honest, — expressing their 
 views of paper currency, contended that this should be 
 abolished and no currency allowed, except that of the 
 precious metals. A second, both numerous and respecta- 
 ble, who were urgent for a private bank, based on real 
 estate. A third, no less large and honorable, who favored 
 a system of loaning by the Province to the inhabitants on 
 interest, payable annually, and applied to liquidate public 
 
 ' Boston News Letter. Bank of Credit against aspersions of 
 
 2 Mass. Provincial Records. Paul Dudley by John Barrel, Esq. 
 
 ■^ Boston Athenseum Tracts, C 55 Hutchinson, 
 and 62, 121. Vindication of the 
 
MASSACHUSETTS CURRENCY. 
 
 65 
 
 charges. From these confederations arose controversy, 1714. 
 which scattered its baleful inlhicnce through towns, par- — ^'^' 
 ishes, and even families. Tlie advocates for a bank liold 
 up, among several inducements, that if allowed to estal^lish 
 one, they will promote the erection of a ^ bridge over 
 Charles River. Tlie reply, subsequently made to this 
 from the press, shows a prevailing want of acquaintance 
 witii such works, and how they were suspected by no 
 small number, as nothing more than fancies of a disordered 
 intellect. It follows : — " One great thing proposed, hath 
 been the building of a bridge over Charles River, and that 
 it would be a service to li^. This, I look at to be next to 
 building castles in the air. For if we could sink 40 or 
 £50,000 in building such a bridge, the matter is uncer- 
 tain, whether it would answer the end. For I can't learn 
 of a fast bridare over such a river where there is such a 
 
 *^&^ 
 
 stream in the whole world." Could Charlestown bridge, 
 however forlorn its aspect, and the similar avenues to this 
 peninsula, be gifted with tongues, what would they say 
 to such writers? But, not to lose the clue of our course, 
 the question respecting the bank, produced many spirited 
 pros and cons. Among the merchants of this metropolis, 
 who forcibly argued the claims of such an institution, was 
 John Colman. He asserted, that it would not lessen the 
 coin ; for to his knowledge, it was shipped off as much 
 before bills of credit as afterwards, in proportion to the 
 trade and resources of the Province. He further stated, 
 that the belief of New England in general was, that the 
 country might count on greater depressions, unless there 
 could be issues of notes from private companies as well as 
 from the public treasury. Another argument in favor of 
 this plan was, that it would sever the connection between 
 money and might — already in the hands of the govern- 
 ment and dangerous to the liberties of the people. On 
 the other hand, his project was not tenderly dealt with by 
 
 ' June 4, 1712. Rhode Island pro- and Company, potition for a bridge 
 
 poses to Massachusetts that a bridge over Ciiarles River. Neither of these 
 
 be erected over Pawtucket River, at |)rojects was immediately accoiu- 
 
 Ihe cost of both Colonics. plishcd. 
 
 March l"i, 1713. John Clark, Esq. 
 
 
 
QQ HISTORICAL ACCOUNT OF 
 
 1714. its opponents. They severely censured it, as a South Sea 
 
 ^^•'^^ bubble, a pandora's box, an infringement of the regal 
 
 prerogative, and covering a design for absolute power. 
 
 These specimens teach us, how the mind of one age 
 
 answers to the mind of another, when called to the same 
 
 point of debate. Amid a conflict of this sort, the common 
 
 voice cried vehemently and repeatedly for more paper 
 
 money, from some source or another. 
 
 Feb. ^ Thus confirmed in their wishes, a considerable number 
 
 ' of gentlemen met at the Exchange Tavern of Boston 
 
 several times, to have the stock of a proposed bank taken 
 
 up, and prepare to lay their rule? before the General Court 
 
 for approbation. 
 
 ^ Hoping to check the prevalent practice of counterfeiting 
 their bills of credit, the Legislature enact that whoever is 
 guilty of such a crime more than once, shall suffer death. 
 ^ The amount of bills of credit made and received into 
 the Treasury of Massachusetts from May, 1703 to May, 
 1714, was £194,950 13. 
 Aug. ^ Perceiving that the project of a private bank was likely 
 to succeed, unless resisted by Legislative interference, the 
 Province Council hold a convention, and vote the follow- 
 ing order : — " Upon reading a memorial, presented by the 
 dueen's Attorney General, setting forth, that upon good 
 information, a certain number of gentlemen and merchants 
 are projecting a bank of credit, as they call it, and design 
 speedily to make and emit a quantity of bills to a great 
 value, which is a matter of importance and will necessarily 
 be of general influence, Ordered, that the projectors or 
 undertakers of any such bank do not proceed to print the 
 said scheme, or put the same on public record, make or 
 emit any of their notes or bills, until they have laid their 
 proposals before the General Assembly of her Majesty's 
 Province, who are always ready to countenance and 
 encourage any proposals, that may be a benefit and advan- 
 tage for the public, or for the promotion and encour- 
 
 1 Boston News Letter, No. 512. ■* Boston News Letter, August 20, 
 
 * Mass. Provincial Records. 1714. 
 
 ^ Massachusetts Archives — Pecu- 
 niary, vol. ii. 
 
 20. 
 
IfTASSACnUSETTS CURRENCY. 
 
 67 
 
 aging of trade amongst her Majesty's good subjects of this 1714. 
 Province." -^v^.^ 
 
 Thus cautioned, the patrons of the intended bank, did » . 
 not cease to make active exertions' for its promotion. 
 They issue the ensuing advertisement -.^ " Whereas the \\i<t. 
 trade of tliis Province is very much embarrassed for want ^3. 
 of a medium of exchange, and an expedient being pro- 
 posed to ease this dithculty by circulating bills or notes 
 founded on land security, considerable sums being already 
 subscribed," there will be attendance at the Sun Tavern 
 of Boston, weekly, to conwlete the subscriptions for enter- 
 ing into partnership. 
 
 In less than two months from this they meet to choose Oct. 
 directors of their institution, which went by the name of 
 Land Bank, subsequently applied to another, which gave 
 rise to immense trouble. 
 
 While they were thus striving to advance, a majority of 
 the government thought it best for themselves alone to 
 hold the purse strings of the Province. The opinion of 
 the Legislature is regarded as less objectionable than that 
 of the bank party, by those who preferred hard money, 
 therefore such an opinion receives the support of these 
 and becomes embodied in a law. The introduction of 
 this act follows : — ~ " Whereas the public bills of credit on Nov. 
 this Province, which have so long and happily supported 
 this his Majesty's government in the long and expensive 
 war with the French and Indians in our neighborhood, 
 for defraying the necessary charges thereof in the defence 
 of his Majesty's subjects' interests in this as well as the 
 neighboring Provinces and Colonies, (and the preventing 
 the inconveniences that may arise to the Province by any 
 private projection for providing any other medium of 
 exchange,) and served as a medium of commerce in the 
 business and trade of this Province, greatly facilitating 
 payments for goods imported from Great Britain and other 
 places, are now grown very scarce and few of them passing 
 in proportion to the great demand of the same, whereby the 
 affairs of the Government are very much hindered, the pay- 
 
 ' Boston News Letter, Aug. 23, 1714. ^ Mass. Provincial Records. 
 
gg /■ . * ^ HISTORItrSlTACCOUNT OF« 
 
 ' * 1 7 1 J\ men^-of the^'public debts aiid taxes retarded, and in great 
 
 , ^ '"^^^ measure rendered impraeticabk, and the trade and business 
 
 J7^ of this Province bijth at home and abroad is greatly 
 
 obstructed to the g.r*eat discouragement and distress of the 
 
 ; Province." Therefore £50,000 in bills, of the same 
 
 tenor with those already issued, are to be put in the hands 
 
 of five Trustees, and let out at five per cent, e-n safe 
 
 mortgages of real estate, one-fifth part of the principal 
 
 with interest payable each year. ^ Though the loans were 
 
 restricted as to time, yet some of them were continually 
 
 made, so that they were out over thirty years. No person 
 
 was to hire more than £500, iror less than £50, of this 
 
 Province loan. The income of it is to help liquidate 
 
 public charges. 
 
 Having in this manner made a bank of the Province, 
 so that no sufiicient call might exist for the one projected 
 by individuals, as a more private concern, the Legislature 
 proceed to give the finishing blow to this association: — 
 Nov. ^ " A scheme for establishing a fund or bank of credit upon 
 **• a land security, which may give the bills issued therefrom 
 a general currency — sent up from the Representatives with 
 an order pasged thereon, that is to say — Ordered that no 
 private company or partnership proceed to the making or 
 emitting of any bills of credit, as a medium of exchange 
 in trade, without the allowance and approbation of the 
 Court." Such an order passed the Council and was ap- 
 proved by the Governor. 
 1715 ^Governor Dudley in his speech, reverting to his pro- 
 / May posal, the foregoing session, that the bills, still out, might 
 be recalled, says, they " passed with honom* ; if not 
 redeemed, they will depreciate." 
 June ^ ^^Q mercantile part of community were still dissatis- 
 21. fied with what they deemed the insufficiency of the loan, 
 made by the government. Simon Stoddard and one 
 hundi'ed and eighty others of Boston and elsewhere, peti- 
 tioned that they would provide a larger medium of ex- 
 change in trade. Their request was laid over to the next 
 session. Though the supporters of the Land Bank were 
 
 ' Letters from Boston on Currency. ■• Journal of the House. 
 
 * Mass. Provincial Records. "» Mass. Provincial Records. 
 
MASSACHUSETTS CURRENCY. 
 
 69 
 
 defeated, they were not conquered. Their fall only made 1715. 
 them more careful and determined to stand, ^--v-^ 
 
 ^ The enactment relative to debtors not being forced to Dec. 
 pay their obligations, contracted from 1705 to 1715, in '^' 
 hard money, except they had specially agreed to do so, is 
 prolonged to October 30, 1722. While this betrayed a 
 very unsound state of currency, it prolonged and increased 
 tem})tations to take advantage of creditors by paying them 
 in bills continually reduced in value, and also occasions of 
 animosities and litigations. It was only binding up the 
 wound of community with unsuitable, injurious and peril- 
 ous preparations of well intended, but ill-directed art. It 
 increased the very disease which it was given to cure. 
 
 As Governor Dudley- had honestly and strenuously 
 opposed the design of friends to the Land Bank, though 
 formerly the promoter of a similar one, they did much for 
 his removal. 
 
 "'In answer to a letter of the General Court to Jeremiah 171c. 
 Dummer in London, he writes in the subsequent terms : — Feb. 
 " I have received the three instructions agreed on the last 
 October session, which I shall carefully observe. Only 
 that, which commands me to oppose any attempts, that 
 may be made here to incorporate a private bank in New 
 England, is that there will probably be no occasion to 
 make use of. For the gentlemen, who have been desired 
 from Boston to solicit this business, have not yet moved 
 in it, and I am informed by one of them, that they do not 
 design to stir in it at all. Some other people having heard 
 of it, and of the exigency which the country was reduced 
 to for want of money or some other medium of trade, have 
 started a project for the coining (of) base money here, that 
 is to say, one third copper and the rest silver, to pass in 
 New England, which they pretend will answer all the 
 necessities of trade, tho' in truth it will answer nothing 
 but their own private gain, which they propose by it. 
 Upon the first notice I had of this project, I waited on 
 several of the ministry in order to speak to them of the 
 
 ' Acts''of Massachusetts. •'Massachusetts Archives — Let- 
 
 - Governor Dudley takes leave of ters, vol. ii. 
 the General Court, Oct. Id, 1715. 
 
70 
 
 HISTORICAL ACCOUNT OF 
 
 1716. destructive consequences of it, if it should take effect ; but 
 " — '"^ their Lordships would not hear me upon it, for they were 
 
 so clear in that, they assured nie at once that no such 
 
 thing should be done." 
 
 Nov. After Mr. Shute's ^ arrival at Boston, as chief mao:is- 
 
 7 
 
 trate, he recommended in his first speech, that endeavors 
 
 should be made to revive the low state of trade. This 
 was taken as an intimation, by the House, that another 
 loan from the Treasury would receive his sanction. They 
 seem to have viewed such a mode of supplying needed 
 funds, as a sort of Pactolus, which could bring treasure to 
 their feet without consequent privation and misery. 
 Dec. ~ Hence it was forthwith ordered that there be an addi- 
 tional loan of £100,000. The reasons assigned for this 
 enactment, was the heavy debt incurred lately in the 
 French war, that all the hard money which formerly aided 
 the trade was sent to pay for debts contracted in England, 
 and the scarcity of Province bills. This amount was 
 committed to the care of county Trustees ; was propor- 
 tioned to each county according to its tax ; secured by 
 mortgaged estates of double the value of the sum bor- 
 rowed, each loan not exceeding £500 nor mider £25, for 
 ten years at five per cent., paid annually. The profits to 
 help pay for expenses of government, and the bills to be 
 returned at the end of this period and burnt. P^requent 
 litigations subsequently arose in the settlement of the 
 mortgages for this money. ^ A speedy result of this 
 emission was to depreciate the paper currency by raising 
 silver to 12' the oz. 
 
 Governor Shute perceives that the financial concerns of 
 the Province are going from bad to worse. He regrets to 
 the Legislature, that they had been no more punctual and 
 active in retrieving the credit of their notes. He proceeds, 
 1718. ^"The ill consequences of our not giving due attention to 
 ^^^y these weighty aftairs are every day increasing, and they 
 will inevitably end in our utter destruction, if not timely 
 removed. If you would reflect a little upon the miserable 
 
 ' Governor Shute arrives, October ^ Discourse on Colonial Currency. 
 
 14,1716. ''Massachusetts Provincial Re- 
 
 ^ General Court Records. cords. 
 
MASSACHUSETTS CURRENCY. 
 
 71 
 
 state of our neighbours at Carolina,^ it would awake jyig. 
 you." As the General Court conclude that it is out of •-^'^^ 
 their power to comply with this energetic appeal, they 
 make no sufficient efibrt to resist the torrent of calamity. 
 
 A writer upon the times, expresses himself in the sub- 
 sequent strain: — -"I suppose this Province doth not raise 1719. 
 nigh so much provisions as are needful to feed ourselves '(j^ 
 and su])ply our shipping. We buy much from other 
 places ; while so, would it not be an hurt to send any 
 provisions to a foreign market ? But out of the products 
 of our labour, we may spare great quantities of fish, oyl, 
 whalebone, etc., and for these, what returns should we 
 chietiy desire ? Why — things that are most serviceable and 
 necessary for us, and not for needless commodities." He 
 goes on to state, that too much rum is imported, which is 
 a great injmy to the Province. He remarks fmther — . 
 "All the silver money which formerly made payments in ""' 
 trade to b^ easy, is now sent into Great Britain to make 
 returns for part of what is owing there. We have been 
 so deficient in farming and managing our own manufac- 
 ture, lived so much above our abilities, spent so much of 
 our imported commodities, that our money is gone, there 
 is scarce a penny of it passing for a twelvemonth." He 
 informs us, that, notwithstanding the promptness Avith 
 which government had resisted the late projected bank of 
 individuals, its notes or bills are still in circulation. With 
 reference to a new arrangement in the means of recalling 
 the Province bills, he remarks that they are to be redeemed 
 by any stock in the Treasury, so that they who keep bills 
 expecting to obtain silver, may get country produce. 
 
 ^ Another observer of the times, who was more in favor 
 of paper currency than his cotemporary opponent, gives 
 the ensuing statements : — The evils of litigation abound. 
 People of estates cannot raise money, unless they dispose 
 
 ' South Carolina, in order to pay of the notes was properly referred to 
 
 charges of an expedition against the by Gov. Shute, as a warning for 
 
 Tuscaroras, issued in 17l5, £48,000 Massachusetts. 
 
 in bills, as a loan, payable at the rate - Melancholy circumstances of the 
 
 of £4,000, annually. This emission Province. 
 
 fell a third the first year, and a half ^ Distressed state of the town of 
 
 the second, and so continued to de- BostoH considered, 
 predate. So rapid and fearful a fall 
 
72 HISTORICAL ACCOUNT OF 
 
 1719. of them at half their vakie. Individuals, depending on 
 " '"^ their labor, are forced to take for their toil, from one half 
 
 to two thirds in goods, while their creditors imperiously 
 demand cash of them. The private bank does not receive 
 encouragement in its operations from the Legislative au- 
 thorities. £50,000 ought to be laid out for making a 
 bridge over Charles River, so that workmen might be 
 employed and currency enlarged, as well as the public 
 accommodated ; and ruin will come unless more bills of 
 credit are emitted. It is hoped that country towns will 
 send Representatives to secure such an emission. This 
 A\Titer says — '- It is a dark day upon us, I pray God to 
 guide and lead his Excellency and his Council and others 
 concerned in the government, into some measures for the 
 relief of the people." 
 Sept. As an instance, with what pertinacity an evil purpose 
 will compass sea and land to be gratified, the succeeding 
 fact is adduced : — ^ Jeremiah Dummer, agent jn London, 
 had been instructed by Massachusetts to look after one 
 Bryan, an Engraver on Tower Hill, who had assisted 
 Woddin to comiterfeit the Province bills. Mr. Dummer 
 employed an ingenious man to wait on Bryan, who told 
 him, that Woddin had carried the copper plate to Boston. 
 
 For lightening the bmxlen, which pressed upon commu- 
 nity, a meeting of gentlemen as particularized in the sub- 
 
 1720. sequent docmnent, takes place : — -In obedience to the or- 
 22. ders of the Governors and Councils of the several Provinces 
 
 and Colonies to which the subscribers respectively belong, 
 appointing us a committee or Commissioners to consult, 
 what may be done for the public benefit with relation to 
 the bills of Credit. We being met at the Town house in 
 Boston on the day abovementioned, and having conferred 
 the subject matter before said, did unanimously agree 
 on the following heads — that is to say ; First, it will be 
 greatly for the service and benefit of the publick, not to 
 emit any more bills on Loan. Secondly, That no more 
 bills should be emitted, than what are for the necessary 
 support of the Government annually. Thirdly, that it will 
 
 * Mass. Archives — Letters, vol. ii. " Colonial Records. 
 
MASSACHUSETTS CURRENCY. 73 
 
 be for the piiblick benefit and the better repute of the Bills 1720. 
 of Credit that the several governments do firmly and -^ — 
 closely adhere to the calling in the same according to the 
 several times and periods prefixed therefor. The forego- 
 ing heads or proposals are humbly submitted to the con- 
 sideration of the General Court of the Province of the Mas- 
 sachusetts Bay, the Colonies of Connecticut, and Rhode 
 Island, at their next Court of Election, by 
 
 "Addington Davenport, Jona. Belcher, 
 Thos. HutchinsOxN, John Read, 
 
 Thos. Fitch, Wm. Wanton." 
 
 The Council approved and recommended such advice, 
 but the House received it coldly and merely had it read. 
 This was a plain expression of the different views enter- 
 tained by these two Bodies on the subject of currency. 
 
 So deeply interested were the vaiious towns in these 
 subjects, that they gave particular instructions to their 
 Representatives. ^ Salem desire their delegates to vote ]\jay 
 against the project of having Province bills issued to build 9« 
 a bridge over Chai'les River, because, if allowed, it would 
 increase the public debt, and to use all their influence to 
 recall the issues, already in circulation, at their appointed 
 periods. 
 
 ~ Among the classes of society who endured the most, 
 from existing state of things, were widows and orphans. 
 These had lent their all, and depended for subsistence on 
 its income, which was paid to them in paper at fifty per 
 cent, discount. Then, as in all such periods of social 
 convulsions, the influences of ill regulated currency were 
 evidently pernicious to public morals. The barque enters 
 the gale with a gallant bearing ; but how altered, when 
 she emerges ! Is not this the symbol of many a character 
 passing through the calms and storms of life ? However 
 the people were perilously and painfully situated, yet the 
 most of them omitted to trace much of their wo to an 
 undue dependence on the emissions of notes from the 
 Treasury. Like an individual, under the delirium of 
 
 > Salem, Town Records. - Hutchinson. 
 
 10 
 
 1 1 
 
74 HISTORICAL ACCOUNT OF 
 
 1720. excessive Stimulus, crying for the very liquid which has 
 
 ""^''"^ produced his disease and his pangs, tliey were generally 
 urgent for an increase of Provincial bills. 
 
 The tidings of such a disposition, as prevailed here, had 
 been carried to the ear of Parliament. ^ As one step, to 
 turn back its onward course, this body lay an interdict 
 upon all banking associations in their dominions, who 
 have no legal charter, so that from June 24, 1720, they 
 shall cease. Such an act has particular application to the 
 Private Bank of Boston, which had circulated their notes, 
 though forbidden by the Legislature. 
 
 April 2 rpi^g Governor laid a pamphlet before the Council — 
 entitled, " Distressed State of the Town of Boston — in a 
 Letter from a Gentleman to his Friend in the Country." 
 They were of opinion, that it had many passages reflecting 
 on the acts and laws of the Province and other proceedings 
 of the Assembly, and had a tendency to disturb the ad- 
 ministration of the Government as well as the public peace. 
 They voted that the Justices of the Peace at their Gen- 
 eral Sessions inquire after the author and publisher of the 
 said pamphlet, and proceed therein according to the usual 
 mode. 
 14 "A Countryman's Answer to the Letter," (in the above 
 *Q pamphlet,) has the succeeding passage: — "As to silver 
 and gold, we never had much of it in the country ; but 
 we can very well remember, that before we had paper 
 money, there was a sufficiency of it current in the coun- 
 try, and as the bills of credit came in and multiplied, the 
 silver ceased and was gone ; and of all men, you in Boston, 
 especially merchants, should be silent as to that matter, 
 for you have shipped it ofi" and yet now complain of the 
 want of it." You bring up the projected Private Bank — 
 buried so many years — though it is opposed by the Gen- 
 eral Court, and a large majority of Boston. 
 
 jjj] ^ Backed by the highest tribunal of the kingdom, Gov- 
 13. ernor Shute, in his speech, repeats his advice to the Gen- 
 eral Court, that they put forth all their power to raise the 
 falling credit of the Province notes and relieve the deep 
 
 1 Statute, Geo. 6. ^ Boston News Letter. ^ Speech of Gov. Shute. 
 
MASSACHUSETTS CURRENCY. 75 
 
 distress of the people. On tliis topic, he expresses himself 1720. 
 as follows : — '' I recommend the supporting the value of •^^'^^ 
 the public bills of credit. This is what I have almost at 
 every session mentioned, as a matter not only of justice 
 but of interest. And I am more especially obliged to do 
 it now, because the neighbouring Governments looking 
 upon it as a matter of the last consequence to us all, have 
 lately appointed Commissioners to inquire into that affair 
 and lay before their respective General Assemblies what 
 they have thought proper for the public good with respect 
 to the Public Bills of credit. The unanimous resolution of 
 the Commissioners when they met at Boston, I shall order 
 to be laid before you. The confusions that are in the 
 Colony of South Carolina by reason of the paper credit, 
 may and I hope will warn us of going any fmther in any 
 medium of that kind. And I am glad to find the gener- 
 ality of our thinking people begin to be convinced that it 
 will be for the interest of the country, and even of the 
 trading part, to call in the Bills, as soon as may be con- 
 venient. I believe it will be of necessity, when the Bills 
 become very scarce, for the Government to think of some 
 reasonable method for the ease of the people in paying in 
 the publick debts, and at the same time to take great care 
 not to postpone them, as we have too often done, to the 
 detriment of the Government and lessening the value of the 
 Bills of Credit. I am very well pleased to observe by all 
 that have the state of the country and of our Trade at 
 heart, that good husbandry and industry are unanimously 
 agreed on, as among the first and best expedients to help 
 us under our great difficulties." 
 
 ^ To meet the exigencies of the day, the General Court July- 
 modify the conditions of an issue of £5,000 in paper 
 currency, so that they present two features different from 
 what they had for a considerable period. One was drop- 
 ping the five per cent, advance, which had been continued 
 for twenty-eight years, as means of preserving the Notes 
 of the Treasury at par, because it had lost its intended 
 effect. Another, was the restoring of the former custom 
 
 ' Mass. Province Records. 
 
76 
 
 HISTORICAL ACCOUNT OF 
 
 1720. of having country produce substituted as a medium of 
 -^^'^^ exchange, and answer the purpose of money. It was 
 introduced again by necessities which overcame the objec- 
 tions to its re-adoption. It was, however, found so incon- 
 venient under the new associations and habits of business, 
 as to be dispensed with, for a considerable time, in three 
 years. Its re-appearance at this date, is thus appointed : — 
 " Whereas through the scarcity of bills of credit, it grows 
 difficult for persons to convert the produce of their lands 
 and other effects into bills and pay their rates in them, it 
 is ordered that the inhabitants of this Province shall have 
 liberty (if they see cause) to pay the several sums, which 
 shall be on them respectively assessed, in the several 
 species hereafter mentioned, at such rates and prices as 
 the General Assembly shall set them ; viz. — ^in good barrel 
 beef and pork, or in wheat, peas, barley, rye, Indian corn, 
 oats, flax, hemp, bees' wax, butter in firkins, cheese, hides, 
 tanned leather, dry fish, mackerel in barrels, oil, whale 
 bone, bayberry wax or tallow. Which species shall be 
 received by the Treasurer of the several constables and 
 collectors, to be by him disposed of to the best advantage 
 for the calling in of the said bills into the Treasury. And 
 if any loss by the sale of the aforesaid species, or by any 
 other unforeseen accident shall arise, then such deficiences 
 shall be made good by a tax of the year next following, 
 so as shall be fully and effectually to call in the whole 
 sum of £5,000 of bills emitted as aforesaid." Additional 
 to these articles were tar and turpentine, in the next year 
 but one. 
 Sept. Perceiving that the Chief Magistrate of Massachusetts 
 ' was hard pressed to sanction larger issues of paper cur- 
 rency, than they deemed beneficial, the government in 
 England ^ give instructions to him, as well as to all Ameri- 
 can Governors, that he allow only enough of them to 
 meet the charges of Provincial administration. 
 1721. Not harmonizing with all the opinions advanced in the 
 ^^^^ Chief Magistrate's late speech, the House sent him a 
 reply : — " Your Excellency was pleased to acquaint us 
 
 ' Massacliusetts Provincial Records. 
 
MASSACHUSETTS CURRENCY. 77 
 
 that you lately assembled some of the principal gentlemen 1721. 
 and mercliants of Boston, with a view to public good, that ■^^ 
 they might propose or receive schemes for the relief of 
 this peo})le under their grievance, for want of a good 
 medium of trade. If those gentlemen when assembled, 
 did agree upon any method and had laid the same before 
 the House, it had been very readily received and due 
 consideration had thereon. But none such as yet hath 
 been shewn forth. Last session, a Bill for emitting 
 £100,000, to help the inhabitants to pay their public debts, 
 passed the House, but stopt in the Council. We feel it 
 our duty to do all we can this session to promote such an 
 object. We agree with your Excellency, that if a new 
 emission should depreciate the bills out, it would be perni- 
 cious. To prevent this, a bill was passed, the present and 
 last sessions, to hinder buying and selling, bartering or ex- 
 changing silver money or bullion at higher rates and prices 
 than heretofore stated by act of Parliament. Om- judgment ^ 
 is, that had such an act been made by Massachusetts when 
 they first issued paper bills, they had to this day been equal 
 in value and credit to silver money. We further think, 
 that passing it now, would prevent depreciation of bills and 
 bring them up to what they once were." They speak of 
 a pamphlet against their proceedings of last session, called 
 News from Robinson Crusoe's Island. 
 
 To make the mode of paying the rates more convenient March 
 for the body of the people, a majority of the Legislature 
 vote for another loan of £50,000, instead of the £100,000, 
 for which they had strongly contended, but to which the ^ 
 Chief Magistrate could not give his consent. The Gov- 
 ernor, contrary to his own wish, and doubtful whether it \ 
 was consistent with his orders from Parliament, consents to 
 this reduced emission for the sake of complying with the 
 general desire. It was to be distributed among the towns, 
 according to their amount of taxes, who were to elect 
 Trustees for letting it out. As a specimen of the manner 
 in which such corporations apply the money, we instance 
 
 Salem. ^ This place chose three Trustees, who let no Oct. 
 
 12. 
 > Salem, Town Records. 
 
78 HISTORICAL ACCOUNT OF 
 
 ] 721, more than £50, nor less than £10, to any individual, at six 
 "'''^ per cent, on ample sdfiiirity. These officers had one 
 sixth of the interest, and the rest went towards disbursing 
 town charges. «>The whole loai. to be redeemed by a 
 
 fund of taxes on polls and estates, both real and personal, 
 at the ensuing periods. One tenth''part of it was to be 
 redeemed May 31, 1726, and so on for each year, the 
 last being May 31, 1730, and the notes so collected are 
 to be consumed. 
 
 ^ From some queries of casuistry by Rev. Mr. Stoddard 
 of Northampton, the ensding extract is made : — " Is not 
 the depreciating the bills of credit matter of provocation ? 
 It must needs be ; for great wrong is done to many per- 
 sons, who have received them according to their denomi- 
 nation, and have been forced to put them off, as if they 
 were of less value. Some men are able to help them- 
 selves by getting greater wages for their work, and advanc- 
 ing the price of what they bring to the market ; but 
 others have been great sufferers by this practice, and if 
 ever the bills are called in, such as are in debt, either to 
 public or particular persons, will be great losers. It may 
 be, some of them will be undone thereby. The tempta- 
 tion to the merchants was to get the money into their 
 own hands, that thereby they might make returns to 
 England. They would give 30' in bills for 20' in silver. 
 And they may afford to do it, that have sold and do sell 
 their goods at excessive rates. They are under no neces- 
 sity to do thus, for they have the command of the market, 
 and might buy the produce of the country at such 
 prices, that they might make as profitable returns as they 
 now do." 
 1722. 2 While the paper money was multiplied, small coin as 
 well as large, was exceedingly scarce. For this reason, 
 an emission of £500 worth of I'', 2^, and 3*^ bills is 
 ordered. The form of the first of these bills was round, 
 of the second, square, and of the third, sex angular. 
 "vl.723. Wearied with his endeavors to stem the popular current 
 for the increase of Province loans, as also with opposition 
 
 June 
 26. 
 
 Jan. 
 1. 
 
 > An answer to some Tales of Con- ^ Massachusetts Provincial Re- 
 
 science, about 1722. cords. 
 
MASSACHUSETTS CURRENCY. 
 
 79 
 
 on account of his salary and other subjects, Governor 1733. 
 Shute embarks for England. On his doi)arture, Lt. Gov- ^■^^-'^^ 
 ernor Dumnier comes into like perplexity. A majority of 
 the Legislature, over whom he presided, desirous to regu- 
 late the disordered currency, mend a cog here and tiiere, 
 but entirely overlook the main spring. 
 
 ■^As South Carolina had been pointed to as a beacon for 
 warning Massachusetts from recklessly indulging a passion 
 for paper money, — so Massachusetts is now spoken of to 
 the people of Pennsylvania for the same preventive. 
 
 ^ The products of the land and sea, which had been Ju'y 
 renewedly current at the Treasury for taxes, now cease 
 to be taken there. This suspension is again to be tempo- 
 rarily interrupted in a few years, by the scarcity of other 
 medium of exchange. 
 
 There was great debate in the Assembly about the 1724. 
 emission of £30,000. The Council wished to have it ^^^' 
 redeemed in three years, but the House insisted on a 
 longer credit of four years. The latter body prevail. 
 
 Judge Sewall, as a member of the Board, remarks on 
 this occasion ; — ^ " The diminution of the value of the 
 bills of public credit, is the cause of much oppression in 
 the Province. And I dare not have a hand in adding to 
 the heavy weight of this oppression, which is already be- 
 come intolerable." 
 
 ^ Among the professional classes of society, who experi- 1725. 
 ence much loss and suffering from the fall of the paper ^^r^ 
 currency, are clergymen. They having their salaries paid 
 in it at par, are virtually wronged out of much which 
 justly belongs to them, and is essential to the comfortable 
 support of themselves and families. Aware of their equi- 
 table claim for indemnification, an act is passed that they 
 shall be obliged to take bills of credit only at their real 
 value. 
 
 ^That we may judge of the sums issued in Treasury 
 notes or bills, the succeeding minutes of James Taylor, 
 the Treasurer, are adduced. 
 
 ' Proud's Hist, of Pennsylvania. ■* Annals of Salem. 
 
 2 Mass. Provincial Records. * Massachusetts Archives. 
 
 Judge Sevvall's Diary. 
 
80 HISTORICAL ACCOUNT OF 
 
 1725. Received into the Treasury 
 
 from May 1703 to May 1714 £194,950 13 
 
 1715 41,555 8 
 
 1717 5,000 
 
 1719 15,000 
 
 1720 2,000 
 
 1722 58,000 
 
 1723 60,500 
 
 1724 20,000 
 
 
 £397,006 
 
 1 
 
 Burnt, 
 
 194,917 
 
 2 10 
 
 Bills out, 
 
 £202,088 
 
 18 2 
 
 Burnt by Mr. Taylor, Treasurer, 
 
 
 
 from May 1707 to May 1714 
 
 £68,968 
 
 2 6 
 
 1715 
 
 41,429 
 
 11 11 
 
 1716 
 
 17,829 
 
 4 
 
 1717 
 
 11,703 
 
 12 5 
 
 1718 
 
 15,339 
 
 6 6 
 
 1719 
 
 19,522 
 
 15 11 
 
 1720 
 
 3,960 
 
 15 11 
 
 1722 
 
 268 
 
 8 1 
 
 1723 
 
 3,572 
 
 17 
 
 1724 
 
 6,038 
 
 7 
 
 1725 
 
 6,284 
 
 8 
 
 £194,917 2 10 
 
 Oct. ^ The ensuing notice is sent to Lieut. Governor Dum- 
 mer, from the Duke of Newcastle in London. William 
 Wood has been granted Letters Patent by his Majesty for 
 coining " half-pence, pence, and two-pences, of the value 
 of money of Great Britain, for the use of his Majesty's 
 dominions in America, which said coin is to receive such 
 additional value as shall be reasonable and agreeable to 
 the customary allowance of exchange in the several parts 
 
 ' Massachusetts Archives — Letters, vol. ii. 
 
MASSACHUSETTS CURRENCY. g| 
 
 of those his Majesty's dominions." He desires Mr. Wood 1727. 
 may be assisted in the execntion of his office. ^eb^ 
 
 ^ The Board of Trade in London agree upon orders for 8. 
 his Honor, William Dummer, to require the General Court 
 to withdraw from circulation the £100,000 loan of 1710, 
 and have it destroyed by the next May, and that he sign 
 no act for bills of credit without his Majesty's express leave 
 for that purpose. 
 
 2 A letter is forwarded by Secretary Willard, to the May 
 Governor of Rhode Island, desiring, that, as his Colony '^'^• 
 had issued a Proclamation for calling in their bills of 
 credit, they would appoint an agent in Boston, to exchange 
 an abundance of such paper and other notes of theirs, 
 worn and defaced, which had fallen upon the hands of 
 Massachusetts people. 
 
 ^ At the next Election Mr. Dummer lays the concerns of ju^c 
 another loan before the Court, as having an important 1- 
 bearing upon their views and exertions. 
 
 ■* Urged on by the necessities and solicitations of their j„| 
 constituents, the great portion of the House apply to him 5. 
 for a further loan of £50,000. Aware that his order from 
 the crown forbid this in the naked form of a loan, they 
 propose that it be issued towards redeeming the £100,000. 
 He replies that his instructions are imperative to decline 
 compliance Avitli all such propositions until the Royal 
 pleasure can be known. He remarks that if the propo- 
 sition was couched in terms to denote an emission for 
 recalling the £100,000, he could not object. He adds 
 his entire Avillingness to allow the annual emission of 
 Treasury notes, to settle the costs of Government, as had . 
 been customary. They and the great body of the people 
 are exceedingly loth that he should be guided by dictates 
 of the Crown in this respect, because they considered it as 
 an important article of their internal policy, which no 
 foreign power could touch without a violation of their 
 Charter liberties. They were aware, that if once allowing 
 
 > Lt. Gov. William Dummer's ^ Lt. Gov. Dummer's Speech. 
 
 Speech. * Massachusetts Provincial Rec- • 
 
 2 Massachusetts Aichives — Let- ords. 
 ters, vol. ii. 
 
 11 
 
32 HISTORICAL ACCOUNT OF 
 
 1727.it, as consistent with their Constitutional rights, it would 
 '■^-'^^ be difficult for them to retract, and would prepare the way 
 for unlimited taxation. Hence, they had uniformly met 
 it on the threshold, and refused to give it a welcome. 
 Aug. ^ While a larger part of the Representatives were thus 
 25. vigilant, lest the Province should be brought under deeper 
 subjection to the Tlirone, they came into collision with the 
 Council, as to the duty and expediency of redeeming bills 
 for £30,000 issued in 1723 and 1724. The latter body 
 urge that " the faith and honour of this government is 
 strongly engaged" for the recalling of such a sum. The 
 former allow, that the time, when it should be taken out 
 of circulation, according to the pledge of the Legislature, 
 had arrived; but that the distressed condition of the 
 country was a sufficient apology for a delay of fulfilling 
 the contract, that greater evil than good would accrue to 
 the public, if the bills out should be drawn in. Several 
 communications passed between the two branches of 
 legislation on this subject, each adhering to their opinions, 
 and holding one another to be in a dangerous error. The 
 same scene was repeatedly exhibited. But an impartial 
 view of the subject would suggest, that the Council had 
 the better side of the question, and that conformity with 
 principle rather than policy was better then, and always 
 is, than the contrary. One result of the policy practised 
 by the House, honestly, we believe, though incorrectly, 
 was still more to weaken confidence in the bills of credit. 
 
 Prices of articles paid for Provincial Taxes. 
 
 Oct. To show the worth of money, as well as to give an 
 1^- instance of the renewed custom of accounting the produc- 
 tions of the Province as currency, so far as to receive 
 them for rates at the Treasiuy, the subsequent valuation 
 of them is here given. 
 
 Good merchantable beef, £3 a barrel ; do. pork, £5 10/. 
 Winter wheat, 8/, Summer wheat, 7/, barley, 6/, rye, 
 6/, Indian corn, 4/, oats, 2/6, a bushel. Flax, 1/4, 
 
 ' Massachusetts Provincial Records. 
 
MASSACHUSETTS CUllRENCV. 
 
 83 
 
 hemp, 9'^, bees' Avax 2/6, a pound. Peas clear of bugs, 9/ 1707. 
 a bushel. Sweet firkin butter, 12^', dry hides, 6*^, tanned -^-^^^ 
 leather, 12*^, a pound. Merchantable dry cod-fish, jCl 10/ 
 a quintal. Mackerel, £1 10/, oil, £2 10/, a barrel. Whale 
 bone, six feet long and upward, 3/6, bayberry wax, 1/4, 
 a pound. Turpentine full bound, 13/, merchantable bar 
 iron, 48/, cast iron pots and kettles, 48/, a hundred. Well 
 cured tobacco, 4*^, good tried tallow, 8*^, a pound. 
 
 ^ At this point it may be well to give a scale of the de- Dec. 
 preciation of paper currency, as contained in an act to ^" 
 regulate its value, which required that all debts contracted 
 in bills of credit before and since IT 10, should be esti- 
 mated in them, as follows : — 
 
 T,„iv ,„ „„ J • 1710 ) Bills y^ere worth) 0/ C for an ounce of 
 Before and in ^^^^ J at the rate of J W J silver. 
 
 1713^ W^ 
 
 ^^^H 9/ 
 
 1715 V / 
 
 1716) 
 
 17175 . m/ 
 
 1718 11/ 
 
 1^19? 12/ 
 
 17205 ^"^1 - 
 
 1721 ". : . ■. .' ■. 't3/' ■' ' ' ' '' 
 
 1722 14/ •■ ■ 
 
 1723 15/ . H 
 
 1724 -V 
 
 1726 ( ^^/ 
 
 1727 ) 
 
 This was an estimation which was most favorable to 
 the paper currency of the Province. 
 
 The Council, with his Honor, having repeatedly 27.33 _ 
 pressed the recall of the £100,000 loan, the date fixed Jan. 
 for its redemption being expired more than a year, the 
 House consent to the proposition, though reluctantly, be- 
 cause they perceived their constituents opposed to it, and 
 because they expected, from the course of Parliament 
 
 ' Act of Massacliusetts. 
 
84 
 
 HISTORICAL ACCOUNT OF 
 
 1723 towards this country, that the paper cmTency would be 
 """""^ increasingly curtailed. But as some oif-set for their dis- 
 appointment in this particular, an Act is passed for another 
 loan of £60,000. The heading for this was more in 
 accordance with their views and feelings, than with those 
 of the other part of the Legislature. It runs thus : — 
 " Whereas the public bills of credit on this Province, 
 which have for a great length of time happily served this 
 Government, both in war and peace, and enabled the 
 inhabitants thereof to pay their publick dues, are now 
 become very scarce, by reason they are in a great measure 
 already drawn in." This money was issued to the towns 
 proportionably to their taxes. They are empowered to 
 let it out at 6 per cent., four of which went to the Prov- 
 ince, one to the trustees, for their responsibility and ser- 
 vice, and the other to help pay town charges. A tax on 
 real and personal property was the fund for the redemp- 
 tion of the loan, payable annually in ^sums of £12,000 
 each, from Dec. 31, 1734. 
 
 March Dr. William Douglas states the ensuing facts to Caldwal- 
 18 a & 
 
 ■ der Golden of New York. ' Our paper currency, by too 
 
 great emissions, has gradually lost its credit, so as at present 
 16' is but sufficient to purchase an ounce of silver. The 
 bills of Massachusetts in circulation amount to £314,000, 
 besides those of Gonnecticut, Rhode Island, and New 
 Hampshire.' 
 Aug. ^ Mr. Burnet having assumed the government here, and 
 being urged by the Representatives to favor their views 
 for plentiful issues of paper money, sends one of his in- 
 structions to them for perusal, and also to the Gouncil. It 
 runs thus ; " Whereas Acts have been passed in some of 
 our Plantations in America for striking bills of credit, and 
 issuing the same in lieu of money, in order to discharge 
 public debts and other purposes, from whence several 
 inconveniences have arisen, it is, therefore, our will and 
 pleasure, that you do not give your assent to, or pass any 
 
 * Doctor William Douglass, in a terminating 1742, which disagrees 
 
 letter to Caldwalder Golden, Esq. of with the Act. 
 
 New York, represents these pay- ^ Massachusetts Provincial Rec- 
 
 uients as commencing in 1737, and ords. 
 
 20. 
 
MASSACHUSETTS CURRENCY. 35 
 
 Act in our aforesaid Province of the Massachusetts Bay, 1728. 
 under your government, Avhercby bills of credit may be ^^^^^^ 
 struck or issued in lieu of money, without a clause be 
 inserted in such Act, declaring that tlie same shall not take 
 elfect until the said Act shall have been approved or con- 
 firmed by us." This was a lesson for the popular branch 
 of Legislation to read, to which, though they saw it with 
 their eyes, and heard it with their ears, they gave no heart- 
 felt respond of approbation. Like other expressions of Regal 
 authority, which had been repeatedly laid before them, it 
 seems to have made little impression on their memory, or 
 which is the truer of the two, they would gladly have 
 forgotten it, if thereby it might have been no longer im- 
 posed on them, as what they deemed an advance of op- 
 pression. 
 
 For the short period Governor Burnet lived here, being 
 some over a year, he perceived, that unless he would sur- 
 render the prerogative of the Crown to forbid the loaning 
 system of the Assembly, as well as to fix the salary of the 
 Chief Magistrate, he must be in an incessant turmoil. 
 
 ^ With such relations to each other, they so disagree, that 1729. 
 he said to the House, for substance, Gentlemen, I have ^^^^ 
 ordered you no pay, because you have voted me no salary. 
 Thus with his hand on the points of opposition, he would 
 have had much to endure had he survived, and longer 
 retained his office. 
 
 2 So downward was the tendency of Massachusetts 
 notes, that they again become the subject of remark in 
 another Province. James Logan, writing from Pennsyl- 
 vania to the Proprietaries, and referring to their bills, 
 says, " I dare not speak one word against it. The 
 popular phrenzy will never stop till their credit will be as 
 bad as they are in New England, where an ounce of silver 
 is worth 20' of their paper." 
 
 ^ One occasion of such a difi"erence between bills and 
 cash, was because the Factors here from England had 
 
 ' Massachusetts Provincial Rec- " Annals of Philadelphia, 
 
 ords. ^ Discourse on Colonial Currency. 
 
36 HISTORICAL ACCOUNT OF 
 
 ] 729, orders from their employers, to remit, for the goods im- 
 '^^ ported, nothing short of silver or bills of exchange. 
 
 While the pecuniary state of the Province was such, 
 Mr. Burnet is succeeded by Jonathan Belcher. Of this 
 gentleman the Court of St. James had strong hopes, that 
 he would be able to subdue what they accounted and 
 denominated the refractory spirit of Massachusetts, and 
 make a speedy close of the paper currency. 
 
 Accordingly he comes hither with, an injunction to 
 1730. have preparatory measures adopted for effecting this object 
 ** in the course of ten years. 
 
 ^ Governor Belcher says in his speech to the General 
 Dec. Com-t, " I must not dismiss this article, without recom- 
 16. niending to your thought and care, the state of your bills 
 of credit, the course and manner of their being such at 
 present, as makes them a common delusion to mankind." 
 The law for compelling creditors to receive paper, spe- 
 cialties excepted, however fallen, at par value, and openly 
 denounced in England, as flagrantly unjust to her mer- 
 chants who traded with this Province, comes before him 
 for reapproval. At first, he gives it his prompt veto. But 
 
 ■'J'^Vtired down by Yankee perseverance, he is induced to 
 April . •' ^ ' 
 
 2. have it prolonged, at the expense of being severely cen- 
 sured in London. 
 
 Still, however pliant in this point, no guard of the gol- 
 den apples of Hesperides could have been more vigilant 
 and unyielding than he was, to keep the injunctions of 
 his Majesty. 
 
 These, being the 16th and 18th, restricted all issues of 
 Treasury notes to the bare liquidation of Government 
 charges, and required that not more than £30,000 of them 
 should be in circulation at the same time, and that they be 
 redeemed at the date agreed on. A consequence is, that 
 the House retaliate, in not providing a sufficient sum for 
 the public chest, in the manner which he could approve. 
 Dec. The Representatives of Massachusetts having peti- 
 ^'^' tioned the King to repeal the 16th instruction to Governor 
 
 ' Journal of House of Representatives. 
 
MASSACHUSETTS CURRENCY. 37 
 
 Belcher, as very detrimental to the Province, his Majesty 1732. 
 confirms a report of his Council to have the instruction ^-^^^^ 
 still continued. jan. 
 
 ^ As officers of courts of justice had recently refused to 20. 
 take their fees, except in silver, a committee of the Repre- 
 sentatives report that so scarce is specie, and so necessary 
 is it to preserve the credit of bills, such a refusal must by 
 no means be allowed. 
 
 2 Gov. Belcher writes to the Lords of Trade, "If your 1733. 
 Lordships approve of the Bill I now send you, for emitting *'""• 
 bills of credit on a foundation of gold and silver, and that 
 I may have his Majesty's leave for doing it in Massachu- , 
 setts, I pray I may also have the same liberty of doing 
 it in New Hampshire, where they are in great distress for 
 something to pass in lieu of money, and without speedy 
 help it will be almost impossible for that little Province to 
 support any trade." • ' 
 
 While the Treasury is unsupplied, James Oglethorp, a 
 member of Parliament, a particular friend to the interests 
 of New England, and the founder of Georgia, sends word 
 that he is on his wq.y, from that Province, for Boston, to 
 take passage for London. The Legislature raise a com- j^ij^g 
 mittee to give him an honorable reception and entertain- ^1. 
 ment. In the meanwhile, the Governor forwards a letter 
 to them, saying, that as they had voted no funds for any 22. 
 extra expense, he should accommodate the worthy gentle- 
 man at his own house, and own charge. This was a 
 requital more deeply felt, than it could be openly faulted. 
 
 The House having petitioned the King several times, A„g, 
 that the restrictions laid on their Governors, as to the 1^- 
 raising of revenue for Province expenses and necessi- 
 ties, might be rescinded, they had lately received a sharp 
 rebuke from his Council for so doing. These account for 
 such restrictions in the succeeding terms. " A pernicious 
 practice had prevailed in several Plantations of America, 
 for issuing bills of credit instead of money, to pay public 
 debts. Hence great inconveniences arose in depreciation 
 
 'Journal of House of Represen- ^Massachusetts Archives — Let- 
 
 tatives. ters, voL ii. 
 
gg HISTORICAL ACCOUNT OF 
 
 1733. of bills." Indeed, the conduct of our Legislature, as to 
 '•^^•''^ pecuniary matters, was viewed at the court of England, 
 as a sort of Pandora's box to our country. It was made the 
 occasion there of changes, which were deprecated by the 
 most of our fathers. It hastened on the explanatory 
 Chai'ter of 1725, which confirmed the Governor's right to 
 negative the Speaker of the House, and curtailed this 
 body in other exercises of power. It subsequently helped 
 to throw the auditing and settling of public accounts into 
 the hands of the Governor and Council, and otherwise 
 cramped the energies of the popular branch of govern- 
 ment. Still, while its unhappy results, in these and other 
 respects, political and social, public and private, poured 
 over our Commonwealth, hope, in the minds of the Pro- 
 vincials, remained at its bottom. 
 Oct. ^ As by the Royal commands to the chief magistrate, 
 11- Treasury notes had become curtailed, a number of mer- 
 chants and others of Boston, in order to supply the defi- 
 ciency of such a medium of trade, had recently engaged 
 in a project of issuing paper to the value of £110,000. 
 Rhode Island had also ordered a large emission of their 
 bills, which, as usual, were expected to have their chief 
 circulation in Massachusetts. With these facts laid before 
 them, and concluding that by such causes their own bills 
 would proceed from bad to worse, the General Court ap- 
 point a committee to examine them, and make report. 
 Oct. ^ Notified of such action. Governor Wanton replies, that 
 2^- the Rhode Island Assembly had enacted, in July last, to 
 issue £100,000 loan, at 5 per cent., on land security. He 
 adds, "I do assure the General Assembly of the Province, 
 we had an especial regard for the welfare of the public in 
 said emission. And hope" that they "will take care that 
 trade may not be injured by a private emission now 
 comins out without their sanction, as I am informed." 
 Noy 3 ^ter a hard contest between the House and his Ex- 
 2. " cellency, they so far harmonize, that he consents to an 
 
 > Massachusetts Provincial Rec- in answer to Secretary Willard's 
 ords. express. 
 
 2 Gov. "William Wantons letter, ^ Massachusetts Provincial Rec- 
 
 ords. 
 
MASSACHUSETTS CURRENCY. gg 
 
 emission of £76,500, in bills, for Provincial charges. On ]7;33. 
 this occasion he remai'ks, " I am glad you have, after a -^^^'^^ 
 struggle of near three years, now agreed in a bill to make 
 provision for the payment of the public debts." 
 
 ^ A letter of the General Court to Francis Wilks, their Nov. 
 agent in London, requesting him to petition for the repeal '^• 
 of the tax on fishermen here, as well as on those in the 
 merchant service, of 6'^ a month for Greenwich Hospital, 
 remarks, that their fish brings " a very large sum in silver 
 and gold, from Spain, Portugal, and the Streights," which 
 goes to Great Britain for the payment of goods. 
 
 '^ The committee raised about the paper money in circula- q^ 
 tion, make their report, which is accepted by both Houses. 
 They state that the merchants' notes emitted by Boston 
 gentlemen, should be backed with greater security; and 
 that his Excellency be desired to send out a proclamation, 
 warning the people to be on their guard against taking the 
 late bills of Rhode Island. The bills of the private bank, 
 just mentioned, amounted to £110,000, and were redeem- 
 able in ten years, with silver at 19' an ounce, then the 
 common rate of the Province paper. Though a great and 
 imposing effort was made to keep the Rhode Island bills 
 out of our market, yet they soon flowed in, and became 
 current. 
 
 2 The Governor thinks it not expedient to issue a proc- 7. 
 lamation against both of these sorts of currency, though 
 he is decidedly opposed to them. He gives his opinion, 
 that the merchants' bank ought not to do business with- 
 out permission from the Assembly ; and that such permis- 
 sion should not be allowed them, because falling within 
 the limits of his prohibitory order from the Crown, to 
 have only £30,000 in bills circulating at the same period, 
 ^ Still the merchants' notes were circulated, and accounted 
 better by 33 per cent, than Province bills. 
 
 These concurrences made a flush of paper money. But 
 
 'Massachusetts Archives — Let- ^ jyiaggachusetts Provincial Rec- 
 
 ters, vol. ii. ords. 
 
 ^ Massachusetts Provincial Rec- '' Letter to a merchant in London, 
 
 ords. 
 
 12 
 
90 HISTORICAL ACCOUNT OF 
 
 1733. the flood was far from being like that of the Nile, which 
 ^"^"""^ enriches and blesses wherever it comes. 
 
 While such a change for the worse is attracting the 
 anxious gaze and attention of friends to the Province, 
 Mr. Belcher, in his speech, utters the succeeding opinions. 
 
 1734. ^ " I must observe to you to what a low ebb our bills of 
 ^^y credit are reduced, which carry in the face of them these 
 
 words — 'in value equal to money.' And yet 16' in these 
 bills will not, at this day, purchase 5' lawful money. It 
 will then become the wisdom of the Legislature to search 
 into this matter, and to apply a speedy remedy ; for next 
 to the defence of the Province, I take this to be an affair 
 of the greatest consequence. I should also think it pru- 
 dent to look carefully into the several loans of the Prov- 
 ince, and, after so many years' indulgence to the borrowers, 
 to order them to be paid in without more delay. For a 
 sacred observation of the terms of the several Acts, by 
 which the bills have been issued, must have a natural 
 tendency to support their credit. And I think it would 
 be an instance of the wisdom and justice of this Govern- 
 ment, not to suffer an emission of any sort of notes or bills 
 for the future, but such as will instantly, and at all times, 
 honestly and truly command the value expressed in them. 
 I look upon the land and commerce of the country to be 
 but one joint interest, and should be always equally 
 encouraged. And it is with much concern I mention 
 to you the decaying state of the trade of the Province. 
 While our importations are so exceeding as constantly to 
 leave us a large balance in arrear to our friends abroad, it 
 is impossible we should carry on a gainful trade, or have 
 among us gold and silver, the only valuable medium of 
 commerce. Happy would it then be for the Province, if 
 the Legislature would establish some large premiums to 
 encourage the cultivation of the lands, as on hemp and 
 other naval stores, and our English grain. Something of 
 this kind may gradually bring the balance of trade in our 
 own favour, which will of course fix the standard of 
 money among us." 
 
 ' Governor Belcher's Speech. 
 
MASSACHUSETTS CURRENCY. 91 
 
 ^Governor Belcher makes further remarks on this sub- 1734. 
 ject, which he deemed of vital importance to the commu- ^^ 
 nity. '' Of late, it is most certainly apparent that emissions ^2. 
 of bills of what sort soever, have sunk the value of all 
 bills that were extant before, more or less in proportion to 
 the sums that have been emitted, and a plain proof of this 
 we have had the last year upon an emission of this gov- 
 ernment, of about eighty thousand pounds, and of a much 
 greater sum by a number of private persons, and of slill 
 more by the neighboring Colonies, which in the course of 
 the year, have sunk the value of our Province bills, at 
 least a fifth part." This has injured those of Great 
 Britain who trade here. " Yet the loss has more heavily 
 fallen upon such as are the most careful and industrious 
 to live within themselves, upon widows and orphans, upon 
 the ministers of religion, and upon such as spend their 
 time to serve the publick.". They who live by credit are 
 most benefited by such a state of currency. The bills 
 of the Private Bank or merchants' notes, instead of pre- 
 venting a further depreciation of Province bills, as it was 
 confidently said, have had a contrary effect. 
 
 Such compends of sound political economy had been 
 often repeated, from the Chair of State, in the ears of the 
 two Houses. A page from Davenant, or Steward, or 
 Smith, could ofi"er no better advice for a country situated 
 as ours was. 
 
 In accordance with the suggestion of Mr. Belcher, the 
 General Court consider the means for suppressing the 
 merchants' notes, but as they could not agree, the subject 
 is deferred. 
 
 Actuated by the prevalent mania, against which wise 
 precautions had been given, a company in New Hamp- 
 shire concluded to follow the example set by the associa- 
 tion of our metropolis — who had issued notes on their 
 OWL responsibility — but not to imitate their judicious 
 provisions to hinder loss to the public. ~ Hence our Leg- 1735. 
 islature pass a law against the circulation of their bills on j'g" 
 a penalty of heavy fine. A part of the introduction to 
 
 1 Governor Belcher's Speech. * Massachusetts Acts. 
 
92 
 
 HISTORICAL ACCOUNT OF 
 
 1735. ^^^^ Statute runs thus: — Whereas sundry persons of New 
 "^"''^^ Hampshire, have adopted measures the past year to issue 
 " promissory notes of a most uncertain and sinking value, 
 as they are payable in New Hampshire, Massachusetts, 
 Connecticut, and Rhode Island bills, or in silver, gold or 
 hemp, at the unknown price they may be at in Portsmouth, 
 in NcAV Hampshire, Anno 1747, whereby his Majesty's 
 good subjects will be great sufferers, should they part 
 with their goods and substance for them or accept of them 
 in payment." This was a banking speculation, which 
 promised much advantage to its promoters, but very little 
 to the public. The larger amount of its paper, like all 
 such currency of that day, in New England, reached 
 Boston — the great mart for the northern Colonies. But 
 placed under the ban of the law, its market was spoiled 
 for this Province. 
 
 June 1 While this money was thus driven from circulation, 
 
 20 
 * the bills of Massachusetts are so scarce, that the inhabi- 
 tants are permitted to pay their taxes in hemp, flax and 
 bar-iron. In this manner, when necessity was laid on the 
 people, they had partial and occasional returns to the 
 ancient mode of satisfying demands of the public Trea- 
 sury upon them. 
 1737. ^Perceiving that with all their vigilance and exertions, 
 ? they could not restore the credit of their notes, the Gen- 
 eral Court resolve to have others made, differently ex- 
 pressed. This they do in an emission of £ 18,000 in bills 
 of the current form, and of £9,000 in a different form. 
 The first sum was to be re-called in a year, and the last 
 in 1742. As a sinking fund for both of these amounts, 
 the people are still allowed to pay their taxes in hemp, at 
 4*^ and flax at 6"^ to the Treasurer, or money, both hard 
 and paper, if they could. As the conditions of the £9,000 
 emission, differ from those in preceding bills of credit, it 
 causes them to be denominated new tenor and the others 
 old tenor. The succeeding form was adopted for the new 
 tenor : 
 
 ' Massachusetts Provincial Records. ^ General Court Records. 
 
xMASSACHUSETTS CURREiNCY. 93 
 
 1737. 
 TWENTY SHILLINGS. TWENTY SHILLINGS. ~ — '"^ 
 
 This Bill 0/ TWENTY SHILLINGS due froiii the Province of 
 the Massachusetts Bay in New England, to the possessor 
 thereof, shall be in value equal to three ounces of coined 
 silver, Troy weiglit, of sterling alloy, or gold coin at the 
 rate of four pounds eighteen sJiillings per ounce; and 
 shall be accordingly accepted by the Treasurer and re- 
 ceivers subordinate to him in all payments (the duties of 
 Impoi't and Tannage of shipping and incomes of the 
 Light House only excepted,) and for any Stock at any 
 time in the Treasury. 
 
 Boston, By order of 
 
 the Great and General Court or Assembly. 
 
 Twenty Sldllings. Twenty Shillings. 
 
 ] 
 
 Committee. 
 
 A reason why these notes were not to be received for 
 the excepted duties, was because such duties were ordered 
 to be paid in hard money, which was to redeem the notes. 
 
 ^ As the act for such bills limited the preceding ones to 
 the payment of like taxes, though when first ordered, they 
 Avere to be taken for all taxes, merchants loudly com- 
 plained, that this was a breach of public faith, was one 
 act's destroying another. Dissatisfaction of this kind 
 tended to injure both sorts of bills. Though government 
 set the new tenor at one for three of the old, yet the 
 people passed them at one for four. 
 
 As a specimen of the Protean appearances, which were 
 assumed by knavery with regard to New England notes, 
 we copy the heading of an act against such iniquity : — 
 2 " Whereas by the tearing of the bills of credit on this 
 Province and on the neighbouring governments into halves 
 and quarters, and then passing the same so torn and 
 defaced, many frauds have been committed by taking and 
 joining bills of a lower denomination to those of a higher 
 
 ' Letters from Boston. ^ Massachusetts Provincial Records. 
 
94 HISTORICAL ACCOUNT OF 
 
 1737. denomination, and so uttering and passing the same; and 
 " '^^ likewise parts of false and comiterfeit bills in parts sepa- 
 rate, or joined to parts of true bills, and thereby many of 
 his Majesty's good subjects of this Province have suffered 
 considerable loss and damage and are likely to sufler 
 more." Then follows a heavy penalty for such offenders, 
 and no persons should receive any payment from the 
 Treasurer for a torn bill, unless they took oath that it was 
 so marred while in their own possession. 
 Dec. ^ Governor Belcher observes that the issuing of new 
 tenor bills has had a good effect in promoting public 
 credit. 
 
 The General Court renew their endeavors to guard the 
 community against the influx of unsafe paper. On this 
 1739. head, their language runs thus : — ^ '- Whereas the emission 
 Jan. of great quantities of bills of public credit without certain 
 provision for their redemption by lawful money, in con- 
 venient time, hath already stript us of all our money and 
 brought them into contempt to the great scandal of the 
 government ; and for the remedy thereof, this Province 
 hath fixed the value of their bills in lawful money and 
 the time of their redemption in 1742. Yet the neighbour- 
 ing Governments whose bills have been received by the 
 inhabitants of this Province promiscuously with our own, 
 have taken no care to fix any certain value on theirs, and 
 by that means, our good intention may be frustrated unless 
 special provision in this can be made." With such rea- 
 sons before them, both Houses pass a bill to be enacted, 
 that no paper money of other Provinces shall be taken in 
 Massacliu setts, except redeemable by lawful money, on 
 good security, in ten years from their first being issued, on 
 fine of £10 for every such note paid or received. This 
 bill is sanctioned by the Governor. 
 13. ^ The Assembly assure the Governor, that his purpose to 
 have all their bills re-called in a year or two, is impracti- 
 cable, and that if attem^ited, would accumulate the distress 
 already endm-ed by the inhabitants. 
 16. He replies, in reference to an emission of bills, which 
 
 1 Journal of the House. - General Court Records. 
 
MASSACHUSETTS CURRENCY. 95 
 
 they had urged more than a year before : — "I will employ 1739. 
 my best offices, consistent with my duty to the King, ~7ii^ 
 that his Majesty's Royal leave may be obtained lor giving 17. 
 my consent to a bill of this nature." Thus encouraged, 23. 
 both Houses designate a Committee to urge their agent in 
 London to obtain such permission from the Crown. 
 
 ^ The letter of this Committee to Francis Wilks, states 
 that it is the desire of his Excellency as well as of the 
 other branches of our government, that he may have 
 leave from the throne to sign an act for the emission of 
 £60,000 in bills for redeeming those due in 1742. They 
 relate, that Massachusetts had recently made a law against 
 the bills of adjacent Colonies, unless payable in specie, 
 and that her paper could not sustain its credit without 
 such a regulation. . . 
 
 2 The aa-ent for Massachusetts writes, that the Lord's March 
 Commissioners for Trade strongly object to an issue of the 
 £60,000, while it is allowed here, that debts, payable in 
 specie, may be discharged with such paper. He also jyjay 
 relates, that in an interview with the President of the 19- 
 Lords of Trade, he mentioned how unequal it was for the 
 Governor of Massachusetts to be limited in giving sanction 
 to the issues of paper money, while the Chief Magistrates 
 of other Colonies are left unincumbered in this respect. 
 He further stated to the President, that notwithstanding 
 the law of Massachusetts against the currency of notes 
 emitted by the adjacent governments, yet our people were 
 under a necessity of taking and paying them, because om: 
 own bills were scarce. 
 
 While exerting themselves to enlarge their medium of 
 exchange, they pass a law to be enacted for the relief of 
 debtors. This requires that every creditor shall receive 
 the bills of his own government for demands, if such 
 bills were issued before March 25, 1738. 
 
 Supposing the House unduly inclined to regard the . 
 future finances of the Province more under the emblem 
 of a cornucopia than otherwise, the Chief Magistrate 
 reminds them of what they had reason to anticipate from 
 
 ' Mass. Archives — Letters, vol. iii. ^ Mass. Archives — Letters, vol. iii. 
 
96 HISTORICAL ACCOUNT OF 
 
 1739 their present and past experience. ^ He states to them 
 -^^•^^^ that their loans to 1727 were £260,000, and that a quarter 
 of it was still unredeemed and that a part of this should 
 have been called in twenty years ago, and that their old 
 bills had fallen two thirds of their first value. Such plain 
 talk brings a reply from them which does not give so 
 sombre a hue to their lack of punctuality in managing the 
 public monies. It also induces them to send a committee 
 and ask an explanation of him for some other remarks, 
 but he declines to see them. 
 Oct. 2 jj^g Excellency sends a report, made by the Lords of 
 Trade — the preceding April 1 1 — to the Council, concerning 
 the £60,000 emission for which the House were anxiously 
 desirous, as a means of easing the heavy burden, that 
 must come on the people in paying rates to redeem the 
 bills of credit. This report, however, proposed conditions 
 with which the General Court are unwilling to comply. 
 1740. ^Knowing that coin had been mostly driven from the 
 country by the unsuccessful management of the paper 
 currency, and that this was soon to be drawn in, Thomas 
 Hutchinson — afterwards Governor — as a leading member 
 of the House, brings forward a project to meet so un- 
 pleasant an exigency. It is, to hire 220,000 ounces of 
 silver or gold equivalent, for ten years at four per cent, in 
 England, on the credit of the Province. But it is not 
 successful, as a subsequent and similar one of his proved 
 to be. 
 
 As a partial relief to the dark forebodings of the public 
 mind, if no increase to the medium should be allowed by 
 the Executive, he signs an act for an emission of £160,000 
 in old tenor bills, equal to £35,333 6' 8'^, payable December 
 31, 1742-3-4. The notes for this emission received the 
 name of new tenor, which made the preceding series, that 
 had been similarly denominated, called middle tenor. 
 19. ^ In continuance of the controversy between the Repre- 
 sentatives and the Governor, he repeats his account of the 
 Province arrearages. He says, that there are £210,000 in 
 
 > Mass. Provincial Records. ^ Mass. Archives — Pecu., vol. ii. 
 
 2 Mass. Provincial Records. * Mass. Provincial Records. 
 
 March 
 14 
 
MASSACHUSETTS CURRENCY. 97 
 
 bills now circulating, £40,000 are on loan, and the rest 1740. 
 £170,000, former Assemblies have promised shall be col- ^^^^'^ 
 lected into the Treasury, by a tax in the several years 
 specified, by 1742, and that this will be a heavy burden, 
 especially as no provision is made to supply the place of 
 paper currency. Such being the pecuniary condition and 
 prospect of the Province, several projects are advanced by 
 companies to supply the deficiency of money. The peti- 
 tions of these associations, being laid before the Legisla- 
 ture, and assigned to a Committee for consideration, are 
 reported on. One of them was John Colnian and three 
 hundred and ninety-five others, for £150,000, to be lent 
 in notes on land security, and payable in tv\renty years by 
 vai-ious articles of merchandize. It was in some degree 
 like the scheme of the noted, but mistaken John Law of 
 Scotland. Another was Edward Hutchinson and one 
 hundred and six partners, for £120,000, redeemable in 
 fifteen years, with silver at 20* an ounce, or gold pro rata. 
 ^ The latter was upon a plan similar to one before men- 
 tioned, and its bills were denominated merchants' notes. 
 It was promoted in order to put down the other. Though 
 the gentlemen appointed to consider them had less objec- 
 tion to the Specie bank than to the Land, or as frequently 
 called. Manufactory Bank, they give an opinion, that both 
 are inexpedient. ^ In the Legislature, there is a diversity March 
 of opinion, as to these companies. ^ The Council express ^^• 
 their wish that the Land Bank may be forthwith disan- 
 nulled, but that the silver scheme, so called, be put over 
 to the coming session. The Representatives, looking on 
 the Land Bank as designed for people of moderate pro- 
 perty as Well as for the rich, manifest their desire that 
 both suspend operations till the next Assembly, and then 
 be considered as to their respective claims. This was the 
 motion agreed on, and thus the petitioners earnestly looked 
 for a hearing. 
 
 ■^The Assembly enact that £4 in bills of the old tenor ^prjj 
 and 26/8 of the new, otherwise called middle, shall be 1<3. 
 
 * Letter to a Merchant in London. ' Mass. Archives — Pecu., vol. ii. 
 
 ' Mass. Provincial Records. * Mass. Provincial Records. 
 
 13 
 
98 
 
 HISTORICAL ACCOUNT OF 
 
 J 74 0. received in all payments equal to 20' of the last form and 
 "^""^ tenor, and so pro rata for a greater or less sum. 
 
 ^ It appears that there were at this time more plans for 
 banks than the two just described. A close and correct 
 observer of the financial concerns of the country, as they 
 were in that period, wrote to a correspondent. His re- 
 marks substantially follow : — There are many schemes in 
 Boston for emitting enormous quantities of paper cur- 
 rency ; one, for counteracting Rhode Island bills, to issue 
 on the responsibility of individuals £500,000 in notes 
 without fmid or period. In this connection, he states that 
 the emissions and reemissions of Massachusetts bills, from 
 1702 to 1740, amounted to £1,132,500 on funds of taxes, 
 and £310,000 on loans. Of these sums £230,000 ai-e 
 still outstanding, and, if public faith be better kept, such 
 an amount will be cancelled by 1742. He also states, 
 that the ordinary charges of the Government are £40,000 
 of the paper currency at 450 per cent, advance, or £5 J 
 of it for £1 sterling. He describes the unequal necessities, 
 to which several classes of society are reduced, in conse- 
 quence of the fall in Treasury notes. The carpenter gets 
 , / 12' a day, equal only to 3/4, even if silver be calculated 
 *" at 8' an ounce. He is also obliged to take half of his 
 labor in shop notes, payable in goods at 25 per cent, 
 advance. Such notes began to appear with the bills of the 
 Province, and they are a great grievance to tradesmen. 
 The clergy experience similar diminution in their means of 
 subsistence. Widows and orphans are great sufferers in 
 their property. Charity funds are greatly reduced in their 
 May real income. ^ Rev. William Cooper in speaking on this 
 subject, thus describes it : — " An empty treasury, a de- 
 fenceless country and embarrassed trade are indeed melan- 
 choly things." 
 
 Leaving this dark picture, we resume the story of the 
 two banks before the Assembly. Of these, the Land 
 Bank is particularly obnoxious to the Governor. He 
 appears resolved, that if necessary, he will put forth his 
 
 > Discourse concerning tiie Cur- ^ Rev. William Cooper's Election 
 
 rencies of the British Plantations in Sermon. 
 America. 
 
MASSACHUSETTS CURRENCY. 
 
 99 
 
 utmost power to crush it in the bud. His feelings in this 1740. 
 matter were not pecuUar to himself. They crossed the — '' — 
 Atlantic and utterance is given to them in the capital of 
 Great Britain. ^ They are embodied in a memorial, signed June 
 by merchants there and others, and presented to our 
 Assembly. Still, with this array of discouragements, they 
 issue their notes. The Specie Paying Bank, securing July 
 more extensive confidence, and viewed with less severity of ^^' 
 suspicion than the Land Bank, does no less than its rival. 
 In reference to these associations, Mr. Belcher issues the 
 succeeding Proclamation : — '^ '•' Whereas a scheme for emit- 
 ting bills or notes by John Colman, Esq. and others, was 
 laid before the General Court, in their session held the 
 5th of December, 1739, and by a report of a Committee 
 appointed by said Court, was represented, if carried on, to 
 have a great tendency to endamage his ^Majesty's good 
 subjects as to their properties ; and whereas application has 
 been very lately made to me and his Majesty's Council, by 
 a great number of men of the most considerable estates * 
 and business, praying that some proper method may be 
 taken to prevent the inhabitants of this Province being 
 imposed upon by the said scheme ; and it being very 
 apparent that these bills or notes promise nothing of any 
 determinate value, and cannot have any general, certain or 
 established credit ; wherefore, I have thought fit. by and 
 with the advice of his Majesty's Council, to issue this 
 Proclamation, hereby giving notice and warning to all his 
 Majesty's good subjects of the danger they are in, and 
 cautioning them against receiving or passing the said 
 notes, as tending to defraud men of their substance, and 
 to distiurb the peace and good order of the people, and to 
 give great interruption and bring much confusion into 
 their trade and business." This language was the genuine 
 expression of his Excellency's heart, uttered to a commu- 
 nity under the influence of strong and conflicting excite- 
 ments. Among the deep and tm-bid springs of calamity 
 breaking forth in the Province, was the exacting of long 
 
 * Massachusetts Archives — Pecu- " Massachusetts Archives — Pecu- 
 
 niary, vol. iii. niary, vol. iii. 
 
100 
 
 HISTORICAL ACCOUNT OF 
 
 7 40. deferred payment for the treasury loans. Much h'tigation 
 
 ■ "^ and great loss accrued to many, who had mortgaged their 
 estates for such debts. 
 
 July Understanding that his permission for a late issue of 
 notes was censured in Parliament, Governor Belcher ^ writes 
 to Mr. Partridge, an agent for our Province in London : — 
 "I wonder Mr. Sandys or any member of the Honorable, 
 the House of Commons, should think it a fault in me to 
 give my assent to a bill for more than £30,000. The 
 sense of such instructions is, that I am to allow no greater 
 emission than what will pay the expenses of Government. 
 My consent was to £80,000 old tenor, which is only 
 equal to £26,633 13 4 of new tenor, which is not so 
 much as my privilege allows." 
 
 Oct. ^ Of the bills which had been issued by the Province, 
 and to which much of the prevailing distrust and distress 
 was imputed, £143,952 19 5 are still passing. This 
 amount had so fallen in value, that it is estimated at 
 £27,790 11 10 sterling, at 400 per cent, advance. 
 
 Nov. ^ Mr. Belcher being assured that part of the military 
 ^- corps encourage the circulation of the Land Bank paper, 
 publishes a Proclamation to suppress such an example, as 
 he judged, against the executive authorities. His words 
 are — " I hereby warn all commissioned officers in the 
 militia from signing or giving any countenance to the 
 passing of the said notes of hand, directly or indirectly. 
 And as I apprehend, that if these should obtain a cur- 
 rency, it will reflect great dishonor on his Majesty's gov- 
 ernment here, and be very detrimental to the public 
 interests of this Province and people, I do hereby declare 
 my firm resolution, that if after this publick notice given, 
 any of the military officers of this Province persist in 
 being any way concerned in or giving any encouragement 
 whatsoever to the passing of the said notes of hand, and 
 full proof be made thereof to my satisfaction, I will imme- 
 diately dismiss them from their said offices." In no few 
 instances was this promise kept, as the occasions arose. 
 
 ' Gov. Belcher's MS. Correspondence. 
 * Massaclinsetts Archives— Pecu- ^ Massachusetts Archives — Pecu- 
 
 niary, vol. iii. niary, vol. iii. 
 
MASSACHUSETTS t;URIlENCy JQl 
 
 ' Civil as well as military individuals are compelled to 1740. 
 bow before the storm. As a sample of their communica- 
 tions with the Governor, the following is adduced : — " May 
 it please your Excellency. Inasmuch as your Excellency's 
 Proclamation of the 5th current, the holding of a commis- 
 sion under your Excellency is made inconsistent with the 
 prosecuting the manufactory scheme, in which we are 
 concerned, and whereon, in our humble opinions, the 
 interest of our native country so much depends as to 
 require the utmost of our endeavours to promote the same. 
 Therefore, as with a grateful sense of your Excellency's 
 favour we received our commissions and trusts, so with 
 the same sense for your so long continuing us therein, 
 we now, with your Excellency's leave, resign these trusts, 
 being concerned, that our being out of town deprived us 
 of the opportunity of accompanying those gentlemen who 
 have this day resigned before us. We are your Excel- 
 lency's dutiful and humble servants, 
 
 " Samuel Adams.^ 
 John Choate." 
 
 22. 
 
 Doctor Robert Hale of Beverly, holding a similar trust 
 with these two gentlemen, resigns for the same cause. 
 
 2 While these changes are occurring, the Governor, with 
 the eye of suspicion upon the track of the two banks, 
 reminds the Assembly, that the notes of these companies 
 are spreading among the inhabitants. He and the Council 
 require the stockholders to give bonds, so that the public 
 shall not be injured by such currency. He informs the 
 Representatives, that, as for the Land scheme, the King 
 and Parliament had been petitioned for its immediate sup- 
 pression. He proposes to them that they pass a law for a 
 like end. But the greater part of them being actuated by 
 their own views as well as by the popular wish, take no 
 step to arrest the operations of the bank, but they rather 
 
 encourage them. _, 
 
 ° . Dec. 
 
 '^The three justices, whose resignation is previously 4. 
 
 ' Massachusetts Arcliives — Pecu- father to the patriot. Mr. Choate 
 niary, vol. iii. belonged to Ipswich. 
 
 " Mr. Adams was of Boston, and •' Journal of the House. 
 
 ■* Massachusetts Provincial Records. 
 
102 
 
 HJPfORTCAL ACCOUNT OF 
 
 J 740. Stated, with William Stoddard and Samuel Watts of 
 
 — '^^ Boston, sustaining like offices, have their commissions 
 
 nullified by the Governor and Council, for favoring such 
 
 an association. Other justices are made to taste of the 
 
 like severity on the same account. 
 
 ^ As Robert Hale of Beverly — a director of the Land or 
 Manufactures Bank — had presented a plan of this associa- 
 tion, so that it might be recorded in the Secretary's office, 
 the Council vote, that, after their expressed disapprobation 
 of the company as promoting fraud, it is an indignity to 
 their body for such a request to be made, and they direct 
 the Secretary to return the document. 
 
 As referring to this Association, which for a protracted 
 period received a large share of public attention, the sub- 
 sequent plan, on which it was formed, is given. Though 
 necessarily occupying more pages than brevity would 
 require, yet the perusal of it will furnish us with ideas, 
 not elsewhere to be obtained, of the manner in which 
 banking was conducted a century past. Like Sybil leaves 
 of antiquity, its worth is enhanced by the fewness of its 
 copies and by the greatness of its age. 
 
 " Province of Massachusetts Bay m New England. 
 
 "In order to Redress the distressing Circumstances, 
 which the Trade of this Province labors under for want 
 of a Medium, other Methods having failed, it is proposed 
 to set up a Bank on Land Security, no Person to be 
 admitted but such as dwell in this Province, and hath a 
 Real Estate therein. 
 
 " L The Stock to be one Hundred and fifty Thousand 
 Pounds Lawful Money ; no Man to Subscribe more than 
 Two Thousand pounds, and none less than ojie hundred 
 pounds ; the Subscriptions not to be binding, unless one 
 Hundred Thousand Pounds be subscribed, each Subscriber 
 for one hundred Pounds to have one Vote, Five hundred 
 pounds two Votes, One Thousand Pounds three Votes, 
 Two Thousand Pounds four Votes, and no person to have 
 above four Votes. 
 
 ' Massachusetts Provincial Records. 
 
MASSACHUSETTS CURRENCY. 
 
 J 03 
 
 "II. Each^ Subscriber shall pay into the hands of the 174 q 
 Committee Jiiji'ty Shillings Lawful Money for one Thou- — '^ 
 sand Pounds, and so in Proportion for a greater or lesser 
 Sum, toward the Charge of bringing forward the affair. 
 
 '' III. Each Subscriber shall make over an Estate in 
 Lands to the, satisfaction of the Directors, and shcdl pay 
 in three per cent, per Annum Interest for the same in any 
 of the following Manufactures, being the produce of this 
 Province, viz. Hemp, Flax, Cordage, Bar Iron, Cast Iron, 
 Linnens, Sheep's Wools, Copper, Tanned Leather, Flax 
 Seed, Bees- Wax, Bayberry-Wax, Sail Cloth, or Canvas, 
 Nails, Tallow, Lumber, or Cord Wood, or Logwood 
 though from New Spain ; whoever pays in any of them, 
 shall deliver them to the Directors or such as they shall 
 appoint, at such prices as the Directors shall from time to 
 time regulate, or pay in the same in the Company's Bills. 
 
 "IV. Every Subscriber shall pay amiually five per cent, 
 as part of the principal untill the whole is paid, under the 
 same regulations, and in the same manner, as in the fore- 
 going Article is expressed. 
 
 " V. There shall be twelve Directors and a Treasurer, 
 chosen on such allowances as shall be thought proper, 
 who shall appoint Clerks and other attendants as they shall 
 find necessary, and agree with them for their Salaries ; 
 and as there may be occasion, may dismiss them and 
 choose others ; they shall also appoint persons to value 
 the Lands taken for secm-ities, who shall be paid by the 
 mortgager. All the said officers to be under oaths, and 
 give security for the faithful discharge of their Trust. 
 The appraisers to be mider oath. 
 
 " VI. No person shall be capable. of being a Director or 
 Treasurer, who signs less than five hundred pomids, and 
 if any Director or Treasurer die, or is removed, the 
 vacancy shall be filled at the next meeting of the Com- 
 pany by a major Vote of the partners present ; and if any 
 of them be found guilty of Fraud in the execution of his 
 oflice, a major part of the Directors, concurring with the 
 major part of the partners, shall put his Bond in suit, and 
 he shall be declared no longer a partner. 
 
 I ^ 
 
IQ4 HISTORICAL ACCOUNT OF 
 
 174 0. "VII. All Mortgages and Bonds shall be made to the 
 "^""^" Directors for the use of the Company, except what is 
 given by any Director, which shall be made to the rest of 
 the Directors ; and all mortgages shall be put upon pub- 
 lick Record, to prevent clandestine conveyances ; the 
 charge of recording to be paid by the Mortgager ; and 
 every partner shall be obliged on demand of the directors, 
 or the major part of them, to give such better security as 
 they shall think needful, in case their security already 
 given be by them esteemed insufficient, and if any of 
 them refuse so to do, his Mortgage shall be sued out, and 
 he shall no longer be partner. 
 
 " VIII. To oblige all partners to pay their Interest and 
 Dividend of the principal punctually, whoever neglects 
 paying above 3 months after it is due, his mortgage shall 
 be put in Suit, and he shall be no longer a Partner. 
 
 " IX. The Directors shall from Time to time put out 
 upon Lawful Interest on good security, all such sums as 
 shall be in the Treasurer's hands, for the use and benefit 
 of the Company ; the Annual contingent charge first 
 deducted ; the Borrowers to pay principal and Interest in 
 the Company's Bills ; or in the aforesaid manufactures. 
 
 " X. There shall be a meeting of the Partners on the 
 second Tuesday in June annually ; and at the end of five 
 years at that meeting, there shall be a Dividend made of 
 so much of the profits as shall be agreed on by a major 
 part of the Directors, concm-ring with a major part of the 
 partners then present ; and from that time there shcdl be a 
 Dividend at every annual meeting ; Provided always, that 
 in all such Dividends care shall be taken that there still 
 remain in the Stock double the Principal paid in from 
 time to time as aforesaid. 
 
 " XI. It shall be iiL the power of any partner to redeem 
 the estate he hath mortgaged at the end of five years, or 
 afterwards, he having the consent of the major part of the 
 Directors, with the major part of the Partners, by paying 
 in the money he received out thereon, with the Interest 
 then due, either in the Company's Bills, or in the Manu- 
 factures before mentioned. 
 
MASSACHUSETTS CUllREJNCY. | Q5 
 
 "XII. Whereas it is principally dcsignedj that all the 1740. 
 Subscribers shall give Land Security, as before mentioned -^-^^^ 
 in the third Article ; yet as there are many Artificers and 
 Traders in this town of Boston, in good Credit, who have 
 not Real Estate to mortgage, but can give good personal 
 Security to the Satisfaction of the Directors ; Now that 
 such persons and they only may be encouraged in their 
 respective occupations, it shall be in the power of the 
 directors to admit such })crsons to be subscribers, but none 
 for more than One Hundred Pounds, they giving Bond 
 with two sufficient sureties in double that sum. 
 
 " XIII. As the signers of the Bills oblige themselves to 
 the Possessors in behalf of the partners, so the Partners 
 must oblige themselves by an Instrument to indemnify 
 the Signers. 
 
 " XIV. At the annual meeting in June, all Accompts ■ 
 relating to the company shall be laid before them by the 
 Directors and Treasurer, and a major part of the Directors, 
 concurring with a major Part of the Company then pres- 
 ent, may agree upon any other Rules or Methods for the 
 better observing and fulfilling the Articles aforesaid. 
 
 " The Bill to be as follows, viz. : 
 
 TWENTY SHILLINGS. 
 
 " TVe Promise for ourselves and Partners to receive 
 this Twenty Shilling Bill of Credit, as so much Lawful 
 Money, in all Payments, Trade and business, and after 
 y^ expiration of twenty yeares to pay y^ possessor y^ value 
 thereof in Manufactures of this Province. Boston, etc." 
 
 ^ His Excellency writes to the Colonels, urging them to Dec. 
 make rigid scrutiny of all officers in their regiments, sus- 
 pected of promoting this company's object, and to dismiss 
 all who persist in such a course of action. He also 
 requires the several County Registers to forward him a 
 list of the deeds, from partners in it, as recorded on their 
 books. The Courts of Sessions are prohibited from allow- 20. 
 ing licenses to any who are similarly disobedient. No 
 
 • Massachusetts Provincial Records. 
 
 14 
 
106 
 
 HISTORICAL ACCOUNT OF 
 
 1741. lawyer is allowed to plead before the Council, who is alike 
 chargeable. Indeed, no class of the community escapes 
 the energetic inquisition of the Executive authorities. 
 
 ^ A gentleman, writing to his correspondent in London, 
 on the state of our Province, relates — " The Governor and 
 Council are dismissing all officers, civil and military, from 
 their appointment, who are concerned in this combina- 
 tion," that is, the Land Bank. "Whole troops, nay, 
 almost whole Regiments either resigned or told their 
 Colonels, who examined them, that they would resign, 
 rather than not encourage the bills." 
 
 2 A spirit kindred to this, infused itself into a portion of 
 the towns, who resolve that they will pay their rates in 
 such money. 
 March ^With regard to private banks, a letter from Francis 
 ~^- Wilks to Secretary Willard, has the subsequent extract : — 
 " A Bill is just passed the House of Commons to extend 
 the Act, commonly called the Bubble Act passed in 1720, 
 to the Plantations in America, after it had sundry altera- 
 tions from what was first printed. I am satisfied it is the 
 determined resolution of the Parliament to dissolve all 
 companies in America, who have put forth any Notes or 
 Bills to pass in publick. and to prevent any from doing it 
 hereafter." 
 
 Resistance is manifested towards the Governor in vari- 
 ous modes and instances, as though he had assumed and 
 exercised arbitrary power. Of the many letters forwarded 
 to him by those who fell under his displeasure, is one 
 April from Henry Lee, Esq., of Worcester. "^In it the author 
 confesses himself an approver of the Manufactory Bank, 
 and thus gives expression to his purpose and sentiment : — 
 " I am determined to do what I can to encourage it, and 
 think the priviledge of an Englishman is my sufficient 
 warrant. To sacrifice my post for the service of my coun- 
 try, is infinitely more honourable than to keep it on such 
 base conditions." Here we have an outbreaking of the 
 Magna Charta spirit — a spark of the Revolutionary ardor. 
 
 1 Letter to a Merchant in London. " Mass. Archives— Letters, vol. iii. 
 
 2 New England Weekly Journal. * Mass. Archives— Pecu., vol. iii. 
 
MASSACHUSETTS CURRENCY. I(j7 
 
 While clashing resolutions thus prevailed, there is a 1741. 
 mania for banking, considerably resembling what has been -^-^-^ 
 witnessed in later days. Some companies in several 
 counties determine to enter the vortex of such specula- 
 tion.^ One of Essex County had applied to the Legisla- Apiul 
 tm-e for leave to issue notes of £50,000 on land securities. 
 They were not, however, encouraged to proceed, though 
 they had gone so far as to engage an engraver for their 
 bills. Another was proposed by residents in Scituate and 
 neighboring towns, and a third in Middlesex County, 
 which met with no better success on application to the 
 General Court. 
 
 ^That we may have a general idea of the mixed cur- 
 rency at this time, the succeeding extract is quoted : — 
 " We have in Massachusetts public bills of four Provinces 
 at 29' for an oz. of silver. New tenor of Massachusetts 
 at 6/8, but currant at 9/8 oz. of silver. Connecticut new 
 tenor at 8', and Rhode Island new tenor at 6/9, of private 
 bills are £110,000 of silver money scheme or merchants' 
 notes, issued in 1733, to prevent an enormous Rhode 
 Island emission from depreciating our currency. They 
 are punctually paid in gold and silver, and are 33 per cent, 
 better than Province bills. There is another sum of 
 £120,000 in merchants' notes emitted in 1740 on a silver 
 bottom to stifle the Land Bank — which are equivalent to 
 cash. They who are responsible for them are eminent 
 and wealthy merchants. The Bills of the Land Bank or 
 manufactory scheme are payable in twenty years, and 
 then only, in goods at an arbitrary price." 
 
 While the resistance of Mr. Belcher to banlving associa- 
 tions rather increased than diminished their zeal, because 
 they construed his activity in this respect, as the result of 
 an aristocratic temper, he and his friends are startled at the 
 rife reports of a plotted insurrection. ^ One person deposes, ^Tay 
 that he has been assured, that a thousand men are to rise 
 in Boston and be increased with twenty thousand from 
 the country. Others testify, that the malcontents mean H- 
 
 ' New England Weekly Journal. -^ Massachusetts Archives — Pecu- 
 
 ^ Letter to a Merchant in London. niary, vol. iii. 
 
JQ3 HISTORICAL ACCOUNT OF 
 
 1741. to march for the metropohs and demand the reasons for 
 
 ^"'""^ opposition to the Land Bank, and to mob the traders who 
 
 should refuse to sell coin for its bills. That there were 
 
 attempts to promote something of this sort, is plain from 
 
 the evidence given under oath. 
 
 As a (Confirmation of these statements, we have two 
 letters from under the hand of Governor Belcher. One 
 of them is addressed to Secretary Waldron, and is in point, 
 as well as in relation to a topic which he had suggested. 
 May 1 << The Land Bank concern openly defy the act of Par- 
 ■ liament, are now combining -to raise a rebellion, and are 
 coming to Boston at Election, the 27th inst. I have this 
 day sent the sheriff and his officers to apprehend some of 
 the conspirators. The Land Bank does so affect every 
 affair in the Assembly and throughout the Province, that 
 it will be the ruin of the government and people, if it be 
 not speedily and effectually crushed. I will at the 
 first leisure moment, sit down and gravely consider your 
 scheme for issuing bills of credit, though I tell you before 
 hand, if it does not secure an invariable value to the bills, 
 that is, to be worth as much to-morrow, next day, and 
 all the time they are extant, as at the moment they are 
 issued, or I might have said, to be at the first of their 
 coming out and always, what they are called in the face, 
 I say, unless effectual care can be taken for so ascertaining 
 of them, I can never be in opinion of any scheme for a 
 paper currency. Every other th'mg must be a cheat and 
 
 delusion." 
 
 ~ The other, directed to Thomas Hutchinson, has the 
 subsequent language: — ''You say, it would be much 
 better if some other way than by application to Parliament 
 could be found to suppress it, (Land Bank.) I assure you, 
 the concerned openly declare they defy any act of Parlia- 
 ment to be able to do it. They are grown so brassy and 
 hardy as to be now combining in a body, to raise a rebel- 
 lion, and the day set for their coming to this town is at 
 the Election, and their Treasurer, I am told, is in the 
 
 > Governor Belcher's Correspond- ^ Governor Belcher's Correspond- 
 
 ence — in the Library of the Massa- ence. 
 chusetts Historical Society. 
 
MASSACHUSETTS CURRENCY. 
 
 109 
 
 bottom of the design and T doubt it not. T have this day 1747 
 sent the sheriff and his officers to ai)prehcnd some of the -^^'^^ 
 heads of the conspirators." 
 
 The energetic measures adopted on this occasion, strike 
 a damp upon the feehngs of the conspirators, and they 
 draw back from their hazardous purpose. The individuals, 
 so imphcated, were chiefly from what are now denomi- 
 nated Plymouth and Norfolk Counties. 
 
 ^ While the Land Bank is the occasion of such a disposi- IVIay 
 tion among many of tlie people, its influence is renewedly " 
 exhibited in the Assembly. The House propose several 
 of its supporters for members of the Council, but the 
 Governor puts his veto upon them. Nor did he stop here. 
 He sends the subsequent message to the Representatives. 28. 
 " The management of the Elections made yesterday, dis- 
 covers to me so much of the inclination of your House to 
 support the fraudulent, pernicious scheme, commonly 
 called the Land Bank, condemned at home by his Majesty 
 and Parliament, that I judge it derogatory to the King's 
 honor and service, and inconsistent with the peace and 
 welfare of this people, that you sit any longer in General 
 Assembly, and I have therefore directed Mr. Secretary 
 Willard to declare this Court dissolved." 
 
 ~ Perceiving his Excellency to be so determined. Rev. j^j^^ 
 Jonathan White, of Gloucester, writes an apology to him 29. 
 for being concerned with such a company. He relates, 
 that his people had so far failed in their fishery, by reason 
 of war with Spain, and fear of war with France, that 
 they owed him £200 of his salary, which greatly strait- 
 ened his family, and drove him to hire money. He then 
 says, " I pray that my difficult and perplexed circum- 
 stances may apologise and excuse for my being concerned 
 in the Land Bank. When I first gave in my name, I 
 looked upon it as just and beneficial to the publick. But 
 it, in the event, proving hurtful, I am sorry I was ever 
 concerned in it." 
 
 While Governor Belcher thus strenuously set himself 
 
 * Journal of House. 
 
 -Massachusetts Archives — Letters, vol. iii. 
 
110 
 
 HISTORICAL ACCOUNT OF 
 
 1741. against private banks, the majority of the R epresentatives 
 -^^^'^^ delay not to retaUatc. Ah-eady had they instructed their 
 friends in London to sohcit his removal. Nor were their 
 efforts unsuccessful. He is recalled before accomplishing 
 what he honestly considered an important work of reform 
 in our political economy. 
 July ^ His course in this country was misrepresented to the 
 3' Royal Council, by those who took advantage of his un- 
 popularity with the advocates of the Land Bank, so as to 
 get him displaced, in the hope of advancing their own 
 interest. Nor was this management discovered till he 
 was actually ejected from office. When the rights of the 
 case came to be properly understood, he was placed in the 
 government of New Jersey. In writing to his brother on 
 his loss of the government here, he thus gives vent to his 
 emotions. " I must needs own, it gives me a terrible 
 shock, and the more so, when I consider how faithful I 
 have been to the King, and after all to be turned out 
 without fault or complaint, I think must be a great dis- 
 couragement to all faithful servants." 
 
 William Shirley having been appointed as his successor, 
 arrives to resume his task. This, in point of labor, had 
 much resemblance to Sysiphus rolling his stone. As an 
 alleviation, however, of his toil, he does not insist on the 
 withdrawal of the Province notes so soon as his prede- 
 cessor did. 
 Aug. Still, in his first speech, he describes his views of pe- 
 ^^' cuniary affairs, as far from being bright and cheerful. A 
 compend of this document gives us the ensuing facts. It 
 is hoped that the legislation of Parliament will terminate 
 the miseries accumulated on the Province by the depre- 
 ciation of its bills. It states, that exchange between 
 sterling and Massachusetts paper is 450 per cent, in favor 
 of the former, and hence creditors, as the law stands, 
 suffer immensely, except those who make their contracts 
 on special conditions. It intimates that such a state of 
 trade is an abundant source of dishonesty. It remarks, 
 
 1 Governor Belcher's Letters. 
 
MASSACHUSETTS CURRENCY. | { [ 
 
 that the adjacent Colonics have flooded Massachusetts 1741. 
 with their paper money, to the great profit of themselves, ^^^-^^^ 
 but to the greater detriment of our community. 
 
 In conformity with the implied wish of Mr. Shirley, Sept. 
 in this document, ^ a committee of the Court meet at 
 Milton, to examine the condition of the Land Bank. 
 They find that £49,250 of its notes are struck ofl" and 
 endorsed, and that the Treasurer had issued them from his 
 hands to the amomit of £35,582, and that the Directors 
 employ £4,067 of them in trade. This investigation is 
 soon followed with heavy restrictions upon the funds of 
 the company. 
 
 As a sample how banking concerns figured in poetry 
 ) as well as prose, the following is presented. ^ It is a dia- 
 logue between Ralph, a freshman at College, and his 
 brother Will, a rustick ; wherein Ralph undertakes to in- ' 
 struct Will in State affairs: 
 
 Ralph. 
 
 " " Two bits of paper from the plate, 
 
 lugaged iu cruel wars of late, 
 Drest in the pride of copper cuts, 
 Each other charged with beiug cheats," 
 
 Will. 
 
 " Stay pleased to explain ; 
 
 I fain would know what 'tis you mean." 
 
 Ralph. 
 "The Land Bank and the Silver scheme 
 Was all last winter's noisy theme, 
 Till their debates, at length, were sent 
 For issue to the Parliament." 
 
 A message from the Governor is forwarded to the Rep- 
 resentatives, that the restriction, on the emission of more 
 than £30,000 in paper, is rescinded. This is, to their 
 ears, like good news from a far country. 
 
 ^As a means to correct the effects of a deranged cur- 1742 
 rency, is the enactment of the Equity Bill, which had Jan- 
 been long on the tapis, and which experience had proved 
 
 * Massachusetts Archives — Pecu- " Ames' Almanack, 1742. 
 
 niary, vol. iii. ^ a^Is of Massachusetts. 
 
] j2 HISTORICAL ACCOUNT OF 
 
 1742. to be very necessary. This document requires, that, after 
 -^"•^'^ the 1st of February next, all coined silver of sterling 
 alloy shall pass, as lawful, at 6/8 the ounce, troy weight, 
 and other money in the same proportion ; " and as bills of 
 credit have been fluctuating and uncertain in their value, 
 whereby many mischiefs and inconveniences have arisen," 
 those now to be emitted shall be equal to hard money, 
 and pass at the preceding rate. It provides, that all debts, 
 which shall be contracted within five years, shall be pay- 
 able in such notes, special agreements excepted ; and if 
 they depreciate, allowance shall be made accordingly. It 
 demands, in order to prevent discount on the intended 
 paper money, that, whenever exchanged for silver, it shall 
 pass in proportion of 6/8 an ounce of such metal. 
 March ^ A Committee ^ for the settlement of the Land Bank, 
 ^^' publish a pressing call on its stockholders to settle its 
 demands upon them. This call contains the succeeding 
 items. "It is now nine months since the company's vote 
 at Lynn, that no more bills should be issued out of the 
 Treasury till the next meeting, and more than six months 
 since the vote passed at Milton to bring in and consume 
 to ashes all the outstanding bills. By the delay of those 
 indebted to the institution, our company is thrown into 
 the last extremity of confusion ; and without the most 
 speedy measures are pursued in bringing in the biUs, the 
 consequence will, we fear, prove ruinous to some hundreds 
 of the partners. The possessors of our bills are more and 
 more uneasy every day, as that part of their estates lies 
 useless by them, and are so incessant in their worries, that 
 the Directors have in their late advertisement implicitly 
 threatened to be on the possessors' side against the delay- 
 ing partners." ^ 
 April ^ While his Excellency and the rest of the General Court 
 ''• are doing what they can to prevent ruinous collapses in 
 the machinery of monied interests, he publishes an Act of 
 Parliament, which lays an interdict on all stock associa- 
 tions without charters. 
 
 1 Boston Gazette. ^ Massachusetts Archives — Pecu- 
 
 -Ebenezer Hartshorn, Jacob niary, vol. iii. 
 Sheafe, Peter Prescott. 
 
MASSACHUSETTS CURRENCY. \ \ 3 
 
 In accordance with this Act, all the proprietors of the 1742. 
 Land and Specie companies, wlio ceased connection with ^^ 
 their operations before the 29th of September last, and 
 who immediately settle all their dues to them, are to be 
 saved harmless from the penalties specified in such an 
 instrument. 
 
 ^ It is enacted that £A in bills of the old tenor, and April 
 26/8 of the fii'st new tenor, otherwise called middle ^^• 
 tenor, shall be received in all public payments equal to 
 20* in bills of the last form, and so pro rata for a greater 
 or less amount. It must have required some of Mr. Bid- 
 die's genius to have readily and correctly managed so 
 complicated a mode of calculating the different denomina- 
 tions of the Province paper. 
 
 The Act of Parliament, just mentioned, leads to the 
 ensuing resolve : — ''Whereas it is expedient and necessary 
 for the peace and quiet of his Majesty's subjects in this 
 Province, that all the notes of the silver and manufactory 
 schemes should be drawn in and consumed, as soon as 
 may be," a committee are appointed to investigate them, 
 and report at the approaching session, so that their notes 
 may be collected and consumed. 
 
 2 To show the fears, feelings, and situation of stock- May 
 holders in the Land Bank, the petition of twenty-two of ^^' 
 them to the General Court is here cited. " We the 
 subscribers were partners in that unlucky and luifortunate 
 scheme, called the Land or Manufacture Bank, and when 
 the Act from Great Britain arrived here and was published, 
 we yielded as speedy compliance thereunto as was possible 
 for us to do by paying in our respective parts or shares, 
 and renouncing being any longer partners in the said 
 affair. But some of our fellow-partners were incredulous, 
 and would not believe that there was any such Act, and 
 so under that incredulous notion, or rather through wilful 
 negligence, have not nor will pay in their several shares 
 and parts of the said Land Bank or Manufactory Bills, al- 
 though they have been cautioned so to do by this honoura- 
 
 ' Massachusetts Provincial Rec- "Massacliusetts Archives — Pecu- 
 
 ords. niary, vol. iii. 
 
 15 
 
jj^ HISTORICAL ACCOUNT OF 
 
 1742. ble Court, and so by their obstinate and wilful negligence, 
 -^"^""-^ or dishonest delays and dealings, your petitioners' persons 
 
 and estates lie exposed to the demands of the possessors 
 of the said bills, and several of your petitioners have 
 already had demands made on them by the possessors of 
 the said bills, to exchange several large sums of the said 
 bills, and the processes are now out against them therefor. 
 And yet we lie further exposed to have more and greater 
 demands made upon us, and may, as we greatly fear, 
 prove the undoing of your petitioners." Therefore they 
 pray for needed relief in the premises. A committee are 
 accordingly appointed. 
 June ^ The gentlemen . so intrusted, report on the " silver 
 ^^' scheme." They state that this ^ association had emitted 
 £120,000 in notes, and recalled £69,361 12 6 of them, 
 leaving still in circulation £50,638 7 6. 
 
 Though the officers and other partners in these monied 
 institutions, placed under the ban of a Parliamentary 
 enactment, had already met with no small trouble, yet 
 they were to experience much more. The powerful 
 opposition under which they commenced operations, was 
 but a dark omen of their catastrophe. 
 
 While these institutions fill a large space in the public 
 vision, the last series of Province notes do not help the 
 
 1743. community so much as anticipated. Individual interest 
 "^^Z^' then, as it generally has in all ages, being made para- 
 mount to the common benefit, is the occasion of so bitter 
 a disappointment to the true guardians of the country. 
 ^ The notes, payable in specie, are hoarded up, and others 
 are imposed on the inhabitants for their produce and 
 manufactures. Hence, the common currency is the paper 
 of adjoining Colonies, and that of this Province is not 
 enough to meet the demands for taxes. 
 
 June ^ But, however, the last Treasury notes are scarce, and 
 
 25. 
 
 •Massachusetts Archives — Pecu- Oliver, Samuel Sewall, Joshua 
 
 niary, vol iii. Winslow, Hugh Hall, and another 
 
 - The first directors of the Silver illegible. 
 
 echeme, when its bills were emitted, ^ Massachusetts Provincial Rec- 
 
 were .Tames Boutineau, Thomas ords. 
 
 Oxnard, Edmund Quincy, Andrew ■* Acts of Massachusetts. 
 
MASSACHUSETTS CURRENCY. 115 
 
 well secured by severe provisions for being redeemed, 1743. 
 according to the Government pledge, still they are rated '-"^'^ 
 at 7/2 for an ounce of silver, estimated at 6/8. As the 
 public faith had been suffered to be violated respecting 
 the payment of Province bills, it is not fully credited now, 
 though backed with promises more strongly guarded, and 
 thus the paper falls from its appointed valuation. 
 
 ^ To lessen this evil, the Legislature of Massachusetts July, 
 propose to New Hampshire, Rhode Island and Connecti- 
 cut, to have commissioners meet with theirs at Worcester, 
 on the first Wednesday of November, to prevent further 
 depreciation of llio bills of credit in New England, and , . 
 bring said bills to a period, consistently with the best in- -• 
 terests of the said Colonies. 
 
 -As many stockholders in the Land Bank, who had Nov. 
 complied with the order of Government, are made liable 
 for its paper, and have suffered great loss, because others 
 of their company neglect to imitate their example, the 
 Legislature commit the settlement of this institution to 
 several commissioners. 
 
 ^ In speaking on the pecuniary affairs of the Common- 1744 
 wealth, the Executive gives the ensuing details. Of 
 Rhode Island bills, now in circulation, and amounting to 
 £440,000, £350,000 are passing in Massachusetts, and 
 also £50,000 of Connecticut. On these two sums, the • . 
 people here have lost, by the fall of them, £25,000 in 
 nine months, which is so much proportioned gain to the 
 two Colonies. This and other such losses equal £ 180,000. 
 Not only this, but their bills reduce the value of those 
 issued by Massachusetts. The Governor also observes, 
 that it is an error to allow the Colonies to coin money or 
 make bills, and that this is a Royal prerogative. 
 
 The House, knowing that individuals here had peti- 27. 
 tioned Parliament to take measm-es for controlling the 
 paper currency of the American Colonies, and believing 
 this to be contrary to their Charter privileges, order in- 
 structions to their agent, Christopher Kilby, so that he 
 
 * Massachusetts Archives — Let- " Massachusetts Acts, 
 
 ters, vol. iii. ^ Journal of the House. 
 
 Feb. 
 
 8. 
 
116 HISTORICAL ACCOUNT OF 
 
 1744. may endeavor to prevent such interference. The Council 
 
 '^ refuse to have part or lot with the Representatives in this 
 
 movement. The latter seem to have been induced partly 
 
 to pursue such a course by the closing remark of the 
 
 Governor. 
 
 March ^ In despite of the measures previously adopted, to ex- 
 ^- elude the bills of adjacent Colonies, they still find many 
 who receive and pass them. His Excellency assm^es the 
 Assembly that, unless they cut short this practice, their 
 Charter will be forfeited. A Bill was accordingly passed 
 to be enacted. 
 May ^In quoting from an Election sermon of Mr. James 
 ^^- Allen, a performance, which, as annually given, furnished 
 the leading topics of discussion, and thus valuable for its 
 history as well as for its moral and religious instructions, 
 has the ensuing passage : — "And that you (the Governor) 
 will be the means of delivering us from the perplexing 
 difficulties we are involved in, particularly by an unhappy 
 medium, uncertain as the wind, and fluctuating like the 
 waves of the sea, and which lies at the mercy of every 
 one to rise or sink at his pleasure. Through the 
 unrighteousness whereof the land mourneth, and the 
 cries of many are going up into the ears of the Lord of 
 Sabaoth." 
 Dec. As debtors, who confided in the last emission of Gov- 
 ernment notes, had promised to pay lawful money, mean- 
 ing these bills, but their creditors demanded specie of 
 them, because such paper had diminished in value, a law 
 is passed, that no debtor shall be obliged to pay silver, 
 unless he received it when contracting his obligation, 
 
 1745. 3pj,gssedon all sides with the demands on their Trea- 
 9 * smy for the war, and not having sufficient funds to satisfy 
 them, the Government resort to the doubtful method of 
 raising £7,500 by a Lottery. One condition of this con- 
 cern is, that whoever adventures 30' in it, may pay this 
 sura, one fifth in the new tenor, or in old tenor bills at 
 
 ' Journal of the House. ^ Massachusetts Acts. 
 
 * Election sermon by Rev. James Allen, of Brookline, 
 
MASSACHUSETTS CUURENCY, ] { 7 
 
 four for one, and the other four fifths in the same paper, 1746. 
 or in any of New England not prohibited. — -v^' 
 
 ^A law is passed to forbid the currency of Rhode ^^P^- 
 Island, issued since 1742. All persons holding any offices, 
 are required to take oath, that they will obey this Statute. 
 Such a rule was, either purposely or unintentionally, 
 often overlooked in the choice of town authorities, and 1747. 
 this caused many -petitions to the Legislature, that their ^^9^ 
 doings might be made legal. 
 
 As debtors find the Equity law, in reference to paper Oct. 
 money, bears hard on them, the Council and House desire 
 the Governor to have it repealed. But he declines, be- 
 lieving it to be more just than the former Act, though he 
 was aware that it needed some modification. 
 
 2 A report is made by the Lords of the Treasury, on the Dec. 
 expense of the North American Colonies in the expedition 
 against Cape Breton. They state the proportion of Mas- 
 sachusetts to be £261,700 3 in their new tenor bills. 
 This computed at £142 10 per cent, exchange, makes 
 £183,649 2 7^ sterling. Though this corresponds with 
 the value of said bills in 1744, before the expedition 
 against Cape Breton, yet it greatly exceeds the present 
 value of them. Such notes have fallen much since 
 February 14, 1745, when the first order was passed by 
 Massachusetts to emit them for the expedition. But Mi\ 
 Bollan contends, that the great depreciation of our paper 
 was owing to the distress occasioned by that expedition, 
 and that no advantage should be taken of such contin- 
 gences. The Lords of the Treasury maintain that the 
 reduction of Massachusetts paper might be traced to the 
 uncertainty of their being redeemed. The fact is, that 
 truth lay between both of these extremes. 
 
 •^Mr. Kilby, our agent in London, writes to the Speaker 1748. 
 
 of the House, that there are many schemes before Parlia- y"' 
 
 ment, as to the plan of having the Colonial notes recalled. 
 
 ^ It being found, that in estimating the value of Province Feb. 
 
 o. 
 
 ^ Massacliusetts Acts. ■* Massachusetts Archives — For- 
 
 * Massachusetts Provincial Rec- eijrn Relations, vol. i. 
 
 ords. '" Massachusetts Provincial Rec- 
 
 ^ Mass. Archives — Colonial. ords. 
 
213 HISTORICAL ACCOUNT OF 
 
 1748. notes only by the standard of silver and bills of exchange, 
 "^''"^ there is wrong done to the community, as well as to the 
 government, because such a standard is suddenly and 
 immoderately increased by speculators, "It is enacted, that 
 when the persons appointed for such a purpose make their 
 stated valuation of the paper money, they shall do it by 
 the prices of provisions and other necessaries of life, as by 
 the customary scale." 
 
 As a general and correct exposition of the state in 
 which the country is with respect to its medium of ex- 
 change, the succeeding extracts from his Excellency's 
 speech, are here given. " The general distress of the 
 Province, arising from extraordinary emissions of paper 
 money, whereby the value thereof, for all occasions of 
 life, is sunk so low, and is still sinking, and thereby the 
 estates of orphans and widows, and many others who 
 have no remedy in their power against this growing evil, 
 daily diminishing which, must inevitably, in a little time, 
 bring many good families to poverty. I most earnestly 
 recommend to you to find some other way to supply the 
 Treasury, than by making new emissions of paper money. 
 And I am fully persuaded, that you will thereby not only 
 give relief to the oppressed, who justly expect it from 
 you, but also whatever charge may attend any new 
 method to supply, it will be found in the end to save 
 money to the Province." 
 
 In accordance with the advice thus given, Thomas 
 Hutchinson moves, that the public notes be redeemed by 
 the specie, to be received from the Royal exchequer, for 
 charges in the capture of Louisbourg. In the meanwhile, 
 merchants of London, who traded here, petition Parlia- 
 ment to the same effect. The project of Mr. Hutchinson 
 receives but little encouragement from the House at first, 
 but it is soon adopted by them. Wearied by the arduous 
 bondage in which they had been to the Treasury system 
 of loans, and other frequent emissions of notes, they gladly 
 comply with his proposal, 
 ^oy" A committee are designated to meet similar bodies 
 
 ' Massachusetts Provincial Records. 
 
MASSACHUSETTS CURRENCY. J|g 
 
 from the other New England governments on the samei74 8_ 
 subject. A circular IcUcr is prepared to give such an •-^-^-' 
 invitation. But it does not receive the cooperation of 
 New Hampshire, Rhode Island, and Connecticut, which 
 was ardently wished. They suppose it better to let their 
 monied concerns pursue the common course. The bur- 
 den of depreciation in their notes, having fallen more on 
 Massachusetts than on themselves, they had not the mo- 
 tive of interest to draw forth their compliance which this 
 Province had. 
 
 This plan is not without its ^ opponents in our Com- 
 monwealth. A considerable party, headed by Dr. William ■. 
 Douglas, the historian, though very desirous to have the 
 paper taken out of circulation, contended, that it should 
 be more gradual than proposed ; and that, if carried into 
 operation in its present features, it would give a fatal shock 
 to business. 
 
 ^Such a diversity of opinion was not peculiar to our peb. 
 country; it existed on the other side of the Atlantic. 29. 
 Merchants in London, who had commercial relations with 
 ours, petition the Lords of the Treasury, that the reim- 
 bursement for capturing Louisbourg may not be paid to 
 New England until they establish the rate of redeeming 
 their bills. They state that since the prospect of the 
 Colonies' being paid for the expenses of such a conquest, 
 there has been great speculation in their paper currency. 
 
 ^ In a circular written by order of the General Court March 
 to Connecticut, New Hampshire, and Rhode Island, S* 
 about having Commissioners meet on the subject of 
 applying the reimbursement of Parliament for taking 
 and keeping Cape Breton, to redeem their bills of credit, 
 we have the subsequent extract : — " There have been 
 some proposals and endeavors, that the payment might 
 be made by debenture. Nothing seems so likely to pre- 
 vent it, as applying the money granted, to redeem and 
 finish our fatal paper currency, so absolutely necessary 
 to the establishment and preservation of justice in our 
 
 * Hutchinson. ^Massachusetts Archives — Colo- 
 
 - Massachusetts Archives — Pecu- nial, vol. v. 
 niary, vol. iii. 
 
220 HISTORICAL ACCOUNT OF 
 
 1748. commerce, and so much for the interest of Great Britain, 
 
 """^""^ as well as ourselves." 
 
 This absorbing topic is viewed by distant friends of 
 our Province with mingled feelings of hope and fear. 
 Among them is its late Chief Magistrate, Mr. Belcher, 
 now Governor of New Jersey. ^ He writes to Mr. Minot ; 
 " I am glad Massachusetts is like to be retrieved from her 
 bankrupt circumstances by the interposition of the British 
 Parliament, in a just reimbursement of their charge in 
 the conquest of Cape Breton. So shall my dear native 
 country again sit as a queen among the Provinces." 
 
 Oct. ^ His Excellency has the ensuing passages in his speech. 
 ^'- f' By advices I have received from Great Britain, I have 
 reason to think, that the Bill transmitted to your agent, 
 containing a scheme for sinking the whole paper currency 
 of this Province by means of the late reimbursement, 
 voted by Parliament, and which passed both Houses of 
 the last Assembly, has induced his Majesty's ministers, to 
 whose consideration the manner of paying the money 
 voted for the benefit of the Colonies concerned is referred, 
 to determine it shall be paid in such manner as will put 
 an end to the paper currency in New England." Various 
 schemes have been offered by gentlemen in England, to 
 the Government there, on this subject. He suggests to 
 the General Court that they had better send despatches to 
 be in London by the session of Parliament early in the 
 winter, so as to prevent the adoption of any method inju- 
 rious to this Province. 
 
 Nov. 3g|-i[i impressed, that their plan for closing the papei* 
 currency in Massachusetts could not be fully accomplished 
 while adjacent Colonies did not cooperate with them, our 
 Legislature hear a report of their committee for another 
 invitation for delegates from those Governments to meet 
 in Boston relative to the subject. 
 
 Respecting the grant made by Parliament, Mr. Shirley 
 14. states in his ^message, that this sum, at the rate of £10 
 
 1 Governor Belcher's Letters. ^ Massachusetts Provincial Rec- 
 
 ^ Massachusetts Provincial Rec- ords. 
 ords. * Journal of the House. 
 
MASSACHUSETTS CURRENCY. |21 
 
 ill bills, for £1 sterling, will draw in all their paper money, 1749, 
 except £50,000 of the last emission, v^-v^- 
 
 Desirous that the plan here mentioned, may be exe- j^^t^^^ 
 cuted as soon as possible, the General Court ^ petition the 22. 
 Lords Commissioners of the Treasury in London, that the 
 reimbursement may be forwarded with all despatch. 
 They express their expectation, that this sum will close 
 the paper currency in their jurisdiction, and will substitute 
 gold and silver. 
 
 ~ Notwithstanding the repeated efforts to have the Colo- Dec. 
 nies bordering on Massachusetts adopt the mode of having 
 only hard currency. Governor Shirley says he despairs of 
 thus gaining them over, and advises the Court to go for- 
 ward, though under so great an embarrassment. 
 
 ^Some merchants of Boston memorialize the Assembly, 1749. 
 desiring that the Bill before them for terminating the cur- *|^"- 
 rency of notes with the funds expected from London. 
 They observe, that they do this not only because they 
 really wish for it, but, also, to show, that representations, 
 as though they were opposed, were not correct. Other 
 merchants of the same place request that the Bill may be 
 published, and carefully considered, before it is passed. 
 The latter petition, however, did not prevail. 
 
 ■* A law is made for the redemption of the Province bills 26. 
 of credit. It requires all this paper to be exchanged at 
 the treasury by March 31, 1750, at the following rates : — 
 For forty-five shillings in bills of the old tenor, one 
 piece-of-eight or a dollar ; for eleven shillings and three 
 pence of the middle and new tenor, the same coin ; and 
 so in proportion for greater or less sums. If any of 
 such bills are kept back for a year after the time desig- 
 nated, they are to be irredeemable. The enactment fm- 
 ther provides, that as the paper system is to be dispensed 
 with, all public and private demands contracted after the 
 date, fixed for recalling the treasury notes, shall be ac- 
 counted as payable in silver com — estimated at 6/8 for an 
 ounce. It appoints that what the specie, to be received 
 
 » Mass. Archives— Pecu., vol. iii. = Mass, Archives— Pecu., vol. iii. 
 
 " Mass. Provincial Records. "• Mass. Provincial Records. 
 
 16 
 
122 
 
 HISTORICAL ACCOUNT OF 
 
 1749 ^^'^^^ England, lacks of paying these notes, shall be can- 
 - — ^"^ celled by a tax. It appoints a penalty for taking or passing 
 any of the New Hampshire, Connecticut and Rhode 
 Island notes. It demands a renewal of the practices for 
 innholders and all officers of town and state, with retailers, 
 to take oath for carrying such a clause into effect. The 
 form used in this respect, follows : — " You, A. B., do in 
 the presence of God, solemnly declare, that you have not, 
 since the last day of March, 1750, wittingly and wilhngly, 
 directly or indirectly, either for yourself or any for or 
 under you, been concerned in receiving or paying within 
 this government, any bill or bills of credit of either of the 
 governments of Connecticut, New Hampshire or Rhode 
 Jan. Island. So help you God." 
 
 ^^' 1 That this Act may have its proper effect, the Legisla- 
 ture petition his Majesty respecting the adjacent Colonies. 
 They say — " nothing can prevent the measures we have 
 taken for these purposes, proving effectual, unless it be the 
 currency of the paper bills of your Majesty's other govern- 
 28. ments, which are unhappily interwoven with our bills." 
 
 2 Aware that such a law bore the aspect of severity 
 towards New Hampshire, Rhode Island and Connecticut, 
 the Governor writes an explanation of its reasons to the 
 last Colony. He says — " We could not avoid prohibiting 
 the currency of the bills of your governments among us. 
 Past experience having convinced us, that it is impractica- 
 ble to keep silver currency among us, while a paper cur- 
 rency is continued. It was with great reluctance that we 
 agreed to any paragraphs in this Act, which affected the 
 bills of other goverimients, especially those of Connecticut, 
 of whose good disposition we are so well apprized, as to 
 make no doubt of their contributing their utmost efforts." 
 31. The Act, being so completed, is immediately forwarded 
 by the Secretary, to William Bollan, the 'Province agent, 
 for the Royal sanction. This gentleman, knowing that a 
 April bill was pending before the House of Commons, relative 
 ^- to the Colonies' legislation on currency, petitions, that it 
 may be arrested as inconsistent with their Charter rights, 
 
 ' Mass. Provincial Records. ^ Mass. Archives— Pecuniary, vol. iii. 
 
MASSACHUSETTS CURRENCY. 
 
 123 
 
 and with the privileges of Englishmen. lie allows that j 749 
 it is good to have their paper money stopped, but he '■^^ — 
 desires that it may be done by themselves. ^ He again J"''e 
 repeats similar sentiments on this subject to the same 
 Body. He says that if they pass the bill, " it will take 
 from the inhabitants of the Massachusetts Bay, not only 
 the special powers and privileges they enjoy by their 
 Charter, but likewise all the liberties, they hold in com- 
 mon with other British subjects." 
 
 ^As a sign of the great depreciation of bills, we have 
 the succeeding distich, which, though not remarkable for 
 poetic excellence, tells a true tale — 
 
 " The country maids with sauce to market come, 
 And carry loads of tattered money home." 
 
 ^ By a communication from Governor Jonathan Law to 13 
 Governor Shirley, it appears that the Assembly of Con- 
 necticut had voted to redeem their bills and levy three 
 rates in 1751-2-3, which will be sufficient to call them all 
 in, " and all fines, fees and penalties are to be established 
 in Proclamation money." 
 
 ■* Another communication is made by Mr. Bollan, to our SO. 
 Legislature, that their Act for drawing in their paper 
 by means of the money expected from the treasury in 
 London, has passed the Parliament, and was approved by 
 the King on the 28th. 
 
 ^Expressive of disinclination on the part of many to Sept. 
 the redemption of our paper money with specie, until the 
 adjacent Colonies come into a similar agreement, is the 
 passage of a letter from Jeremy Allen of Boston to Samuel 
 Waldo in London. It is — " they now join in the full cry 
 to postpone the exchange of the paper for dollars till such 
 time as the neighboring governments come in." 
 
 ^ Governor Shirley being on the point of sailing for 11. 
 England, and deeply anxious for alleviating the miseries 
 
 1 Mass. Archives— Foreign Rela- * Massachusetts Archives — Let- 
 
 tions, vol. i. ters, vol. iii. 
 
 ^ Ames's Almanac. c Massachusetts Archives — Colo- 
 
 ^ Mass. Archives — Colonial, vol. v. nial papers. Boston Weekly Post 
 
 '• Mass. Archives — Foreign Rela- Boy. 
 tions. 
 
124 HISTORICAL ACCOUNT OF 
 
 X 74 9, of a suspected and depreciated currency, writes to his 
 ^^-^^^ Lieutenant, Spencer Pliips : — " You will excuse me if I 
 am more than ordinarily solicitous, that nothing be done 
 in my absence to hinder the effect of the Act for drawing 
 in the bills of credit of the several denominations, which 
 have at any time been issued by this governmant and are 
 still outstanding, and for ascertaining the rate of coined 
 silver in this Province for the future. Upon which, the 
 honour of the government and the prosperity of the 
 Province do so much depend. For besides his Majesty's 
 express instruction not to repeal any Act without his allow- 
 ance, it appears that his Majesty and his ministers have 
 relied upon the faith of this government, plighted in this 
 Act, that they will use the money, granted by Parliament 
 for putting an end to the paper currency in the manner 
 provided by that Act. And it seems as if it were in this 
 confidence, that the money is at last put into the hands 
 of our agent." 
 Sept. ' The Evening Post of Boston, informs the public that 
 ^^' the specie, paid by the Crown, had arrived, under the 
 care of Mr. Bollan. While the General Court were de- 
 bating the question, whether they would redeem their 
 paper with this money, the inhabitants were generally 
 indifferent, because they viewed the plan as chimerical, 
 and not likely to be realized ; but when they heard that 
 Parliament had granted the reimbursement on condition 
 that it be applied for such a redemption, discontent began 
 to show itself. This mon^y consisted, 653,000 oz. of 
 silver and 10 tons of copper. There is reason to believe, 
 that this was more coin than had ever been in Massachu- 
 setts before at the same time. Such a remittance and 
 other subsequent ones, in connection with the prohibition 
 of bills of credit here, gave our Province the name of the 
 "hard money Colony." 
 Nov. 2 jjis Honor congratulates the Council and House on 
 ^^' the arrival of the reimbursement. In reference to this sum, 
 he remarks — " Whereby we are enabled in a good measure 
 
 ' Boston Evening Post. Minot. - Massachusetts Provincial Re- 
 
 Hutchinson. cords. 
 
MASSACHUSETTS CURRENCY. 
 
 125 
 
 to pay off the great debt contracted by the charge of the 1749 
 late war, and now lying on this Province. And witli the — '^^ 
 blessing of God npon our wise and faithful management 
 of this advantage, deliver this Province from the evils and 
 mischiefs (particularly the injustice and oppression) arising • 
 from the uncertain and sinking value of the paper me- 
 dium." He advises the Court to fulfil their law for so 
 desirable a purpose. 
 
 ^ Though absent, Governor Shirley takes a deep interest Nov. 
 in our pecuniary concerns. Let his own words, as sent 
 from London, be given : — '' I look upon getting an Act of 
 Parliament passed, as early as possible, for bringing the 
 neighbouring Colonies under the like obligation with our- 
 selves, to put an end to their paper currency, to be of the 
 utmost importance at this crisis ; as it seems to be the 
 only sure method of preventing Rhode Island, New Hamp- 
 shire and Connecticut from drawing away our silver coin 
 in exchange for the Massachusetts bills, which they are 
 and shall be possessed of, and leaving their bills to sink 
 in the hands of the people of our own Province — an evil, 
 which, besides the loss it will bring upon our people, in 
 whose hands those bills must finally sink to nothing, may 
 so far lessen our silver, as to make it insufiicient for a 
 medium within the Province." He adds — " The gentle- 
 men of the Council and House of Representatives may 
 therefore be assured of my unwearied endeavours to guai-d 
 against those mischievous consequences to the Province, 
 by forwarding, (as far as in me lies,) a suitable Act of 
 Parliament for that purpose, towards preparing the way, 
 for which I have already waited upon the Speaker of the 
 House of Commons, who was pleased to tell me, that he 
 expected to hear from me soon in Parliament upon the 
 affair of the paper cm'rency ; that he should be extremely 
 glad to know my sentiments upon it ; and that I might 
 the more fully draw them up, proceeded to acquaint me 
 with the objections insisted upon against putting an entire 
 end to the issuing of bills of credit in New England, and 
 particularly with his own difficulties in that point, with 
 
 ' Massachusetts Archives — Colonial, vol. v. 
 
126 
 
 HISTORICAL ACCOUNT OF 
 
 1749. his sentiments in general upon the subject of a paper cur- 
 """""^ rency in the Colonies. This took up near an hour, and I 
 
 was surprized a little to observe by what dropt from him, 
 that two or three principal gentlemen, whose assistance I 
 thought might be depended upon for abolishing paper 
 currency in New England, seemed of late to have slack- 
 ened in their sentiments upon it. However, I shall pro- 
 ceed to draw up my sentiments upon the state of the 
 New England paper currency in the most explicit manner 
 for the Speaker, and to frame a proper bill to accompany 
 them, both of which shall be communicated likewise to 
 those gentlemen, I have before hinted at. And I have 
 great reason to hope, that what I shall offer, may have 
 some influence with the Speaker and Board of Trade, and 
 be duly considered in Parliament. In the mean time, to 
 prevent the mischiefs which may arise for want of this, 
 till it can be efiectually done, I shall endeavor to obtain 
 his Majesty's leave for the Lieutenant Governor to consent 
 to an Act of Assembly for protracting the time, stated by 
 law, for calling in the money, as is proposed in your 
 letter. I shall also endeavour to obtain his Majesty's leave 
 for issuing a proper quantity of bills of a low denomina- 
 tion upon the foot proposed in your letter, to supply the 
 Province with money to serve in common dealings for the 
 petty articles in the daily necessaries of life ; concerning 
 which, I should have been glad if you had specified the 
 proposed denominations of the bills, and mentioned the 
 quantity of them requisite for the Province's service." 
 
 1750. 1 An expectation of having bills exchanged for specie, 
 ^f^' led many to hoard them up. This made it very difficidt 
 
 for the Collectors of taxes to get the dues for the Prov- 
 ince. Therefore they are allowed more time to settle 
 their demands. 
 18. 2 ^s deductions had been made from the reimbursement, 
 paid from the Royal exchequer, and specified in the Act 
 of our Court for redeeming their notes, another law is 
 passed to confirm such an Act. 
 
 1 Massachusetts Archives— Pecu- " Massachusetts Provincial Re- 
 
 niary, vol. iii. cords. 
 
MASSACHUSETTS CURRENCY. ] 27 
 
 ^ A Committee of the Legislature report, that in order 1750. 
 to prevent farthings and coined silver, and gold, from ^^J^ 
 passing at a proportionably high(!r rate than a milled 27. 
 dollar at 6% £3,000 worth of small bills, denominated, l*", 
 2'^, 3*^, ^'\ 0'', 9*^, IS'', be struck ofl". This proposal is 
 accepted. 
 
 -As an indication how much the public mind was Feb. 
 drawn to the subject of converting our paper currency 
 into that of specie, the ensuing lines ai-e quoted. They 
 are from a dialogue, entitled, "A Touch of the Times." 
 The personae are Honestus, a country trader, and Politicus, 
 a merchant — 
 
 Honestus. 
 
 " Why, Sir, to tell the truth I'm come 
 To bring some paper trash to Town 
 To pay my debts ; for I do fear 
 I shan't be able 'nother year." 
 
 Politicus. 
 " When once the Dollars shall come out, 
 Ther'l be no want of money then, 
 Eager you'l catch the glitt'ring Coin, 
 And bless the golden era when 
 This paper trash is no more seen." 
 
 Honestus. 
 "Ah, Sir, we hear the Province bills 
 Do lye recluse within the tills 
 Of some great men, to wait the time 
 The dollars sliall the same redeem. 
 And what is worse than all, 'tis said 
 To foreign lands they'l be convey'd. 
 Then what's our fate — the silver gone — 
 The paper burnt — and we undone." 
 
 ^Apprehensive from the unsettled condition of their ^prji 
 currency, lest coin may rise above its real value, as 2. 
 proportionate to Spanish milled pieces-of-eight at 6', the 
 Legislature order the succeeding rates to be henceforth 
 established among the inhabitants: — A guinea, 28'; an 
 
 ' Mass. Provincial Records. -' Massachusetts Provincial Re- 
 
 - Boston Weekly News Letter. cords. 
 
128 
 
 HISTORICAL ACCOUNT OF 
 
 1750. English crown, 6/8; an English shilling, 1/4; a double 
 "■^^'"^ Johannes or gold coin of Portugal, £4 16' ; a moidore, 36' ; 
 
 a pistole of full weight, 22' ; three English farthings, 1*^ ; 
 and parts of these coins at a similar rate ; old tenor bills to 
 be paid at the rate of 45' for 6' of specie ; and those of the 
 middle and new tenors at 11/3 for 6'. ^ Commissioners ^ 
 for redeeming the Province bills, commence their labor. 
 Orders from them on the Treasurer, are to be paid, so 
 as to have 3"^ of copper half-pence and farthings on every 
 pound, and so proportionably to the sum exchanged ; and 
 if any desire, they can have 3*^ in bills for small change 
 at the same rate, with pillared and milled money. They 
 are empowered to receive of residents in Massachusetts, 
 the notes of Connecticut, Rhode Island and New Hamp- 
 shire, who take oath, that they had such money before 
 April, 1750, and that they have not purchased them of 
 people belonging to those Colonies with silver, since 
 March 30 of the same year. In case that bills of such 
 Colonies be presented for commutation and belong to their 
 inhabitants, the Commissioners may change them for 
 Massachusetts bills, if there be enough to do this, and 
 these or silver shall be handed to the persons, who offered 
 the paper of those Colonies. 
 April 3 ^ disciple of Thalia, in anticipation of much greater 
 ^^' benefits from the change making in the currency, than 
 were actually realized — and this is the experience which 
 results from the most of temporal anticipations — thus gives 
 scope to the feelings of his inspiration : 
 
 "And now, old tenor, fare you well, 
 No more such tattered rags we'l tell. 
 Now dollars pass and are made free. 
 It is a year of Jubilee ; 
 Let us therefore good husbands be, 
 And good old times we soon shall see." 
 
 1751. 4 It having been discovered that pistareens and larger 
 
 ^^^- and smaller pieces of the same stamp, had been imported 
 14. ^ 
 
 1 Exchange Books. of the House. John Quincy and 
 
 * James Allen, Andrew Boardman, Ezekiel Cheever, of the Council. 
 James Russell and Thomas Foster, ^ Boston Weekly News Letter. 
 
 4 Massachusetts Provincial Records. 
 
MASSACHUSETTS CURRENCY. ]29 
 
 among the specie from London, and paid out of the trea- 1751. 
 sury for Province notes, an order is issued, that all such ^^-"-^^ 
 money considered of greater alloy than others, shall be 
 retained until further action of the Coiu't. Here we are 
 introduced to coins, which became current and are familiar 
 to the memory of many. 
 
 ^ To suppress the outbreakings of disaffection with the 
 exchanging of the Province bills by order of the government, 
 a Riot Act is passed. This law resembled one of Parlia- 
 ment, with some change in the penalty. 
 
 The Treasurer is instructed to pay out hammered or f'eb. 
 cobb money at 6/8 oz. with milled dollars, in proportion to 
 the amount of each in his hands. While this process of 
 redemption is going on, money is very scarce. A memo- 
 rial is laid before the Assembly, stating that its subscribers 
 are unable to obtain either paper or coin, for their work or 
 wares, and therefore cannot pay their taxes ; for which 
 their property is seized and vended from one fourth to one 
 tenth of its value. For such reasons they pray, that 
 relief may be granted them in the premises. 
 
 2 Edward Cornwallis, Governor of Nova Scotia, had 27, 
 applied to Massachusetts for aid against the Indians in his 
 neighborhood. Lieut. Governor Spencer Phips, sends him 
 the succeeding reply : — " I am heartily sorry that nothing 
 could be obtained at this time from our General Court. 
 The difficulties we are under by reason of the change of 
 our currency, it is thought had some influence. It is the 
 opinion of the wisest and best men among us, that the 
 change of the medium from bills of credit to money, will 
 be much for the general benefit of the Province ; yet 
 there are great numbers of people that are much too 
 strongly attached to the paper currency, and it happening 
 at this time that the bills being mostly called in, and the 
 silver not yet circulating in the several parts of the Prov- 
 ince, a great stagnation of business ensued. And at the 
 very time, when your affair was under consideration, we 
 had rumours that many hundreds of people were coming 
 to the General Court with a petition for making more 
 
 ' Mass. Provincial Records. * Mass. Archives — Colonial, vol. iv. 
 
 17 
 
130 
 
 HISTORICAL ACCOUNT OF 
 
 1751. paper money, and about three hundred men were actually 
 -^-^^ assembled within less than three miles of the town. 
 However, all the effect of it was, the passing a good 
 wholesome law against riots, which could never before be 
 obtained." Another passage in this letter, marked over 
 with lines of ink, shows the public feeling as to another 
 topic. It follows : — Many " are dissatisfied with the pres- 
 ent remarkable decay of Trade, which is supposed to 
 arise from the breaking off our correspondence in a great 
 measure with our neighboring Colonies, by interdicting 
 the passing of their bills among us, and their receiving 
 our silver in exchange for the Massachusetts bills in their 
 hands, for we are now gotten within a few weeks of the 
 very crisis of this great affair, when by law, bills of credit 
 are no longer to pass among us." 
 April 1 To put down the various demonstrations of opposition 
 ^^' to the plan for exchanging the paper currency, both 
 Houses give their immediate attention, as in the ensuing 
 case : — Robert Howland of Duxborough, and Fobes Little 
 of Little Compton, "are suspected of publishing and dis- 
 persing a printed paper, containing sundry expressions, 
 tending to bring into contempt and subvert the constitu- 
 tion of this government." From depositions in reference 
 to this subject, these persons were concerned in having 
 verses printed in Rhode Island, " containing a lamentation 
 for the death of old tenor, having very hard reflections on 
 the General Court." That these individuals might be 
 made an example so as to deter many others, who sided 
 with them, the Representatives and Council vote, that Mr. 
 Phips issue a Proclamation, offering a suitable reward for 
 their apprehension. A great ^ cause of prejudice agamst 
 the redemption of paper currency and its cessation was, 
 that those who depended on their labor for support, sus- 
 pected, that while the wealthy would hoard up the silver 
 and gold, they should have none of it, and should be 
 worse off than under the system of Province banking. 
 This led to several tumultuous assemblies in and near 
 Boston. A large number of people from Abington and 
 
 > Masaachusetts Archives— Pecuniary, vol. iii. ^ Hutchinson. 
 
MASSACHUSETTS CURRENCY. 
 
 131 
 
 other towns came to the metropoHs with riotous intcn- 175 ^^ 
 tioiis. They expected to be joined here by a large party. '■^^-^^^ 
 But they were disappointed. Their courage cooled, and 
 their purpose was relinquished by the hoots of boys and 
 servants, who drove them back. 
 
 To supply a medium of exchange, a bill passes for the April 
 Treasurer to issue certificates, on interest, to be paid by 
 December 31, 1751. His Honor declines signing it, be- 
 cause such paper is not legal tender, will drive specie from 
 the market, become reduced in value, promote injustice, 
 and is contrary to Royal instructions. For the same rea- 
 sons, Andrew Oliver and Thomas Hutchinson had recently 
 dissented from a vote of the Council on this subject. 
 These gentlemen had a strong repugnance to any means 
 for supplying the want of currency, which had any resem- 
 blance to the paper system, from Avhich they hoped the 
 Province would entirely extricate itself. 
 
 On further consideration of the matter, with some 26, 
 modification, Mr. Phips consents to the issue of treasury 
 notes for money, borrowed for the Province on interest. 
 This precedent became a practice. Similar securities 
 were contiimally issued to meet the disbursements of the 
 government. Though it passed in business, on special 
 agreements, yet it was not allowed to be legal tender. It 
 was emitted from the treasury till the Revolution, and 
 was then soon renewed under a different administration. 
 ' The Commissioners appointed to exchange the public June 
 notes for specie, close their labors. They redeemed 3. 
 £50,705 6^ 8^ in bills of the old tenor, £38,431 P of the 
 middle, and £1,703,099 11' 5^ of the new tenor, making 
 an amount of £1,792,236 5' 1*^ at the rate of about one 
 in specie for ten of paper. This was nearly all that was 
 out. For years, petitions continued to be laid before the 
 Legislature, that parcels of them discovered in old desks, 
 bottoms of leather chairs, and other private places of 
 deposite, might be allowed and exchanged. 
 
 Thus the conquest of Louisbourg not only wrested a 
 strong hold from enemies, but, also, furnished the means 
 of freeing this Province from one of its most prolific 
 
132 HISTORICAL ACCOUNT OF 
 
 1751. sources of anxiety, contention, crime, and calamity. The 
 "'^"^' emission of notes from the Treasury, whether as loans, or 
 payments of annual expenses of Government, was an in- 
 cessant cause of difficulties between the Chief Magistrate 
 and popular branch of the Legislature. If ever men had 
 cause to exclaim, in reference to paper currency, " The 
 love of money is the root of all evil," it was Dudley, 
 Shute, Burnet, Belcher and Shirley. This proved to 
 them an opponent of Brierius power. It was among the 
 principal causes, which raised the question of Parlia- 
 mentary jurisdiction over this Province, as well as others, 
 and paved the way to an open rupture with the parent 
 government. In producing such an important alteration 
 in the pecuniary concerns of Massachusetts, Thomas 
 Hutchinson stood in the front rank, and acted a prominent 
 part. ^ The remark he subsequently made to a ^corres- 
 pondent in England, was amply justified by his conduct. 
 '' I think I may be allowed to call myself the father of 
 the present fixed medium, and, perhaps, have a natural 
 bias in favour of it." 
 
 One fact, derived from a review of the paper money 
 system to this period, is that large and frequent emissions 
 of it, not redeemable till several years, and then not punc- 
 tually paid, is no addition to the real medium of trade, 
 which existed when such a course commenced. A prom- 
 inent reason for this inference is, that as the bills of credit 
 were thus multiplied, so they diminished in value, and 
 drove almost all the coin from the market. ^ The tendency 
 of such paper, with regard to itself, is much like what 
 any article of commerce has on its own price, when 
 thrown out for sale in too large quantities. In Holland, 
 it was formerly the case, that when there was too large 
 an importation of spices, it was found expedient to destroy 
 part of them, so that the remainder might bring more 
 than the whole would, if preserved. 
 
 In 1740, Virginia, perceiving that their tobacco, which 
 
 ' MassachuseUs Archives — Hutch- Eng-land, dated Dec. 14, 1761. 
 inson's correspondence. ^ Discourse on Colonial currencies. 
 
 *A letter of his to a friend in 
 
MASSACHUSETTS CURRENCY. J 33 
 
 constituted part of their cnrrcncy, began to depreciate in 175]. 
 value, passed a law restricting 1,000 pounds of it annually, --^'— 
 to each " tythable." For a similar purpose, Maryland, in 
 1734 and 5, ordered 150 pounds of it "per rateable," to 
 be consumed. Indeed, it must be plain to every observ- 
 ing mind, that excess in paper money, emitted on any 
 promises and securities, like excess in every thing else, is 
 injurious to community just in the proportion, that it is 
 more than their necessities and conveniences require. 
 
 ^ That the American Colonies might not fall again into June 
 the course they had done, in respect to issues of bills of 
 credit, Parliament enacted a law. This instrument forbid 
 such money to be passed, except for current expenses of the 
 Government each year, and of invasion by an enemy ; but 
 never as a legal tender for debts. That its requisitions 
 might be complied with, any Governor who should con- 
 sent to a rule of different signification on this subject, 
 should be dismissed from office, and ever after be ineligi- 
 ble to public employment. 
 
 While this subject was under consideration, able and 
 interesting memorials against such a statute were pre- 
 sented by agents of New England. It was deprecated by 
 the people here, not so much for its immediate purpose, as 
 for its relative influence to bring them more under the 
 control of the Crown, and to impair the remaining liber- 
 ties of their Charter. 
 
 2 Relative to such a statute, Mr. Bollan writes to our July 
 Representative. " The paper currency Bill was attended ■^^• 
 Avith great difficulties. I had conceived hopes, that a 
 good Bill would have been agreed on before it was moved 
 in the House; but the design, which was at first con- 
 cealed, of putting, by Act of Parliament, the credit of the 
 Colonies wholly under the power of an Instruction, pre- 
 vented it ; or, at least, it appeared to me, this was the 
 chief reason for some of the principal managers pro- 
 ceeding as they did. This design, which had, I am 
 satisfied, been formed by some persons of consequence, 
 
 ' Journal of the House of Com- " Massachusetts Archives — For- 
 
 mons. eign Relations, vol. i. 
 
134 HISTORICAL ACCOUNT OF 
 
 1751. was conducted with great art. When the Bill in 1748 
 ■ "^^ was brought into the House, for enforcing the King's 
 orders and instructions, that being brought against all the 
 Colonies, and to enforce all the King's orders and instruc- 
 tions whatsoever, whereby the Constitution of the Colonies 
 would, I think, have been wholly subverted, and a des- 
 potic power vested in the Crown. That was plainly such 
 an unconstitutional attempt, that it could not be main- 
 tained and supported, when fully explained and laid open ; 
 whereas this Bill, brought in against part of the Colonies, 
 was to put only one single article under the King's in- 
 struction, and the King, by his prerogative, having greater 
 power over money, than over most other matters, and 
 bills of credit having been used in the Colonies as money, 
 it was apprehended, that this might more easily pass, and 
 being once passed, would serve for introducing, by de- 
 grees, the King's instructions to control other articles, 
 and so would have been a very dangerous precedent. It 
 was moreover urged, that there had been great abuse in 
 this article, in particular, in the Colonies, and that they 
 had disregarded the orders issued upon address to his Ma- 
 jesty from Parliament, and there was a necessity of laying 
 a restraint on the Colonies, and, also, of reposing a trust 
 somewhere ; and that it could not be so well placed any 
 where in this case, as in the Crown. Thereupon, I 
 thought it my duty to oppose the Bill to the utmost." 
 
 Notwithstanding the exertions of our Government, as 
 well as that of England, to exclude bills of other Colonies 
 from ours, still they are not altogether effectual. 
 Oct. ^ In reference to the recent law of Parliament concerning 
 the currency of this country, Mr. Phips writes as follows 
 to the Lords of Trade. " I have received the Act of Parlia- 
 ment for regulating the currencies of the Governments in 
 New England, and I am glad I can inform your Lordships, 
 that there is a general disposition in the inhabitants of this 
 Province to conform to it, which I hope will continue, 
 unless the example of any of the other Governments in 
 evading the force and intent of the Act should prevent it." 
 
 ' Massachusetts Archives — Letters, vol. iv. 
 
 9. 
 
MASSACHUSETTS CURRENCY. 
 
 135 
 
 ^ As evidence that the products of the Commonwealth 1751 
 are still current at the Treasury for taxes, a committee, ^^ 
 consisting of the eldest Counsellor from each County, 10. 
 and the Treasurer, are appointed to set the prices of such 
 ai'ticles. 
 
 Having given the ~ rates at which the bills of credit 
 were appraised, to 1727, we now proceed to offer the fol- 
 io win i 
 
 ig- 
 
 £ills were in > 
 propuniun ofy 
 
 for one oudcq 
 
 t silver. 
 
 16/6, 17/, and IS/, ^ 
 
 19/, 19/6, 20/, 21/, 22/ 
 
 21/, 20/ and 19/ 
 
 18/6 and 19/ 
 
 19/6, 20/ and 20/6 
 
 21/, 21/6, 22/, 22/6 and 23/ 
 
 24/, 25/, 26/, 26/6 and 27/ 
 
 27/6 
 
 27/, 26/6 
 
 26/6, 27/ 
 
 28/, 29 
 
 28/ 
 
 35/, 36/, 37/ 
 
 37/, 38/, 40/ 
 
 60/ 
 
 ^ With regard to the bills of other Colonies, the Lieu- Dec. 
 tenant Governor expresses himself in the subsequent ^^• 
 
 ' Journal ol' the House. 
 - See page b3. 
 
 ■^ Massachusetts 
 ords. 
 
 Provincial Rec- 
 
136 HISTORICAL ACCOUNT OF 
 
 1751. terms. "I must contmue to recommend to yon, to keep 
 ^■^"""^ a constant eye upon the state of the Treasmy, and of the 
 
 current money or medium of trade of the Province. With 
 respect to the latter, I have been informed, that some 
 persons venture to run the risque of the penalty of the 
 law, and presume to receive and pass the bills of credit of 
 the neighboring Governments ; which mischievous prac- 
 tice, if in any measure connived at, will probably spread, 
 and be attended with very bad consequences. I have 
 done what I thought necessary, on my part, and with the 
 advice of his Majesty's Council, have issued a Proclama- 
 tion, requiring all whom it concerns, faithfully to do their 
 duty in prosecuting all offenders against this Act." 
 
 1752. ^ A question, jiroductive of many debates, of prolonged 
 Dec. legislation, and many spirited remarks, begins to be 
 
 agitated in the General Court. It was, whether gold 
 should be a legal tender, as well as silver. Its settlement 
 will be mentioned in its chronological place. 
 J 7 5 3 In reference to coins which had been sent with the 
 April reimbursement from the Royal Exchequer, their value is 
 now appointed. Being whole and half pistareens, they 
 are to pass at the rate of 14^*^ for the former. 
 
 11_ ^ Though tlie Province paper had closed its currency as 
 a legal tender in traffic concerns, yet it was not all re- 
 deemed at the Treasury. The officer of this department 
 shows by his account, that £131,996 3 9 of it, in old 
 tenor, and equal to £17,599 9 9, is still in the hands of 
 the people. In this comiection, he states, that a com- 
 mittee of the Legislature had burnt, at the Town House, 
 such paper to the amount of £1,792,236 5 1. To those 
 who earnestly sought the extermination of such currency, 
 it was a fire of joy — but to the many, who cast longing 
 and lingering looks for its continuance, it was a fire of 
 sorrow. 
 
 13, 2 Not only was this imputed occasion of Provincial 
 distress — though it appeared to be, in a great measure, a 
 necessary evil — thus put away from being an object of 
 
 > Journal of the House. ^ Journal of the House. 
 
 '^ Journal of the House. 
 
MASSACHUSETTS CURRENCY. ] 37 
 
 temptation, but also, the very plates, which ushered them i753. 
 upon conununity, were formally destroyed by a Legislative -^^^^ 
 committee. 
 
 1 Governor Shirley, who had great iiiUucnce in changing Dec. 
 the character of the currency, makes the ensuing remarks. 5. 
 " It is a great pleasure to me to find the happy effects of 
 the reimbursement granted by Parliament- of our charges, 
 expended in the reduction of Cape Breton, which hath 
 brought us back to a silver medium, the only natural and 
 genuine one, both for private commerce and the public 
 business of the Government, and delivering us from the 
 many mischiefs attending a paper currency, especially as 
 it has been of late years unhappily managed in tlie several 
 Provinces and Colonies of New England. Yet I am 
 much concerned to find, that notwithstanding all the bills 
 of credit ought to have been long before this time, drawn 
 in and exchanged for silver, yet some of them are still 
 suffered to be outstanding. I must therefore recommend 
 it to you to fix as short a period as conveniently may be, 
 from this time, for putting an end to the currency of the 
 bills still outstandhig, and to concert proper measures for 
 keeping the silver and gold within the Province. Among 
 other methods for that purpose, I would recommend to 
 you to give some encouragement to the raising of wheat, 
 and other English grain within the Province, as our pur- 
 chasing it from the neighbouring Colonies, contributes 
 greatly towards draining us of our coin." 
 
 '^ To quicken the memory of those who encouraged the 27. 
 passing of the notes of adjacent Colonies, as to the prohi- 
 bition of such a practice, an Act is renewed to prevent 
 this sort of currency. Such preventives were repeatedly 
 adopted by the Assembly till the Revolution. 
 
 ^x\s the last particular mention of the Province bihs of 1754. 
 credit, we have a published notice of Harrison Gray, ^"^^ 
 Treasurer. He states that all of them still out, must be 
 brought to him for being exchanged by the first day of 
 next June, or be forfeited ; and if subsequently passed, a 
 
 'Journal of the House. ^ jjygton Weekly News Letter. 
 
 ^Journal of the House. 
 
 18 
 
J 38 HISTORICAL ACCOUNT OF 
 
 1754. fins is to be imposed of £10 for each offence. He also no- 
 '"^ tifies, that the quarters, halves, and three quarters of such 
 
 paper must be presented at the Treasury by the first of 
 the succeeding March, or else be irredeemable. 
 Pec. ^ Occasionally the eftects of the Provincial banking 
 10- system come before the Assembly. They order, that, as 
 lands and buildings in several counties are still mortgaged 
 for loans, and a settlement of these contracts not made as 
 expected and agreed, the trustees are instructed to sue the 
 debtors. 
 
 1755. ^Having no paper medium, except Province securities, 
 •^^"- and there being little of other money in circulation, the 
 
 Government find it very difficult to realize specie for their 
 notes. Governor Shirley observes to the Representatives, 
 " For remedying this evil, I would earnestly recommend 
 to you, gentlemen, that such monies as persons may ad- 
 vance may be exempted from being taxed in the usual 
 assessments. This has been the constant practice of the 
 Parliament of Great Britain, and has been found by long 
 experience, to be a happy expedient for seasonable supplies 
 of money in the public exchequer there." 
 March ^ As large quantities of counterfeit half pence, of base 
 
 ^^' metal, had been imported, and, with French and other 
 small copper coin continually increase, a committee are 
 ordered to report measures to prevent such practices. 
 
 29. ^Finding it impracticable to hire what silver they 
 needed, on the faith of their notes. Government vote for 
 their agent in London to negotiate a loan of £23,000 
 sterling, for six years, at lawful interest. They were 
 constrained to adopt this method several times, in order to 
 meet their engagements. 
 June ^ By an Act for supplying the Treasury, it appears, that 
 
 ^^- the people are still allowed to have their agricultural and 
 mechanical products pass for Provincial rates. For such 
 an exchange, ''good merchantable Isle Sable Cod Fish," 
 is also taken. 
 
 1 Massachusetts Archives — Pecu- "journal of the House. 
 
 niary, vol. iv. ^Massachusetts Archives— Pecu- 
 
 2 Journal of the House. niary, vol. iv. 
 ^ Journal of the House. 
 
MASSACHUSETTS CURRENCY. J 39 
 
 ^ Gen. William Johnson, commandci* of the forces at 1755, 
 
 the Westward, intended to so ai^ainst Crown Point, writes ^-p'^^ 
 ' 00 ) June 
 
 to Governor Shirley. Speaking of a grant made by Mas- 19. 
 sachusetts, he remarks, "The £000 mentioned for the 
 Indian service, is not specified to be sterling, or what cur- 
 rency. I make no doubt it is the former, and that the 
 word sterling is an omission. In this you will please 
 make me positive." This passage shows how hard it was 
 for an Englishman to have the same views of currency, 
 as our Provincials. These well understood, that, unless 
 sterling was used in any vote for money, it of course 
 meant New England, or lawful money. 
 
 -Still urged by Governor Shirley to rally their almost 1756. 
 exhausted energies, and raise the funds, imperiously Feb. 
 called for by expenses of the war, the House address a 
 message to him in a desponding tone, which shoAvs that 
 they found it extremely hard to obtain money. Their 
 language is, " When the Province lay under a heavy load 
 of debt, contracted on account of the late expedition to 
 Kennebeck, the two Houses notwithstanding readily 
 engaged in the expedition to Crown Point, which has so 
 much increased the debt of the Province, that its inhab- 
 itants are ready to sink under the burden of taxes hereby 
 brought upon them; and the Government ha\'e so 
 stretched their credit, that they even despair of borrowing 
 money sufficient to pay off their troops, lately returned 
 from that expedition." 
 
 ^ His Excellency replies, that, however the funds in- 14. 
 trusted to his care by the Crown for carrying on the war, 
 were never intended to be loaned to any Colony, yet, 
 seeing the necessity of the case, he would venture to let 
 Massachusetts have £30,000 sterling, to be secured by the 
 taxes of the two succeeding years. This proposition was 
 readily adopted. While thus taking on themselves re- 
 peated burdens of debt, the authorities of this Common- 
 wealth, as those of others, were encouraged, that the 
 Royal exchequer would refund the bill of costs. 
 
 > Massachusetts Archives — Let- '^ Journal of the House. ' 
 
 ters, vol. iv. ■> Journal of the House. 
 
140 HISTORICAL ACCOUNT OF 
 
 1756. ^ In accordance with the earnest expectation of the 
 March following recipients, a warrant is issued from his Majesty's 
 3. Council for New England, with New York and Ncav Jer- 
 sey, to receive £115,000, "as a free gift and reward for 
 their past service," against tlie French. Of this ^amount 
 Massachusetts was allowed £54,000. Thus an anticipated 
 source of relief is opened for this Province. 
 
 ^ So much had the metropolis, in common with other 
 sea ports, decreased in property and population, and conse- 
 quently experienced great want of money and other means 
 to meet their accumulated taxes, they pray the Legisla- 
 ture to order a new valuation of estates throughout the 
 31. 
 
 Province. A Bill is brought in accordingly. 
 
 April ^ The General Court, in a letter to William Bollan, their 
 !''• agent in London, state several reasons Avhy their propor- 
 tion of the large amount, recently granted the Colonies 
 by Parliament for military service .against the French and 
 Indians, should be greater. Among such reasons, is the 
 subsequent one. "Notwithstanding the extreme diffi- 
 culties of procuring money, yet we have not taken any 
 step to a paper medium, but have borrowed our supplies 
 of money and pay interest therefor at 6 per cent., whilst 
 the other Governments have pushed out their depreciating 
 bills, and an hundred pounds of their currency is not now 
 worth so much as seventy-five were when the expedition 
 began. At least, so far as we pay interest and the)'- do 
 not, we are entitled to a preference." 
 19. ^Of the abundant notes issued by the Province ex- 
 chequer to meet its other obligations, we give the ensuing 
 specimen. Like its numerous similitudes, it is far from 
 being a sign of fulness in the Provincial Exchequer. It 
 is lothfully issued by the Government, because they have 
 nothing better to meet the urgent claims upon them. 
 
 'Massachusetts Archives — Colo- Newcastle, G. Lyttleton, H. Fur- 
 
 nial, vol. v. nesse. 
 
 2 New Hampshire had £<?,000, ^ Journal of the House. 
 
 Connecticut £"26,000, Rhode Island * Massachusetts Archives — Let- 
 
 £7,000, New York £1.1,000, New ters, vol. v. 
 
 Jersey £5,000. The names sub- ^ Alassachusetts Archives — Pecu- 
 
 scribed to the warrant were Holies niary, vol. iv. 
 
MASSACHUSETTS CURRENCY. |4J 
 
 " Province of the Massachusetts Bay. 1756. 
 The day of 1756. — .— 
 
 Received of 
 the sum of for the use and service of the 
 
 Province of the Massachusetts Bay, and in behalf of said 
 Province, I do hereby promise and oblige myself and suc- 
 cessors in the office of Treasurer, to repay the said 
 
 or order, on or before the tenth day of June, 1758, 
 the aforesaid sum of in coined silver of 
 
 sterling alloy, at six shillings and eight pence per ounce, 
 or in Spanish milled dollars of full weight, at six shil- 
 lings each, with interest annually, at the rate of six per 
 cent, per annum. 
 
 Witness my hand, 
 
 A. B., Treasurer.'^ 
 
 This officer was allowed to give no such obligation, 
 except for sums higher than six pounds. 
 
 ^ As consignees of money, granted by the Crown, Aug. 
 Charles Apthorp and son, of Boston, write to Governor 24. 
 Shirley, that it has reached New York, and is there de- 
 posited in the Fort. Such tidings are exceedingly wel- 
 come. They are regarded as the harbinger of some 
 alleviation to the great pressm-e in money concerns. 
 
 ^In reverting to the experience of the Province under i757. 
 the experiment of abstaining from the use of paper money, J^°' 
 except its loan securities, his Honor, S. Phips, thus 
 expresses himself to the House. " It has been much for 
 the honor of this Government, that the several Assemblies, 
 since the change of currency, have been careful to pre- 
 serve the public credit." 
 
 2 Aware of the dark cloud resting on the pecuniary in- Nov. 
 t€rests of the country. Governor Pownall gives advice to ^^' 
 the Legislature, which he deems suited to the times. '•' I 
 recommend, as your taxes are, and must continue (while 
 the enemy thus prevail) very great and grievous, that you 
 be not quite exhausted, to examine into the state of those 
 
 • Massachusetts Archives— Pecu- " Journal of the House, 
 
 niary, vol. iv. ■* Journal of the House. 
 
]42 HISTORICAL ACCOUNT OF 
 
 1 757 resources, whence they arise, and that you establish the 
 -^^''^^ sure and lasting interest of the country on that trade, 
 
 which is founded in economy, and in the projfits that arise 
 
 2 75g from your own produce, labour and exports." 
 
 June 1 Referring to the same distressed state of affairs, the 
 
 15 
 
 * House and Council thus address the Chief Magistrate : — 
 
 " Our burdens, your Excellency knows, are extremely 
 great, and you have been pleased to put us in mind of the 
 encouragement we have, that a proper compensation will 
 be made us. We earnestly entreat your Excellency to 
 represent to his Majesty our distressed case, and our ready 
 disposition to exert ourselves to the utmost in his Majesty's 
 service ; for if we should fail of relief, and our taxes be 
 increased, our bm'dens must be insupportable." Such 
 recitals were yearly and truly made while the contest 
 with the French continued, 
 Oct. ^ -^s an encouragement to the Province, the Governor, 
 4. after adverting to the capture of Cape Breton, and other 
 victories, informs the Assembly, that a repeated grant of 
 £27,380 19 11 J sterling had been made to them by Par- 
 liament, for its expenses in the war of 1756. Though 
 such information gave the promise of speedy relief to the 
 Province currency, yet for the want of suitable convey- 
 ance, its remittance was long delayed. 
 1759^ -^However great and commendable exertion was con- 
 March stantly made by the Province authorities to keep the Trea- 
 sury scrip at par, yet it had become depreciated in some 
 degree. To prevent the continuance of an evil, so 
 threatening to the welfare of community, a committee of 
 the House are appointed, 
 19. '* After continual hearings before the Legislature, the 
 Land Bank is now brought up in a more particular man- 
 ner. A statement is made, that notwithstanding several 
 laws had been passed to close its concerns, yet they still 
 remain unsettled. Many of the partners had died, had 
 become insolvent, and moved out of the Province. It 
 
 ' Journal of the House. * Massachusetts Archives — Pecu- 
 
 ^ Journal of the House. niary, vol. iv. 
 
 ■' Journal of the House. 
 
MASSACHUSETTS CURRENCY. 
 
 143 
 
 appears, that £995 in the bills of this institution are unre- 1759. 
 deemed. It is enacted, that commissioners, to pay them, ^-^''^^ 
 and interest thereon, assess £3,UU0 on responsible partners, 
 and if these decline to pay in 30 days, they are to issue 
 executions against them. 
 
 ^ A letter is prepared for William Bollan and John Pow- Oct. 
 nail, as agents for transmitting the last grant to Massa- **^- 
 chusetts for its charges in the war. Its language follows. 
 *' Such strenuous efforts, together with what the Province 
 hath done this present campaign, has so deeply plunged it 
 into debt, that the public credit can neither be maintained, 
 nor its inhabitants support the weight of their taxes, 
 miless their share in this grant be remitted as soon as 
 possible. I am therefore directed by the whole Court to 
 desire you to give all possible despatch to the afiair, that 
 so greatly concerns this Province ; and that you would 
 convert the money into Portuguese, or other good heavy 
 gold, or Spanish milled dollars, as from the price of the 
 two species in England, compared with the current rates 
 here, yoii shall find to be most for the interest of the 
 Province." This was the sum, which Mr. Bollan advised 
 our Government, under date of August 16, 1758, he had 
 received. 
 
 Feeling that their case was a hard one, the ^ stockhold- 1 7 6 . 
 ers of the Land Bank petition for a lottery to meet the J^'i- 
 demands on them. They remark, that they " are now, 
 and have been for many years past, under all manner of 
 micertainty respecting their property." 
 
 Among the various demonstrations of dexterous villany, 
 as to the medium of exchange, is that upon the hammered 
 coin. Ezra Taylor relates to the Assembly, that he 
 "discovered a wicked combination of sundry persons in 
 Southborough, in making and uttering of counterfeit 
 cobbs." 
 
 2 There being a general sympathy in favor of the pait- Feb. 
 ners in the Land Bank, who had long ago answered for ^'^' 
 
 1 Journal of the House. Jonathan Payson, Petor Cliardon, 
 
 "The signers of the petition are Samuel Reed, John Brown, William 
 
 William Stoddard, John Ruddock, Rue, and John Lee. 
 
 Robert Auchrautty, Samuel Adams, •* Journal of the House. 
 
144 HISTORICAL ACCOUNT OF 
 
 3 760. their own shares, and also for those of many other dehn- 
 """"^^ quents, their request for a lottery is granted. It allows 
 them to raise £3,000, with the addition of 12|^ per cent. 
 But it did not succeed as anticipated. It only neated, 
 after much delay in its operations, £556 15 6. One 
 great means of prolonging the settlement of this associa- 
 tion's affairs, was the loss of most of their records, with 
 those of the Legislatm-e, in 1747. 
 June ^ As a full offset to the Treasury notes, given to meet 
 ' the expenses of warfare in 1759, Parliament grants to this 
 Province their proportion of £200,000 sterling. 
 j)gg^ ^ In view of rest from the taxes, toils, and miseries of a 
 17. most energetic warfare — of better times for currency and 
 trade — Governor Bernard gives scope to the feelings of his 
 heart. He thus speaks to the Assembly : — " I think my- 
 self happy, that it has fallen to my lot to congratulate you 
 from this seat, upon the glorious conclusion of the North 
 American war, and the fair prospect that now presents 
 itself, of the security of our country's being settled upon 
 the most sure and lasting foundations." 
 1761. "^ With regard to the grants of Parliament for the charges 
 April of the war, the most of our authorities were strongly 
 desirous that all of them should be transported in specie. 
 Indeed, this sort of money was requisite to redeem the 
 Government notes. So situated, they had been at great 
 charges in getting over what had already come to hand. 
 
 Perceiving how this matter stood. Governor Bernard 
 kindly mentions it to the Council and House. His ob- 
 servations follow. " If we look for the advantages which 
 are to balance" the great cost of importing the reimburse- 
 ment in hard money, "we shall find them all imaginary. 
 They are not of the real value of one shilling. If there 
 was any want of specie for circulation, it would be but a 
 temporary convenience, and not a lasting gain, to intro- 
 duce specie ; and the want must be great to justify so 
 large a premium as 10 per cent. It is the nature of trade, 
 like water, to bring itself to a level. It is just the same 
 
 ' General Court Records. ^ Journal of the House. 
 
 ^ General Court Records. 
 
MASSACHUSETTS CURRENCY. 145 
 
 thing, whether yon bring a certain quantity of specie into i76l. 
 the Province, or prevent the hke quantity from going out ""^ 
 of it. As, therefore, the advantages of negotiating your 
 money by bills, are very plain and certain, the only ques- 
 tion will be, whether it is practicable." His Excellency 
 then states that he has made it certain, from the promise 
 of merchants, that the Province may receive its reimburse- 
 ments by bills of exchange, instead of hard money. 
 
 1 In accordance with the advice of the Chief Magistrate, July 
 it is ordered by the Legislature, that the Treasurer draw 
 bills of exchange for £60,000, being the proportion of Mas- 
 sachusetts, as granted by Parliament, for military charges. 
 
 As silver was found to be most profitable by the mer- 
 chants for paying their dues in England, such coin was 
 continually scarce. At the same time, gold not being of 
 so ready an exchange there for mercantile obligations, and 
 also not a legal tender for debts here — though it was cur- 
 rent as individuals could agree — was plentiful. To pre- 
 vent the inconvenience arising from this state of pecuniary 
 relations, a majority of the House as well as of the com- 
 munity are desirous to have gold made a legal tender. 
 ^ The expression of a desire, so naturally oria:inated and Nov. 
 to be expected, is made among the Representatives by the 
 introduction of a bill. This document not only proposes 
 the legality of gold as well as silver, in the discharge of 
 debts, but also the prevention of counterfeiting coin, and 
 particularly the Province notes or securities. ^It is thus 
 introduced : — " Whereas divers species of foreign gold 
 coin are current in this Province, and are received into 
 and paid out of the public treasury, but are not lawful 
 tender, in public or private payments, by which it is 
 apprehended many inconveniences have arisen to the pre- 
 judice of Trade and Commerce, and consequently very 
 detrimental to the public,'' such money be placed as to 
 legality, on the same footing with silver. It is imme- 
 diately singled out to serve as the pivot, on which pai'ty 
 views and feelings, relative to the prerogative of the 
 
 1 Mass. Arcliives — Pecu., vol. v. ^ Massachusetts Archives — Pecu- 
 
 2 Journal of the House. niary, vol. v. 
 
 19 
 
146 HISTORICAL ACCOUNT OF 
 
 1761. Crown and the Charter rights of the Province, are made 
 ^^"^^ long to revolve. A similar experiment had been tried on 
 the bills of credit for forty years. The fruits of that 
 labor, now show themselves engrafted on another branch. 
 The Council on its being presented to them, negatived it 
 as an unpropitious measure. 
 Nov. 1 Perceiving that there were signs of discord between 
 the two Houses, the Governor addresses them by a mes- 
 sage. This contains the ensuing passages : — "lam wil- 
 ling that my recommendations should be confined to the 
 single business of calling in and reemitting the Treasurer's 
 notes. I think it indispensable, that the owners of the 
 notes should be obliged to bring them in by a certain day^ 
 under the penalty of the Interest ceasing at that day. 
 Without this, it can neither be ascertained what notes 
 have been counterfeited, nor will a stop be put to the 
 practice for the future ; for this purpose, it will be most 
 expedient to reemit them in the same money they are 
 payable in now. As for the penalty for counterfeiting 
 them, although I think all punisliments, except capital, 
 will be inadequate, I shall consent to such others as you 
 shall think fit, provided you add a clause, that all the 
 interest upon those reemitted Treasurer's notes, shall 
 cease upon the expiration of the several terms for which 
 they are granted, that there may be a certain determina- 
 tion of the probable mischief of counterfeiting notes 
 within a few years." 
 
 His Excellency's peace ofi"ering does not appear to have 
 produced conciliation between the Representatives and 
 Council. The former were strenuous for the enactment 
 of the proposition before them for gold to be legalized as 
 a part of the currency. The latter took a point blank 
 position on the other side. Seeing that there was no 
 probability of their coming to terms of agreement, the 
 Governor again interposes. His address to them follows : — 
 "After more than a fortnight spent in fruitless debates, I 
 find myself obliged to prorogue this General Comt, with- 
 out any thing effectuars being done in the important 
 
 1 Journal of the House. 
 
MASSACHUSETTS CURRENCY. 147 
 
 business for which T called you together." He further 1 701 , 
 desires, that when they assemble, they will come unbiased ^-^^^^^ 
 and unprejudiced by the events of the present session. 
 
 In writing on this subject to a correspondent, Thomas 
 Hutchinson uses the subsequent language : — ^ " The last Dec 
 session of the Court was spent in a controversy about our 
 money. The House passed a vote for making gold a 
 lawful tender at the rate it passes. This would have 
 driven away our silver and eventually depreciated the 
 currency. I stood in the front of the opposition, and it 
 was with difficulty the Council was kept from concurring. 
 I am afraid the next session, as the Governor, at present, 
 is not sensible of the ill consequences of the proposal, it 
 will pass. If it succeed, I look upon it to be the first step 
 of our return to Egypt." The same writer, judging 
 from the appearances of the Legislature, that his favorite 
 plan, which he first formed and promoted against much 
 untoward resistance, that silver only should be tolerated 
 by statute in payment of debts, was soon to be made 
 copartner with gold for a like purpose — thus uncovers his 
 heart to a friend in England: — "I opened my letter of the 1762. 
 
 Tin 
 
 llth, to tell you, that the House have passed a bill for 15/ 
 issuing notes, payable in dollars at 6' or in gold at the 
 rates now set, which sinks our currency four or five per 
 cent. It will pass the Board with little opposition. The 
 Secretary, Erving, Bowdoin, and two or three more are 
 with me, and a great clamour is raised against my papers.^ 
 Pray tell me if I am wrong, and let me know what people 
 say on your side of the water. If the party see them 
 condemned, I shall have no chance. Our dollars will be 
 gone in a twelve month. Pistareens will succeed, and I 
 shan't wonder, if the next motion, or at least after some 
 time, is, to bring gold to a proportion of them at 14'^ each. 
 The intrinsic value perhaps is not S"*." P , 
 
 ^As one of the many plans adopted by the Legislature 23. 
 to stop the iniquities of counterfeiting, the following is 
 passed to be enacted : — Individuals convicted of such a 
 
 * Massachusetts Archives— Hutch- ^ Massachusetts Archives — Pecu- 
 inson's Correspondence. niary, vol. v. Journal of the House. 
 
 * These papers were on currency. 
 
148 HISTORICAL ACCOUNT OF 
 
 1762. crime are to be set in the pillory one hour — each have an 
 "■"■""^' ear cut oif, drawn to the gallows and set thereon, with 
 ropes round their necks for an hour, publicly whipped, not 
 above thirty-five stripes ; committed to the house of cor- 
 rection, confined there, kept at hard labor for not less than 
 ten years nor more than twenty years, and during such 
 term shall, once every year, at the quarter sessions for the 
 peace, be set in the pillory one hour. The Governor did 
 not sign this. His reason will soon appear. 
 March ^ In accordance with the fears of Mr. Hutchinson and 
 ' his friends, the bill for adopting gold as a legal tender, 
 receives the sanction of the governor. It requires that 
 such coin shall be at the rate of 2^^ a grain. It is accom- 
 panied with another enactment, that the Province notes, 
 of which large amounts are in circulation, shall be re- 
 newed at the treasury. In anticipation of this, a form, 
 suited to the law, that gold should be a legal tender as 
 well as silver, had been prepared, of the succeeding tenor : 
 
 Province of the Massachusetts Bay. 
 The day of A. D. 
 
 Borj'oioed and received of the sum of for the use 
 
 <i7id service of the Province of the Massachusetts Bay ; 
 and in behalf of said Province^ I do hereby promise and 
 oblige myself and successors in the office of Treasurer to 
 repay the said or his order the day of 
 
 A. D. the aforesaid sum of in 
 
 Spanish milVd dollars at six shillings each^ or in the 
 several species of coined silver and Gold enumerated in 
 an Act made and passed in the twenty-third year of his 
 late Majesty King George the Second, iniitled, an Act for 
 uscertaining the Rates, at which coi?ied silver atid Gold, 
 English half pence and farthings may pass within the 
 Government, and according to the Pates therein men- 
 tioned, with interest aniiually at six per cent. 
 
 Witness my hand, H. G., Treasurer. 
 
 A. B. -^ 
 
 C Z>. > Committee. 
 
 E. F. ) 
 
 ' Journal of the House. 
 
MASSACHUSETTS CURRENCY. |49 
 
 '•Which form (except as is hereafter provided) shall be 17(32. 
 printed, with a suitable border round the same, and also -^- — 
 the words — Province of the Massachusetts Bay, the word 
 Committee^ and the words witness my hand, shall be 
 struck off from a copperplate, which the Treasurer is em- 
 powered to procure." 
 
 Province notes of this class, received the name of the 
 new form, and occasioned the preceding ones to be called 
 the old form. This was a partial imitation of the phrases 
 of new and old tenor, as to former bills of credit. 
 
 ^ For such scrip there was still a further call. Though April 
 hopes were cherished, that peace by this time would have 
 been made, yet it was interrupted, and therefore the Prov- 
 ince must still gird on their armour, and still give their 
 paper to meet the cost. On this subject, Governor Bernard 
 gives his own views : — " Although I would not have you 
 despond, I must caution you against being too secure or 
 indifferent. You must not think, that if the war does not 
 rage at your own doors, you may therefore be unconcerned 
 spectators of it. Your interest is at the bottom of tliis 
 contest ; and wherever the battle is fought, the prize lies 
 in this country. The negotiations for peace were inter- 
 rupted by the Spaniards demanding a right of fishing on 
 the Banks of Newfoundland ; and he has also avowed, 
 that the concessions of the French were too advantageous 
 for the British nation. Whereas the cession of Canada is ' 
 the only one that can be said to be greatly advantageous 
 to Great Britain. The North American fishery, therefore, 
 and the possession of Canada, are the stakes for wliich the 
 game, now begun, is to be played." 
 
 2 As a result of resistance to the Act, for making gold a 20. 
 
 tender for payment of debts, by members of the Council, 
 
 who held seats on the bench of the Supreme Court, a 
 
 strenuous movement is made in the House to exclude 
 
 them from holding any place in the Legislative branches. 
 
 This being the first formal trial of strength on such a 
 
 point, fails by a majority of seven votes in the negative. 
 
 Though thus arrested, it soon succeeded. ^ Governor June 
 
 9. 
 
 i Journal of the House. ^ Journal of the House. ■' Journal of the House. 
 
150 
 
 HISTORICAL ACCOUNT OF 
 
 1762 Bernard States to the two Houses, that a reason why he 
 ^^-•■^■^ did not sign the bill for the punishment of counterfeiters, 
 was because it did not require death for fraud upon the 
 government notes. He says, that so far as he is ac- 
 quainted, such a penalty is demanded in all other domin- 
 ions of his Majesty. He gives an opinion, that unless a 
 clause is inserted to this effect, it is better to have the 
 matter dropped. If inserted, he advises that the penalty 
 be printed on the bottom of each note. The House do 
 not agree to this proposal. 
 June 1 As the treasmy is not in funds sufficient to liquidate the 
 interest due on the Province notes, it is enacted, that 
 the time specified for such payment shall be prolonged. 
 Though measures of this sort had been resorted to from 
 necessity, yet they always impaired the credit of the paper 
 concerned. 
 July ^As having much influence, as to the concerns of our 
 ^^' currency, the King signs a warrant for £200,000 as a 
 grant to the Colonies for charges in the war. Of this, 
 Massachusetts is to have a large proportion. 
 
 Of the above sum, £10,000 were reserved to settle a 
 claim of Massachusetts, which was not sufficiently clear. 
 This reservation was ordered by liis Majesty, December 
 14, 1763, to be paid, and our Province to have £5,190 12 6 
 of the whole amount. 
 1763. 2 With earnest desires for the pecuniary and every other 
 1^7 true interest of the community to be promoted, the Governor 
 delivers a speech to both Houses mider very encouraging 
 circmnstances. Let his own words be cited : — " I can 
 now congratulate you upon the final conclusion of a peace 
 highly honorable and advantageous to Great Britain. North 
 America is now become entirely British. Your fortunes 
 are now in your own hands : and on yourselves will 
 greatly depend the future welfare of your comitry. By 
 the ceasing of the war, several sources of the current 
 wealth '* of this Province will be shut up. It will there- 
 
 ' Journal of the House. * The liberal grants made by Par- 
 
 * Massachusetts Archives — Pecu- liament for the expenses of war with 
 
 niary, vol. v. the French. 
 ^ Jouiaal of tlae House. 
 
MASSACHUSETTS CUllKEiNCY. 151 
 
 fore be necessary to open others to supply their deficiency. 17(53. 
 It will be necessary not only to avail yourselves of every " 
 possible improvement in agriculture, fishery and trade, but 
 also to revive and promote a spirit of industry, frugality 
 and economy. Without some such precautions, it will be 
 difficult to preserve your present currency and support 
 your credit with Great Britain." The fair prospect, thus 
 presented to the country, is soon clouded. ^ His Excel- Dec. 
 lency is constrained to tell the sad tale, that there is a '^^' 
 general conspiracy of the Indians against the English, and 
 that the sword must be again girded to defend the terri- 
 tory from the horrors of savage invasion. In addition to 
 this, the mercantile communities are thrown into fear and 
 commotion, by laws of Parliament — such as the Sugar 
 Act and others, which are deemed greatly prejudicial to 
 the trade of this Province. ~ The merchants and traders 27, 
 petition the Legislature to strive for averting the appre- 
 hended evils of such policy on the part of the mother 
 government. 
 
 In reference to trials of this sort, the Representatives 1704. 
 communicate their thoughts to Mr. Jasper Mauduit — who, J""^ 
 they supposed, had not acted, as their agent, with suitable 
 energy for the welfare of Massachusetts. From this letter 
 we extract a few sentences : — " In the last war, we exerted 
 ourselves much beyond our natural strength, and thereby 
 we have incurred a heavy load of debt, which all the 
 resources in our power will hardly clear us from in many 
 years. Can it be possible, that the duties to be imposed, 
 and the taxes to be levied, shall be assessed without the 
 voice of one American in Parliament?" In connection 
 with their letter to Mr. Mauduit, the House order " the 
 state of the rights of the British Colonies " to be forwarded 
 to him. They also authorize a Committee to correspond 
 with the other governments and inform them what instruc- 
 tions are ordered for their agent, requesting him to use his 
 endeavors for repealing the Sugar Act and preventing the 
 Stamp Act or other taxes on American Colonies. Thus, 
 however this Province had been enabled to sustain by the 
 
 1 Journal of the House. - Journal of the House. 
 
152 
 
 HISTORICAL ACCOUNT OF 
 
 2754 reimbursements from England, the credit of its notes, 
 '■^^•^-^^ since paper money ceased to be a legal tender — much 
 better than before — still, the most of its inhabitants dread 
 that their pecuniary and other kindred interests will suffer 
 greatly by the attempt of Parliament to obtain a revenue 
 from them, when they had scarcely leisure to breathe 
 freely and fully from the struggles of a prolonged and 
 Oct. vigorous warfare. 
 
 ^^' As a further illustration of the condition of Massachu- 
 setts in its pecuniary interests and other relations, we adduce 
 some extracts from an address of the General Court to 
 his Majesty : — " We find ourselves at the happy conclusion 
 of the war by our great exertions in it, involved in a 
 heavy load of debt, which will take us many years with 
 all the resources in our power to clear ourselves of. The 
 sums annually required in the course of the late war being 
 much greater than could be raised on your Majesty's sub- 
 jects each year, we were constantly obliged to borrow 
 large sums at a high interest, and to secure the payment 
 thereof to the lenders, to anticipate and mortgage the 
 standing revenues of the government, which consist of a 
 tax on all polls and all real and personal estate, within the 
 Province, on import, certain duties on shipping and an 
 excise on all spirituous liquors. We cannot therefore con- 
 ceal our grief to find by a late Statute, made and passed 
 in the fourth year of your Majesty's reign, entitled, an 
 Act for granting certain duties in the British Colonies and 
 Plantations in America, etc., such duties laid and regula- 
 tions established, as must not only deprive us of all these 
 resources, but must finally destroy our trade, and as we 
 humbly conceive, deprive us of the most essential rights of 
 Britons. The duties laid by the said Act, interfere with 
 the Import and Excise Acts of this Province, nor can we 
 continue these, if the said duties are exacted ; whence, 
 the security the creditors of this government had from 
 those branches must fail. The high duty on foreign 
 sugar and molasses must soon destroy our Trade to the 
 foreign islands. Without this, our fishery cannot be sup- 
 ported. The restraint on lumber, which we are by said 
 
MASSACHUSETTS CURRENCY. 153 
 
 Act prohibited from sending to any other part of Europe 17(54. 
 besides Great Britain will destroy another great branch of " '^ 
 our commerce. And the many other regulations intro- 
 duced or newly enforced by the said Act, have already 
 produced the greatest distress on all your Majesty's trading 
 subjects in this Colony. And our Trade being totally 
 ruined, which we apprehend will be the necessary and 
 speedy effect of these new regulations, if enforced, this 
 Province will be unable to pay its publick debts, whence 
 must soon arise a general bankruptcy, and whenever this 
 happens, the inhabitants of the kingdom of Great Britain, 
 will, we fear, be great sharers in our calamity. But we 
 must further humbly represent to your Majesty, that we 
 look upon those duties as a tax, and which we humbly 
 apprehend ought not to be laid without the Representa- 
 tives of the people affected by them. With respect to a 
 general stamp duty, we beg leave to observe to your 
 Majesty, that in the late war, being driven by want of 
 money to every expedient, we, in this Province, once 
 made such an Act, which was to continue two years ; but 
 we found it so burthensome to your Majesty's subjects, 
 and it was generally complained of, that it was laid aside, 
 and hath never been since revived. We beg leave to add, 
 that these duties joined to the other aforementioned, will 
 exhaust this Province of all its money. It will be utterly 
 incapable of paying its public debts, of bearing the 
 charges of its domestic government, and the subjects here 
 of paying their debts due to your Majesty's subjects in 
 Great Britain." This is indeed a piteous relation. But 
 however, our fathers may have felt more in contemplating 
 the facts on which it was founded, than they would have 
 experienced, if having give to these facts a full trial ; still, 
 the relation had many fearful realities about it. It does 
 not appear to have been the soundest policy on the part of 
 the parent government to impose burdens on a country, 
 yet oppressed with a debt contracted in the warfare, which 
 was as much for the honor and welfare of the Crown as 
 for themselves. Still less wise docs it seem to have been 
 in Parliament, so to strain the interpretation of the Prov- 
 
 20 
 
154 HISTORICAL ACCOUNT OF 
 
 1764. ince Charter as to interfere with the long estabhshed 
 "^"^^ custom of our fathers, of laying their own taxes for the 
 
 support of their own internal government. 
 17C5. ^ Thus situated, large amounts of the treasury scrip are 
 March ^^^ circulation and soon become due. The only way to 
 redeem it, was to levy a tax, "insupportable to the inhabi- 
 tants mider their distressed circumstances." Therefore, the 
 Treasurer is instructed to renew the notes out, for all who 
 are disposed thus to accommodate, and to hire of others 
 who may be inclined to lend, at five per cent, interest, 
 ^'^y Desirous and vigilant to free the Province from its 
 embarrassments and promote a safe medium of exchange, 
 his Excellency calls the attention of the Assembly to 
 what he judged would have such a tendency. He observes 
 to them — " Soon after my arrival, I formed in my mind an 
 idea of three improvements which this country was capa- 
 ble of making profitable to itself and convenient to Great 
 Britain ; I mean potash, hemp, and the carrying of lumber 
 to the British markets." While thus recommending what 
 approves itself to our perception, he discourages other enter- 
 prise contrary to the popular views of our age. On this 
 point, his words are — " You will have no occasion vainly 
 to attempt to transfer manufactories from their settled 
 abode, (i. e. England;) an midertaking at all times difli- 
 cult, but, under the disadvantage of high priced labor, 
 impracticable." 
 June With reference to the movement of the House for a 
 ^' Congress of the Colonies, to meet in New York, and con- 
 fer on their diflicnlties in consequence of Parliamentary 
 laws, and to other demonstrations of resistance to what 
 they considered oppression, the Governor is constrained to 
 Sept. say, -"This Province seems to be on the brink of a pre- 
 ^^' cipice." In the same address, after dwelling on the evils 
 which must result from a refusal to use the stamp papers, 
 which were then near Boston harbor, and made necessary 
 in all public transactions, he asks, "Can this Province 
 bear a cessation of law and justice, and of trade and 
 navigation, at a time when the business of the year is 
 
 ' Journal of the House. " Journal of the House. 
 
MASSACHUSETTS CURRENCY. 155 
 
 to bo wound up, and the severe season is hastily ap- ITfiS. 
 proaching?" The appeal, which he ably made on this "^^^ 
 occasion, did not turn the Representatives from their 
 course. 
 
 ^In their reply to his speech, they remark, "Your Oct. 
 Excellency tells us that the right of the Parliament to 
 make laws for the American Colonies remains indisputa- 
 ble in Westminster. Without contending this point, we 
 beg leave just to observe, that the Charter of this Prov- 
 ince invests the General Assembly with the power of 
 making laws for its internal government and taxation ; 
 and that this Charter has never yet been forfeited. There 
 are certain original inherent rights belonging to the peo- 
 ple, which the Parliament itself cannot divest them of, 
 consistent with their own Constitution. Among these is 
 the right of representation in the same body which exer- 
 cises the power of taxation." These passages are cited 
 from an abundance of discussions, very ably and inter- 
 estingly sustained between Governor Bernard and the 
 Representatives, not for a political purpose, but to give a 
 specimen of the different views then entertained and ad- 
 vanced as to measures, which had a sensible and powerful 
 effect on the currency of this, as well as other portions of 
 the country. 
 
 ^ Among several objections which the House make to 17(35. 
 the late proceedings of the Governor and Council, as Ja"- 
 savoring too much of arbitrary power, is " taking upon 
 themselves to regulate and stop the interest of the public 
 securities." The popular branch of Government would 
 have been glad for the interest on the large amount of the 
 Province paper to have ceased in a proper way ; but were 
 dissatisfied that a matter, which long custom had assigned 
 to them more than to the other branches, should be taken 
 from their hands. 
 
 ^ While a thick cloud so rested on the monied concerns May 
 of the Province, tidings come which tend greatly to its 
 dispersion. They are, that the Stamp Act has been re- 
 
 ' Journal of the House. ^ Annals of Salem, p. 467. 
 
 2 Journal of the House. 
 
 21. 
 
156 HISTORICAL ACCOUNT OF 
 
 1766. pealed. Demonstrations of joy were made, which, in 
 ''^"^' some of their appendages, led more to a spirit of insubor- 
 dination than to regularity. The effigies of Pitt and Lord 
 North were paraded through the streets. The former was 
 
 29, greatly honored, but the latter burnt. ^ Mr. Bernard con- 
 June gratulates the Assembly on this occasion. ^ The House 
 
 3- reciprocate his benevolence, and call the repeal " a most 
 interesting and happy event, which has diffused a general 
 joy among all his Majesty's loyal and faithful subjects, 
 throughout this extensive continent." 
 
 28. ^ As an index of the Government notes which circu- 
 lated in community, and were to be paid in one year, we 
 have the following. This enacted that the Treasury be 
 supplied with the sum of one hundred and fifty-seven 
 thousand pounds, for the redemption of securities, that 
 become due in 1767. 
 
 1767. ^ After various attempts to close the concerns of the 
 Feb. Land Bank, it still makes its appearance, like a troubled 
 
 * spectre, in the hall of legislation. The commissioners 
 give a long account of the transactions relative to this 
 5. institution. ^ The amount due from it, in notes and in- 
 terest, since September 9, 1740, was £1,740 7 3. A com- 
 mittee report, that this shall be paid in equal proportions 
 by the surviving directors, and out of the estates of those 
 deceased, one ninth each, first deducting so much of the 
 sums assessed on them, Sept. 8, 1763, as they had respect- 
 ively paid. But a question was made by Mr. Robert 
 Auchmuty, an attorney for the directors, as well as a de- 
 scendant from one of them, whether they were not already 
 released from all such responsibility by a previous settle- 
 ment with the Assembly's commissioners. 
 Aua-. 6 Notwithstanding all that had been said and experi- 
 25. enced, with regard to bills of credit, there is still a party 
 among the people of the Province and their Representa- 
 tives, for its restoration as a legal tender for debts. Gov- 
 
 » Journal of the House. * Massachusetts Archives— Pec u- 
 
 2 Journal of the House. niary, vol. v. 
 
 ' 3 Journal of the House. '' Massachusetts Archives — recu- 
 
 * Massachusetts Archives— Pecu- niary, vol. v. 
 niary, vol. v. 
 
MASSACHUSETTS CURRENCY. ]57 
 
 ernor Bernard writes by request of the Council to the Earl 17 67. 
 of Shelburne on this subject. Having sent his Lordship -^-^-^ 
 a concise history of such currency in Massachusetts, he 
 proceeds, as his own language expresses : — '' The occasion 
 of di-awing up this representation was this. It appeared 
 in the London newspapers, that Uennys De Berdt, Esq., 
 agent for Massachusetts Bay, joined other agents of the 
 Colonies in their solicitation for a permission to create 
 paper money. If JNIr. De Berdt had really been agent for 
 Massachusetts Bay, as he really never was more than a 
 charge d'affairs of the House of Representatives, he could 
 not have done any thing more contrary to the sense of 
 this Province, than appearing as an advocate for paper 
 money." His Excellency also adds, that the Council, at 
 the last session of the Assembly, desired the Representa- 
 tives to unite with them in a statement, that this Province 
 did not wish to join in such a solicitation to Parliament 
 for paper money ; but the House declined to act with the 
 Council in this affair. The fact here presented, shows 
 that there was a more extensive wish, among the people 
 at large, for the renewal of a legalized paper currency, 
 than the Governor supposed. Such an attempt of Mr. De 
 Berdt, in connection with his being employed by the Rep- 
 resentatives as their agent, justifies the conclusion, that 
 there was far less satisfaction with the hard money sys- 
 tem, even with the circulation of a half million of Gov- 
 ernment scrip, than was anticipated and maintained by 
 the exclusively coin party, 
 
 ^Dennys De Berdt, agent for the House, writes from Oct. 
 London to our Assembly : — " I was well apprised how hap- ^^• 
 pily you were relieved from the late difficulties of a paper 
 currency, and the contentment the sensible part of your 
 Province experience in having a solid medium." Respect- 
 ing a proposal for the introduction of bills here again, he 
 adds, "Whenever the matter is under consideration, I 
 shall act agreeably to the precautions in your letter." 
 
 ~A committee, in giving an account of the amiual con- Nov. 
 
 3. 
 
 ^Massachusetts Archives — Let- -Massachusetts Archives — Pecu- 
 
 ters, vol. vi. niary, vol. v. 
 
158 HISTORICAL ACCOUNT OF 
 
 1767^ flagration of the Province notes, state, that they had 
 
 " — '^^ burned them, as due, for several years, from 1763, to the 
 amount, in principal, of £203,123, the interest being 
 £9,932 18 5. 
 Nov. ^ Another unfavorable omen to our monied interests, was 
 the commenced operation of a Parliamentary ^ Act, which 
 laid duties on imported glass, paper, teas, and paints. 
 Such a law, though not producing so much alarm as the 
 Stamp Act, was followed with riots, and insults to its 
 executors. According to the -^motion of Boston, sub- 
 scription papers are soon circulated through the towns, for 
 the promotion of industry, economy, and manufactures, 
 and "thereby prevent the unnecessary importation of 
 European commodities, which threaten the country with 
 pov^erty and ruin." 
 
 1768. ^With reference to the same absorbing subject, the 
 Feb. House pass the ensuing resolves. Only one member, 
 Timothy Ruggles, who openly manifested his adherence 
 to Royalists, voted against them. " Whereas the happi- 
 ness and well-being of civil commmiities depend upon 
 industry, economy, and good morals ; and this House, 
 taking into serious consideration the great decay of the 
 trade of the Province, the scarcity of money, the heavy 
 debt contracted in the late war, which still remains on the 
 people, and the great difficulties, to which they are by 
 these means reduced : — Resolved, that this House will 
 use their utmost endeavours, and enforce their endeavours 
 by example, in suppressing extravagance, idleness and 
 vice, and promoting industry, economy, and good morals 
 in their respective towns. And in order to prevent the 
 unnecessary exportation of money, of which this Province 
 has of late been so much drained, it is fm'ther resolved, 
 that this House will by all prudent means, endeavour to 
 discountenance the use of foreign superfluities, and to 
 encourage the manufactures of this Province." 
 
 June ^rpj^e inquiry, whether the surviving directors of the 
 
 ' Annals of Salem. ■'Journal of the House. 
 
 2 This Act signed by the King * Massachusetts Archives — Pecu- 
 
 June 29, 1767. niary, vol. v. 
 
 3Made October 28, 1767. 
 
MASSACHUSETTS CURRENCY. ] 59 
 
 Land Bank, and heirs of others, deceased, had not been 1768. 
 released from all farther demands, still remains unsettled. "^^ 
 The last amount of claim made upon them, for the principal 
 and interest on their bills unredeemed, was about £1,500. 
 The final action of the General Court on this subject, 
 does not appear to have been definitely recorded among 
 their proceedings. The probability, however, is that the 
 directors or their heirs discharged this balance. Still the 
 case of Benjamin Jacobs, one of the partners of the Bank, 
 who had been sued and cast for a considerable amount of 
 its notes, interests the Legislature, who require the late 
 commissioners for winding up the affairs of this institu- 
 tion, to consider his petition for relief. Here we take our 
 leave of this monied association, as one of the most noted 
 that ever existed in our country ; not on account of its 
 immense capital, for this was comparatively small ; but of 
 its being made the occasion of bitter strife in politics, of 
 costly and demoralizing litigation, of persecution extended 
 to almost every ramification of community, and of pro- 
 tracted and intense anxiety, as well as of great loss to its 
 principal proprietors. 
 
 ^ The troubles between the Crown and the Colonies still Dec. 
 increasing, a majority of the Massachusetts Council petition 
 the House of Commons to aid in the removal of griev- 
 ances here endured. This document contains the ensuing 
 passages, relative to our currency. " This Province is 
 still in debt on account of the charge incurred by the late 
 war. The yearly taxes upon the people for lessening the 
 debt, though not so great as during the war, are never- 
 theless with more difficulty paid, by reason of the great 
 scarcity of money. The scarcity of money in the Colo- 
 nies is owing to the balance of their trade with Great 
 Britain being against them ; which balance drains them 
 of their money, to the great embarrassment of their trade, 
 the only source of it. This embarrassment is much in- 
 creased by the regulations of trade, and by the Tax Acts, 
 which draw immediately from trade the money necessary 
 to support it ; on the support whereof the payment of the 
 
 ' Appendix to tlie Journal of the House. 
 
IgQ HISTORICAL ACCOUNT OF 
 
 1768. balance aforesaid depends. The exports of the Colonies, 
 ■"^'"^ all their gold and silver, and their whole powers of remit- 
 tance, fall short of the charged value of what they import 
 from Great Britain." Indeed, this is a gloomy portredture 
 of the monied concerns of the Commonwealth. The 
 determination of our fathers to stand in their lot and con- 
 tend for their Charter privileges, and the equally strong 
 purpose of Parliament to continue their pohcy of Colonial 
 taxation, gave but faint signs, that such a representation 
 would greet the eye of watchful patriotism with brighter 
 and more cheerful hues. The alternative of these rela- 
 tions between our country and England, was. that either 
 one or the other must retreat from their position, or else 
 both be brought to the conflict of arms. 
 1772. ^ While there is a strong inclination on the part of many 
 22^ to take the paper money of New Hampshire, Rhode 
 Island and Comiecticut, which was as strongly forbidden 
 by renewed laws, the bills of Nova Scotia, New York, 
 and New Jersey, had circulated considerably in Massa- 
 chusetts. To prevent this, so far as the particd fences 
 of legislation could, a motion is made by the Council for 
 an Act. but being sent down to the House, it is at first 
 July there rejected. ^ Again proposed, it succeeds, and receives 
 the sanction of Governor Hutcliinson. Thus passed, it 
 fmnishes us with the succeeding extract : — '-Whereas the 
 bills of the Governments of New York, New Jersey, and 
 Nova Scotia, have long since obtained a currency in some 
 parts of this Government, and whereas the Government 
 of New York, have, the last 3'ear, emitted the sum of 
 £120,000, which are in no way a tender, saving in the 
 Treasmy of said Province, and already begin to depre- 
 ciate among themselves : and as many of the bills of the 
 said last emission, as well as the bills of former emissions 
 of the aforesaid Governments, are comiterfeited, by which 
 many persons are already sufferers, and more liable to be 
 so, and as all paper bills are liable to depreciate," none are 
 to receive or pay such currency after the first day of next 
 November, on penalty. 
 
 ' Journal of the House. ' Acts of Massachusetts. 
 
MASSACHUSETTS CURRENCY. 261 
 
 * Though the plot thickens, as to reconcihatioii between 1773. 
 tlie Colonies and Great Britain, because the former in- 
 creasingly insist on a stricter adherence to their Charter 
 privileges, even as liberally construed by themselves, and 
 the latter more determined to oppose such demands, as 
 presumptuous in their view, yet the monied interests of 
 the province are in a better condition than they had been. 
 This is occasioned by the prosperity of merchandize, fish- 
 ery and agriculture. 
 
 2 As an indication that the enactments against usury are jo 
 much evaded, we have the subsequent introduction to a 
 corresponding Bill before the Assembly. <' Whereas the 
 Acts already in being against excessive usury, have been 
 found in a great measure ineffectual, to prevent avaricious 
 and unprincipled people from taking more than six per 
 cent, per annum, for the loan of money, whereby many 
 honest and useful members of community, who have been 
 reduced to the necessity of borrowing money on interest, 
 have been oppressed, in contempt of law." 
 
 ^Notwithstanding the differences between Parliament 1774. 
 and our country had reached so high a pitch, as threatened "^^r' 
 a speedy breakage of all peaceful relations between them, 
 business of various branches had so improved, that the 
 currency of the Province stood on a good foundation, and, 
 if the threatening aspect of political controversy had 
 immediately changed, it would have given the promise of 
 long prosperity. The remarks of Governor Hutchinson 
 on this topic, are as follow. " There never has been a 
 time since the first settlement of the country, when the 
 Treasury has been in so good a state as it now is. I may 
 congratulate the Province upon its being entirely free 
 from debt, the tax of the last year, with the stock in the 
 Treasury being equal to all the securities due from the 
 Government, and to the charges of the current year." 
 However his Excellency gave a true description of pecu- 
 niary affairs, yet the friends of liberty regarded it only as 
 a gilded pill, which they would not receive as a catholi- 
 
 * Journal of the House. ^Massachusetts Provincial Rec- 
 
 * Journal of the House. ords. 
 
 21 
 
152 HISTORICAL ACCOUNT OF 
 
 1774. con for their complaints, while they felt that their Charter 
 """""^ rights had been increasingly and alarmingly restricted. 
 
 From one step of debate and action to another, the most 
 of our fathers come to the result of repelling force by 
 force. To measure swords with the power of Britain, 
 they have but little comparative preparation. 
 
 In order to cultivate a spirit of friendship with other 
 Colonies, as well as to comply with the continued and 
 prevailing wish of many for paper currency, the Com- 
 mittee of Safety, appointed by the Provincial Congress 
 
 1775. pass the succeeding Resolve. ^"Whereas, many of our 
 2^ brethren of the Colonies of Connecticut and Rhode Island 
 
 are now with us, to assist us in this day of public and 
 general distress, in which we are all deeply concerned ; 
 and whereas, our brethren of said Colonies have brought 
 with them some of the paper currencies of their respective 
 Colonies which have not, of late, had a currency with us, 
 and for want of which, our common interests may greatly 
 suffer. Resolved, that said paper currencies shall, from 
 and after the date hereof, be paid and received within this 
 Colony, in all payments, to all intents and purposes, in 
 the same proportion to silver, as the same are paid and 
 received within the respective Colonies by which the 
 same have been issued." Thus proposing a measure, 
 which had been frequently prohibited, under severe re- 
 strictions and penalties, the Committee refer final action 
 upon it to the Provincial Congress. 
 3. ^To sustain the attitude of defence which they had 
 assumed, and which was rendered more necessary from 
 the blood recently spilt at Lexington, the Provincial Con- 
 gress empower the Treasm-er to borrow one hundred 
 thousand pounds, lawful money, secured by notes of the 
 Province, at six per cent., and made payable June 1, 1777. 
 They also desire the other Colonies to give currency to 
 such securities. 
 
 The phraseology of paper, issued under such new and 
 interesting relations, would call for a repetition at this 
 
 * Journal of the Committee of - Provincial Congress Records. 
 
 Safety. 
 
MASSACHUSETTS CURRENCY. 
 
 163 
 
 point, did it not bear so closo a rcscml)]ancc to the last, 1775, 
 already cited. — v-^ 
 
 It was almost vcrbaliui like what had been issued by 
 our Coimnouwealth over twenty years. Though the 
 authority under which it was ordered was essentially dif- 
 ferent from what it had been, still the expression of it was 
 so retained for a while, lest the Crown might possibly 
 withdraw from its purposes of compulsion. 
 
 ^Witli regard to the securities or notes given by our May 
 Province Congress, this body request the General Congress '^• 
 to promote its currency throughout the Union. 
 
 ^ As the preceding notes had been ordered not to be of 20. 
 a less denomination than £4, the Provincial Congress 
 empower the Treasurer to issue others for the army, called 
 soldiers' notes, of six, nine, ten, twelve, fourteen, fifteen, 
 sixteen, eighteen, and twenty shillings. The amount of 
 this emission was not to exceed £26,000. The form of 
 such money is here transcribed. 
 
 Colony of the Massachusetts Bay. 
 No. May 25, 1775. 
 
 The possessor of this note shall be entitled to receive, 
 out of the public treasury of this Colony, the sum of 
 
 shillings, lawful money, on the twenty-fifth day of 
 May, A. D. 1776, ivith interest, at the rate of six per 
 cent, per annum ; and this note shall be received in all 
 payments at the treasury, at any time after the date 
 hereof, for the principal sum, without interest, if so paid 
 before the said %5th day of May, A. D. 1776. Which 
 notes shall be received in all payments in this Colony, 
 and no discount or abatement shall be m,ade thereon, in 
 any payment, trade, or exchange whatsoever. 
 
 Here we have the revival of paper ^ money, as a legal 
 tender, after a lapse of more than a quarter of a century j 
 
 'Journal of Congress. "to attend Mr. Revere, while he is 
 
 * Provincial Congress Journal. striking off tlie notes for advance 
 
 2 Provincial Congress Records, pay to the soldiers, night and day, 
 
 June 4, 1775. So urgent is the de- alternately, till they are all struck 
 
 mand for bills, that Capt. Bragdon off." 
 
 and Col. Thompson are appointed 
 
24. 
 
 |g4, HISTORICAL ACCOUNT OF 
 
 1775. and though our Government had not formally cut asunder 
 "^■""^ the ties of their allegiance to Britain, they literally made 
 themselves independent of Parliament law against the 
 legality of such currency. 
 May 1 Aware that the political foundations of the Common- 
 wealth were broken up and that an anxious uncertainty 
 rested on the result, and that, as a consequence, there must 
 be much backwardness in loaning money to the Revolu- 
 tionary authorities, the Provincial Congress offer an address 
 to the people. Tlieir language follows : — " This Congress 
 have opened a subscription for £100,000. It is of the 
 utmost importance that the money be immediately ob- 
 tained, that the public credit may not suffer. We most 
 earnestly recommend to such of you as have cash in your 
 hands, which you can spare from the necessary supplies 
 of your families, that you would lend the same to the 
 Colony, by which you will put it in our power to carry 
 into effect the measures undertaken for the salvation of 
 the country. There are no ways of improving money in 
 trade. There is the greatest probability, that the other 
 colonies will give a ready currency to the notes, which 
 will render them, in one respect at least, on a better foot- 
 ing than any notes heretofore issued in this Colony. If 
 you should furnish the money that is now needed, you 
 will perform a meritorious service for your country, and 
 prove yourselves sincerely attached to its interests ; but, 
 if an undue caution should prevent your doing this essen- 
 tial service to the colony, the total loss, both of your 
 liberties and that very property, which you, by retaining 
 it, affect to serve, may be the unhappy consequence." 
 This is a gloomy description of the pecuniary condition 
 of the commonwealth. They who had cash could invest 
 it to no advantage in business. If they loaned it to 
 government, they could never recover it, if the Revolution 
 proved unsuccessful. The hazard of such a loan required 
 the exercise of no ordinary patriotism to comply with the 
 impressive appeal of Congress. This compliance, how- 
 ever, was made at a most critical juncture, and thus aided 
 
 ' Lincoln's Printed Journal of Provincial Congress. 
 
MASSACHUSETTS CURRENCY. 
 
 1G5 
 
 on their burdensome enterprise, and subsequently bene-]775_ 
 fited the country a tliousaud fold. ^^^^^ 
 
 As our State is about to be innncdiately and deeply June 
 
 23 
 
 interested in the paper currency of the "Continental" 
 
 Congress, we shall have frequent occasion to make it the 
 subject of notice. Indeed, such are and will be the 
 political relations of our Commonwealth to the General 
 Administration, that the pecuniary regulations of the latter 
 must have a connection with the former. ^ Driven by 
 stern necessity to the last resort of means for sustaining 
 the conflict with Britain, the Continental Congress order 
 an emission of notes to the amount of two millions of 
 dollars. This was the first issue of bills ever made by 
 the vote of delegates from the various American Colonies. 
 Such and other abundant emissions from the national 
 exchequer, were soon found too large for the sustenance 
 of their own credit as well as that of the State's paper. 
 The form of the national bills was as follows : 
 
 CONTINENTAL CURRENCY. 
 
 No. ' Dollars. 
 
 This bill entitles the hearer to receive Spanish milled 
 dollars, or the value thereof, in Gold or silver, according 
 to the Resolutions of the Congress held at Philadelphia 
 on the lO^/i day of May, A. D., 1775. 
 
 ^ The question of making the bills of other Colonies a 28. 
 tender in all payments, as previously suggested by the 
 Committee of Safety, comes before the Provincial Con- 
 gress. This Body resolve, that such paper of Rhode 
 Island shall thus pass at 6/9 for an ounce of silver, and also 
 of the rest of the Colonies, except Nova Scotia and Canada, 
 at 6/8 an ounce. They order, that whoever refuses to 
 take these notes without some discount, " shall be deemed 
 an enemy to his country." 
 
 ^As the exigencies of the Colony demand more money, July 
 the Committee of Safety vote that £100,000 in bills from 
 1 to 100 shillings be emitted. This was constituted a 
 
 » Journal of Congress. 3 Committee of Safety's Journal. 
 
 2 Provincial Congress Journal. 
 
 6. 
 
IQQ HISTORICAL ACCOUNT OF 
 
 1775. tender in all pecuniary transactions, as equivalent to specie 
 "'""^' at the usual rates, "under penalty of treble damages to 
 both the payer and receiver." The form of such obliga- 
 tions is as follows : 
 
 Colony of the ) j 1775. iVo. 109. 
 
 Massacliusetts Baij ^ ^ 
 
 The possessor of this Bill, shall be paid by the Trea- 
 surer of this Colony, two shillings and six pence, lawful 
 money, by the ISth day of July, 1777, a7id it shall be 
 received in all payments at the Treasury at all times. 
 
 By order of Congress, 
 
 A. D. ^ 
 
 B. E. > Committee. 
 
 C. F. ) 
 
 July 1 The Provincial Congress order a part of the preceding 
 amount to be struck off. 
 
 29. 2Qf another emission of Continental bills, amounting to 
 $3,000,000, the proportion of them is assigned to each 
 Colony. Virginia and Massachusetts are to receive a 
 greater sum than the rest. The former has $496,278, and 
 the latter, $434,244. It is intended, when the matter can 
 be settled, to have population the basis of such a pecuniary 
 appropriation. It is resolved, "that each Colony provide 
 ways and means to sink its proportion of the bills ordered 
 to be emitted by this Congress in such manner as may be 
 most effectual and best adapted to the condition, circum- 
 stances, and equal mode of levying taxes in such Colony," 
 and that each Colony pay its quota in four equal annual 
 instalments, as follow — November 30, 1779, 1780, 1781, 
 1782. 
 
 The first General Court, under the new order of things, 
 being assembled, soon find themselves called to legislate 
 
 Aug. for the supply of the treasury.^ After several weeks of 
 consideration on the subject, they authorize an emission 
 of £100,000 in paper. In connection with this, the sub- 
 sequent order is passed : — There shall be " on the back of 
 
 * Journal of Provincial Congress. ^ Acts of Massachusetts. 
 
 * Journal of Congress. 
 
MASSACHUSETTS CURRENCY. jg-y 
 
 each bill the figure of an American with a sword in his 1775^ 
 right hand, with the following inscription suspended there- — — 
 from, viz. — ' Ense petit placidam sub libertate quietem,' and 
 from his left hand, Magna Charta, and round the figure 
 these words, ' Issued in defence of American liberty.' " 
 The circumstances under which this currency is sent 
 forth, are clothed with serious greatness. They embrace 
 the oppressions, necessities, purposes, perils, hopes and 
 fears of a people, breaking from long established relations 
 and setting themselves in aiTay against a mighty empire. 
 
 The most of the interesting device required to be 
 stamped on the notes of this emission, composed the Seal 
 of our State, as recently adopted by the General Court. It 
 showed to the eye, that the Royal armorials, which were 
 long contained on our public documents and which 
 denoted subjection to the British Crown, had been de- 
 liberately repudiated, and others, exliibiting emblems of 
 freedom and the sentiment of the patriot, Sidney, had 
 been chosen in their stead. 
 
 On each bill, the names of three persons, designated to 
 sign it, were to be written, one with red, another with 
 black, and a third with blue ink. 
 
 This kind of paper received the appellation of '' sword 
 in hand money," because of the armed image on its back. 
 
 As the ramifications of war increased and extended, so 
 were om- public guardians compelled to try the perilous 
 experiment of swelling the amount of their treasury 
 secm'ities. 
 
 1 Such currency, as yet, had not faltered. In an Oct, 
 intercepted -letter of Doctor Church is the succeeding ^^' 
 passage : — '• The bills of all the Colonies circulate freely, 
 
 and are readily exchanged for cash." 
 
 2 Respecting an emission of three millions, ordered the I>ec, 
 29th ult., Congress resolve — "that the thirteen United 
 Colonies be pledged for the redemption of the bills of 
 credit, so directed to be emitted." Each Colony is to 
 have a part of this money, in accordance with their popu- 
 
 ' Journal of the House. ^ Journal of Congress. 
 
 ' Deciphered by Rev. Mr. West, 
 and laid before the General Court. 
 
168 
 
 HISTORICAL ACCOUNT OF 
 
 1775. lation, and to redeem their share of it by four equal, annual 
 payments, the first to commence November 30, 1783. 
 
 ^ In order to sustain the credit of paper currency, which 
 begins to relax its hold on public confidence, the Legisla- 
 ture are strict to mark every individual, who declines to 
 receive it for any pecuniary obligation. 
 31. Assured that there is a confederacy here and in other 
 Colonies, to destroy public confidence in the paper cur- 
 rency, and thus to encumber the progress of the Revolu- 
 tion, the General Court, in compliance with a resolve of 
 Congress, empower a Committee to detect its authors and 
 have them punished as enemies to the country. 
 March ^ Anxious to extend the passing of their bills, and thus 
 ^^' to excite a sympathy in favor of their enterprise, the 
 national government devise various methods for such an 
 object. As they are about despatching Commissioners to 
 Canada for the purpose of bringing over the people there 
 to unite in resistance to the Crown, they instruct them, 
 among other particulars, " to use every wise measure to 
 introduce and give credit and circulation to the Continental 
 money in Canada." 
 June 2 As a sign of the scarcity of specie as well as of a 
 distrust in the safety of paper money, strenuous efforts had 
 been made to raise £30,000 of hard money in Massachu- 
 setts on exchange for bills, to promote the expedition of 
 our forces in Canada, but with a small and disheartening 
 degree of success. Knowing that to fail in this point, 
 would have a disastrous efi"ect on other operations of the 
 country, our Legislature make further exertion, and entreat 
 all who are able to aid in accomplishing such an exchange, 
 to do it, and thus " assist their distressed country in this 
 critical day." 
 Aug. An emission of bills, now ordered by Congress, with 
 ^^- what had been already issued, amounts to $19,000,000. 
 The proportion of this aggregate sum, assigned to Massa- 
 chusetts, is about 12,750,210. 
 
 Dec. 4 \V"hiie the credit of the Union, in reference to these 
 16. 
 
 1 Journal of the House. ^ Resolves of the General Assem- 
 
 * Journal of Congress. bly. 
 
 * Resolves of the General Assembly. 
 
MASSACHUSETTS CURRENCY. ] gg 
 
 notes, is far from being a talisman, Avliicli can demand and lyyc. 
 punctually receive whatsoever finids and supplies are "^^ 
 needed, the credit of our own Commonwealth, in the same 
 respect, has not much greater inllnence. Our State au- 
 thorities are obliged to intercede with the Committee of 
 Correspondence in every town, to open subscription hsts 
 for a loan of £100,000, required several months previously, 
 on the basis of treasury notes, at lawiul interest. These 
 securities, though of the safest kind, tend to the deprecia- 
 tion of other paper currency. 
 
 ^Desirous to prevent the evils which threatened the D«c- 
 currency of the Union, and in accordance with a letter 
 from Governor TrumbuU of Connecticut, our Assembly 
 appoint delegates to meet others on so great a concern. 
 Another object, having a near relation to the same topic, 
 for the designation of these individuals, is to suppress 
 monopolies and extravagant prices in the necessaries of 
 life. These prices were not only enlarged themselves 
 by the abundance of government notes, but also, in con- 
 sequence, they rendered these notes proportionably less 
 and less sufficient to command the supplies of maintenance 
 and warfare. The Convention, so proposed, soon assemble 
 at Providence, Rhode Island. 
 
 2 Painfully assured, that popular reliance on the safety 1777. 
 of the national bills was seriously shaken and enervated, \^"' 
 Congress declare, that so deprecated an effect had been 
 urged on by enemies to American liberty, and that every 
 State is obligated to put forth all its energies to recover 
 the credit of such money from its downward progress. 
 To strengthen and accomplish their proposal, they enact 
 that whoever pays or receives this currency at a less rate 
 than originally prescribed, besides being accounted a foe 
 to the liberties of his country, shall forfeit the sum so 
 exchanged. They also advise the several States to make 
 this paper a legal tender for debts, as previously required, 
 and to provide that a refusal of it in such a mode, shall 
 be the extinguishment of all claim. They further suggest 
 to the States, that they make preparation to discharge 
 
 ' Resolves of the Genernl Assembly. - Journal of Congress. 
 
 22 
 
170 
 
 HISTORICAL ACCOUNT OF 
 
 25. 
 
 1777. their respective quotas of such money emitted by order of 
 
 ^■^■^-'■^ Congress, at the precise periods specified. 
 Jan. 1 In accordance with previous conference and agreement 
 with other New England States, our Commonweahh pass 
 an Act to prevent monopoly and oppression. As this docu- 
 ment, which was to commence from the 28th of the 
 month, in which it was made, has a direct and important 
 bearing on the currency, and shows what its value was 
 generally estimated at, we make the succeeding extracts : — 
 
 " The price of Farming Labour in the summer season 
 shall not exceed 3* by the day and found as usual, and so 
 in usual proportion at other seasons of the year, and the 
 labour of Mechanics and Tradesmen and other labour 
 beside what is herein hereafter especially enumerated in 
 proportion thereunto, according to the usages and customs 
 which have heretofore been adopted and practiced in this 
 State when compared with farming labour. 
 
 ^^ And he it further enacted hy the Authority aforesaid , 
 That the following articles shall not be sold for a higher 
 price than is herein hereafter settled and affixed to them 
 respectively, viz. 
 
 " Wheat. Good merchantable Wheat at 7' 6-^ per bushel, 
 
 "i?ye. Good merchantable Rye or Rye Meal at 5' a 
 
 bushel. 
 
 ^'Indian Meal. Good Indian Meal or Corn at 4^ a bushel. 
 '' Sheeps' Wool. Good merchantable Sheeps' Wool, 
 
 at 2' lb. 
 
 ''Pork. Fresh pork well fatted and of a good quality 
 at 4J'^ a lb. and Salt Pork in usual proportion according 
 to the price of Salt. 
 
 " Beef. Good well fatted grass-fed Beef at 3'^ a lb. and 
 stall-fed Beef well fatted at 4'i a lb. and Beef of an in- 
 ferior quality in equal proportion. 
 
 " Hides. Raw Hides at 3'^ a lb. Raw Calf Skins at 6*^ a lb. 
 
 ''Salt. Good merchantable imported Salt, at 10' a 
 bushel. Salt manufactured from sea water within this 
 State at 12' a bushel. 
 
 ' Acts of Massachusetts. 
 
MASSACHUSETTS CURRENCY. ] 7 \ 
 
 <^Rum. Good merchantable West-India Rum at 6« 8"^ 1777. 
 a gallon by the hogshead, including the cask, and C" 10*^ 
 by the barrel, exclusive of the barrel, and 7' 8** by the 
 single gallon, and 2' by the quart, and so in proportion for 
 a less quantity, according to the former custom and usages 
 for retailing smaller quantities, saving an allowance of one 
 penny a gallon for every ten miles the same shall be 
 carried by land carriage from the first port of delivery. 
 
 '-'■New England Rum at 3' 10*^ a gallon by the hogs- 
 head or barrel, exclusive of 13' ¥■ for the hogshead, or 
 4' for the barrel, and 4' 6*^ by the single gallon, at the 
 town where the same is distilled, and so in like proportion 
 for smaller quantities, according to the old and approved 
 customs for retailing smaller quantities, allowing one penny 
 each ten miles for every gallon that has been or shall be 
 transported by land from the place of distillery. 
 
 " Sugar. Best Muscovado Sugar at 54' a hundred by 
 the hogshead, and £3 by the single hundred, and 8*^ a lb. 
 by the single pound at the place where it is first landed, 
 and allowing 9*^ for the transporting of every cwt. ten 
 miles by land carriage. And Sugars of an inferior quality 
 in the usual proportion. 
 
 " Molasses, of the best quality at 3' 4*^ a gallon by the 
 hogshead, including the cask, and 3' 8"^ by the barrel 
 exclusive of 3' for the barrel, and 4' by the single gallon 
 at the place where it is first landed from the West-Indies, 
 and so in proportion in the country, allowing one penny a 
 gallon for every ten miles transportation by land into the 
 country or from the place where it is so landed. 
 
 '' Cocoa. Best Cocoa at £6 10' a cwt. American 
 manufactm'ed Chocolate 1' 8*^ a lb. 
 
 " Cheese manufactured in America 6^ per lb. 
 
 ^^ Butter at 10'* a lb. by the single lb. and 9^ by the 
 firkin. 
 
 ^^ Peas 8' a bushel. Beans 6' a bushel. 
 
 ^^ Potatoes. Potatoes commonly called Spanish Potatoes 
 of the best quality at 1' 4^ a bushel in the fall of the 
 year, and not more than 2' in any other season, and other 
 Potatoes in usual proportion. 
 
172 
 
 HISTORICAL ACCOUNT OF 
 
 1777. " )Slocki7igs. Men's best Yam Stockings 6' a pair, and 
 ^■^^""^^ in that proportion for an inferior quality. 
 
 " Shoes. Men's Shoes made of neat's leather, of the 
 best common sort, 8' a pair, and for others the hke price 
 according to their size and quaUty. 
 
 ''Salted Pork by the barrel, 220 lb. in a barrel, £4 12^ 
 
 " Beef. Beef by the barrel, 240 lb. in a barrel, £3 14' 6<i. 
 
 " Cotton. Cotton 3^ a lb. by the bag, and 3' and 8*^ by 
 the single lb. at the port where it is first landed from the 
 West-Indies, and the like allowance for transportation as 
 for other articles. 
 
 " Oats. Oats, 2^ a bushel. 
 
 ''Flax. Good well dressed merchantable Flax, l^ a lb. 
 
 " Coffee. Good Coffee 1' 4'' a lb. by the single lb. 
 
 " Good tried Tallow 7^^ a lb. and rough Tallow 5*^ a lb. 
 
 " Toil) Cloth. Good yard wide Tow Cloth, 2^ and 3'i a 
 yard, and other Tow Cloth in proportion, according to its 
 width and quality, and the price of coarse Linens to be 
 computed after the same rate. 
 
 " Flannel. Good yard wide Striped Flannel, 3' 6^* a 
 yard, and other Flannels in proportion, according to their 
 widths and qualities ; and other woolen Cloth, manufac- 
 tured in America, according to their widths and qualities. 
 
 " Wood. Green oak Wood brought from the country, 
 and delivered at the door of the buyer in Boston 28^ 
 
 " Good Walnut Wood, so delivered 30* a cord. 
 
 " Good Walnut Wood brought from the south shore 
 and delivered at a wharf in Boston, 28^ 
 
 " Good Oak Wood, brought from the south shore and 
 so delivered 24^ 
 
 "Eastern Wood, in consideration of the risque in bring- 
 ing the same, 22' delivered at the wharfe in Boston. 
 
 " Charcoal. Good Charcoal, V a basket. 
 
 " Tanned Hides, at 1' 3'^ a lb. and curried Leather in 
 usual proportion. 
 
 "Homespun yard wide cotton and linen cloth of the 
 common sort 3* 6*^ and other widths and qualities of cotton 
 and linen in like proportion. 
 
 " Mutton, Lamb and Veal, at 4*^ a lb. 
 
MASSACHUSETTS CURRENCY. ]73 
 
 ^^ Flour, imported from the southern States at 30^ cwt, 1777. 
 
 ^^ Flour, mauulactured in this State at 25^ ^'"^ 
 
 ^^ Horse keeping, in Boston for a night, or twenty-four 
 hours with Enghsh hay 2^ and in other places in propor- 
 tion. For keeping a yoke of oxen the same as a horse. 
 
 " Teaming Work, 1* 6*^ for every ton weight a mile, 
 excepting from North-Hampton to the northern army, for 
 which may be taken 2' a mile for each ton weight. 
 
 " Turkeys, Dunghill Fowls and Ducks, to be sold only 
 by the pound, at o"^ a lb. 
 
 " Geese, at 4*1 a lb. 
 
 "Mi7A-, at 2^*1 a quart. 
 
 " Good Refined Iron, at 50' cwt. 
 
 ^^Bloomcry Iron, at 30' cwt. at the place of manufac- 
 tory, and the same allowance to be made for transportation 
 of Iron by land as is allowed for other articles. 
 
 " Liver Oyl, by the barrel 4' a gallon. 
 
 <' Blubber refined, 30' a barrel. 
 
 " English Hay, of the best quality at 5' cwt. and so in 
 proportion for a meaner quality or sort of hay. 
 
 " Good merchantable White Pine Boards not to exceed 
 48' a thousand in Boston, and other lumber in proportion, 
 and "the price in other parts of this State to be in propor- 
 tion thereunto, according to ancient customs and usages." 
 
 ^ Having found that it was difficult for the loan officers 
 of this and other States, to hire money for the Union at 
 four per cent., as at first expected and expressed in the cer- 
 tificates or notes, Congress vote to allow six for all, which has 
 been or may be borrowed on their account. Such obliga- 
 tions formed no small share of the circulating medium. 
 
 ^ In order to obstruct the facilities for counterfeiting the May- 
 treasury notes of our Commonwealth, the House pass a 
 resolve, that particular exertion be made by some paper 
 maker to manufacture sheets for such money, and " that 
 the word State, or some other word, be stampt or wrought 
 in the body of the paper of each note, and that said paper 
 maker shall oblige himself by oath never to make any 
 
 1 Journal of Congress. ^ Resolves of the General Assembly. 
 
174 
 
 HISTORICAL ACCOUNT OF 
 
 1777 more without special leave of this Court." The crime 
 "^^^^ here referred to, was considered peculiarly aggravated by 
 our fathers, because one efficient means of encumbering 
 their exertions for freedom. Hence, they give authority 
 to officers of justice to enter and search any house, sus- 
 pected of containing the implements of such iniquity. 
 
 Public sentiment being not yet sufficiently purified 
 from the error of supposing, that the Scriptural allowance 
 for casting lots in certain cases, comprised lottery chances, 
 Congress resorted to the latter means in order to get some 
 May supply for the national necessities. ^ Hence, among the 
 ^^* varieties of paper currency, in that dark period, we have 
 the subsequent form, dated as in the opposite margin : 
 
 NUMBER. DOLLARS. NUMBER. 
 
 DOLLARS. The United States of America acknowledge 
 
 themselves to he indebted to in 
 
 w dollars, being for prize of that value drawn in 
 
 ^ £2 the United States Lottery, which they promise 
 
 ^ H to pay to the said or bearer, on 
 
 w ^ the day of with interest annually 
 
 S at the rate of four per cent., agreeable to a resolu- 
 
 ^ tio7i of the United States, passed the eighteenth 
 
 of November, 1776. 
 
 June ^ A delegation is appointed by the Legislature to meet 
 2^- others from the rest of New England and New York, at 
 Springfield, on the 10th of July. The objects of this 
 Convention were of national concern. Among them was 
 to devise the best method of arresting the depreciation 
 and counterfeiting of the paper money, and of having it 
 recalled by taxes or otherwise. 
 July 3 It is ascertained that the British were strongly dis- 
 3- posed to use other weapons than those of customary war- 
 fare, for retaining their dominion over this country. A 
 large amount of counterfeit bills, in imitation of such as 
 were emitted by Congress, had been brought from the 
 English ships into the Delaware and partly circulated. 
 
 • Journal of Congress. ^ Secret Journal of Congress. 
 
 ^ General Court Records. 
 
MASSACHUSETTS CUllREiNCY. 
 
 175 
 
 ^ To throw up one barrier against the fearful fall of our 1777, 
 own bills as well as those of other States, it is ordered, ^^7^ 
 that, in the place of increasing them in this Common- 9. 
 wealth to meet the charges of war, taxes shall be levied 
 and assessed on the people, and be punctually collected. 
 
 ~ Reduced to the conviction, that if such paper should 13. 
 be increased as it had been, or even if the most of it 
 should be allowed to pass, the energies of the country 
 would be paralysed, our Legislature prohibit its currency 
 in all sums over six shillings. One necessity which urged 
 on this measure, Avas that the Continental notes, which in 
 January had depreciated five per cent., had by this date 
 sunk so as to pass three for one of specie. This was not 
 merely a rapid but a very alarming diminution, which 
 called for every possible remedy. As our Commonwealth 
 could not command the means for speedy liquidation of 
 the bills paid out of their own treasury, it is ordered that 
 they be exchanged for obligations of not less than £10, 
 with legal interest, payable annually. This was only 
 moving the burden of public responsibility further ahead, in 
 the hope of a better period for its discharge. In connec- 
 tion with these regulations, no paper money of other States 
 was to be taken after December first, on a certain penalty. 
 From the first movement of our State authorities to obtain 
 pecuniary supplies for the Revolutionary struggle, to this 
 gathering in of their notes, they had borrowed £956,400 
 on treasury securities, and issued £500,042 in bills of 
 credit. Besides this amount paid out in two years, there 
 was a large sum of Continental paper, received for military 
 stores and service, circulating among our population. 
 However the object of nullifying the credit of Massachu- 
 setts bills was to invigorate and restore that of the national 
 ones, still the sequel showed, that such an effect was far 
 less than was generally hoped and anticipated. The 
 alteration resembled that of 1751, so far as drawing in 
 the paper currency of the Commonwealth, but not with 
 so available means and so fair a prospect of preserving the 
 public credit. Then the price of our Provincial bravery 
 
 ' Resolves of the General Assembly. ^ ^^jg ^f Massachusetts. 
 
l>yQ HISTORICAL ACCOUNT OF 
 
 1777_ and sacrifices in the capture and retention of Cape Breton, 
 — "^'"^ as paid in coin from the Royal exchequer, was a medium 
 far better to redeem sinking notes, than merely to return 
 one species of them for another. But when men cannot 
 do as they would — ^in reference to many social concerns — 
 they must do as they can. It was but poor philosophy 
 which induced Aristotle to throw himself into a river and 
 there drown, because he could not bear the disappointment 
 of his endeavors to explain the fluctuation of the tides. 
 Our civil authorities, though unable to solve the numerous 
 and perplexing questions which arose in their councils, as 
 to the management of their pecuniary affairs, did not 
 suffer them to prove the end either of their life or of their 
 efforts. Though they had no regal coffers, whence they 
 could draw the amount of their public disbm-sements, yet 
 they could look for relief from the natural resources of the 
 country. True, their expectations of help depended upon 
 the success of their arms. True — if conquered — the 
 gloom of desolated credit, the loss of all right to liquidate 
 their pledges to the lenders of the Commonwealth, the 
 forfeiture of every obligation for money advanced to sustain 
 the Revolution, must inevitably follow. Still, they took 
 courage and did the best their circumstances allowed. 
 Nov. 1 Massachusetts, in common with other members of the 
 
 15 
 
 Union, agree on the articles of Confederation, wherein 
 
 power is delegated to Congress to borrow money, issue 
 bills on the responsibility of the States and regulate the 
 alloy and value of coin. By another clause of the same 
 compact, all notes previously emitted and obligations 
 given by the general administration, are to be accounted a 
 charge against the whole country, for the liquidation of 
 which, the national promise is to be considered as solemnly 
 and sacredly pledged. 
 !''• ^ In a circular to the several members of the Union, 
 Congress speak of the Confederation, as the source, 
 whence they expected much benefit. They ardently 
 regarded it, as the restorer of their depreciated paper and 
 the supporter of public confidence. 
 
 ' Journal of Congress. ^ Journal of Congress. 
 
MASSACHUSETTS CURRENCY. 177 
 
 ^ An address is made by the same authorities to their 1777. 
 constituents. While proposing to raise five milhons of ^1^^^ 
 dollars for the next year by way of tax, of which Massa- 22. 
 chusetts was assessed ^820,000, a lai-ger rate than that of 
 any other part of the Republic, it advances the succeeding 
 ideas in relation to paper currency. To meet the de- 
 mands for sustaining our land and naval forces, large 
 amounts of it had been issued from the National as well 
 as from the State Treasuries. In this manner it was multi- 
 plied beyond the limits of somid policy. It is an assumed 
 truth, that wherever the sum of any currency "exceeds 
 what is useful, as a medimii of commerce, its comparative 
 value must be proportionably reduced." For this cause, 
 in connection with efforts of open and secret enemies, 
 the overreaching disposition of many in community, and 
 the scarcity of foreign goods, there has been a great 
 reduction in the value of such paper. Convinced that the 
 necessities of the country could not be supplied by this 
 medium of exchange, and the period for its redemption 
 must come, Congress were constrained, to adopt the 
 unpopular measure of laying heavy taxes on the inhabit- 
 ants. It is also recommended, that all the States call in 
 their bills over one dollar, and depend on anrmal taxation 
 to pay their individual expenses. It is further advised 
 that they send delegates to specified places for agreeing 
 on prices of labor and merchandize, and for suppressing 
 monopolies and extortion. Discoursing in such language, 
 which came from hearts warm with patriotism, and 
 reached ears, not dull to comprehend its sad realities, 
 the address was sped, as on eagles' wings, through the 
 land. . ■ , 
 
 It is readily perceived, that, with regard to the counsel 
 in this address of the General Government, for each State 
 to rely on assessments of property for the payment of its 
 charges, and not on factitious currency, and to gather in 
 all such money exceeding a dollar, Massachusetts had 
 been beforehand, and the records of her legislation had 
 already borne testimony to the wisdom and promptness of 
 
 ' Journal of Congress. 
 
 23 
 
178 
 
 HISTORICAL ACCOUNT OF 
 
 1777, her action. It is no flattery to say, that this Common- 
 -^"^" weahh freed herself from the charge, once brought against 
 
 the metropohs of Italy, "Rome dehberates and Sagmitum 
 perishes." 
 Dec. ^ As having a common concern and participation in the 
 ^' national bills, this State is interested in the attempts of 
 foes to the Union, for destroying all confidence in such 
 currency. An endeavor of this sort consisted in the 
 formation of associations, who pass notes under the pre- 
 tended authority of the King of Great Britain. Congress 
 resolve, that whoever has been deceived by such paper so 
 as to take it for genuine, may exchange it for that of theirs. 
 This Avas accommodation, which strict justice did not 
 require, though benevolence for the defrauded did propose. 
 
 1778. ^ The members of Congress from Massachusetts are 
 ^^^^^^^ notified, that the articles of Confederation have been 
 
 accepted here. This event is noticed, because it was still 
 viewed as an omen for much improvement in our pecu- 
 niary perplexities. But the same disappointment, which 
 betided it, in reference to the General Government, as 
 before intimated, was experienced by our own Legislature 
 as well as people. 
 
 ]VIav ^ Among the various influences, which increased suspi- 
 8- cion of the Continental paper, was the frequent allega- 
 tion of friends to the Crown, that it was worth nothing, 
 and that the debt, resulting from the diminution of its 
 value and from charges of the war, could never be paid 
 by the inhabitants. Such predictions found so many 
 believers, it was matter of solicitude with om* leaders in 
 the struggle for independence. 
 
 Oct. '* As the period was about to close for the redemption of 
 13. om- State bills of six shillings and under, dated before 
 October IS, 1776, an order is passed, that they be returned 
 to the Treasury and exchanged for a new set. 
 
 Dec. 5 Among the rumors, on which eager and anxious curi- 
 osity often dwells in times of perilous enterprise, adverse 
 to the national currency, is the one, that the General 
 
 J Journal of Congress. ■* General Court Records. 
 
 * Journal of Congress. * Journal of Congress. 
 
 2 Journal of Congress. 
 
 29. 
 
MASSACHUSETTS CURRENCY. ] 79 
 
 Administration neither meant to redeem it, nor to grant 1773, 
 any allowance for it as paid to the soldiery. So very -^^ 
 serious an aspect did this story assume, that such authori- 
 ties felt themselves constrained to pass a resolve, "that 
 the said report is false and derogatory to the honor of 
 Congress." 
 
 Mn order to lessen the impression of such tales, but 1770. 
 especially to do as they purposed, our National Government •^^"• 
 order, that the States pay their quotas of fifteen millions 
 of dollars for the year 1779, and, also, six millions, from 
 the same date, annually for eighteen years, as a fund to sink 
 their notes up to 31st of December, 1778. They further 
 resolve, that, as their bills, issued May 20, 1777, and April 
 11, 1778, had been extensively counterfeited, and particu- 
 larly of late in New York, and spread through the country, 
 enhancing the price of provisions and injuring our cur- 
 rency, such paper shall immediately cease to be passed. 
 
 2 Deeply anxious to lessen the apprehensions of the 13. 
 public mind, concerning the fall of the United States' 
 notes, Congress mention their alliance with France as a 
 ground for reasonable belief, that better days and brighter 
 scenes were at hand. But in this, also, however they 
 were sincere in their proffers of encouragement, they were 
 to be much disappointed. 
 
 ^ In compliance with the injunction of these authorities, 07. 
 our Legislature prohibit the bills of May 20, 1777, and of 
 April 11, 1778, from being taken by their collectors, 
 except for Continental taxes. 
 
 ^ As one of the frequent occasions for our Commonwealth Feb. 
 to issue Treasury notes. £200,000 worth of them are '^^• 
 ordered to be given out for the purpose of importing 
 provisions. In connection with this, a circular letter, 
 addressed to Southern States, is prepared and committed 
 to three agents. A passage from it shows the afflicted 
 condition of our people, and how unfavorable their wants 
 must have been to their monied concerns. It runs thus : — 
 " This State being almost wholly destitute of flour and 
 
 * Journal of Congress. ^ Resolves of the General Assembly. 
 
 ^Journal of Congress. '•Resolves of the General Assembly. 
 
IgQ HISTORICAL ACCOUNT OF 
 
 2 779 grain, the General Assembly are impelled by urgent 
 ^■^--^ necessity to renew their application to your State for a 
 supply of these essential articles, without which the 
 inhabitants in general, and the sea ports in particular, 
 must be reduced to a situation more easily to be conceived 
 than expressed." That an appeal of this kind, specially 
 adapted to awaken sympathy and meet the ready hand of 
 benevolence, might be more impressive and effectual, 
 Congress are requested to give it their particular recom- 
 mendation. 
 April ^ The order of the General Government for the suppres- 
 20. sion of the notes emitted in 1777 and 1778, as previously 
 particularized, has greatly embarrassed Massachusetts, 
 because a large proportion of them had fallen upon their 
 hands. For relief in the premises, Congress is petitioned 
 to deposit other paper at the Loan Office in Boston, as an 
 offset to $800,000 of such prohibited currency. Our 
 delegates there are also instructed to represent, that so low 
 are the public finances here, and so great the advances in 
 behalf of the Union, a most urgent pressure exists for this 
 State to have from the National Exchequer $500,000. 
 Our Legislature say to the delegates, respecting this mat- 
 ter — "The bearer is empowered to receive any sum you 
 may obtain, no time may be lost in returning him, as we 
 hourly suffer for want of money." 
 June ^ A document of great importance to every member of 
 11- the Confederation was ordered by Congress the 26th ult. 
 It is now required by our Assembly to be printed and read 
 by all the ministers of their jurisdiction, from the pulpit, 
 on the first Sabbath after it reaches them. The subse- 
 quent passages from it are here adduced : — " The present 
 situation of public affairs demands your most serious 
 attention, and, particularly, the great and increasing 
 depreciation of your currency requires the immediate, 
 strenuous and united efforts of all true friends to their 
 country, for preventing an extension of the mischiefs, that 
 have already flowed from that source. For defraying the 
 expenses of this uncommon war, your representatives to 
 
 ' Resolves of the General Assembly. ^Rggoiyes of the General Assembly. 
 
MASSACHUSETTS CUKREiNCY. |3J 
 
 Congress were obliged to emit paper money. They were 1779. 
 very sensible of the inconveniences with which too ^^^ 
 frequent emissions would be attended, and endeavored to 
 avoid them. For this purpose, they established loan 
 ofiices so early as in October, 177G, and have from that 
 time to this, repeatedly and earnestly solicited you to lend 
 them money on the faith of the United States. The 
 sums received on loan have nevertheless proved inadequate 
 to the public exigencies. Our enemies prosecuting the 
 war by sea and land with implacable fury and with some 
 success, taxation at home and borrowing abroad, in the 
 midst of difficulties and dangers, were alike impracticable. 
 Hence, the continued necessity of new emissions. Your 
 government being now established, and your ability to 
 contend with your invaders ascertained, we have, on the 
 most mature deliberation, judged it indispensably neces- 
 sary to call upon you for forty-five millions of dollars, in 
 addition to the fifteen millions required by a resolution of 
 Congress the second of January last, to be paid into the 
 Continental treasury before the first of January next, in 
 the same proportion as to the quotas of the several States, 
 with that for the said fifteen millions. Though it is 
 manifest, that moderate taxation, in times of peace, will 
 recover the credit of your currency, yet the encourage- 
 ment wliich your enemies derive from its depreciation and 
 the present exigencies demand great and speedy exertions." 
 Such were the momentous relations involved with the 
 facts of this circular, and such the inexpressible interest, 
 which millions took in its development of the Republic's 
 necessities, perils and prospects, that no messenger, like a 
 Mercurius, was wanted to herald it through the country. 
 Its severe expressions, as to the Britons, were natural 
 under the exasperated state of passion, incident to a war- 
 fare, whose object, on the one hand, was subjection, and, 
 on the other, independence. May they never more be 
 allowed to have occasion for being repeated to so great 
 and generous a kingdom. Gendered in a family quarrel, 
 may they always be substituted by words of national 
 benevolence and Christian intercourse. 
 
I 82 HISTORICAL ACCOUNT OF 
 
 1779. The situation of our general government, as depicted 
 "^^ by their address, was very far from being enviable. As 
 they witnessed the credit of their paper on a rapid decline, 
 and learned that loans and taxes could not be procured so 
 as to supply its place, they were forced still to try the dep- 
 recated experiment of renewed emissions of a similar cur- 
 rency. While pouring this out like water, they perceived 
 with anguish, that its nominal abundance diminished its 
 real value, and left the vacuum of want unsupplied, whose 
 sound continually came to their ears like a warning 
 curfew, and whose cry increasingly was, Give — give. 
 
 Sept. ^With such experience. Congress resolve, that their 
 ^- issues of such money shall, at no period, and under no 
 circumstances, be to a greater amount than $200,000,000. 
 They had already reached this proposed maximum within 
 $40,051,120. But time was to prove, that, borne onward 
 by an irresistible throng of necessities, they were to break 
 over the barriers of their own erection, and to go far be- 
 yond them. Thus have concurrent events often shown, 
 that the best devised purposes of human wisdom are set at 
 naught, and the greatest efforts of human might become 
 powerless. 
 23 ^ A law, on one of the most absorbing topics of political 
 economy, is passed by our Legislature. Its caption reads 
 thus : — " Whereas this State are using their utmost en- 
 deavours to appreciate the currency of the United States, 
 and there is great danger, that their laudable exertions 
 will be entirely defeated, if measures are not speedily 
 taken to prevent the inhabitants of this and the other 
 United States from conveying articles out of this State," 
 it is therefore enacted, that there shall be no exportation 
 of them, either by land or water. Such articles were 
 wine, ardent spirits, coffee, molasses, sugar, cocoa, choco- 
 late, cotton wool , sheep's wool, wool cards, flax, salt, linen, 
 cotton, cotton and linen, cotton and woolen goods, pro- 
 visions, shoes, skins and leather. To this interdicted list, 
 steel, hats, and India teas were added the ensuing month. 
 Such a step was taken, that the established rule for the 
 
 ' Journal of Congress. ^ Massachusetts Laws. 
 
MASSACHUSETTS CUIUIENCY. | gg 
 
 prices of various goods might not be evaded, by the trans- 1779. 
 portation and vending of tlicm in other States, at a greater -^-^^ 
 profit, and thus our own jurisdiction be left in distress. 
 
 Congress, still subject to severe rebuke from every 
 quarter, because of the abundance and depreciation of 
 their bills, prepared another ajjpeal of September 13th, to 
 the people. 
 
 ^ This document is required by our Assembly to be Oct. 
 read, as usual, from the pulpit. It represents, that all the 
 loans and taxes, from the whole nation, since the begin- 
 ning of the Revolution, did not amount to one sixth of 
 the public debt. Hence, it remarks, may the cause be 
 clearly seen, why the finances of the country are so much 
 embarrassed. It computes, as the chief item of such 
 debt, the bills of credit still in circulation, which are esti- 
 mated at i| 159,948,880. It then furnishes us with the 
 succeeding extracts. The depreciation of this money " is 
 always either natural or artificial. The latter is our case. 
 The artificial depreciation is a more serious subject. A 
 distrust, however occasioned, entertained by the mass of 
 the people, either in the ability or inclination of the United 
 States to redeem their bills, is the cause of it. The 
 ability of the United States must depend on two things ; 
 first, the success of the present revolution, and, secondly, 
 on the sufficiency of the natural wealth, value, and re- 
 sources of the country. That the time when honest 
 men might, without being chargeable with timidity, have 
 doubted the success of the present revolution, we admit ; 
 but that period is past." With regard to a prevalent fear, 
 lest, if our independence should be achieved, the claims 
 against the Republic would be disregarded, the appeal 
 has the subsequent language. " The redemption of these 
 bills, and the settlement of the accounts of the several 
 States for expenditures or services for the common benefit, 
 are among the objects of this Confederation, and conse- 
 quently it cannot, so far as it may respect such objects, be 
 dissolved, consistent Avitli the laws of God or man." 
 Then come the ensuing items. " In order to prevent the 
 
 > Resolves of the General Assembly. 
 
184 
 
 HISTORICAL ACCOUNT OF 
 
 1779 further natural depreciation of our bills, we have resolved 
 -— '"^' to stop the press, and to call upon you for supplies by 
 loans and taxes. Leave us not, therefore, without sup- 
 plies, nor let in that flood of evils, which would follow 
 from such neglect. Let it never be said, that America 
 had no sooner become independent, than she became in- 
 solvent, or that her infant glories and growing fame were 
 obscured and tarnished by broken contracts and violated 
 faith, in the very hour when all the nations of the earth 
 were admiring, and almost adoring the splendor of her 
 rising." Such solicitude to raise the fallen value of the 
 paper currency, by eloquent and rational arguments, was 
 not only cherished by our supreme authorities, but also by 
 the leading patriots of our own and other States. It was 
 a common sentiment, taught by ministers at the altar, and 
 cherished by themselves, as well as by most of their con- 
 gregations. While, however, this solicitude was painful 
 to the heart, was read upon the countenance and described 
 in words, the people believed, that compliance with its 
 full dictates was more than commensurate with their 
 means of self-support, and of annually liquidating the 
 heavy charges of war, as well as of the national debt 
 already contracted. Hence, it failed in actuating them to 
 multiply their burdens, already oppressive. The popula- 
 tion being so situated, their delegates in the general ad- 
 ministration were soon forced upon the hard and only 
 choice of resorting to another mode of paper medium, 
 whose final scene exhibited wider and greater calamity 
 than that of its predecessor. 
 Dec. ^ As a convention were to meet in Philadelphia, the first 
 ^^' Wednesday of January, composed of members from all 
 the States, to consider the pecuniary and other interests 
 of the Confederation, instructions are given to Elbridge 
 Gerry and Samuel Osgood, as Commissioners of Massa- 
 chusetts, to that body. One object of such a meeting, as 
 proposed by Congress the preceding month, was the topic 
 of limiting the prices of produce and merchandize, in or- 
 der to improve the currency. As our Commonwealth had 
 
 ' Resolves of the General Assembly. 
 
MASSACHUSETTS CURRENCY. j g^ 
 
 already despaired as to the continued utility of a similar 1779^ 
 plan in New England and New York, which was not yet ^^'^'^-' 
 nullified, and believing tliat another ciibrt of the kind 
 would be of little use, the said gentlemen are accordingly 
 empowered. 
 
 ^ To supply their quotas for the Continental army, and jan. 
 act on equitable principles, the General Court had agreed, ^'^' 
 that all, who complied with the terms of such enlistment, 
 should have the depreciation of paper money, which they 
 might take for their service, made up to them, at the rate 
 of beef at 3^"^ a pound, corn at 4' a bushel, wool at 2' a 
 pound, and sole leather at 1/3 a pound, as designated in 
 the monopoly bill. With regard to this subject, which 
 had become one of much magnitude and anxiety in the 
 minds of our rulers, they request Congress to assure them, 
 that Massachusetts shall not be a loser for thus doing what 
 is right, and essential to invigorate their military energies 
 for the national good. They also forward to the same 
 authorities, a table of the depreciation, on the basis of 
 which, they felt themselves bound to settle with the war- 
 worn soldiery, or the heirs of those whose blood had 
 sealed their patriotism. 
 
 * Resolves of the General Assembly. 
 
 24 
 
186 
 
 HISTORICAL ACCOUNT OF 
 
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MASSACHUSETTS CURRENCY. 137 
 
 'Letters are ordered by our Legislature for the States of ] ygo. 
 New York, Connecticut, Rhode Island and New Hamp- 
 shire, on the subject of the inland embargoes. The object 
 of these restrictive measures was, as previously denoted, 
 to hinder the downward tendency of the bills of credit, 
 by retaining the products and other goods of each State, 
 within its own territory, and having them sold at 
 reasonable prices. Our Government relate, in such com- 
 munications, that they have a bill before them for the 
 repeal of their embargo, as recommended by Congress, 
 August 21, 1779, and a Convention of the five eastern 
 States the succeeding September. They observe, that 
 this bill would have been enacted, had the four other 
 jurisdictions done the same ; but as they have not, and 
 unless the step of repeal should be taken by all concerned 
 simultaneously, it would have an injurious effect on the 
 first taking it, they suspend their final action on the 
 matter. As their conclusion, they say, " We request an 
 early answer to this letter, that we may the sooner be 
 enabled to remove the inconveniences, and prevent the 
 jealousies, which embargo acts have a natural tendency to 
 produce, and speedily to restore unconfined intercourse in 
 commerce, which must always operate to the mutual 
 advantage of the respective States." 
 
 ~ Still on the alert to remedy the abounding evils of a March 
 
 18 
 sinking currency, Congress determine to try a new method. 
 
 By such a change, they are, at last, freed from despondency 
 as to the past experiment, and are temporaiily cheered 
 with the hope of success in the present. We could 
 heartily wish, that the fruits of their anticipation had been 
 more than visionary. But they found, that let them turn 
 which way they would in this great concern, the bright- 
 ness of imagination was soon converted to the darkness 
 of adversity. Of the alteration so made, we have the 
 subsequent details. The States are to pay the Continental • 
 Treasury $15,000,000 a month. Forty dollars of the 
 national paper are to equal one of specie, and all of it 
 gathered in at this rate, shall be consumed. There is to 
 
 ' Resolves of the General Assembly. " Journal of Congress. 
 
188 
 
 HISTORICAL ACCOUNT OF 
 
 1780, be a new emission of bills, equal to, and payable in silver 
 ^^•^^^ and gold, within six years, at five per cent. This paper 
 shall be issued on the funds of individual States, and the 
 promise of the whole country pledged for the liquidation 
 of whatever portion of it any of them may fail to redeem. 
 Each State is to have a portion of such notes, according to 
 its national tax, and place them in the Loan office there, 
 from which they may be drawn completed for circulation, 
 in the proportion of twenty dollars of the old tenor, for 
 one of the new. Of its quota of the last money every 
 Commonwealth is to have six-tenths, and the United 
 States four-tenths, which sum shall be credited to the 
 former government. 
 May 1 In compliance with these Congressional instructions, 
 ^' Massachusetts order an issue of bills, not to exceed 
 £460,000. To the general phraseology of this paper, as 
 applicable to all the jurisdictions of the Union, our Com- 
 monwealth add particulars suited to their relations. 
 
 Thus coming to the view of the public, who watched 
 its condition and bearings with eager curiosity and in- 
 tense feeling, as their last hope of a good paper currency, 
 such an emission passes ere long from its source in every 
 direction. 
 
 As a sample, we are presented with the copy of an 
 original note of this class, which has survived the many 
 hands which handled it, and lived, like an aged pensioner, 
 to look out, from its antique depository, upon the wide- 
 spread blessings which it aided to achieve. 
 
 Eight dollars. 
 
 State of Massachusetts Bay. 
 
 No. 7928. Eight dollars. 
 
 The possessor of this Bill shall be paid eight Spanish 
 
 milled dollars, hy the thirty-firsi day of December, one 
 
 thouscmd seven hundred cmd eighty-six, with interest in 
 
 like money, at the rate of five pel- centum per aimum, 
 
 by the State of Massachusetts Bay, according loan Act 
 
 ' Acts of Massacliusetts. 
 
MASSACIIUSKTTS CURRENCY. J 89 
 
 of the Legislature of the said State, of the fifth daij rt/i780. 
 
 May, 1780. 
 
 Interest. s d q R. Cranch, 
 
 Annually, 2 4 3 Tho's Dawes. 
 
 Monthly, 2 IJ 
 
 Endorsement on the hill. 
 The United States insure the payment of the within 
 Bill, and will draw Bills of exchange for the interest 
 annually, if demanded, according to a resolution of Con- 
 gress, of the ISth of March, 1780. 
 
 Peter Boyer. 
 
 However such money came out with all the guaranties, 
 which the General and State governments could give it, 
 still, being preceded by the wrecks of similar currency, it 
 encountered no small degree of distrust. Not made pay- 
 able on demand, but the period of its redemption put off 
 more than six years, it was not likely to be secured against 
 a fall in its par value. Such a deferring of payment 
 at the Treasury had been one main cause, why its kindred 
 paper had previously suffered so greatly in its credit. Un- 
 der these unpropitious circumstances, the new tenor did 
 not obtain a circulation till the first day of August. On 
 this account, the Assembly subsecj^uently order, that its 
 interest shall be estimated from such a date. 
 
 Some of the most threatening objections to the circula- 
 tion of this emission, may be perceived m what follows. 
 Among the forces under Washington, much opposition was 
 manifested against the Continental bills. ^ He writes May 
 from Morristown, that such an exliibition of their views ^^' 
 and feelings, filled him with deep concern. Rochambeau, 
 in a letter to the Count de Vergemies, observes that on his ji,]y 
 arrival at Newport, the country was in a consternation 16. 
 about paper money, which had fallen to sixty for one of 
 specie, and even Government took it at forty for one. 
 Washington, in corresponding with Congress on this sub- Aug. 
 ject, states, that an effort had been made among his troops 
 
 ' Sparks's Writings of Washington. 
 
]90 HISTORICAL ACCOUNT OF 
 
 1780. to render their notes altogether uncurrent in the camp. 
 """"""^ On this point he remarks, " Every method has been taken 
 
 to counteract it, because such a combination in the army 
 would be a severe blow to our declining currency." 
 Issued under such signs of resistance to the old tenor 
 notes, there is no wonder, that the new should have been 
 coldly received, and scarcely admitted to the confidence 
 of the public. 
 
 Not only was there a marked disaffection in the army 
 
 against every kind of such money, but also among the 
 
 recruits of our Commonwealth. 
 
 Nov. ^ For this reason, the Legislature make special applica- 
 
 16. tion, and offer liberal encouragement for loans of gold and 
 
 silver, to pay their quota of men for military service. 
 
 ^By this time hard money had become plenty here, and 
 in other parts of the country. Large quantities of it came 
 from the French and British forces, from Havana and 
 other foreign parts, and from prizes captured in the West 
 Indies. While it passed freely among the population, not 
 a dollar of it could be found in the State Treasury, be- 
 cause a thousand claims stood there unsatisfied, and ready 
 
 1781. to seize upon it, as soon as its sound was heard. ^To 
 •^^°- pay the interest due " on public securities, and redeem 
 
 and destroy one seventh part " of the last order of bills, the 
 Legislature require, that of a heavy tax, being £939,075, 
 equal to specie, $72,000 of it shall be collected in hard 
 money. 
 Feb. "* As public watchmen for the welfare of the community, 
 26' our political authorities make an address to the people, in 
 which they ingenuously confess their difficulties on the 
 subject of paper currency. This document furnishes us 
 with the subsequent desires, opinions, advice and facts. 
 Considering the failure of government to sustain the credit 
 of their bills, there can be no wonder, that the confidence 
 of the people in it had been shaken. Still, as this lapse 
 was a misfortune and not a crime, it is hoped that their 
 virtue and patriotism will lead them to befriend such cur- 
 
 ' Resolves of the Assembly. ^ Resolves of the Assembly. 
 
 2 Bradford's Massachusetts •* Resolves of the Assembly. 
 
 Gouge. 
 
MASSACHUSETTS CURREiNCY. |9J 
 
 rency, as the best means of relief which sterh necessity 178I. 
 of circumstances would allow. " The value of money ^-^ 
 which is but a representative of property, will ever be 
 regulated by the connnon consent of the people at large ; • 
 hence attempts of any Legislature to regulate it must 
 prove abortive." 
 
 When the Assembly emitted the last bills, guaranteed 
 by the United States, they estimated them on a par with 
 specie, and those preceding them, at one fortieth of such 
 value. But before the former could be thrown into circu- 
 lation, the latter had sunk to seventy-five for one. In this 
 way the Commonwealth were liable to a loss of seven 
 fifteenths of the whole amount which was to be issued. 
 On this account, the Treasurer was ordered not to pay out 
 one seventh of the sum first intended for' circulation. 
 The ^ clause, which delayed the redemption of this cur- 
 rency to 1786, has been lately repealed, so that the credi- 
 tors of the State may not be liable to suffer in the manner 
 they had been. While informed of these things, the 
 people are also told, that the debt of the Commonwealth 
 is £1,200,000. With this bm-den upon them, and with a 
 full explanation of the basis on which their paper money 
 rests, they are exhorted to gird themselves up to their 
 necessities, preserve equanimity amid their difB,culties, 
 discharge their several obligations, and believe that the 
 bow of promise betokened for them a brighter £Uid a better 
 day. 
 
 While the old emission money of Congress was legally 
 set at the rate of seventy-five dollars for one of specie in' 
 our Commonwealth, it fell to a hundred and twenty in 
 Philadelphia. This difference subjected our dealers to 
 great imposition. One marked case may serve as a sam- 
 ple : — ^A noted merchant of Boston received a large amount 
 of such paper from a friend of his in the former metropolis, 
 with instructions to buy whatever saleable articles he 
 conveniently could. Accordingly he went to the principal 
 stores which were filled with dry goods. He pointed to 
 
 1 The Acts for this and the reten- uary 2, 1781, and were enacted the 
 tion of a seventh part of the new succeeding 10th of March, 
 tenor bills, passed to be enacted Jan- ^ 
 
192 
 
 HISTORICAL ACCOUNT OF 
 
 1781. ^ shelf of cotton, of linerij and so on, inquiring the price, 
 — '^^ and when told, said, "I will take the whole lot." But 
 when he came to pay the venders in the old Continental 
 notes, they were exceedingly provoked. Still, the law 
 afforded them no remedy. While the purchaser brought 
 on himself severe recriminations, his friend in Philadel- 
 phia made an enormous profit by the difference in the rate 
 of such currency here and there. Instances of this sort 
 aided, in this quarter, to bring its credit to a speedy termi- 
 nation. 
 Marcli 1 Among the articles of confederation which are now 
 formally agreed on, and to which the eye of the nation 
 was directed — as a guide from the mazes of their per- 
 plexity — one grants to Congress the sole power of regulat- 
 ing the alloy and value of coin, whether struck by the 
 order of individual States or by their own. 
 
 ^ It is with no small uneasiness of mind, that our Civil 
 authorities perceive that a large amount of the Continental 
 notes was not recalled as it was to have been by other 
 States, and that it is likely to become altogether valueless 
 among their constituents. For averting so serious an evil, 
 they order notifications to be posted up in all towns for an 
 account of such paper to be forwarded, so that they may 
 apply to the General Government for having it imme- 
 diately redeemed. Before taking this step, our Legislature 
 had called in the quota of such money assigned to them 
 by Congress, so that none could cast into their teeth the 
 charge of inconsistency. 
 9' ^As an evidence of the extreme emptiness of our State 
 treasury for public use as well as for private claims, we 
 give the following : — It appears that after a session of 
 sorrowful legislation with regard to various topics, which 
 were much affected by the embarrassed condition of the 
 currency, the roll of service was made up for our Senators 
 and Representatives. But the word is, there is nothing to 
 pay for their attendance and travel, the necessities of the 
 Commonwealth have been so urgent, that no cash remains 
 
 1 Journal of Congress. ^ Resolves of tlie General Assera- 
 
 ^ General Court Records. bly. 
 
MASSACHUSETTS CURRP^NCY. 
 
 193 
 
 to satisfy the dues of its Rulers. They cahnly bowed to ] 731^ 
 the exigency and went to their homes. Wliile saying to — '' — 
 the people, the treasury is exhausted for you, they did not 
 retain enough to meet their own demands. While giving 
 them precepts on patience, they practised the same self- 
 denial. This is one of the sunny spots, as to human 
 character, in periods of prevailing tribulation, on which 
 the mind loves to dwell. 
 
 ^ As compensation to the many holders of our treasury March 
 notes, for not receiving their interest, when falling due, it 
 is enacted, that they shall have annual compound interest, 
 and be exempted from all taxes on such securities. This 
 was demonstration of honest motives, though insolvency 
 deferred the accomplishment of them. 
 
 Owing to the adversity which attended the plans and 
 operations of banking, as solely conducted by the govern- 
 ment of State or Nation, since the commencement of the 
 Revolution, a prevalent desire of the country at large was 
 cherished and expressed, that such business might be tried 
 upon more private responsibility. But aware of the long 
 and heavy troubles which had befallen several associations 
 of this kind before their rupture with Great Britain, as 
 well as similar schemes of the Assembly in Massachusetts, 
 then and afterwards, the majority of our population were 
 far from greeting the proposed enterprise, as one likely to 
 benefit the public. They suspected that every pecuniary 
 project of this sort, whatever aspect it might assume, could 
 not be so essentially altered as to confer on the community 
 a greater good than evil. ^ Hence, when the question is May 
 tried in Congress, whether the Bank of North America ^^* 
 shall have a Charter, our Representatives are numbered 
 with others in the negative. Still, this ^institution has a 
 majority there in its favor, and with a capital of !|400,000, 
 is to be considered as prepared for begiiming business 
 when its list of stockholders is completed. But whatever 
 objections were brought against this monied corporation, 
 
 ' Resolves of the Assembly. bank were finished December 31, 
 
 ° Journal of Congress. ]7SI,:ind it commenced operations 
 
 ^ Subscriptions to the stock of this January 7, lTdS. 
 
 25 
 
J 94 HISTORICAL ACCOUNT OF 
 
 1781. it was so judiciously and safely managed, was of so great 
 " assistance to the General Administration in improving 
 their deeply embarrassed finances, and in doing much to 
 revive their prostrate credit, that many who dreaded it as 
 an instrument of enlarging the distresses of our country, 
 became its warm friends and supporters. 
 
 While this bank was ere long to try the doubtful ex- 
 periment whether the people would receive its notes and 
 continue to trust in them as equivalent to specie, we may 
 revert to the amount and condition of the old and new 
 emissions of Continental bills. ^ The sum, which had 
 been directly paid out of the national treasury in the first, 
 was $357,476,541, and that, which it circulated through 
 the several State treasuries in the last, was $2,070,485 
 
 May and a fraction. The immense amount of the former tenor, 
 ^^' which was still unredeemed, and which had sunk to five 
 hundred for one of hard money, ceases to circulate as a 
 medium of exchange. With the strong current of such 
 an example against it, the latter or new tenor had dimin- 
 ished in worth, so that three of it would bring only a 
 dollar in specie. 
 
 July ^ Assured that it would be worse than vain to stem the 
 5- tide of prejudice, which threatened to bear away every 
 relic of confidence in the remaining public bills, our 
 Legislature forbid them to be presented as a legal tender 
 at any rate whatever. They also release the Judges of 
 the Supreme Court from the service of making their 
 stated reports as to the unsteady value of such paper. 
 Thus we have the recorded downfall of our chief national 
 currency. Necessity drove our civil fathers to its adoption. 
 Could and would the people have paid all needed taxes in 
 gold and silver, neither States nor Congress, with the 
 beacons of past and bitter experience in pecuniary con- 
 cerns all around them, would have ventured upon another 
 experiment of such a medium. They were in the painful 
 alternative of either resorting to this expedient, or else 
 give up the contest and every hope of liberty. Of the 
 two, they preferred the less evil, though by no means a 
 
 ' Gouge on American Banking. ^ General Court Records. 
 
MASSACHUSETTS CURRENCY. ]95 
 
 light one, and acted in accordance with the decision, lygi. 
 Thus committed, they did everything which the caution, ^-^^'^^ 
 vigilance, activity and wisdom of men in their situation 
 could do. They had already launched upon the troubled 
 waves of revolution, and sooner than return, they resolved 
 to improve the best resources in their power, however far 
 from being eligible, so that their course might be onward. 
 Their feelings could harmonize Avith the language of 
 Ovid : 
 
 "Sero rcspicitur telliis, ubi func soluto, 
 Currit in immensum panda carina salum ;" 
 
 Or, " It is too late to look back upon the land, when the 
 cable being loosed, the vessel is making her way into the 
 immense deep." So situated, our political authorities 
 tried one mode and another in order to have as small a 
 quantity of notes as possible thrown upon the community. 
 Still, call upon call, both imperative and irresistible, forced 
 emissions from them, far beyond what they expected or 
 even imagined, until their number was hundreds of mil- 
 lions. Thus multiplied and brought into suspicion by 
 many adverse incidents, such currency fell from one grade ' 
 to another, though the whole country was pledged for its 
 redemption, until it was brought so low, that legislative 
 interference cut short the degraded and lingering existence 
 of its credit. This was an event which did not occur 
 unnoticed and unfelt. It sent a thrill of anguish through 
 many a heart, which, though 'not despairing of the 
 Republic,' was deeply solicitous for its honor as well as 
 for its success. 
 
 ^ As no efficient measures had been taken to recall the J"ly 
 Continental bills, which were a surplus over what this 
 State was obligated to redeem, and which had sunk in the 
 hands of its inhabitants, our Representatives in Congress 
 are instructed to move, that such paper may be collected 
 into the treasury here, and charged against the Union. 
 
 ^ Though the new tenor money had been placed under 
 the ban of the Assembly, yet they feel responsible for their 
 quota. They empower the Collectors of State taxes to 
 
 ' General Court Records. * Resolves of thePeneral Assembly. 
 
196 
 
 HISTORICAL ACCOUNT OF 
 
 July 
 J 2. 
 
 1781 take it at one and seven eighths for one silver dollar. 
 
 ^^^'^' This was an allowance much more favorable than the 
 market price. 
 
 ^ So completely had the old tenor notes run down, that 
 scarcely a person would receive them for the necessaries 
 of life. Samuel Osgood, one of our delegation in Con- 
 gress, writes respecting it, from Philadelphia to Harrison 
 Gray, the Treasurer. He relates that he had taken the 
 liberty to draw for a small sum of specie, and trusted that 
 this would be approved by the Legislature, and adds, 
 " at present I do not think we can subsist without hard 
 money." 
 
 ^ Perceiving that the last emission still tended downward, 
 and was now four for one of specie, the General Court, 
 with the feelings of sorrow, order the Treasurer neither 
 to issue nor take any more of them on loan. 
 
 With regard to this paper, and also to the Continental 
 bills, we have the succeeding table : 
 
 Sept. 
 25. 
 
 Oct. 
 1. 
 
 MASSACHUSETTS SCALE OF DEPRECIATION. 
 
 Agreeably to a Law of the Kiate for the settling of Contracts, both public and private, 
 made on and since the tirst Day of Januar}', 1777. 
 
 O/J* Hundred Dollars in Gold or Silver, in January, 1777, being equal to One Hun- 
 dred arid Five Dollars in the Bills of Credit of the United States. 
 
 One Thoiisavd Seven Hundred and Seventy Seven. 
 
 January, 
 February, 
 March, . 
 
 103 
 107 
 
 WJ 
 
 April, . . 112 
 May, . . 115 
 June, . . 120 
 
 July, . . 125 
 August, . 150 
 September, 175 
 
 October, . 275 
 November, 300 
 December, 310 
 
 January, 
 February, . 
 Marcii, . 
 
 One 
 325 
 350 
 373 
 
 Thousand Seven Hii 
 April, . . 400 
 May, . . 400 
 June, . . 400 
 
 ndred and Seveniij E 
 July, . . 425 
 August, . 450 
 Seplember, 475 
 
 i<;ht. 
 
 "October, . 500 
 November, 543 
 December, G34 
 
 January, . 
 Fel>ruary, . 
 March, . . 
 
 One 
 
 742 
 
 8(58 
 
 1000 
 
 Thousand Seven Hu 
 April, . . 1104 
 May, . . 1125 
 June, . . 1342 
 
 ndred and Sevenhj I\ 
 July, . . 1477 
 August, . 1630 
 September, 1800 
 
 line. 
 October, . 2030 
 November, 2308 
 December, 2393 
 
 January, 
 
 One Thousand Seven Hundred and Eighty. 
 2934 I February, 3322 I March, . 3736 1 April, 
 
 4000 
 
 /"row April ist, 1780, <o April 20th, one Spanish miWd T>o\\ar was equal to Yony of 
 
 the Old Emission. 
 
 April 25th, 
 
 . 42 
 
 IVlav 20th, 
 
 54 
 
 June 20th, . 69 
 
 Nov. 30th. . 74 
 
 April 30ih, 
 
 . 44 
 
 May 27di, 
 
 . GO 
 
 August 15th, 70 
 
 February 27lh, 
 
 May 5ih, . 
 
 . 4(i 
 
 May 30di, 
 
 62 
 
 Sept. lOih, . 71 
 
 1781, . 75 
 
 May iOdi, 
 
 . 47 
 
 June 10th, 
 
 . 64 
 
 October 15th, 72 
 
 
 May 13th, 
 
 . 4y 
 
 June 15th, 
 
 . 68 
 
 IMov. lOlh, . 73 
 
 
 One Dollar and seven eighths of a Dollar in New Emission equal to One Dollar in 
 Specie from the 27lh of February, 1781, to the 1st of May following; from the 1st to 
 the 25lh of May, two and one quarter of the New Emission lor One in Specie; from 
 the 25tli of May to the 15di of June, three of the New Emission for One in Specie ; 
 and from the I3th of June to the 1 si of OrfoZ»er, (bur of the New Emission equal loOne 
 in Specie. 
 
 * Letter from Hon. Samuel Osgood. ^ Resolves of the Gen. Assembly. 
 
MASSACHUSETTS CURRENCY. 
 
 197 
 
 Desirous to gather in this currency before it sunk still 1781^ 
 
 lower, so far as thev had issued it on account of this "T?'^^ 
 ' •' Nov. 
 
 Commonwealth, the Assembly require it to be exchanged l. 
 at the present rate for gold and silver, and be no more 
 circulated. 
 
 ^However, the North American Bank found little favor 1782. 
 at its first appearance, in the estimation of the public here, ^''^'■*"'' 
 yet its course had been so beneficial, the Legislature 
 incorporate a branch of it on behalf of Massachusetts, in 
 compliance with the wish of the General Government. 
 A condition of this Act is, that no other similar association 
 shall be allowed in this jurisdiction, while the war lasts 
 with Great Britain. The penalty of death is also affixed ' 
 to the offence of embezzling the funds of this branch by 
 any of its officers. A resolve is passed, that the paper of 
 this institution and the securities of the Congress, as 
 signed by Robert Morris, shall be received towards a tax 
 of £300,000, assessed last October on the people of this 
 Commonwealth, and also for another of £200,000, voted 
 the present session. 
 
 ~ With regard to notes given by the State Treasurer, April 
 they had not been allowed to be less than £ 10. But as 
 many individuals had bills of a smaller value and were 
 willing to have them consolidated, or the principal and 
 interest of them added together, and loaned to the Com- 
 monwealth, he is instructed to issue such securities as 
 low as £3. 
 
 ^ Among the obligations from Massachusetts, which Oct. 
 served to constitute a part of the currency, were those °" 
 held by officers and soldiers for the depreciation of their 
 wages. 
 
 In a letter of our Legislature to Congress, they express 21. 
 the apprehension, that if nothing be done for the relief of 
 the inhabitants here, as to the great sum of Continental 
 bills in their possession, which, had other States done 
 their duty, would have been liquidated, there will be a 
 serious deficiency in the national taxes. They write, at 
 
 ' Acts of Massachusetts. ^ Resolves of the General Assem- 
 
 ' Resolves of the Gen. Assembly. bly. 
 
198 HISTORICAL ACCOUNT OF 
 
 1782. t^6 same time, to our Representatives there, that this Com- 
 — '^' monwealth had exchanged $29,300,000 of the national 
 
 paper money, and handed it to the Commissioner of loans 
 as their very abundant proportion. They further assert, 
 that the amount of such money, as other States ought to 
 have redeemed, and as is now possessed by our people, is 
 $30,000,000, besides a great deal more, the account of 
 which has not been forwarded to the Secretary. They 
 propose that the delinquent States pay into the national 
 treasury what is their quota of this sm-plus at the running 
 price, so that the General Administration may have it 
 redeemed and be responsible to its owners. 
 Dec. 1 Among the sufferings incident to the fallen condition 
 of this paper, were those of the war-worn soldiery. Those 
 of them in the army from this and other States, thus 
 express themselves to Congress, respecting the notes which 
 they had taken as the price of their toilsome and perilous 
 service : — " Let the present value of those nominal obh- 
 gations be ascertained by the monied men, and they will 
 be found to be worth little indeed ; and yet, trifling as 
 they are, many have been under the sad necessity of 
 parting with them, to prevent their families from actually 
 starving." Stern necessity and not design, on the part of 
 Government, brought upon such men too much of the 
 experience of the noble Roman, when he was forced to 
 make the petition — "date obolum Belisario." 
 
 Small 2 bills not over a dollar, are still issued plentifully 
 by our Commonwealth, on its own particular account. 
 All through the Revolutionary contest, thus far, they 
 appear to have been sustained in their credit. They had 
 an impression of the rising sun upon them, as emblemati- 
 cal of the ascending liberty of this and other members of 
 the Union. 
 
 1783. ^Pqj. tjjQ honor of their country as well as for doina: 
 Feb 
 
 22 ' righteously by its creditors, Congress propose that the 
 
 several jurisdictions of the confederation consent to a pro- 
 
 ' Journal of Congress. ^ Journal of Congress, 
 
 ^ The plates of these and other 
 bills are still remaining in the office 
 of the Secretary of State. 
 
MASSACHUSETTS CURRENCY. |C)C) 
 
 portionable tax. In their appeal on this subject, prepared 1733^ 
 by Messrs. Ellsworth, Madison and Hamilton, their Ian- ^- ^ 
 guage is — " We call upon the justice and plighted laitli of 
 the several States to give it its proper ellect, to reflect on 
 the consequences of rejecting it, and to remember that 
 Congress will not be answerable for them." Anxious for 
 the accomplishment of this plan, Washington in a few 
 months, gives it the support of his wise and eloquent 
 circular to the people. Still, there was no bond suffi- 
 ciently energetic between the members of our Union, to 
 bring them over to the immediate adoption of so equitable 
 a plan. Though om- own Commonwealth harmonized 
 with the movement in general, they did not in all its 
 particulars. They believed and maintained, that for all to 
 receive their dues from the national exchequer, the first 
 step should be, that States which had delayed to call in 
 their quotas of Continental bills, should henceforth do it, 
 and thus relieve Massachusetts and others, Avhich had 
 punctually discharged this obligation, from the burden of 
 large sums in such paper within their respective limits. 
 
 ^As one means for redeeming the national bills and April 
 
 18 
 liquidating other debts both domestic and foreign, the 
 
 General Government desire those States, which have not 
 already done so, to make speedy cessions of their spare 
 territory to the Union. 
 
 -Having watched the proceedings of the North Ameri- 1784. 
 can Bank and convinced of its being decidedly useful to ^^^* 
 the community, the Legislature grant the petUion for 
 Massachusetts Bank, with leave that it may own property 
 to the amount of £550,000. This was the first institu- 
 tion of the kind, promoted solely by inhabitants of our . - 
 Commonwealth, since that of the silver scheme and of the 
 still more unfortunate I^and Bank. While these were 
 pressed into operation under the burden of legislative 
 displeasure and were doomed to resistance in almost every 
 direction, that was received with public and private favor, 
 and extensively encom-aged as the instrument of promoting 
 the interests of trade and currency. Change of times 
 
 ' Journal of Congress. " Acls of Massachusetts. 
 
 9 
 
200 
 
 HISTORICAL. ACCOUNT OF 
 
 1784 and circumstances thus began to work a revolution in the 
 ^""''"^ opinions of the community, which has so greatly increased 
 as to produce frequent apprehensions lest it be carried to 
 ruinous excess. 
 Oct. 1 Seeinff that other States had altered the value of gold 
 coin, so that it was higher in them than in ours, and con- 
 sequently that all of it was likely to disappear from this 
 Commonwealth, an Act is passed to regulate the price of 
 it, as well as of silver and copper money, at the succeeding 
 rates : — The English or French crown at 6/8 ; Spanish 
 milled dollar 6' ; English guinea of 5 dwts. 6 grs., 28'; 
 French guinea of 5 dwts. 6 grs., 27/4; Portugal Johannes 
 of 18 dwts., £4 16; moidore of 6 dwts. 18 grs., 36'; 
 four pistole piece, called doubloon, 16 dwts. 12 grs., £4 8. 
 The parts of all these coins are to pass in the like ratio 
 of estimation. The gold pieces of the preceding sorts, if 
 weighing more or less than the aforesaid standards, are to 
 be a legal tender at £5 6 8 an omice. In addition, three 
 English farthings ai'e valued at 1*^, and English half-pence 
 in the same proportion. 
 
 Though the banners of war had been furled and the 
 promises of peace had blessed our country nearly two 
 years, still the expectation of the people had far outrun 
 sober reality as to the embarrassments consequent on the 
 Revolutionary straggle. The tempest had passed, but the 
 1785. prospect bore many a sign of its power. ^ Among the 
 21 dominant perplexities of the day, was the deranged con- 
 dition of our currency. As a cause of it, Governor 
 Bowdoin assigns extravagant importations, which leave 
 the balance of trade greatly against the Commonwealth, 
 Oct. and draw the specie to foreign shores. Another occasion 
 of such a pecuniary condition was the heavy tax still paid 
 by the people. Their quota of the national assessment 
 this year was $448,854. Besides, they had annual in- 
 terest of £88,112 13 3 to pay on their State debt of 
 £1,468,554 7 5, as well as to meet the expenses of their 
 government. With severe burdens like these resting upon 
 
 ' Acts of Massachusetts. ^ Resolves of the General Assembly. 
 
MASSACHUSETTS CUIUIENCY. 
 
 201 
 
 the community, there can be no wonclcr tliat monicd con- 1795^ 
 cerns were imsettled, mid at times awfully ominous. —--*.- 
 
 ^ IncUning more to tiie policy of Solon than of Draco, Nov. 
 our Legislature modify the law relative to the branch of 
 the North American Bank in their jiu-isdiction. They 
 order, that instead of death for fraud on such an establish- 
 ment, the one convicted of it shall be sentenced to hard 
 labor for life or a term of years, stand in the pillory at one 
 or more times and places, not exceeding three, have an 
 ear cropjicd, whipped once or several times, not above four, 
 each of which not l)eyond thirty-nine stripes, sit on the 
 gallows with a rope roiuid his neck, branded in the fore- 
 head with F, imprisoned not longer than a year, fined at 
 discretion of the Court, bound for good behaviour ; or to 
 any one or more of these punishments, as the nature of 
 the crime may be. 
 
 Doubt and darkness still hang upon the monied rela- 178G. 
 
 Feb. 
 tions of this and all the States. -Congress explicitly J5' 
 
 aver, that the crisis has arrived, when the pco})le must 
 determine the momentous question whether they will 
 punctually pay the taxes of the nation, and honor the 
 public faith at home and abroad, and preserve their free- 
 dom, or, by timely want of more self-denial and sacrifice, 
 they will give up the existence of their Union and the 
 liberties they have gained. 
 
 ■^As having a connection with this subject, Mr. Jay June, 
 writes to General Washington : — " What I most fear is, 
 that the better kind of people wall be led, by the insecurity 
 of property, to the loss of confidence in their rulers and 
 the want of public faith and rectitude, to consider the . 
 claims of liberty as imaginary and delusive." ' The ■ 
 Father of his country ' replied, that he feared a worse 
 state of things was approaching, and that Congress must 
 have more power for its prevention. While such patriots 
 thus spoke, something was meant ; the rumbling of adverse 
 elements must have been heard, and an eruption dreaded. 
 
 ^ Though the last Continental bills, as issued by the J"'y 
 
 * • 
 
 ' Laws of M;issacluisetts. ^ Pitkin's History of tliu United 
 
 - Journal of Congress. States. 
 
 •» Resolves of the Gcneiul Assembly. 
 
 2G 
 
202 
 
 HISTORICAL ACCOUNT OF 
 
 1786. several States, had been refused at the treasury of our 
 """""^ Commonwealth, still they have considerable circulation at 
 
 the continued rate of four for one of specie. 
 July As coin was scarce, the Governor is requested to inquire 
 whether Massachusetts can be supplied with copper and 
 silver coin, struck at the United States' Mint, when it 
 shall have commenced operation. 
 Aug. ^ With regard to the few banking establishments in the 
 ^' country, and the apparent increase of desire for adding to 
 them, Washington writes to Thomas Jefferson — " Some 
 of the States are, in my opinion, falling into very foolish 
 and very wicked plans of emitting paper money." 
 8. ^ Though bills of credit, while issued by civil authori- 
 ties, and sometimes taxes had been, for years, estimated in 
 dollars, yet there Avas no law of Congress till now, that 
 "the money of accounts" should be dollars, cents, dimes 
 and mills. The same enactment orders, that the coins 
 made in the United States' mint,^ shall be, the cent and 
 half cent, of copper ; the dollar, half dollar, double dime, 
 and the dime, of silver ; the eagle and half eagle, of gold. 
 The standard for gold and silver coins, is designated at 
 eleven parts fine and one alloy. The eagle of $10, is to 
 weigh 246 grams ^26_8_ ^^^j go pro rata for its half. The 
 dollar is to weigh 375 grains ^^^, and its parts in like pro- 
 portion. A hundred cents of copper are to weigh 2| lbs. 
 avoirdupois. The mint "* price of a pound, Troy weight, 
 of uncoined silver of the fine and alloy aforesaid, is set at 
 $9 92, and of a pound of uncoined gold of like mixture, 
 is $209 77. 
 Oct. ^ Being in want of specie currency, and supposing that 
 the National mint would not accommodate their constitu- 
 ents so well as one of their own, our Assembly vote, that 
 a like establishment be located here for the coinage of 
 copper, silver and gold. Of the first sort they order 
 $70,000 worth of cents and half cents to be made as soon 
 as practicable. 
 
 ' Sparks' Writings of Wasliington. * This price was raised to $13.77.7, 
 
 ^ Journal of Congress. October 16, 178G. 
 
 3 This mint was established Octo- * Acts of Massachusetts. 
 ber 16, 1786, and its officers chosen. 
 
MASSACHUSETTS CURREINCY. 
 
 203 
 
 ^ Among the several denominations of paper, which j 730 . 
 serve as a medium of exchange, besides the last tenor ^^T"^^ 
 bills, are these fom', — State, consolidated, army, and cer- I. 
 tilicate notes. 
 
 ~ Owing to disarrangement of the currency, the morbid 6. 
 desire for a new issue of bills from the Treasury, the 
 burden of taxation, the loss of confidence in government, 
 the endurance of much distress, and, especially, to the 
 erroneous view of the manner in which such evils should 
 be remedied, the spirit of insurrection shows fearful signs 
 in several of our counties. To suppress such suicidal 
 conduct, the Legislature give the subsequent exposition. 
 The debt of the Commonwealth, on its own account, is 14. 
 £1,320,446 18 2. It is also answerable for its quota of 
 the National domestic and foreign debt, in the sum of 
 £1,532,689 19. It has claims on the United States, 
 which are equal to what it owes them, but as other mem- 
 bers of the Union have like demands, there is not much 
 prospect of relief in this respect. There is an expectation, 
 that the National debt may be diminished by the sale of 
 Western lands granted by Massachusetts and other States 
 for such a purpose, and that the dues from this Common- 
 wealth may be lessened by the disposal of Eastern lands. 
 Though the bills of credit and other securities are at a 
 low rate, they ought to be liquidated. On this point, the 
 Assembly ask — " Can we be Avilling that the history of 
 American Revolution shall be blackened with the tale, 
 that we refused to redeem the securities we had given to 
 effect it, and shall our posterity blush to hear of the event, 
 because the perfidy of their ancestors exceeded their 
 glory?" In reply to the dissatisfaction, which prevails 
 against the Commonwealth's redeeming its paper at the 
 face, because depreciated, they remark that it ought to be 
 so cancelled. With regard to the popular discontent 
 because the Treasury did not repeat its issue of bills, they 
 make the succeeding observations: — "A full experiment 
 of this State's ability to uphold the credit of a paper 
 medium, was made in the case of the new emission ; the 
 
 ' Resolves of the General Assembly. ^ General Court Records. 
 
204 HISTORICAL ACCOUNT OF 
 
 1786. faith of the United States and of this State were both 
 ^'^''"^ pledged for its support. A fund was provided, sufficient 
 
 to pay the interest, and, ahhough when it first came into 
 circulation it passed at the rate of one and seven-eighths for 
 one ; interest, to a large amount in silver, was paid upon 
 the nominal sum, notwithstanding which, at the very 
 time interest was paying, the currency rapidly depreciated. 
 We presume there is not a man in the State who supposes, 
 that if we emitted a paper currency it would not depre- 
 ciate, and if it depreciated, it will pass at different rates in 
 different places at the same time." Instead of complaints, 
 let econoni}', temperance and virtue be practiced. "By 
 such means we may falsify the invidious predictions of our 
 enemies, that we should crumble to pieces and should be 
 too corrupt to maintain republican freedom." Control of 
 passions under these exciting and unpropitious circum- 
 stances, call for the strong arm of self-denial. Prudence 
 and duty, both personal and relative, private and public, 
 demanded that such submission should be exercised. 
 j^Tqy ^ To alleviate the embarrassed condition of many who 
 15. had property but could not raise money to pay their cred- 
 itors, a law is enacted that the collection of private debts 
 be suspended on certain limitations. Sure and dreadful 
 demonstration, that the foundations of a regular currency 
 were broken up, and that nothing short of Legislative 
 interference could arrest the torrent of desolation, urged on 
 by necessity, which heeds no appeals of indulgence, and 
 rolling over the barriers of mercy and justice ! 
 
 1787. "Notwithstanding our political authorities showed all 
 Feb. the favor they could to their distressed constituents, the 
 
 banners of actual rebellion had been raised, and proclama- 
 tion is accordingly made. Such a crisis threatened to 
 accomplish the oft repeated prediction, that the labor of 
 our fathers for liberty would be lost ; that their immense 
 sacrifices of treasure and life, for such a boon, would all 
 be in vain; that their bright anticipations of freedom 
 would be sunk in the horrors of civil warfare, and termi- 
 nated in the thick darkness of tyranny. But a watchful 
 
 ' General Court Records. " General Court Records. 
 
MASSACHUSETTS CURRENCY. 
 
 205 
 
 Providence had a better portion in store for our' distracted jygr. 
 Commonwcaltli. As is well known, the forces which ''^^ — 
 Governor IJowdoin ordered to march against the insurgents 
 were amply successful. One benefit, divinely educed 
 from so menacing a sedition, as well as from the partial 
 appearance of it in New Hampsiiire and Connecticut, was 
 the more speedy adoption of the National Constitution, 
 which greatly promoted the pecuniary interests of this and 
 every State, and thus tended to raise community from the 
 depths of discord and misery. 
 
 ^ After unexpected delays, further ste})s are taken to May. 
 advance the mint of Massachusetts. Joshua Witherel is 
 empowered to have the needed buildings erected and 
 suitable machinery provided. Part of these works were 
 on Boston Neck and the rest at Dedham. 
 
 ~ By order of the General Government, their copper coin July 
 is to bear the ensuing devices. On one side, " thirteen ^• 
 circles linked together, a small circle in the middle," with 
 the phrase, " United States," round it, and in the centre, 
 "we are one." On the other side, a dial with the hours 
 expressed on the face of it, with " Fugio " on the left, and 
 " 1787 " on the right, a meridian sun above the dial, and 
 below it, "mind your business." 
 
 ^ A Constitution is presented to Congress for the country, Sept. 
 as reported by delegates from the States, recently convened ^^* 
 in Philadelphia. It is regarded by the friends of order 
 and rational freedom, as essential to endow the National 
 Administration with power sufficient to repair and regulate 
 the system of the currency. Until finally adopted, it was 
 watched in its going from Congress to the individual 
 States for their sanction, and in its returning thither for 
 full acceptance, with deep feelings of anxiety as the only 
 palladium of our liberties. One of its sections expressly 
 provides, that no State shall "coin money, enjit bills of 
 credit, make any thing but gold and silver coin a tender in 
 payment of debts." This provision, with regard to paper 
 money, as issued and conducted by Legislative Treasuries, 
 was taught in the school of bitter and oft repeated adver- 
 
 ' General Court Records. - Journal of Consrrcss. ■* Journal of Congress. 
 
206 HISTORICAL ACCOUNT OF 
 
 1787, sity. It gave the coup de grace to a custom, which was 
 -^^''^^ not merely broken itself, but had brought on whole Prov- 
 inces much suffering, with less relief, even before the 
 Revolutionary contest. 
 
 1788. ^ While the Constitution was under deliberation in a 
 Jan. Convention of Massachusetts, the eyes of the rest of the 
 
 nation were directed towards them, and waited with 
 strong solicitude the result of their debates. A reason for 
 this was, that there were several parties among our people, 
 who, it was apprehended, would not come to a conclusion 
 either safe for themselves or the country. They were 
 classified as follows : — One, who occupied lands in Maine 
 without legal authority ; another of the late insurgents and 
 their advocates ; a third, urgent for bills of credit and 
 tender laws; and a fiuther, on whom hope rested for 
 good, who were supporters of equitable government. But 
 among such conflicting elements, there was a greater 
 proportion of true patriotism, which preponderated over 
 the rest, and ratified the Magna Charta of om* free institu- 
 tions. 
 
 About this time the copper coin, ^ordered from the mint 
 of our Commonwealth, begins to be issued. It is familiar 
 with the earliest remembrances and enjoyments of many, 
 who yet survive. On one face of it, is the American 
 eagle, having in the right talon a bundle of arrows, and, 
 in the left an olive branch, the emblems of defence and 
 peace ,* also, a shield on its breast, inscribed with the word 
 "cent," being mostly encircled with letters of "Massachu- 
 setts," and having at the bottom, the date of its emission, 
 1788. On the other face an Indian of full length, with 
 his bow and arrow, though much improved in his personal 
 appearance, considering his rude outlines on the first seal 
 of our Colony — with a star, denoting this State, near his 
 forehead, and a circumscription of the word, " Common- 
 wealth." 
 
 ' Pitkin's United States. with the words, "Nova Constellatio," 
 
 2 A copper coin had been current around them. On the other, a Laurel 
 
 of tlie succeeding representations: — wreath, with "U. S." in the middle, 
 
 On one side, a meridian sun in the surrounded chiefly with " Libertas, 
 
 middle, siiirted with thirteen stars, Justitia," and "1783." 
 and another out of their circular line, 
 
MASSACHUSETTS CURRENCY. 
 
 207 
 
 ^ Aware that, in compliance with the National Constitu- lygg. 
 tion, tlie right for the States to coin money had ceased, our ^'^^ 
 Assembly order that the copper on hand for the making of 17. 
 cents be manulactnred as soon as possible, and then for all 
 the workmen to be discharged. Whatever this experiment 
 might have been, if continued longer, it proved a very- 
 unprofitable concern. Of the considerable amount jjrevi- 
 ously voted for being made into cents and lialves, only a 
 few thousand dollars were manufactured. Nearly a cen- 
 tury had elapsed since the definite termination of our first 
 mint. This long stood the storms of regal displeasure, 
 while its successor was of short continuance. 1790 
 
 ^As an object of long desire and of frequent endeavor Aug. 
 with Congress, they now agree on a plan of settling the 
 claims held by several States against the national ex- 
 chequer. They propose to open a loan of $20,500,000 
 on interest. Of this, Massachusetts are allowed to sub- 
 scribe $4,000,000. This subscription may be made in the 
 certificates to individuals, which had been given for the 
 Continental bills, issued in 1777 and 177S, some of which 
 were thus exchanged at forty for one of silver and others 
 at seventy-five. It is, also, to include, besides every other 
 obligation from the General Government, all bills of the 
 same kind still unredeemed, at the rate of one hundred for 
 one of specie. Large quantities of this money, being kept 
 beyond the limited period in hopes of better terms, were 
 never exchanged. Such a compromise has been occasion- 
 ally charged with gross injustice. But there are circum- 
 stances which greatly alleviate the weight of this censure. 
 When Congress began, and while they continued to issue 
 bills of credit, they acted merely as the directors of a great 
 Banking concern, owned by the people, for whose accom- 
 modation and benefit it was solely commenced and carried 
 on. But so immensely were the debts of the inhabitants 
 multiplied by the demands of war, and so unable were 
 they as a whole, to pay in assessments enough to sustain 
 the credit of their paper, insolvency came over them like 
 an irresistible flood. One result was, that great sums of 
 
 ' Resolves of the General Assembly. *Laws of United States. 
 
208 HISTORICAL ACCOUNT OF 
 
 1790. their notes passed at two or three hundred, and, in other 
 " — '"^ instances, at five hundred for one of specie. Their inch- 
 nation was strong to meet the claims against them, but 
 their pecuniary ability was far too weak to perform so 
 burdensome a task. They hoped, that their extensive 
 lands, which were repeatedly oifered for sale, would afford 
 them funds to liquidate a large portion of their debt. 
 But in this, and every other effort, they were painfully 
 disappointed. At the same time, large amounts were 
 accumulating upon them for the interest of their foreign 
 loans, which they honestly purposed to discharge and 
 subsequently did ; and heavy burdens of taxation were 
 sustained by them to meet the necessities of Government. 
 Thus situated, the bonds of confidence were broken, and 
 an awful uncertainty hung over the whole land. Had an 
 attempt been made, before the close of the Revolutionary 
 struggle, to vend every particle of real estate in the 
 country, there would have been scarcely a purchaser, and 
 the proceeds would have been but a trifle in comparison 
 with the public responsibilities. Had every farthing of 
 specie been collected from the coffers of the rich and from 
 the scrip of the poor, it would have been but a small 
 proportion to such obligations. Where then was the 
 physical power of the nation to discharge their liabilities ? 
 It was found wanting. Their only means to prevent the 
 paper of their civil authorities from being liquidated at a 
 much lower rate than it was finally, was to prolong the 
 period of settlement. This, as is well known, was done 
 for seven years from the cessation of hostilities. After 
 such a lapse, the question very properly comes up before 
 the people, can we equitably lay upon our successors the 
 almost insupportable weight of debt, Avhich will arise from 
 computing the National obligations at their full face of 
 principal and interest, or ought we not to settle it ofi" 
 according to our present views of its real worth in compar- 
 ison with our ability? There is no need to relate how 
 they decided this dilemma, through Congress, who were 
 the deputed organs of their views on this subject. It has 
 been already stated. According to their decision, while 
 
MASSACHUSETTS CURRENCY. 209 
 
 some lost, others made great gain. While there was a 1790. 
 sympathy for the losers, the general consent was, that ^^'^ 
 the necessities of our Republic called tliem to make a 
 presentation of their loss on the altar of freedom. Could 
 the inhabitants have had a vision of the prosperity, which 
 was to render their territory a prolific means of revenue, 
 to multiply their resources of gain, and fill their towns 
 and cities with the wealth of every clime, their opinion 
 on the subject before us would receive a different com- 
 plexion. But prescience to search and divine the events of 
 futurity, was never the allotment of their nature. For 
 aught they knew, aside from the discordant elements 
 among themselves ; being a modern experiment of popular 
 self-government, and, if likely to be successful in their 
 attempt, an alliance of kingdoms might be formed to crush 
 them and add immensely to their already too onerous a 
 debt. With their eye fixed on all the relations of the 
 case, the majority of our countrymen made up their 
 judgment, that equity required no greater allowance. 
 They sincerely believed that the declaration, "The voice 
 of the people is the voice of God," was applicable to their 
 conduct on this occasion. That the way of their decision 
 was thronged with difficulties, no one can reasonably 
 doubt. That any community in their situation would 
 have done better, there is no just cause to believe. 
 
 ^As holding a prospective relation to the currency of 1 "9 I . 
 Massachusetts, the Bank of the United States, with a 05 ' 
 capital of ten millions, is incorporated. It had a branch, 
 which commenced business in Boston, March 16, 1792. 
 Though its first predecessor had been opposed by our 
 delegation in Congress, still itself is favored by our Repre- 
 sentatives now there, as bidding fair, from late experience 
 of such associations, to be diffusively useful. 
 
 ^In addition to regulations about the coins issued from 1792. 
 our national mint, there is a small alteration made in the ^" 
 weight of them. Besides, quarter eagles are ordered to 
 be issued. A law is also passed by Congress, that no 
 copper coins, except cents and half cents, shall be current, g, 
 
 ' Journal of the United States Senate. * Laws of the United States. 
 
 27 
 
2J0 HISTORICAL ACCOUNT OF 
 
 1792. Thus tlie pennies, half-pennies, and fartliings, dear to the 
 "'"^ — early associations of many yet alive, and bearing the 
 
 representation of Britannia and their Majesties, as well as 
 other coins of several States, are placed under the ban of 
 Legislative authority. Now and then the remains of them 
 have come forth and passed for a season, till driven back 
 by new regulations. 
 June ^ Perceiving that the Massachusetts Bank operated to 
 advantage, the Legislature grant the petition of another 
 company for the Union Bank in our metropolis. The 
 latter has many more restrictions than the former. Its 
 capital is not to exceed ^700,000. Some conditions of 
 its being allowed, were, that the State might have, when- 
 ever they wanted, loans, amounting, in all, to $100,000, 
 and own one-third of its capital, if they chose, and that it 
 should emit no bill less than five dollars. The fewness of 
 these monied compeers and rivals for the golden fleece, 
 drew upon them much attention, and made their chief offi- 
 cers to be highly honored, and especially on gala occasions. 
 
 1793. ^An Act is passed in Congress, relative to foreign coins. 
 Feb. It enjoins, that after the first day of July, such money in 
 
 silver and gold shall be a legal tender for all debts. The 
 introduction of the latter metal for such a purpose, was far 
 from being attended with the party views, feelings and 
 debates, that it was in 1762. Samples of the aforesaid 
 specie are to be assayed at the mint, and notice given by 
 proclamation of the President, as to their weight and 
 worth, before they can be so legalized. It is also pro- 
 vided, that, in three years from the date when silver and 
 gold are issued from the new mint, all such metal of 
 foreign stamp, except Spanish milled dollars and their 
 parts, shall cease from being an allowed tender for pecu- 
 niary claims. This provision, however, was continually 
 delayed by Congress from going into operation. 
 
 1794. ^^^^ accordance with the professions and firm purpose 
 Feb. of the Massachusetts authorities to clear off the demands 
 
 of paper securities against their Treasury, they pass the 
 
 1 Laws of Massachusetts. ^ Acts of Massachusetts, 
 
 ^Laws of the United States. 
 
MASSACHUSETTS CURRENCY. 
 
 211 
 
 vsubseqiieiit law. Its preflice is in these words : — '' Wliereas j 794 
 the obhgations of good faith, as well as justice to iiidi- — -^^ 
 vidiials, and the support of public credit, require that 
 provision be made for the debt due from the Common- 
 wealth." It enjoins that for sucli a liquidation, a loan be 
 made, and books be opened for subscribers. It allows 
 that subscriptions may be made in consolidated and army 
 notes; and in those given for specie in 1777; in certifi- 
 cates, issued by Nathaniel Appleton, the United States- 
 commissioner of loans in Massachusetts, and in bills of 
 the new emission, which began to circulate in 1780. 
 The last paper is to be settled for at the rate of four for 
 one of specie. Though the proportionate loss on this 
 currency was far less than that on what were termed 
 Continental bills, a similar principle of liquidation was 
 applied to both. The same salvo for not coming up to 
 the full nominal value of such notes, bore comparatively 
 on one case as well as another. Many bills of the new 
 emission, like those of the old, were kept back, in antici- 
 pation of a more favorable exchange, and thus passed over 
 the opportunity for their redemption. As both of them 
 are occasionally seen, imagination views them as fallen 
 leaves, which, in the storm of revolution, gave protection 
 and nourishment to the blossoms of rich and durable fruit. 
 
 ^ As confirmation of what Congress had previously done, 1795. 
 our Legislature enact, that, from the first of September, *"®^- 
 1795, dollars, cents and mills shall be the money of ac- 
 count in Massachusetts. Thus was another remaininar 
 custom, derived from our Enghsh ancestors, and preserved 
 in this Commonwealth over a century and a half, struck 
 from our statute book, and prepared for gradual relin- 
 quishment by the population. 
 
 - Isolated from the main, and noted for their enterprise 07. 
 in the whale fishery, Nantucket is disposed to imitate the 
 example of the metropolis, in banking. A portion of its 
 inhabitants accordingly receive a Charter. Though al- 
 lowed to emit bills less than those of the Union corpo- 
 ration, they are to have none smaller than two dollars. 
 
 ' Acts of Massachusetts. - Laws of Massachusetts. 
 
212 HISTORICAL ACCOUNT OF 
 
 1795. They are granted the option of becoming a branch of the 
 — '^^ bank just named. But they concluded it best to stand on 
 
 their own basis. 
 
 1796. ^Recollecting the perilous distress, which had come 
 ^'^P'^* upon the whole country, in consequence of depreciation 
 
 in the national bills, Washington makes the ensuing 
 remark in his farewell address. "As a very important 
 source of strength and security, cherish public credit. 
 One method of preserving it, is to use it sparingly." 
 These are words of sound political wisdom. 
 
 1797. ^ Among the phenomena of banking at this period, is 
 March ^^^ £v^^^^ ^^^^^ the Nantucket Bank, having had a charter 
 
 for not less than forty nor more than one hundred thousand 
 dollars, is permitted to have the minimum sum of twenty 
 thousand, because it had been recently robbed. 
 July ^In a Stamp ^ Act of Congress, provision is made, so 
 ^' that instead of banks paying a certain rate on their bills, 
 they may pay one per cent, on their dividends. 
 
 ^ The President of the United States issues his procla- 
 mation on the subject of coins. This document relates, 
 that the new mint commenced the silver coins in 1794, 
 and the golden ones in 1795. 
 1799^ ^As the trade of the country extended to various parts 
 "March of the globe, and brought to its shores an influx of hard 
 money, the national administration endeavor to regulate 
 it according to its true worth. This is work far less 
 laborious and anxious, than that of reckoning up their 
 hundreds of millions of depreciated paper, and despond- 
 ingly calculating on the prolonged period, when it should 
 be liquidated, and having their imagination continually 
 haunted with spectres of ruin. While the one were 
 realities greater than they had feared, the other are frui- 
 tions more than they had expected. To the following 
 coins, as part of our currency, they appoint their speci- 
 fied value. A livre tournois of France, 18J cents ; a 
 
 ' Washington's Farewell Address. Dec. 1, 1797; but it did not till 
 
 2 Acts of Massachusetts. June 30, 1798. 
 
 3 Laws of the United States. ^ Seybert's Statistical Annals of 
 ■*This law was to have begun the United States. 
 
 ^ Laws of the United States. 
 
MASSACHUSETTS CURRENCY. 213 
 
 florin or guilder of the United Netherlands, 40 cents; a 1799. 
 mark banco of Hamburgh, 33^ cents ; a rix dollar of Den- ^^'^ 
 mark, 100 cents; a rial of plate, 10 cents; a rial of vellon 
 of Spain, 5 cents; a milree of Portugal, $1 24; a tale of 
 China, $1 48 ; a pagoda of India, $1 94; a rupee of Ben- 
 gal, 55^ cents. They also set the pound sterling of Great 
 Britain, at $4 44 ; and of Ireland, at $4 10. They order 
 "all other denominations of money," to be "in value as 
 nearly as may be to the said rates, or the intrinsic value 
 thereof, compared with money of the United States." June 
 
 ^As private banking companies issued notes without 
 consent of our Legislature, they require them to cease 
 operations after the first of March. As the rule for banks 
 not to emit bills lower than five dollars, had not applied to 
 all of them, it is now enacted, though still with the 
 exception of Nantucket. 
 
 2 In renewing this law, so as to apply without a single 1802. 
 exception, the Assembly assign as a reason for it, that Ma^rch 
 passing small bills subjected the holders of them to fre- 
 quent loss, and hindered the circulation of specie. 
 
 3 As Governor Strong had stated to the General Court, 1803. 
 that the returns from the banks had been very deficient ^g""^^ 
 as to number, they resolve to have the matter upon a 
 footing safer to community. They determine to throw 
 around such associations a more particular supervisory 
 power, of which the honest have no dread. They ac- 
 cordingly require them to make semi-annual statements 
 of their true condition, to the Chief Magistrate and his 
 Council. 
 
 ^As having some resemblance to former prohibitions 
 against the paper of other Colonies, the Treasurer of our 
 Commonwealth is to receive no bills of any banks in other 
 States, except those of the United States Bank, for dues 
 at his office. 
 
 ^Some of the most revolting features in judicial retri- 1805. 
 bution for counterfeiting the currency, such as branding, jj^ 
 
 ' Acts of Massachusetts. * Resolves of General Court. 
 
 * Laws of Massachusetts. ^ Laws of Massachusetts. 
 
 ^ Laws of Massachusetts. 
 
214 HISTORICAL ACCOUNT OF 
 
 1805. Stripes at the whipping-post, standing in the pillory, crop- 
 ""^''^^ pii^g ears, sitting on the gallows with a rope round the 
 neck, are commuted by statute for hard labor and con- 
 finement during life in the State prison. The latter kind 
 of punishment, under the supervision of well principled 
 keepers, and suitable religious instruction, is undoubtedly 
 preferable to the former in its results on the moral char- 
 acter of criminals, and the interests of community. 
 June ^ Ii^ his address to the Legislature, Governor Strong 
 ^' calls their attention to the subject of banking. The sub- 
 stance of his remarks is as follows. Such business, while 
 properly restricted, would be beneficial as the means of 
 affording to capital a more active operation. Almost every 
 session, for several years, petitions have been presented 
 for companies of this kind. It is a question whether, if 
 any more of them were allowed, they would promote the 
 public good. Large amounts in notes of banks, belonging 
 to other States, and whose situation is unknown here, are 
 passing among the population. Besides the branch of the 
 United States Bank, there are twenty-one such associa- 
 tions in Massachusetts, which are privileged to issue 
 thirteen millions of dollars, but at their last reports, had 
 only eight millions due them. This, his Excellency con- 
 sidered as an argument, why they should not be enlarged 
 at present. Of the number mentioned by him, four be- 
 longed to the District of Maine. Had the caution which 
 he and other rulers have repeatedly and wisely given, 
 been more heeded, it would have been well for the habits 
 and possessions of community. Neglect of it has more 
 than once contributed to bring multitudes into the deep 
 waters of adversity. Even the bitter experience for dis- 
 regard of such counsel, has been too often unnoticed amid 
 the dazzling splendor of temporary prosperity. Still, the 
 reasons, which originated the caution of Governor Strong, 
 especially in connection with the policy of England and 
 France, which began, the next year, to emit orders against 
 our commerce, and that of other neutral powers, tended 
 
 ' Speech of Governor Strong. 
 
MASSACHUSETTS CURRENCY. 215 
 
 to suppress and defer applications for bank charters. Only isos. 
 one of a small capital was granted for several years. 
 
 ' It being the popular voice, that bank notes of denomi- J>'1'« 
 nations smaller than five be allowed, a law is passed, that 
 such paper, of one, two and three dollars may be issued. 
 
 To increase the restrictions on banking companies, their 
 returns to the Executive, are ordered to be made under 
 the solemnities of an oath. 
 
 -As a comparative example of the credit given to the 1807. 
 securities of the Commonwealth and of the banks in its g °" 
 limits, we have the succeeding prices : — June 26, 1802, 
 State notes at 95 per cent., those of the Union Bank at 36, 
 and of the United States Branch at 47 advance. October 
 15, 1803, State at 98, Union at 30 advance, Massachusetts 
 30, and Boston at 17. At the date of this paragraph in the 
 margin, the Union 12, Massachusetts 13, Boston 10, and 
 the United States 20 above par. 
 
 3 Having our foreign trade almost destroyed by the 1808. 
 nominal blockades of England and France, and being at g^ ' 
 last reduced to the necessity of an embargo for the preser- 
 vation of our imperiled commerce, our currency has to 
 encounter difficulties and depression. 
 
 ^For the purpose of having uniformity in our bank bills 1809. 
 
 lVTfii*p}i 
 
 as well as to prevent counterfeiting them, they are re- ^ 
 quired to be struck from the stereotype plate prepared by 
 Jacob Perkins. Though this ingenious invention of his 
 did not liave the full effect anticipated, yet it has been 
 useful and has continued to retain its hold upon public 
 estimation. Its durability has far outrun that of many 
 devices for a like purpose. While these were tem- 
 porarily extolled, that has deterred many, by the diffi- 
 culty of its being imitated, from an attempt to falsify 
 our bills, and has thus saved them from the pains and 
 penalties of actual crime. 
 
 ^ To show the rates of discount at which foreign money, Nov. 
 so termed, and for a considerable period an expression of 
 no very pleasant sound to the debtor on his pay day — 
 
 ' Laws of Massachusetts. '' Laws of Massachusetts. 
 
 - Cohinibian CentineL * Columbian Centinel. 
 
 ^ Governor Sullivan's Speech. 
 
216 
 
 HISTORICAL ACCOUNT OF 
 
 1 809. passed for Boston bills — we give the subsequent minutes : — 
 -^''^^ Lincoln and Kennebeck Bank bills at 3 per cent., Hal- 
 lowell and Augusta 2 to 3, Penobscot 12|^, and Northamp- 
 ton 12. The discount on various bank notes out of the 
 State, was greater than what is just stated. 
 
 1812. 1 After severe debates of political parties, after great 
 14^ losses incurred from domestic restrictions and foreign 
 
 sequestrations, and in prospect of entering into a war, 
 our General Government resort again to treasury notes. 
 These, as constituting a species of our currency at various 
 periods, are ordered to be issued for a loan of eleven mil- 
 lions, on a credit of twelve years, and at six per cent, 
 interest. While they were emitted, there were yet others 
 remaining for a portion of the debt contracted in our 
 Revolutionary struggle. They were the more needed, 
 from the fact, that the National Bank, which had con- 
 ducted the monied operations of the Union, was to have 
 its charter repealed in a few days. 
 
 June 2 QQj-^gtj.a^ij^g(j ^q resort to other means than those afforded 
 23. 
 
 by peace and prosperity, to meet the charges of the Com- 
 monwealth, the General Court lay a tax on the stock of 
 our banks, at a half per cent, semi-annually. 
 
 Convinced, that amid the adverse appearances of this 
 period, there are more banking companies than are promo- 
 tive of the general benefit, our Legislature enact, that 
 such of them as have charters limited to or before the last 
 of October, shall not be reincorporated. At the same 
 time, these associations are allowed four years from the 
 expiring of their charters, to settle their affairs. 
 30. ^ Congress authorize another emission of treasury notes 
 for a sum of five millions. These are transferable, and to 
 be redeemed in a year, at 5f per cent, interest. Such 
 issues were continued, as the National Administration had 
 need for them. 
 
 1813. "^The speech of Governor Strong refers to the distressed 
 J=iQ- condition of many merchants, in consequence of the war. 
 
 It states that they have become impoverished and incapa- 
 
 ' Laws of the United States. ^ Laws of the United States. 
 
 * Laws of Massachusetts. ■* Governor Strong's Speech. 
 
MASSACHUSETTS CURRENCY. 
 
 217 
 
 bio of meeting the demands against them. It suggests i g i ,3 
 that a legislative mode may be adopted for their relief, --"^'^ 
 which, while not tolerating extravagance and fraud, will 
 guard them against undue severity from creditors. A 
 representation of this sort, too distinctly betokens how 
 straitened must have been the modiuni of exchana:e. 
 
 Among the monied incorporations of our Common- June 
 wealth, which deserves particular attention for its proles- ^^* 
 sion and practice, is the New England Bank, now granted. 
 Its name is significant of its purpose — to befriend and 
 benefit New England banks in their currency. When 
 commencing business, it found that bills, called foreign 
 because not issued in Boston, were subject to a discount 
 from three to five per cent. To rectify an evil so great 
 to most of the banks and many individuals — for scarcely 
 a dollar of Boston paper could be seen, being laid aside 
 for profitable speculation — the New England Bank imme- 
 diately gave out, that it would charge only the expense of 
 having foreign bills carried to their respective banks, and 
 the proceeds returned, to all who wished to avail them- 
 selves of such an arrangement. The result was, that it 
 had long and frequent occasions for such a "labor of love." 
 By such means, it very soon brought down the difi'erence 
 of exchange between foreign and current bills, to a half per 
 cent. So the same institution did with regard to drafts. 
 It found merchants and traders subject to exorbitant per 
 centage for such scrip on the south. By merely charging 
 the cost of getting them cashed, it speedily brought them 
 into a favorable train. Of such benefactions, it should not 
 be said, they "are but born to die." 
 
 ^ As one method of contributing to the public disburse- Aug. 
 ments. Congress order, that a tax be assessed on bank ^' 
 notes according to their sum. In lieu of this, they appoint 
 that one and a half per cent, be taken on the amount of 
 the annual dividend. The latter mode appears more 
 equitable than the former. It is indeed a hard case for 
 stockholders — while receiving no dividend for the circula- 
 tion of their bills, because of losses, nor able to dispose of 
 
 • Laws of tlie United States. 
 
 28 
 
218 HISTORICAL. ACCOUNT OF 
 
 1813. their shares, except at great discount and still liable to 
 "^"■^" have them municipally taxed — to pay any sum, except a 
 
 fair one, on the real income of their banks. A system, 
 the reverse of this, borders too much on Egyptian policy, 
 which exacted the full tale of brick without straw. 
 
 1814. i^s an extraordinary subject for consideration, the 
 
 Tin 
 
 27.' Legislature hear a report on the memorial of the New 
 England Bank in Boston. The particulars of the case 
 are thus narrated : — This bank sent on to certain banks of 
 New York their bills, amounting to ^138,874, to be ex- 
 changed for specie. The business was accordingly done. 
 This silver was put into three wagons, which proceeded 
 on their way hither as far as Chester, fourteen miles. 
 There they were seized by order of the Collector of New 
 York, commanded back and the money deposited in the 
 vaults of the Manhattan Bank, of which he was a director. 
 Though a protest was handed to him against such a 
 course as illegal, by the agent, yet he declined to alter his 
 purpose. He assigned as a reason for this procedure, that 
 he suspected such cash was going to Canada. Many this 
 way supposed, that he was chiefly actuated by dislike 
 to the frequency with which the New England Bank 
 despatched large sums of the New York Bills, which 
 flooded Massachusetts, to be redeemed with dollars. On 
 being made acquainted with these facts, the General Court 
 resolve that the conduct of the Collector, in this respect, 
 is a violation of his duty and an infringement on the 
 rights of the New England Bank. They also decide, to 
 have the matter ^ laid before the President of the United 
 States with the expression of their judgment, that the 
 Collector had committed an outrage on one of their Cor- 
 porations, ought to relinquish the deposit, and be dismissed 
 from his ofiice. Such an application so far succeeded as 
 to have the money restored. 
 
 May 3j^giative to a repeal of the embargo, as a measure 
 promising relief to the monied interests of the community, 
 the House, in an answer to the Governor's speech, thus 
 
 ' Resolves of Massachusetts. this subject, be laid before their 
 
 * It is ordered by the General Body the next session. 
 
 Court, February 28, 1814, that papers ^ Resolves of Massachusetts. 
 
 and memorials from many towns, on 
 
MASSACHUSETTS CURRENCY. 219 
 
 express themselves : — ''We hail it as the harbinger of a 1814. 
 better day." Their anticipation, however, is to be severely ^-^^^^ 
 tried and deferred. 
 
 The shares in the Union, Boston and Massachusetts Aug. 
 Banks of the metropolis, having been in 1810, IS, 17 and 
 28 per cent, advance, and in 1811, the two first at par 
 and the last 20 above, and in 1812, the same two at 4 
 advance and the last 10; and in 1813, the three from 13 
 to 15, are now from 5 to 10 above par. 
 
 ^ Owing to the depressed condition of commerce and Sept 
 other branches of trade, and particularly to the loans of 
 their bills to the National Treasury, much beyond their 
 hard money to redeem them, the southern banks suspend 
 specie payments. While they and the communities con- 
 nected with them, are suffering from this event, the banks 
 of Massachusetts and other New England States are able 
 to grapple with their difficulties and escape so ruinous a 
 catastrophe. One of the various results from this state of 
 things was, the ditference of exchange between the bank 
 notes of Boston and New York. The former were ten 
 per cent, and even twenty, above the latter. 
 
 ~ While adversity with its thousand influences are sweep- Oct. 
 ing through the Union, and operating to bring suspicion 
 upon our strong banks and embarrassment upon our weak 
 ones, our Legislature are careful to despatch their commis- 
 sioners for the examination of such as are likely to falter 
 and injure the public. 
 
 ^So situated, the monied institutions are exceedingly ^^^^* 
 
 I on 
 
 loth to let their bills even to the Commonwealth. Over jg/ 
 three months had the State Treasurer been endeavoring 
 to hire a million of dollars from them and had not fully 
 succeeded. On this point, Governor Strong remarks : — 
 " The directors of some of the banks declared themselves 
 unable to lend, and others have expressed such reluctance 
 as forbids an expectation, that the whole amount can be 
 obtained in that way during the continuance of the present 
 cautious operations of the banks." 
 
 * Pitkin's Statistics. Gallatin's - Resolves of Massachusetts, 
 
 consideration on the currency of the ^ Resolves of Massachusetts, 
 
 United States. -^^ 
 
220 HISTORICAL ACCOUNT OF 
 
 1815.. ^Public as well as private credit being shaken and 
 ^'^p^ impaired — a sure symptom of disorder in the medium of 
 14. exchange — the news of peace cheers the desponding and 
 encourages them to look for a more prosperous day. This 
 blessing, however, was not succeeded immediately with 
 the good effects expected. It was accompanied with so 
 great and sudden a fall in the price of various species of 
 property, that large numbers of men, who had purchased 
 them at high war prices, suffer greatly, and others are 
 ruined. Such a revulsion affects the currency, and con- 
 tracts the supplies of paper money. 
 June 2^g Qj^g description of the circulating medium, the 
 obligations, issued by the State for expenses of the late 
 war, are made payable to the assignees or bearers of them. 
 
 1816. 3 j^gfQj.^.|j^g. ^Q jjjg great reluctance of the banks, in the 
 Feb. . 
 
 16," recent conflict with England, to lend their notes to the 
 
 Commonwealth, an act is passed, that they shall be com- 
 pelled, if necessary, to comply with such applications. 
 This evidently savors of the absolute terms — ' willing or 
 unwilling.' 
 April '^ Much to the satisfaction of many in public and private 
 
 20 
 * life, another National Bank is chartered. The reasons 
 
 for this were various. Contrary to expectation, widely 
 entertained, when the first was terminated, that the finan- 
 cial concerns of the country might be conveniently con- 
 ducted without it, by means of State banks, there was a 
 sad disappointment. It was soon perceived, that the 
 monied machinery of the whole land, which had been 
 kept in order by the checks and balances of the chief 
 Regulator, was alarmingly disarranged, and worked to 
 great disadvantage, because that was removed. This fact 
 and the adverse results of war, not only rendered many 
 banks miable to pay their paper in gold and silver, but 
 also seriously depreciated the millions in notes issued from 
 the treasury of the United States. To remedy such evils, 
 to restore the by-gone tone and vigor of the currency, with 
 its relative benefits to agriculture, manufactures, trade and 
 
 1 Resolves of Massachusetts. * Laws of the United States. Pit- 
 
 2 Laws of Massachusetts. kin's Statistics. 
 ■3 Laws of Massachusetts. 
 
Dec. 
 11. 
 
 MASSACHUSETTS CURRENCY. 221 
 
 commerce, public sentiment spoke in the halls of Congress i8l6. 
 and decided, that from the sleeping ashes of the first, ■ 
 there should arise a second National Bank. In the antici- 
 pation of such advantages, which became fully realized, 
 our Commonwealth largely participated. 
 
 ^ The present period was one of great trial to the Banks 
 of Massachusetts. Our civil authorities were vigilant and 
 active to have them tested, so that community might not 
 be sufferers. A considerable number of them had their 
 capitals reduced, and others stopped, except for settling up 
 their accounts. While the weak fell, the strong stood and 
 commanded confidence. 
 
 2 Of the notes, which serve as a medium of exchange, 
 are some given by the State, for what they borrowed in 
 the last war. A series of them, soon to be emitted, had 
 the ensuing form. 
 
 LOAN FOR DEFENCE. 
 
 Commonwealth of Massachusetts. 
 
 No. isir. 
 
 Be it knotvn, that there is due from the Commonwealth 
 of Massachusetts, unto or hearer, the 
 
 sum of dollars, hearing interest at the 
 
 rate of six per centum per annum, from the first day of 
 October, one thousaiid eight hundred and sixteen inclu- 
 sively, payable half yearly, and subject to I'edemption in 
 icliole or in part, at the pleasure of the Coinmonwealth. 
 
 Secretary. 
 
 Treasurer. 
 
 Though debt in any form is far from being agreeable, 
 either to an individual or the public ; still, under the 
 circumstances of the State, at this date, their many 
 resources and their hopeful prospect, it was scarcely noth- 
 ing to what it was, when emerging from the storms, 
 wrecks and desolations of the Revolutionary contest. 
 A retrospect of her burden, then pressing upon all her 
 energies with a mountain weight, is enough to produce a 
 
 * Laws of Massachusetts. ^ Laws of Massachusetts. 
 
222 HISTORICAL ACCOUNT OF 
 
 1816. painful shudder, though reheved by the thought, that she 
 "^"^^ was kept from being crushed, was enabled to throw off 
 her incumbrances, to develope her native powers, and 
 enter on a career, not unworthy of the fathers, who 
 "nourished and brought her up." 
 Dec. ^ With regard to our banking institutions, a law is 
 1"^- passed, that they shall have their notes and other respon- 
 sibilities payable at their own counter in hard money. 
 The occasion of this statute was, that Dedham Bank 
 issued, August 20, 1816, a large quantity of bills, checks 
 or draughts, payable to the bearer, and drawn on the 
 Cashier of the bank at Middletown in Connecticut. Such 
 a mode of doing business was made a source of profitable 
 speculation to its authors. It was properly forbidden by 
 the liCgislature, as inadmissible, and hazardous to the 
 public. 
 1818. ^-^^ fractional bills, less than a dollar, had become 
 
 Feb. abundant, and driven most of the silver change from the 
 3 
 
 market, Government interpose, and prohibit the banks 
 
 from passing them. 
 
 1819 ^^^^ remarking on the need of making pecuniary asso- 
 Jan. ciations as secure for community as possible. Governor 
 Brooks passes a deserved eulogium on the most of them 
 in our Commonwealth. His words are, " I feel a sincere 
 satisfaction in expressing what I deem to be due to the 
 banking establishments of this metropolis, and of Massa- 
 chusetts generally, the high sense I entertain of the correct 
 and honorable manner in which their concerns, in times 
 of peril and extreme pressure, have been administered." 
 Ardent is the wish of thousands, that this praise of our 
 chief city might have continued altogether unsullied. But 
 reckless speculation has cast some shadows upon it, which 
 to the eye of truth, will long remain. 
 
 March "* I^ relation to the gold coins of Great Britain, France, 
 
 3- Spain, and Portugal, which cost so many collisions of 
 
 mind and argument to be acknowledged as legal tender 
 
 for debts in Massachusetts long before, they are now 
 
 ^ Laws of Massachusetts. •* Governor Brooks's Speech. 
 
 - Laws of Massachusetts. ^ Laws of the United States. 
 
MASSACHUSETTS CURRENCY. 
 
 223 
 
 prohibited by Congress to be such after the first dayofigig^ 
 November. Cliange in national circumstances, promotes ^^ — • — - 
 change in national pohcy. 
 
 ^ With reference to the occasion of the currency's being 1820. 
 interrupted in its free and full course, we have the ensuing "^f"' 
 remark of Governor Brooks. "If, in some of the great 
 departments of active and lucrative pursuit, especially 
 navigation and commerce, many of our fellow citizens are 
 suifering depression and embarrassment, our regret is tem- 
 pered by the reflection, that those evils are partial, and 
 constitute a part of the price of the general peace of the 
 world." He adds, that the distress, experienced through 
 the country, can be traced, in a great degree, to the pro- 
 fusion of paper money in most sections of the Union, and 
 the ease, with which loans of it had been obtained by 
 rash speculators. While banks elsewhere had issued their 
 notes to an indefinite amount, without the means of 
 redeeming them in specie, tlipse of this Commonwealth 
 had pursued a different course, and thus preserved their 
 credit and their stock. Specie, which, the last year, was 18. 
 from 3f to 4, and in 1817, 2 to 2^ above the best of bank 
 notes, is now fallen to about 1 advance. 
 
 2 In reply to a proposition from Pennsylvania, for so 31. 
 altering the Constitution of the United States, as to limit 
 the operations of the National Bank to the District of 
 Columbia, our Legislature decide, that, believing the bank 
 to have a beneficial iufiuence on the monied interests of 
 the country, they cannot agree to any such change. 
 
 ^ Maine, being now admitted as an independent State, March 
 withdraws fifteen banks, with a capital of f 1,770,000, *^* 
 from the supervision of our Commonwealth. With this 
 subtraction from the immediate funds of our currency, 
 Massachusetts has, besides the branch of the United 
 States Bank, twenty-eight banks left, the capital of which 
 is eleven millions and a half of dollars. 
 
 ^The gold coins of Great Britain, Prance, Spain, and 1823. 
 Portugal, which had ceased to be a legal tender for debts, ^^"-5*^ 
 
 ' Governor Brooks's Speech. ^ Laws of the United States — 
 
 '^ Resolves of Massachusetts. Massachusetts Register. 
 
 ^ Laws of the United States. 
 
224 HISTORICAL ACCOUNT OF 
 
 1823. are allowed by Congress to be received for the national 
 ^"^^ lands. Such a restoration of these pieces, however, was 
 
 far from allowing their former rank, and only brought 
 them nearer to the peril of being changed in their royal 
 bearings for the impressions of our oAvn mint, the emblems 
 of our freedom. 
 
 1824. ^Having witnessed that the notes of Banks, struck from 
 Feb. Perkins's stereotype plates, were seldom successfully im- 
 itated, the Legislature again recommend them to be used 
 by all such corporations in their jurisdiction. Thus the 
 invention of genius occasionally keeps men from the open 
 commission of crime, whose hearts are steeled against the 
 appeals of moral suasion. 
 
 1825. The prices of the best Bank stock in Boston having 
 ^l^^ ranged as high as 6 above par in 1817, 10 in 1818, 19 
 
 and 20, 12 in 1821, 9 in 1822, 6 in 1823, 12 in 1824, 
 reaches to 20 at the present date. 
 
 Taking the number of Banks annually granted, as the 
 apparent test of currency's having been shortly before or 
 at the time, more or less prosperous, the year of 1825 was 
 unprecedented in this State. Then a far greater number 
 of such companies, (being no less than fifteen,) was 
 allowed by the General Court, than ever before in the 
 same period. But the monetary system, like the human 
 system, when most healthful and extending its energies, 
 and making hazardous experiments of its strength, is in 
 peril of being weakened and retarded in its operations. 
 So it soon proved. For in the two succeeding years, 
 scarcely half of the Banks were chartered, which were 
 in this. 
 
 Prior to 1825 these institutions were promoted and 
 sustained chiefly by capitalists. But since, they have been 
 much oftener made up for the purpose of borrowing and 
 not of lending, for rash enterprises to gain fortunes at the 
 risk of the community. Though, as Seneca remarks, 
 "success gives to vice the aspect of virtue," yet, in the 
 case before us, adversity is sure to unfold a tale of 
 iniquitous motive and action. 
 
 ' Resolves of Massachusetts. 
 
MASSACP£USETTS CURREx\CY. 
 
 225 
 
 ^ To quicken the memory and bring devious practice to jgofj 
 the line of law, estabUshed over a century, and requirins; rr^ 
 
 . ' ^ ' in March 
 
 that only six per cent, interest shall be taken, this enact- 4. 
 ment is renewedly conhrmcd. 
 
 The latter part of 1S2G and the former part of 1827, is 
 a season of trial and depression in the pecuniary world. 
 As one result, only two Banks ~ were incorporated during 
 the year last mentioned. 
 
 Combining experience of the past with conviction of 
 the present, relative to monied associations, the General 
 Court form a compend of Laws " to regulate Banks and 
 Banking." 
 
 Subsequent to a short repose, in 1828, from the anxie- jgog 
 
 ties and difficulties of a pressure for cash, when a lar2:e «nd 
 
 1830 
 amount was added to the Banking capital, community are 
 
 again called to grapple with similar evils. So imposing 
 
 were such embarrassments, it was feared that they would 
 
 hinder the internal improvement of rail roads, then a 
 
 subject of increasing interest with the public. 
 
 ^ In remarking on trials of this sort, the Chief Magistrate Jan. 
 judiciously observed to the Legislature, that for them to ^' 
 be overcome, one great means was to encourage the project 
 of travelling by the application of steam. 
 
 ^As several of the country Banks had been recently j^^g 
 suspended, because unable to meet their liabilities, as 7. 
 presented, Commissioners for each county Avherein similar 
 corporations existed, are empowered to examine them and 
 report such as are unsafe for the public. Care of this sort 
 was but too true a sign, that the transactions of a few 
 such institutions had brought suspicion upon the rest. 
 Evil occasions the very guard which is set to prevent its 
 repetition. Still, monied associations, well regulated, like 
 an honest individual, invite rigid scrutiny, rather than 
 keep it at bay. 
 
 As an indication that calamity was written on the face 1 8 3 L 
 of the pecuniary world from 1828 to 1831, only one 
 
 'Laws of Massachusetts. charters were granted. He must 
 
 ''A writer in the Boston Centinel have mistaken this year for 1825. 
 
 and Gazette of March 21, 1838, ^ Gov. Lincoln's Speech. 
 
 relates that, in 1827, many Bank * Resolves of Massachusetts. 
 
 29 
 
22G HISTORICAL ACCOUNT OF 
 
 1831. Bank, and this the Cohannet of Taunton, with a capital 
 
 of $100,000, is chartered. Had not the people of our 
 
 Common weahh, as well as those of others in the nation, 
 acquired the habit of multiplying such corporations when- 
 ever the burdens of adversity are removed, and oftentimes 
 when not demanded by the wants of community, such a 
 sign would have been one of caution and of good. 
 Jan. ^ Regarding the influence of Banks on society, as of nc 
 ^' ordinary character and degree. Governor Lincoln expresses 
 his views in the succeeding terms: — "It would doubtless 
 have been better, that the system had been more cautiously 
 introduced and less liberally extended. Banks have been 
 multiplied here and elsewhere, greatly beyond the occa- 
 sions of the country. The injurious effects have been 
 seen in excessive issues of paper and in vexatious and 
 profitless competitions to give to it circulation; in rash 
 enterprises of individuals, induced by the facilities to 
 credit ; in unwarrantable expenses of living ; in the em- 
 barrassments of debt, and in the sacrifice of estate, not 
 unfrequently attended with the loss of character," These 
 remarks fully accorded with the experience of the day 
 when they were uttered, and, relatively, with the history 
 of paper currency, as emitted for a long period, with some 
 interruption, by Massachusetts both as a Province and a 
 State. His Excellency further suggests to the Legisla- 
 ture, whether it would not be a good rule to allow no 
 charter to a Bank, or an extension of it, when granted, 
 except in cases of competent funds and of sufficient 
 business to employ them. He also refers to a proposition, 
 made at several different times, for the Commonwealth to 
 own and manage a Bank with several branches. He 
 estimates the objections to such an institution as greater 
 than the arguments in its favor. It was no more nor less 
 than a new edition of the old loaning system, by which 
 our fathers, while Provincials, lost and suffered much. 
 
 Notwithstanding the suggestions of sound discretion and 
 wise policy, just stated, the General Court, in the same 
 year they were presented to their attention, chartered no 
 
 ' Gov. Lincoln's Speech. 
 
MASSACHUSETTS CURRENCY. 227 
 
 less than twelve Banks, a number exceeding that of any 1 831. 
 previous years, except 1825 and 1828. The clouds had -^^'"^ 
 blown away and the sun appeared ; and, without calculat- 
 ing to be prepared for the return of the former, they freely 
 give leave for such associations. 
 
 ^ While the large proportion of convicts in the State 1833. 
 Prison for counterfeiting our paper money, showed that os 
 ■.they had not been idle in such labor, it is discovered, 
 that a similar work is carried on here, in relation to bills 
 of the British Provinces. This detection is laid before 
 our Legislature, and they pass an Act for its prohibition. 
 It was one of the bitter fruits, produced by such perverted 
 geniuses, as that of the notorious Burroughs. 
 
 As private banking, by the emission of notes, again 
 manifests its penchant for following in the wake of monied 
 corporations, the General Court interfere and restrain such 
 a bias by the strong arm of law. 
 
 For the three last years, up to this date, a considerable 
 number of banks had been allowed. Such liberty is to 
 be followed with sober abstinence from it, for two Legis- 
 lative years. 
 
 ^Reverting to the prevalent anxiety which is mani-1834. 
 fested in relation to the probability, that the charter of the <^°* 
 United States Bank, when expired, will not be renewed, 
 Governor Davis makes the ensuing comment on this insti- 
 tution : — "■ Its existence has imposed a restraint upon the 
 immoderate issues of paper by other banks, and tended 
 strongly to keep that paper up to the metallic standard of 
 value." Subsequent and sad events have confirmed the 
 correctness of this position. The Chief Magistrate goes 
 into a particular examination of our own banks. He 
 renews the tale, to which many, in an embarrassed situa- 
 tion, could experimentally respond, that frequent, though 
 prudent curtailments by the banks in their discounts, had 
 as often been succeeded by distress in the monied world. 
 His words proceed: — "This calamity has so frequently 
 visited us within a few years past, under the name of a 
 
 ' Laws of Massachusetts. ^ Governor Davis's Speech. 
 
 21. 
 
228 HISTORICAL ACCOUNT OF 
 
 1834. pressure for money, and with such disaster to debtors, 
 ""^ that the subject demands investigation, with a view to 
 avert its future recurrence." He mentions various opin- 
 ions as to the causes of these effects. He assumes one 
 position, which was undoubtedly correct, that there is too 
 httle specie in the banks at large, to meet their liabilities. 
 He states, that, however such institutions stand no Avhere 
 better than in Massachusetts, yet even here, " if a panic 
 should seize the public, if distrust should overshadow our 
 banks but a day, all payments in specie would cease, for 
 the funds on hand do not amount to one tioelfth of the 
 bills in circulation, and those deposits Avhich they are 
 bound to pay on demand." He further relates, that the 
 average amount of bills circulating in 1832, was as eight 
 to one of specie for their redemption, and in 1833, as eight 
 and a half for one. Hence, he derives the argument, that 
 it is of exceeding importance for such a disproportion to be 
 diminished by the increase of hard money, in order to 
 save the "active industry" of the public from the "de- 
 vouring vortex of an almost periodical disaster." He 
 proposes, that, if there should be a rush for bank charters, 
 on the cessation of the National Bank, as there was for- 
 merly, it should be breasted with fii-m and cautious care, 
 so that the pecuniary interests of community may not be 
 further imperiled. 
 March ^ As an introduction to resolves, which maintain that 
 ^' the resistance of the General Administration to the Bank 
 of the United States, and the removal of the national 
 deposits from its vaults, have been the prolific origin of 
 disarrangement in the system of currency, and of calamity 
 to the whole country, our Legislature utter the following 
 sentiments: — "In the midst of a season of general pros- 
 perity, the community has been suddenly visited by a 
 distressing and financial crisis, which has created great 
 embarrassment in all branches of business, and occasioned 
 many bankruptcies." However divers opinions and con- 
 flicting arguments have existed, as to these measures of 
 Congress, yet all are constrained to allow, that such a 
 
 ' Resolves of Massachusetts. 
 
MASSACHUSETTS CURRENCY. 229 
 
 dark view of our Republic's condition is not too deeply 1830. 
 shaded. ""^ '"^ 
 
 ^ In connection with the supposition, that large emis- ^^'^^^'^ 
 sions of the National bank would be recalled, because its to 
 charter was soon to cease, and leave a vacuum, which -yjl 
 might be profitably supplied by State corporations, a flood 
 of corresponding petitions flows into our halls of legisla- 
 tion. True, it did not literally carry before it every door 
 post, and every pillar, and thus cause a devastation like 
 that of Samson's might. Still, it levelled every barrier 
 presented by the counsels of wisdom, and the bitter 
 teachings of the past. More than as many again banks 
 are incorporated this Spring, than ever before under our 
 constitutions of freedom. They numbered no less than 
 thirty-two. In addition, the stocks of not a few banks, 
 previously permitted, were much enlarged. If on the 
 restoration of community from every monied paralysis, its 
 appetite is thus profusely catered for, the forecast of a 
 prophet is not required to perceive, that the credit of a 
 large proportion of its bills will be irrecoverably lost, and 
 the inscription, published in the notifications of exchange 
 must be, that they are of little or "nothing worth." 
 
 ^The repeal of the Charter of the National Bank, having June 
 
 15 
 
 been anticipated as sure for many months, and on which 
 
 numerous minds had dwelt with dark forebodings, now 
 legally takes place. In the prospective effects of this 
 enactment, whether construed as for weal or wo, our own 
 Commonwealth has had its abundant portion. 
 
 As a means of rendering hard money less scarce in cir- 23. 
 culation, the General Administration order, that no bank 
 shall have any deposits of the national funds, which 
 emits notes less than five dollars. 
 
 Specie, which was 2 to 2J advance in 1825, If in Aug. 
 
 1831, 2 to 3 in 1833 and '35, is now 2^ to 3 per cent. 31. 
 
 The best of Boston bank stocks, which were at 8 per cent. 
 
 advance in 1826 and '27, 3 in 1829, 8 in 1831 and '33, 10 
 
 in 1835, are now 7. 
 
 While all the silver coins from the mint are still to be 1837. 
 
 Jan. 
 
 18 
 ' Laws of Massachusetts. ' Laws of the United States. 
 
230 HISTORICAL ACCOUNT OF 
 
 1837. accounted a lawful consideration for debts, Congress re- 
 
 "^''^^ quire that none of the gold coins, except those issued since 
 the 31st of July, 1834, shall be so estimated. 
 
 March ^ Acts having been passed the 16th of April, 1836, for 
 ^^' nullifying the charters of the State Bank of Boston, and 
 the People's Bank of Roxbury, they are now repealed. 
 The ground for this reversion of Legislative opinion and 
 decision, was, that the charge against these companies for 
 taking above six per cent, interest, was no more peculiar 
 to them, than to many other similar associations, nor more 
 than they supposed their privilege allowed. 
 
 April 2 Owing to the embarrassed situation of some banks 
 ^^' with regard to their want of sufficient means to pay any 
 further responsibilities on demand, they had issued notes 
 redeemable at certain periods. As an implicit license of 
 this kind, would be only preparing the way for greater 
 difficulties and perils in paper currency, the General Court 
 pronounce such a practice altogether illegal. A resort of 
 this kind was but one of the various attendants on the 
 great disorder of our currency, and the exceeding distress 
 experienced in several branches of trade. 
 
 May Unable, in the trying circumstances, which filled the 
 ^^* whole country, to discharge their notes and liabilities with 
 specie, the banks in the city of New York suspend this sort 
 of payment. Tidings of such an event reached our metrop- 
 olis the next day. They spread consternation far and wide. 
 Self-preservation immediately drew together a large assem- 
 bly of gentlemen in Boston, concerned in our pecuniary 
 institutions. They resolve, that there is no other alterna- 
 tive, except either to have all the specie drawn from their 
 banks, the paper money transactions stopped, and the ruin 
 of mercantile interests greatly magnified, or to imitate the 
 example of New York. The last of these two deprecated 
 choices is recommended by them, until there be a recovery 
 12. from the tremendous shock. Accordingly, the subsequent 
 morning the banks of Boston give notice, that they shall 
 comply with such advice. As the news of this measure 
 reached the towns, wherein similar companies existed, these 
 
 ' Laws of Massachusetts. 2 Laws of Massachusetts. 
 
MASSACHUSETTS CURRENCY. 231 
 
 felt constrained to take the like step. Thus in a few days 1837. 
 one of the most dreaded and dangerous changes, ever ^-^^"^^ 
 wrought in the paper medium of our Connnonweallh, 
 takes })lace. 
 
 While the banks were collecting their loans to meet the 
 apprehended revolution, and, also, subsequent to its occur- 
 rence, constant failures, both great and small, ensued. A 
 daily and fruitful topic was in relation to the number, 
 persons, and responsibilities of those, who were no longer 
 able to buffet the storm of adversity. Comparatively few 
 could take their stand on the eminence of security and 
 truly say, " I scorn to change or fear." 
 
 Among the developments made by the searchings of 
 this catastrophe, was one, which excited less sympathy, 
 than it caused pain to the philanthropist and Christian. 
 This was the astounding fact, that men, intrusted with 
 millions belonging to the widow and orphan, to depend- 
 ents upon small investments and charitable institutions, 
 as well as to the more wealthy, had been playing a despe- 
 rate game of speculation with these funds, on the bare 
 possibility, that they might fill their coffers with gain, 
 but, at the same time, with the almost certainty, that each 
 unsuspecting stockholder would have to bear a propor- 
 tionate loss of their recklessness, folly and ini(piity. 
 While we would not visit too severely so crying an abuse 
 of sacred trust, we do hope, that pertinent vigilance, as 
 well as genuine principle, will prevent any more such 
 works of darkness and depravity. From this black 
 picture of obliquity, we are privileged to turn and behold 
 an alleviating contrast. Though temptation laid its en- 
 snaring baits, and presented its sophistries of avarice, still, 
 the greater portion of those guardians, who watched over 
 our pecuniary institutions, were enabled to resist, and 
 hold fast their integrity. Verily, they deserve to be had 
 in grateful and honorable remembrance. 
 
 ^Embarrassment having come upon the national ex- Oct. 
 chequer, as well as upon the banks, Congress order an ^^• 
 emission of notes, not to exceed ten millions of dollars. 
 
 * Laws of the United States. 
 
232 HISTORICAL ACCOUNT OF 
 
 1837. The maximum interest of them is six per cent., and they 
 "^ "^^ are to be redeemed in a year from their date. Thus an 
 
 addition is made, in one kind, to the paper medium. But 
 such enlargement, lil^e tlie fulhiess produced by disease, 
 has always been more the sign of wealcness than of 
 strength, more the cause of regret than of joy. 
 
 1838. From the eloquent memorial of the associated banks of 
 Jan. Boston, we have the ensuing quotation. It refers to their 
 
 suspension of specie payment, a resort as contrary to their 
 wishes and profit as to those of the public. " As the least 
 evil, and as a protection to the general interests, it was 
 determined to yield temporarily to the force of circum- 
 stances which could not be controlled, in order to allow 
 the community to gather up their resources, to afford time 
 for the restoration of confidence, to succor those who were 
 on the eve of prostration, and to relieve those who merely 
 needed palliatives to ensure their recovery." On another 
 subject of highly commendable precaution, they say, 
 "At the time when specie payments were suspended, all 
 the banks in Boston, with one exception, entered into an 
 association, for the avowed purpose of protecting the 
 interests of the public." 
 9, ^The Chief Magistrate, in remarking on the monied 
 concerns of the State, represents them as being a gloomy 
 contrast to those of the previous year. Respecting the 
 suspension of specie payments by our banks, he observes, 
 that, as the only means of preventing a general insolvency, 
 it was not merely a measure of public convenience, but, 
 also, of pressing necessity. He notices the fact, that these 
 corporations, by such a course, had, if the law were 
 literally interpreted, and no allowance made for their par- 
 ticular relations to the business community, forfeited their 
 charters. But he concluded, from the nature of the case, 
 that no forfeiture of this kind would be exacted. 
 Feb. "As a more efficient method to check the abuses of 
 ^^' Banking, recently and extensively brought to light, the 
 General Court order, that a permanent Board of Commis- 
 sioners be appointed to supervise this important branch of 
 social interests. 
 
 * Governor Everett's Speech. ^Laws of Massachusetts. 
 
MASSACHUSETTS CURRENCY. 233 
 
 ^The Sub-Treasury scheme, deeply agitating the i838. 
 country, and still before Congress, is objected to by the Jjj^^ 
 resolves of a majority in our Legislature, as unfavorable to 10. 
 a sound currency between the States, and uselessly with- 
 drawing from circulation a large amount of specie. 
 
 ~ Unable to pursue their accustomed course of business April 
 with safety to the public, no less than ten Banks had 
 their chai-ters repealed during this session of the Leg- 
 islature. Seven of them belonged to the metropolis. 
 Mismanagement as well as adversity produced so sad a 
 termination. 
 
 With reference to the many Banks, which had escaped 
 so deprecated a wreck, but which still saw no favorable 
 opportunity to resume the meeting of their liabihties in 
 hard money, an Act is passed, allowing them so to remain 
 till the first of January, if those of Boston pay their notes 
 of five dollars and under, and others their threes and less, 
 with specie. This condition is immediately fulfilled. 
 One result is, that silver change, which had been very 
 scai-ce and at a high premium, is conveniently restored to 
 circulation. 
 
 During the fore part of the suspension, the discount on 
 good bank notes of Boston, was 10 per cent. ; and, when 
 the news came from Washington, that custom house 
 duties must be discharged with hard money, it rose to 13 ^^ 
 and so continued a few days. After this, it gradually fell 
 about one per cent, a month till a year since, when bills 
 of our regular Banks were on a par with hard money. 
 
 To the many, who regarded the Sub-Treasury system as j^^g 
 misuited to promote the pecuniary welfare of the country, 28. 
 the news of its being laid aside by a majority of Congress, 
 comes as a message long wished, and very welcome. 
 
 3 That we may have "a bird's eye view '• of the Banks 
 in Massachusetts, for every five years, from 1803 to 1837 
 inclusive, except the last period, which is for four ; and, 
 also, at two dates of the consecutive year, the subsequent Oct 
 compend is presented. 
 
 1 Resolves of Massachusetts. ^ Reports of John P. Bigelow, Esq. 
 
 2 Laws of Massachusetts. Secretary of State. 
 
 30 
 
234 
 
 HISTORICAL ACCOUNT OF 
 
 1838 
 
 1803. June. Two Banks in Boston. Five elseivhere, . 7 
 
 Capital, .... $1,600,000 $625,262 $2,225,262 
 
 Bills in circulation, . 714,840 850,349 1,565,189 
 
 Specie, 561,669 518,259 1,079,928 
 
 1808. January. Three. Thirteen, ... 16 
 
 Capita], .... $3,800,000 $2,160,000 $5,960,000 
 
 Bills in circulation, . 259,878 778,164 1,038,042 
 
 » Bills of 1, 2 and 3 dolls., 13,472 47,755 61,227 
 
 Specie, 632,137,16 383,706,79 1,015,843^5 
 
 1813. June. Four. Twelve, ... 16 
 
 Capital, .... $7,000,000 $1,895,000 $8,895,000 
 
 Bills in circulation, 1,375,380 811,457 2,186,837 
 
 Bills ofl,2 and 3 dolls., 4,441 88,175 92,616 
 
 Specie, 4,569,574,59 1,211,223,49 5,780,798,08 
 
 1818. June. Seven. Twenty, ... 27 
 
 Capital, .... $7,049,425 $2,699,850 $9,749,275 
 
 Bills in circulation, 1.142,116 1,538,361 2,680,477 
 
 Bills ofl,2aud 3 dolls., 55,716 192,329 248,045 
 
 Specie, 597,087,88 532,510,39 1,129,598,27 
 
 1823. June. Ten. Twenty-four, . . 34 
 
 Capital, .... $8,050,000 $3,600,000 $11,650,000 
 
 Bills in circulation, 1,-353,892 1,775,094 3,128,986 
 
 Bills ofl,2 and 3 dolls., 66,684 275,115 341,799 
 
 Specie, 503,787,04 529,588,43 1,033,375,47 
 
 1828. May. Sixteen. Forty-five, ... 61 
 
 Capital, .... $12,343,050 $6,994,750 $19,337,800 
 
 Bills of 5 dolls, and up- ) ,734 549 2,164,944,50 3,899,493,50 
 
 wards, in circulation, ) ' ' 
 
 Bills under 5, do., . 332,511 652,534 985,045 
 
 2 Bills or notes, do., > 2,378,539,56 220,787,28 2,599,326,84 
 
 bearing interest, S > 5 ; ^ j 
 
 Specie, 654,344,91 490,300,80 1,144,645,71 
 
 1833. October. Twenty-five. Seventy-seven, . . 102 
 
 Capital, .... $16,401,250 $11,835,000 $28,236,250 
 
 BUls in circulation, 2,823,617 5,065,493,67 7,889,110,67 
 
 Specie, .... 647,618,14 274,691,70 922,309,84 
 
 1837. October. Thirty-four. JVinety-five, . . 129 
 Capital, .... $21,:350,000 $16,930,000 $38,280,000 
 Bills in circulation, 4,-386,414 5,886,704,71 10,273,118,71 
 Specie, .... 1,129,942,29 388,041,73 1,517,984,02 
 
 1838. February. Thirty-two. Xinety-two, . . . 124 
 Capital, .... $20,700,000 $16,480,000 $37,180,000 
 Bills in circulation, 3,688,532 5,412,244,75 9,100,776,75 
 Specie, 1,256,722,-32 444,688,39 1,701,460,71 
 
 1838. October. Twenty-eight. Mnety-two, - . 120 
 
 Capital, .... $18,450,000 $16,180,000 $34,630,000 
 
 Bills in circulation, ) 2,889,598 4,761,587,25 7,651,185,25 
 
 of 5 and above, ) 
 
 Bills do. of less than 5, 499,060 1,250,267,50 1,749,327,50 
 
 Specie, . . . . . 1,690,169,59 704,454,65 2,.394,624,24 
 
 ' Bills of these denominations are first reported in June, 1825, and last 
 first reported, June, 1806. reported, May, 1828. 
 
 2 This kind of obligations were 
 
MASSACHUSETTS CURRENCY. 
 
 235 
 
 The valuable statistics, whence the preceding ones are 1833, 
 derived, furnish us witli data for the ensuing table. This "^^ 
 shows tlie proportion which tlic notes of our Banks, 
 circulating when they were reported, have held to specie, 
 deposited therein, for the period signified by the given 
 years. From 1825 to 1828 inclusive, obligations, bearing 
 interest, are taken into the estimation. 
 
 Year. 
 
 1803, 4, 5 and G, about J ^ to 1 
 
 1 807, 
 
 1808, . . . 
 
 1809, 10, 11, 
 1812, 13, 14, 
 1815, . . 
 181G, . . 
 
 1817, . . 
 
 1818, . . , 
 
 1819, 20, . 
 
 1821, . . . 
 
 1822, 23, . , 
 
 1824, . . . 
 
 1825, . . . 
 
 o 
 
 equal. 
 IJ to 1 
 
 equal. 
 2 to 1 
 
 n " " 
 
 2^ " " 
 
 2" " " 
 equal. 
 
 3.^ to 1 
 
 2^ " " 
 
 "1 
 
 Year. 
 
 1820, . . 
 
 1827, . . 
 
 1828, . . 
 
 1829, . . 
 
 1830, . . 
 
 1831, . . 
 
 1832, . . 
 
 1833, . . 
 
 1834, . . 
 
 1835, . . 
 183G, . . 
 
 1837, . . 
 
 1838, Feb., 
 " Oct., 
 
 *0 
 
 •s 
 
 I 
 
 about 42 to 1 
 
 4,1 
 4 
 
 8 
 
 7i 
 6S 
 5f 
 
 3x^0 " 
 
 (( (I 
 
 <( (( 
 
 <( (C 
 
 (( << 
 
 t« ii 
 
 (( <c 
 
 <( <( 
 
 (( <( 
 
 II it 
 
 <( <( 
 
 (C 
 
 It will be perceived from these ratios, that the quantity 
 of scrip has, in several years, greatly exceeded the hard 
 money, on which it chiefly depends, in the revulsion of a 
 panic, for immediate redemption. In one of his recent 
 Congressional speeches, Henry Clay remarked — '' The pro- 
 portions, which experience has ascertained to be entirely 
 safe, are one of specie to three of paper." If this be true, 
 it is matter of high satisfaction to discern, that our Banking 
 institutions, in general, have nearly returned to this safety- 
 ratio. As additional, justice requires, that it should here 
 be -stated, that such associations of the metropolis have 
 shown, by their two last reports, more than a third of 
 hard money for their bills in circulation. If "the uses of 
 adversity" continue long to be so applied, they will 
 indeed prove a blessing to community. 
 
 In compliance with a resolve of the General Court, all 1839. 
 our Banks, remaining in operation, fully resume their 
 specie payments. The suspension of them, was one of 
 
 Jan. 
 
236 HISTORICAL ACCOUNT OF 
 
 1839. those occasions, which test the character of society. 
 
 ^^"""^ There was a strong conviction in the pubhc mind, which 
 seemed to address our pecuniary institutions when neces- 
 sarily driven to this resort, and say in the language of 
 Cicero, " I can see no danger, to which you are personally 
 exposed, separately and apart from the destruction of us 
 all," Under the prevalence of such a disposition, no 
 instance occurred, during the suspension, wherein a re- 
 spectable person demanded specie for Bank notes and 
 exacted the fine of 24 per cent, interest for refusal ; and 
 scarcely an individual, however low his reputation, dared 
 confront the general sentiment and boldly demand " the 
 pound of flesh." Thus it was, that this exigence, how- 
 ever painful and hazardous in some respects, afforded 
 satisfactory demonstration to the philanthropist, that, amid 
 the desolations of fallen credit, there was moral force 
 enough in society to stay the rude onsets of uncompromis- 
 ing selfishness, and to afl'ord more than a victor's triumph 
 to the cause of magnanimity and benevolence. 
 
 One consequence of such a resumption was, to end the 
 practice of giving notes of hand payable "in current bills." 
 This clause began to be inserted at the commencement 
 of the suspension. It was like what existed, to a great 
 extent, under the Provincial Banking system. 
 
 During the session of the General Court, a deserved 
 eulogium is passed on the Sufi'olk Bank, for the manner in 
 which it had, for about fifteen years, successfully entered 
 on the labors of the New England Bank, to suppress an 
 onerous discount on bills of Banks not belonging to Boston. 
 A work of this kind evidently saves much for such asso- 
 ciations, prevents great expense and perplexity to business 
 men, preserves the equal credit of all notes, emitted from 
 responsible Banks, which ought always to exist in the 
 Commonwealth where they belong ; and, what is more, 
 keeps one of the best safety valves on the natural pressure 
 for depreciating such paper of every description. Though 
 for exerting so salutary an influence the Sufiblk Bank has 
 been suspected of possessing dangerous power, still this 
 
MASSACHUSETTS CURllENCY. 237 
 
 institution deserves the confidence of the community, as i839. 
 an agent of great public benefit. May no undue jealousy ^-^^ 
 throw obstructions in its way, and thus bring the mercan- 
 tile world back to the burdensome impositions, which 
 abounded for years, till the operations of the New England 
 Bank in 1813. 
 
 As expected from the perilous reverse which had come 
 over our pecuniary aflJ'airs, little of the usual attention and 
 time, given by our Legislature to Banking concerns, is 
 called for during this session. Still a few relics of the 
 ruin, which succeeded the downfall of business and gene- 
 ral confidence, requires their interposition. They rescind 
 the charters of two Banks and lessen the capitals of four 
 others. Farther than this, public wish and opinion did 
 not extend. So thought a Committee, composed of 
 members from the Senate and House. On several peti- 
 tions for new Banks and more capital, they judiciously 
 express their judgment. ^ " When they consider the March 
 severe trials to which this class of corporations has been 
 subjected for the last two years, and the immense losses, 
 which the community has sustained from the bad man- 
 agement of a portion of them, and that not three months 
 have yet elapsed, since the Banks in this Commonwealth 
 were required to meet all demands on them in specie ; and 
 when, in addition thereto, they contemplate the new 
 system of banking introduced, to an alarming extent, into 
 a neighboring State;- a system altogether novel in our 
 country, the result of which it may be difficult to foresee, 
 the Committee feel constrained to urge upon the Legisla- 
 ture the propriety of pausing, for at least one year, before 
 they shall create new Bank institutions, or increase the 
 capitals of those already in existence." This is true 
 philosophy, teaching from abundance of examples. Still, 
 a half million of capital is added to the Merchants' Bank April 
 and a quarter million to the Suffolk, both of Boston, -^q 
 Besides this, the Fishermen's Bank^ at Provincetown, 
 
 • Report of a Committee. ^ Incorporated April 5th. 
 
 "■ New York. 
 
238 
 
 HISTORICAL ACCOUNT OF 
 
 lg39_ with a capital of one hundred thousand dollars, is incor- 
 -^^"'^^ porated. We know of no better cases, wherein such 
 allowance should have been granted. But greater would 
 have been our hopes that the teachings of past experience 
 would lead all our monied institutions to double their 
 exertions for individual safety as well as income ; and our 
 Legislative authorities to permit no more increase of 
 Banking stock than the business and ability of the times 
 require, — had there been no such indulgence at present. 
 
 We have now reached the termination prescribed by 
 the plan of this work. Here we might draw deductions 
 and launch into speculations. But we are cautioned, after 
 so long a hearing, to speak more in monosyllables than in 
 sentences. Brevity may allow us to make a leading 
 remark or two, before we open our appendix of a few 
 miscellanies. It is very evident from the facts already 
 adduced, that no branch of political economy is more 
 difficult, than the regulation of money. So vexatious to 
 Q-ueen Elizabeth, with all her sound judgment and excel- 
 lent counsellors, was the management of her metallic 
 currency, that, in the excess of her feeling she' exclaimed, 
 "it is a monster." So great has been the difficulty 
 attendant on pecuniary concerns, that no government, 
 however skilled in them, has, with the numerous teachings 
 of the past, yet practically reached the highest degree of 
 excellence for the regulation of them. Questions are 
 still repeated — is hard money alone, or this and paper 
 together, the best medium of exchange ? — As a response, 
 justified, in our apprehension, by the tests of civilized 
 nations, may it not be truly said, that a safe amount of 
 coin, represented by a due proportion of Bank notes, is 
 far more convenient and more profitable than any other? 
 We are aware, that no small difficulty exists, as to agree- 
 ment on what these proportions are. Shortness of space 
 assigned, forbids the discussion of them here. But what- 
 
MASSACHUSETTS CURRENCY. 
 
 239 
 
 ever may be our plans for the safest management of 1339^ 
 monied affairs, or whatever our honest care to supply the ^'^ 
 physical wants of our nature, we are sure of this elevating 
 fact, that the hand of Infinite Benevolence freely proifers 
 to us all intellectual and moral treasures, which will 
 survive the wreck of worlds, and be to their possessors, an 
 incorruptible heritage. 
 
 "Wisdom to gold prefer, for 'tis much less 
 To make our fortune, than our happiness." 
 
APPENDIX. 
 
 APPENDIX.— No. 1. 
 
 THE COMPARATIVE MEANS OF CURRENCY IN EACH TOWN OF MASSACHUSETTS, 
 AS DESIGNATED BT THE LEGISLATURE, DURING THEIR EARLY PERIODS, 
 FOR THE PAYMENT OF PUBLIC TAXES. 
 
 Mvember 8, 1633. 
 
 Boston, £48 
 
 Rocksbury, 48 
 
 Newe Towne, 48 
 
 Watertown, 48 
 
 Charlton, 48 
 
 Dorchester, 80 
 
 Saugus, £36 
 
 Salem, 28 
 
 Wenetsemet, 8 
 
 Mead ford, 12 
 
 Aggawam, 8 
 
 May 6, 1635. 
 
 It is ordered that there shalbe CC"''' levyed out of y^seuerall Plantacons 
 for publique vses, the one halfe to be levyed presently the other halfe 
 before the nexte generall Court viz.: 
 
 lb. s. d. 
 
 Dorchester, 27 6 8 
 
 Boston, 27 6 8 
 
 Newe Towne, .... 27 6 8 
 
 Rocksbury, 20 
 
 Watertown, .... 20 
 
 Charlton, 16 
 
 lb. s. d. 
 
 Salem, 16 
 
 Saugus, 16 
 
 Ipswich, 8 
 
 Newberry, 8 
 
 Wessaguscus, .... 4 
 
 Meadford, 10 
 
 March 3, 1636.— £300 levy. 
 
 Newberry, 11 5 
 
 Ipswich, 25 
 
 Saugus, 15 10 
 
 Salem, 24 
 
 Charlton, 23 
 
 Waymothe, 3 5 
 
 Newe Towne, .... 42 
 
 £ s. 
 
 Watertowne, 30 
 
 Boston, 37 
 
 Rocksbury, 30 
 
 Dorchester, . • . . . • 37 
 
 Hingham, 6 
 
 Meadford, 15 
 
 10 
 
 10 
 
APPENDIX. 
 
 241 
 
 August 1, JG37.— £400 rate. 
 
 Boston, 59 
 
 Newtowne, 29 
 
 Wateitowne, 30 
 
 Roxbcrrv, 30 
 
 Salem, '. 45 12 
 
 Ipswich, 34 12 
 
 Newberry, 16 18 
 
 4 
 12 
 
 8 
 8 
 
 IVIcadford, . . 
 Dorchester, . 
 Waiiiioth, . . 
 Hinghaui, . . 
 Charlestowne, 
 Saugust, . . 
 
 £ s. 
 24 12 
 42 G 
 6 16 
 8 10 
 42 6 
 28 IG 
 
 Dorchester, . 
 
 Hingham, . . 
 
 Ipswich, • . 
 
 Liun, . . . 
 Charlestowne, 
 
 Boston, . • 
 
 Cambridge, . 
 
 September 6, 1638.— Rafe /or £400. 
 £ s. d. 
 
 36 
 11 
 46 
 31 
 35 
 57 
 34 
 
 16 
 2 
 
 10 
 
 13 
 14 
 17 
 
 3 
 
 10 
 
 9 
 6 
 
 Roxberry, . 
 Watertown, 
 Salem, . . 
 Neweberry, 
 IMeadford, . 
 Waymoth, . 
 
 £ 
 
 s. 
 
 d. 
 
 31 
 
 
 
 29 
 
 1 
 
 3 
 
 44 
 
 11 
 
 3 
 
 27 
 
 2 
 
 6 
 
 6 
 
 15 
 
 8 
 
 7 
 
 15 
 
 
 May 22, 1639.— £1,000 Rate. 
 
 Boston, 
 Roxberry, . 
 Salem, . . 
 Waymoth, 
 Hingham, . 
 Liun, . . 
 
 £ 
 144 
 74 
 111 
 23 
 33 
 79 
 
 s. 
 10 
 12 
 
 13 
 2 
 
 14 
 19 
 
 d. 
 
 1 
 
 6 
 
 11 
 
 5 
 
 6 
 
 Cambridge, 
 
 Watertowne, 
 
 Newberry, 
 
 Dorchestei', 
 
 Ipswich, . 
 
 Cliarlesto\vn, 
 
 £ 
 
 s. 
 
 d. 
 
 91 
 
 19 
 
 9 
 
 81 
 
 17 
 
 1 
 
 67 
 
 8 
 
 3 
 
 93 
 
 7 
 
 9 
 
 11 
 
 18 
 
 11 
 
 85 15 10 
 
 Hingham, . 
 Waymouth, 
 Braintree, . 
 Dorchester, 
 Roxbury, . 
 Boston, . . 
 Dedham, 
 Concord, 
 Watertowne, 
 Cambridge, 
 Charlestown, 
 Salem, . . 
 
 May 14, 1645. 
 
 £ s. d. £ s. I 
 
 15 Linn, 25 
 
 10 10 Ipswich, 61 10 
 
 10 10 Newbury, 23 
 
 43 17 6 Salsberry, 10 
 
 37 10 Hampton, 10 
 
 100 Rowlev, 15 
 
 20 Sudberry, II 5 
 
 15 Meadford, 7 
 
 41 5 Wooburnc, 7 
 
 45 Wennam, 3 10 
 
 55 Glocester, 4 17 
 
 45 I 
 
 31 
 
242 APPENDIX. 
 
 APPENDIX.— No. 2. 
 
 PRICES OF GRAIN, ETC., APPOINTED BT THE GENERAL COURT AND TAKEN AS 
 
 CURRENCY. 
 
 1642, September. 
 AVheat and Barley 4/. Rye and Peas 3/4. Com 2/6. 
 
 1647. October. 
 Wheat 4/6. Barley 4/. Rye and Peas 3/6. Corn 3/. 
 
 1G48. October 18. ■ 
 Wheat and Barley 5/. Rye and Peas 4/. Corn, or Indian, as it was 
 called, 3/. 
 
 1649. October 17. 
 
 For Rates — Wheat 5/. Barley 5/6. Peas and Rye 4/. Indian Com 3/. 
 
 1650. October 15. 
 
 "All sorts of Corne shalbe paid in the Country rate at these prises fol- 
 lowinge, viz. Wheate and Barley 5/. Rye and Pease 4/. Indian 3/. All 
 merchantable and all otlier thiuges payd in the Countrye rate to be valued 
 by indifferent men accordinge to the seuerall prises of all sorts of Corne 
 aboue mentioned pr Curiam." 
 
 1654. October 17. 
 "All sortes of Corne shalbe payd in the Countrv^ Rate at these prises — 
 Wheat and Barley 5/. Rye and Pease 4/. Indian Corne to March 10 2/8, 
 after that 3/." 
 
 1655. May 23. 
 
 Wheat and Bai'ley 4/6. Peas 4/. Rye 3/6. Indian 2/6. 
 
 1658. . October. 
 Wheat 5/. Rye, Peas, Barley and Barley Malt, 4/, and Corn 2/8. 
 
 1662. October. 
 Barley 5/. Malt 5/6. Peas and Rye 4/6. Cora 3/. 
 
 1664. October 25. 
 Court order " that all sorts of Corne should be paid in the Countiy rate, 
 at 5/ for Barley and Barley Malt 4/6. Peas and Rye 4/. Indian 3/. And 
 what else is payd in the country rate to be p"^ at money price." 
 
 1667. October 10. 
 Wheat 5/. Rye, Barly and Barly Malt 4/. Peas 3/6. Indian Com 2/8. 
 
 1670. October 27. 
 Wheat 5/. Barly Malt 4/. Rye 4/. Peas 4/. Indian Com 3/. 
 
APPENDIX. 
 
 243 
 
 1G71. September 12. 
 "The prize of Corno asfreotl on by y" Council for y* Country rate for y* 
 ycare, is Indian at 2/8. Barley Malt 5/0. Ry(; and Pease 5/. Wheat 5/6. 
 All good and nu'rcliantal)lr, to be paid into the Treasurer and all other 
 things at money prize, no leane cattle to be paid in at all." 
 
 1C80. JVovemher 5, 
 Three sinajle Country Rates, 2 to be paid in money, 1 in Corn. Wheat 5/. 
 Barley and Barley IVlalt 3/G. Rye 3/. Peas 4/. Indian Corn 3/6. Oats 20<i. 
 " Wliat is not paid in Corne shall be at money prices, horses and all leane 
 cattell excepted." 
 
 1681. October 12. . 
 Wheat 6/. Rye 4/6. Peas, Barley, Barley Malt, 4/. Corn 3/6. Oats 2/. 
 
 1685. October 17. 
 Wheat 5/. Rye 4/. Barley and Barley Malt 4/. Indian Corn 3/. Oats 
 2/. Peas 4/. 
 
 From July 1, 1688, to January 1, 1689. 
 
 Paid in grain these 6 months into the Ti-easury — Wheat at 2/9, Malt and 
 Barley 2/6. Rye 2/. Indian 14''. Peas 3/. Oats 10".— £1,152 7 4. 
 
 From January 1, 1689, to April 17, 1689. 
 Loss by the Treasux-y in the sale of 9,977| bushels of grain — £99 1 3. 
 
 1690. February. 
 Wheat 5/. Rye 4/. Oats 1/a Corn 3/6. Peas 4/. Barley and Barley 
 Malt 4/. 
 
 1694. March 27. 
 Corn 2/3. Wheat 5/. Rye 2/9. Barley Malt 2/3. Oats 1/4, and Peas 3/6. 
 
 APPENDIX.— No. 3. 
 
 Though the subsequent document was not passed into a law, — yet it 
 serves to show us how far money would expend for labour and articles 
 at the time of its date. 
 
 " This Court considering the great difficultie and discouragement, that 
 at present lyes pressing vpon many inluil)itants of this jurisdiction, espe- 
 cially vpon such, as whose callings are in husbandry, not oncly by reason 
 of the afflicting hand of God vpon them seuerall yeares in blasting their 
 principall grayne, and abating tlieir increase in oth(!r corne, and slowcnes 
 of market, and exceeding low price for what the husbandman can raise, — 
 vnto whose afflicting hand all ought to submitt and humble themselves, 
 and yet with the prophet confcsse, 'Thou, liOrd, hast alllictcd vs lesse then 
 we deserue'; — but also difficultie and discouragement arc yet heaped and 
 
244 APPENDIX. 
 
 increasing vpon them and others by reason of the excessive deerenes of 
 labour by artifficers, labourers, and servants, contrary to reason and equitie, 
 to the great prejudice of many householders and their familyes, and tending 
 to their vlter ruein and vndoeing, — and the produce thereof is by many 
 spent to mayntayne such brauery in apparell which is altogether vnbe- 
 coraeing their place and ranck, and in idlenes of life and a great part spent 
 viciously in taverns and alehouses and other sinfuU practices, much to the 
 dishonour of God, scandall of Religion, and great offence and griefe to 
 sober and godly people amongst vs. AH which timely to prevent, this 
 Court account it their duty carefully by all good meanes to provide, and 
 therefore doe ord«r as foUoweth. 
 
 It is therefore ordered Ijy this Court and the authoritie thereof that no 
 person within this jurisdiction, directly or indirectly, shall hereafter either 
 paye or receaue for worke, labour or comoditie, more or aboue, then is in 
 this present order appointed, and that vpon the penalties therein heere after 
 expressed. 
 
 Imprimis. Labourers by the daye, from the end of Sep- 
 tember to the end of March, dyeling themselues, 
 From end of March to the end of June, 
 From the end of June to the end of Septr. they workeing 
 10 houres in the daye, besides repast, 
 
 2. Taske worke. One acre of salt marsh and one acre of 
 
 English grasse well mowen, 
 One acre of fresh meadowe well mowen, 
 " " " Wheat " reapeing, 
 
 " " -' Rye " reapeing, 
 
 " " " Barly and one of oats, each well mowen, 
 " '/ " Peas, cutting, 
 " coarde of woode, cutting and well coarding. 
 These wages are allowed as aboue to workemen dyeting themselues. 
 
 3. Caipentei's, and Masons, and Stone-layers, from 1 March to 10 of 
 October, 2/ per day; and all worke taken by the great or peice by carpen- 
 ters, masons, joyners, or shinglers, is to be ap])ortioned according to the 
 equitie of the value of daye's worke as above, they dyeting themselues. 
 
 4. Master Taylors, and such as are fully woi-kemen of that trade, for one 
 daye's worke of 12 hours, 1/8. A])prentices to that trade the first four 
 yeares, the like daye, 1/. And all weauers for their worke at 12 hours per 
 day, are to haue the like wages as taylors. 
 
 5. All men and women seruants shall in their respective wages be 
 moderated according to the proportion of labour aboue limitted. 
 
 6. No person shall pay, neither shall any shoemaker receaue, more then 
 5/ for men's shoes of eleuens or twelues, zior for women's shoes of seauens 
 or eights more then 3/8 ; and all bootes and slioes of other sizes propor- 
 tionable to the rates abouesaide. 
 
 7. Cowpers shall not receaue nor any person paye for a thight barrell 
 of 32 gallons aboue 2/8, and other cowper's worke proportionable in price 
 to barrels. 
 
 8. Smythes shall not take nor any person paye for great worke, as for 
 shi])s, mills, plovgh irones, — all irones for cart wheeles well layd vpon the 
 wheeles, and other the like great worke, above 5"' per lb. For smaller 
 worke as chaynes and other the like soldo by weight, not aboue 6'^ per lb. 
 For the largest horse shoe well set with seven nayles, not above 6'i pr lb. 
 For rcmoucing a horse shoe, 2''. For an ordinary felling axe, 3/6. For one 
 broad-axe, 5/G. One broad hough, 3/. All being good and well steeled; 
 and all other sinithe's worke not named to be proportioned according to 
 the prices abouesaid. 
 
 9. And whereas it apears that Glouers, Sadlers, Hatters, and seuerall 
 other artificers doe at present greatly exceed the rules of equitie in their 
 
 1/3 
 
 per 
 
 day 
 
 1/8 
 
 n 
 
 II 
 
 2/ 
 
 tt 
 
 It 
 
 2/ 
 
 per 
 
 acre 
 
 1/6 
 
 If 
 
 II 
 
 4/ 
 
 II 
 
 II 
 
 3/ 
 
 II 
 
 It 
 
 1/ 
 
 II 
 
 II 
 
 3/ 
 
 II 
 
 II 
 
 1/3. 
 
 
 
APPENDIX. 245 
 
 prizes, they are all required to moderate the same according to the rules 
 })rescrjbed to otlicrs, or know that in neglect thereof they are lyi.ahlc to 
 presentment and proceeded against according to the Lawe, — Title Op- 
 pression. 
 
 Innkeepers and ordinary keepers are required to attend the dutie of 
 them exi)ected according to Lawe,— Title Innkeepers, sec. 11, which 
 order ought more carefully and strictly to be executed for the prevention 
 of oppression in selling of wine, and as for selling beerc tliey are to attend 
 the Lawe, that orders what quantitie of make is to be putt into each hogs- 
 head of beere, and that when malt is vnder 4/ per bushel! then to sell no 
 lesse then one quarte for lh'\ and for entcrtayument of horses in Sumer 
 not to take more then 4<i for one daye and night, and in winter not to exceed 
 6** for the like time. 
 
 All these payments are to be made m merchantable Corne at the price 
 from yeare to ycare, set by the Gcuerall Courte, prouided that when the 
 materials are brought from the market by the artificer, as shoemakers, 
 smythes, and the like, allowance may be made for that charge by the buyer 
 according to what the transportation may be. 
 
 If any person shall paye or receaue more then according to the rates 
 aboue expressed, he or they, both buyer and seller, shall forfeit the full 
 treble value of what shall be payed or receaued, one-halfe to the enformer 
 and the other halfe to the Treasurer of the seuerall Countie Courts. 
 
 The President of euery Countie Courte shall at euery such Court giue 
 in charge to the Grand Jury to enquire carefully into the breach of this 
 order in eueiy particular thereof. And all Grand Jurymen are required 
 vpon their oath to present all offences against this Lawe, and if it shall 
 apeere to the Court of the Countie at any time within one yeare after the 
 offence is comitted, that any Grand Juryman has knoweingly neglected 
 his dutie heerein, he shall vpon conuiction before the Courte be fined 
 Tenn times so much as the oflenders should have payed whome he ought 
 to have presented. 
 
 The Deputyes having considered of this Bill about regulatmg work- 
 men's wages, doe think it meete to refer the same to consideration yn- 
 till the next Court of election, our honoured Magistrates consenting 
 
 hereto. ^, . 
 
 Wm. Torret, Cleric. 
 
 May 17, 1670. The Magistrates liaue passed this Bill for an order of this Court, desiring 
 v« consent of our bretheren ye deputyes. , „ , 
 
 ' John Pynchon, per order. 
 
 The Deputyes consent not hereto. 
 
 Tried again Oct. 11, 1672.— Magistrates consented. 
 
 Deputies non-concurred. 
 
 William Torrey, Cleric. 
 
246 
 
 APPENDIX. 
 
 
 
 
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Al'l'ENDlX. 247 
 
 APPENDIX.— No. 6. 
 
 As parts of tlie inscription on the bills called "sword in hand money," 
 are still retained on the present seal of Massachusetts,— it was deemed not 
 amiss to give here a general account of the seals under the different forms 
 of government, — assumed by this Commonwealth. 
 
 SEALS OF MASSACHUSETTS. 
 
 FIRST CHARTER. 
 
 Company's Seal.- This Body say, in a letter to Governor Endicott, at 
 Salem,— April 21, 1C29,— We have sent you by Mr. Samuel Sharpe, passen- 
 ger in the George, "The Companye's Scale in Sihier." Tlio iiiscrii)tions, 
 etc., on this seal, Avere as follow : — The representation of an Indian — having 
 a full head of hair — a covering of loaves around his loins — a bow in his left 
 hand and an arrow in his right. He occupies uncultivated groimd, with 
 pine trees adjacent to him. He has a label appended to his mouth, deno- 
 ting a principal design, for which the American Colonies were settled- 
 even the Evangelizing of the Aborigines. — The phrase of the label is, 
 "Come over and help us." Around tlie seal, towards the cu-cumference, 
 are the succeeding words in Roman capitals, — Sigillvm Gub. et Societ. de 
 Mattachvsetts Bay in Nova Anglia.— There is a -|- over the head of the 
 
 image between Sigillvm and Anglia. A tradition exists among some of 
 
 our most intelligent Antiquarians, that John Hull, one of the Colonial Mint 
 Masters, struck oft" the preceding seal.— It is undoubtedly a mistake that he 
 made the first one. — But that he manufactured one or more impressions of 
 
 it, is very likely, because its size varies on ditterent documents. -Perhaps 
 
 it may not be deemed amiss to record here one instance of legislation, with 
 regard to this seal.— "1651, Oct. 14. This Court conceiues it both dis- 
 honourable and troublesome, that at all times, euen when the most weighty 
 occasions of the Country are in hand, the Goueruor should affix the scale 
 of this Colonic as often as men haue occasions to Letters of Atturney and 
 certificates, and yet haue nothinge for the same ; And, therefore, orders, 
 that henceforth whosoeuer shall procure the seale of this Colonic to any 
 certificate. Letter of Atturney, or Commission, shall satisfie the present 
 Gouernour, for the time beinge, fine shillinges for aftixinge the seale afore- 
 said and attestinge therevnto vnder his hand."— As a matter of course it is 
 understood that this seal varies nnich, in its impressions and import, from 
 the great Seal of England, as appended to the jmtent brought over by Gov- 
 ernor Winthrop. As the latter is gradually diminished— l)y the nibblings 
 of curiosity — a description of it may be desirable. — On one side, it has the 
 fio-ure of St. George — a horse-back— accomi)anied by a hound, having a 
 spear in his right hand, ready to strike a dragon,— and a circular inscription 
 not legible. — On the reverse is the representation of a King— dressed 
 in state— with a sceptre in his right hand and a globe in his left. Tliis side, 
 according to the words yet remaining, contains the customary regal titles. 
 The Seaf, thus mentioned, is noticeable lor its very green colour. This 
 hue seems to have been preferred, as appears from tiie subse<|uent fact. 
 Seals of this kind began among the English in the reign of Williain the 
 Conqueror, who adopted such a colour "to signify that the act contmued 
 forever and of force." The same hue is on the seal of the Explanatory 
 Charter of 1725, and was probably on that of the Second Charter, which 
 has lost its regal sanction. 
 
 USURPATION. 
 The seal under this administration had the ensuing delineations. On 
 one side, a royal personage, in full costume, with the insignia of his rank; 
 
248 
 
 APPENDIX. 
 
 an angel in the front of him and partly higher than his head, flying with a 
 scroll of undiscernahle words in his right hand. Before his majesty are 
 two men — with heads uncovered — each resting on a knee, one holding up 
 a petition towards the extended hand of the King, and the other with a 
 dish of fruit as an offering. These emblems were plainly intended to 
 denote Colonial subjection to the crown — far more abject than under the 
 first Patent — as to the population, wishes and productions of our Country. 
 In a line, parallel to the periphery, are the common titles of his Majesty in 
 Roman capitals, viz. — Jacobvs II. D. G. Mag. Brit. Fran, et Hib. Rex Fi- 
 del Defensor. On the reverse were the following impressions. The Royal 
 Seal, such as the Ci'own, Lion and Unicorn, arms of England, France, and 
 Ireland, — the garter with Honi soit cvi mal y pense, and at the bottom, Diev 
 et mon droit, as adopted by King Richard. Towards the circumference, 
 in Roman capitals, were Sigillvm Novoe Angliee in America. 
 
 INTER-CHARTER. 
 
 As the government, which succeeded the Revolution of 1689, was ac- 
 cording to that of the First Charter, it is very probable that, so far as any 
 seal was used, it was that of the Massachusetts Company. 
 
 SECOND CHARTER. 
 
 Province Seal. This had the regal arms, as usual, and, within the cus- 
 tomary titles of their majesties, was the ensuing circular inscription in 
 Roman capitals ; — Sig. R. Provincife de Massachusetts Bay in Nova Anglia 
 in America. The appendages of the Lion and the Unicorn, did not accom- 
 pany this seal, as impressed on the Provincial Acts down to Sept. 13, 1728; 
 but they did on the Acts from April 18, 1729, to June 29, 1773; after which 
 
 we have no regal seal on such documents. 1767, July 9. — The King 
 
 requires our government to use a new seal, which he had sent them — like 
 the foregoing, except a change of the royal names — and "to return the old 
 seal to our Council officers at Whitehall, in order to its being defaced by 
 us in our Privy Council." 
 
 REVOLUTION. 
 
 Seal. 1775, Aug. 5. The Council vote, that the report about the Colony 
 Seal be accepted with this amendment, viz. — "Instead of an Indian holding 
 a tomahawk and cap of liberty, there be an English American holding a 
 sword in the right hand, and Magna Charta in the left hand, with the 
 woi-ds, Magna Charta, imprinted on it, and I'ound him these words — Ense 
 petit placidam sub libertate quietem." The inscription, so amended, was 
 borne upon the seal. As is well known by some, this Latin quotation is 
 from the noted line j\nd a half, written by Algei'non Sidney, in the Album 
 of the University at Copenhagen , — 
 
 -Manus hasc, inimica tyrannis, 
 
 Ense petit placidam sub libertate quietem." 
 
 CONSTITUTION. 
 
 Seal. 1780, Dec. 13. Our present seal is appointed at this date, by the 
 Governor and Council, as they had been requested by the Representatives. 
 Their restoration of the Indian appears to have been in accordance with 
 the poi)ular wish. — A comparison between the figure on the first seal of 
 Massachusetts and that on its present one, shows that the red man had, as 
 portrayed on the last, become considerably civilized. It is readily perceived 
 tliat our seal of this day is made up from that of the Revolution, and of the 
 Company under the first Charter. 
 
14 DAY USE 
 
 RETURN TO DESK FROM WHICH BORROWED 
 
 LOAN DEPT. 
 
 This book is due on the last date stamped below, or 
 
 on the date to which renewed. 1 
 
 Renewed books are subject to immediate recall. i 
 
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