Discourse on the Currencies of the American Plantations by William Douglass (1740)This pamphlet is probably the single most famous pamphlet on colonial monetary history. The American Economic Association reprinted it in October 1897 as Vol. II. No. 5 of a series entitled "Economic Studies." The reprint includes a detailed biography of Douglass, written by William Bullock. When Andrew McFarland Davis republished the pamphlet in "Colonial Currency Reprints" he included his own commentary. There had been some doubt about when and where the pamphlet was originally published; Bullock accepts the view that it was first published in London. Davis presents convincing evidence that the Boston edition of the pamphlet is the original, and that it was published in the spring of 1740. Douglass was argumentative, opinionated, and an uncompromising hard money advocate. His belligerent prose, conservative views, and debtor-creditor interpretation of colonial monetary history all run counter to the tastes of modern historians; consequently, many view him with disdain. Economists have been more apt to admire his analytical ability. For example, Douglass was perhaps the first person to explain the so-called "Fisher effect." The "Fisher effect" -- named for Irving Fisher, a 20th century economist who made it famous -- is the tendency of expected inflation to increase interest rates. In Douglass's Postscript, you will find a remarkable analysis of the balance of payments, accurately anticipating what is now known as the "monetary approach to the balance of payments." The hyperlinks in the text take you to errata that Douglass provided when he wrote the Postscript to the Discourse. THE many Schemes at present upon the Anvil in Boston, for emitting enormous
Quantities of
Paper Currencies; are the Occasion of this Discourse. The Writer does not vainly pretend to
dictate to Government, or prescribe to Trade; but with a sincere Regard to the publick Good,
has taken some Pains, to collect, digest, and set in a proper Light, several Facts and Political
Experiences especially relating to Paper Currencies; which tho' plain in themselves, are not
obvious to every Body. If any Expressions should sound harsh, they are not to be understood as
a Reflection upon this Province in general: It was always my Opinion, That the Province of the
Massachusetts-Bay, is by far the most vigorous and promising Plant (with proper
Cultivation) of
all the British Plantations; in the best of Countries at Times, bad Administrations, and private
evil Men of Influence have prevailed. The Author is not a transient Person, who from Humour
or Caprice, or other Views may expose the Province; but is by Inclination induced, and by
Interest obliged to study the Good of the Country.
All Commerce naturally is a Truck Trade, exchanging Commodities which we
can spare (or their
Value) for Goods we are in want of. Silver it self is a Merchandize, and being the
least variable of
all others, is by general Consent made the Medium of Trade. If a Country can be
supposed to
have no Dealings but within it self; the Legislature or tacit Consent of the People, may appoint or
receive any Currency at Pleasure: But a trading Country must have regard to the universal
commercial Medium, which is Silver; or cheat, and trade to a Disadvantage: It is true, that in
some Countries of Europe Billon (a base mixture of Metals) is used for small
Change, but not as a
Medium of Trade.
Every Country or Society have their own peculiar Regulations, which may be called their
Municipal, or By-Laws in Trade: but the universal trading Part of the World, as one
tacit
Confederacy have fallen into some general Rules, which by Custom of Merchants
are become as
Fundamental: One of these is a Silver Medium of Trade, that all Contracts
(Specialties excepted)
are understood to be payable in this Medium, being always of the same fixed Value, or easily
adjusted by the Par, and accidental small Differences of Exchange from one Country
to another.
There can therefore be no other proper Medium of Trade, but Silver, or Bills of
Exchange and
Notes of Hand payable in Silver at certain U'sos or Periods, which by a currant Discount are
reducible to Silver ready Money, at any Time. The Debitor Party (I am ashamed to mention it)
being the prevailing Party in all our Depreciating-Paper-Money Colonies, do wickedly endeavour
to delude the unthinking Multitude, by perswading them, that all Endeavours of the Governour,
or
Proposals and Schemes of private Societies, to introduce a Silver Medium, or a Credit upon a
Silver Bottom, to prevent the honest and industrious Creditor from being defrauded; are
Impositions upon the Liberty and Property of the People.
Depreciating the Value of nummary Denominations, to defraud the Creditors of
the Publick and
of private Persons; by Proclamations of Sovereigns, by Recoinages, and by a late Contrivance of
a
depreciating Paper-Credit-Currency; were never practised but in notoriously bad
Administrations.
All over Europe for many Ages preceeding the 14th Century, the nummary
Pound, and the
Ponderal or Pound Weight of Silver were the same: but in some following Ages in
bad
Administrations the Values of nummary Denominations were gradually reduced; as in
England to
4 oz. Silver value (upon all Occasions I use the nearest round Numbers) one third of its original
Value; in Holland the Pound Ulams (6 Guilders) to 2 oz. Silver being
only one sixth of its original
Value. A general Stop has been put to those notorious publick Frauds ever since Trade began to
flourish; the civil Governments becoming more polite, found it their Interest in Affairs of a
Medium of Trade, to be advised by the more knowing and experienced Traders:
Thus, since the
Reign of Edward VI. in England, the Shilling Denomination hath lost
only 2 gr. Silver. We have
two or three Instances of late in Europe, that have deviated from that
Maxim of a fixed Value of
Silver in Trade; these were in arbitrary Governments, under most arbitrary Administrations.
1.France by Recoinages from A. 1689, to the wise Administration of Cardinal
Fluery, was
obliged to defraud the Subject, to maintain unjust Wars and Rapines upon its
Neighbours, and
lessen'd the Value of nummary Denominations from a Mark of Silver at 27
Livres to 80 Livres. 2.
The King of Spain A 1688 lowered his Denominations 25 per Cent. A
heavy Piece of
Eight formerly 8 Ryals Plate, passed for 10 Ryals currant. 3.
Sweden under the Administration of
Baron Gortz.
In all Sovereignties in Europe where Paper-Money was introduced,
great Inconveniencies
happened; upon canceling this Paper Medium all those Inconveniencies did vanish. 1. In
Sweden,
Baron Gortz, by imposing Government Notes (and Munt tokyns)
reduced the People to extreme
Misery (this was one of the principal Crimes alledged against him when he suffered capital
Punishment) but these being called in, and the Coin settled upon the same
Foundation as it was
before Charles XIIth Accession, Sweden flourished as formerly. 2. The late
Regent of France,
by the Advice of Mr. Law, did form a Project A. 1720, and by his arbitrary Power,
endeavoured
to put it on Execution; to defraud State Creditors and others, by banishing of Silver Currency,
and
by substituting a Paper Credit: the Effect was, the greatest Confusion, and almost
utter
Subversion of their Trade and Business: The Remedy was (Mr. Law
having sneak'd off, became a
Profugus, and at last died obscurely) after a few Months the Court of
France were obliged to
ordain, that there should be no other legal Tender but Silver-Coin; and Commerce was flourished
in France more than ever. At present, under the wise Administration of Cardinal
Fleury (who
allows no Paper Currencies, nor Re-coinages, which had the same Effect in depreciating
nummary
Denominations in France, that frequent and large Emissions of Paper-Money have in
our
Colonies) their Trade, bids fair to outdo the Maritime Powers (as Great Britain and
Holland are
called) and has a much better Effect in advancing the
Wealth and Glory of France, than the
Romantick butcherly Schemes of Conquest over their Neighbours, under the
Administrations of
Richelieu, Mazarine and others, in the Reigns of Lewis XIII
and XIV. 3. In Great Britain A.
1716, were current four and a half Millions of Pounds Sterling in Exchequer Notes,
being the
largest Quantity current at one Time: although they bore about half of legal Interest, and not
equal
to one third of the concomitant national Silver Currency; they laboured much in Circulation, and
the Government to prevent their being depreciated, was obliged to give considerable
Premiums to
the Bank for cancelling some of them, and circulating the remainder.
It is not easily to be accounted for, how England, France and
Holland, have tacitly allowed their
several American Colonies; by Laws of their several Provinces, by
Chancerings in their Courts of
Judicature, and by Custom; to depreciate from Time to Time, the Value of their
original
Denominations, to defraud their Principals and Creditors in Europe. The
British Plantations have
not only varied, from Sterling, but have also very much varied from one another; to the great
Confusion of Business, and Damage of the Merchant. This will appear plain by inserting at one
View the State of the Currencies in the several British Plantations; whereof some are per
Exchange, some in Spanish Silver Coin, and some in Paper
Money called Colony or Province
Bills of publick Credit.
Originally and for some Years following in all the English American Colonies, 5
s. Denomination
was equal to an English Crown Sterl. after some Time Pieces of Eight, being the
general
Currency of all foreign American Colonies, became also their Currency; and they remitted or
gave
Credit to the Merchants at Home (by Home is meant Great Britain) a Piece of Eight
(value 4 s.
6d. Sterl.) For a Crown or 5 s. Sterl. this is a Fraud of 11 per Cent. In sundry of our
Colonies
were enacted Laws against passing of light Pieces of Eight; these Laws not being put in
Execution, heavy and light Pieces of Eight passed promiscuously; and as it always
happens, a bad
Currency drove away the good Currency; heavy Pieces of Eight were ship'd off. This current
Money growing daily lighter, a Difference was made between heavy Money which became
Merchandize, and light Money in which they paid their Debts gradually from 10, 15, 20, to 25
per
Cent. as at present in Jamaica: this was another and continued Course of cheating their
Creditors and Employers at Home. From a Complaint of Merchants and others dealing to
the
Plantations; Q. Anne by Proclamation, and the Parliament of Great Britain,
afterwards by the
Proclamation Act, ordered, that after A. 1709, A heavy Piece of
eight and other Pieces in
Proportion to their Weight, in all our Colonies should pass
not exceeding 6 s. Denomination.
This Act continues to be observed in none of our Colonies, excepting in Barbadoes,
and
Bermudas. Virginia Currency was formerly, and continues still better
than what the Act directs.
In NEWFOUNDLAND, all large Sums are transacted in Sterling Bills of
Exchange; small
Dealings are in English Coin Sterling Value, and in Pieces of Eight at 4
s. 6 d. being the Sterling
Value.
In NOVA SCOTIA: The Sterling Bills of Exchange on the pay of the Troops,
Garrison, and
Train, Supply there with what they may have occasion for
from New England: Small Dealings are
in New England publick Bills, and in French Coin from Cape Breton;
one Livre equal to 4 s.
New England Currency: At Canso Fish and Oil are purchased by Bills of
Exchange New
Englandmoney upon Boston.
In the four Colonies of New England, viz. New Hampshire, Massachusetts
Bay, Rhode Island and
Connecticut, their Currency being Paper, is promiscuously the same.
NEW HAMPSHIRE (too diminutive for a separate Province, of small Trade and Credit) their
Publick Bills are so much counterfeited they scarce obtain a Currency; hence it is
(the
Governour's Instruction is also a Bar) that at present, their
outstanding Bills of publick Credit,
some on Funds of Taxes, some on Loan, do not exceed £12,000, gradually to be cancelled
by
December 1742. Their ordinary charge of Government is about £1500
New England Currency
per Annum. MASSACHUSETTS-BAY: This being more especially the scene of our Discourse, we shall
be
more particular. At the first settling of the New England Colonies; their Medium
was Sterling
Coin at Sterling Value, and Barter; some Part of their Taxes was paid in Provisions and other
Produce, called Stock in the Treasury. When they got into Trade a heavy piece of
Eight passed at
5 s. A. 1652, They proceeded to coin Silver Shillings, six Pences, and three
Pences, at the Rate
of 6 s. to a heavy Piece of Eight; Silver continued current at this Rate by sundry
subsequent Acts
of Assembly till A. 1705, by a Resolve of the General court Silver was to pass at 7 s. per
Oz. A.
1706 the Courts of Judicature chancered Silver to 8 s. per Oz. in satisfying of Debts,
being nearly
after the Rate of 6 s. a light Piece of Eight as then current. At this Rate Silver and Province Bills
continued upon Par until A. 1714, the Assembly or Legislature fell into
the Error of making from
Time to Time large superfluous Sums of Paper Money upon Loans, and the
Emissions for
Charges of Government not cancellable for many Years, so that these Publick Bills have
been
continually depreciating for these last 26 Years, and are now arrived to 29 s. per Oz.
Silver.
Massachusetts-Bay was the Leader of Paper Currencies in our Colonies. Their
first Emission
was of £40,000 A. 1690 & 1691, to pay off the publick Debts incurr'd by
that expensive,
tho' unsuccessful, Expedition against Canada; of this Sum
£10,000 was cancelled and burnt in
October A. 1691: In the following Years no more new Emissions, but some
Re-emissions of the
remainder, and that only for the necessary Charges of Government, called in by Rates or Taxes
within the year; the last Remission of these Bills was A.
1701, of £9,000 Bills all this Period
continued at the Rate of 6 s. a heavy Piece of Eight, and were called Old Charter
Bills. A.1702
began new Emissions of Province Bills; but, as it ought to be in all wise Administrations,
cancelled by Taxes of the same and next following Year, until A. 1704, the Rates for
calling them
in, were in Part postponed two Years; they began A. 1707 to postpone them in Part
for three
Years; A. 1709 for 4 Years; A. 1710 for 5 Years; A. 1711
for 6 Years; A. 1715 for 7 Years; A.
1721 for 12 Years; A. 1722 for 13 Years: Thus unnaturally instead of
providing for Posterity,
they proceeded to involve them in Debt. This long publick Credit and the enormous
publick
Loans, have depreciated our Province Bills to the small Value they bear at present; the Issues and
cancellings of their Bills being for a long Series of years too tedious to be particularly and
minutely inserted.
The Province of the Massachusetts-Bay besides the Emission &
Re-emissions of the £40,000 old
Charter Bills, have since A. 1702 emitted and re-emitted Bills of publick Credit,
£1,132,500 upon
Fund of Taxes, and £310,000 upon Loans, being in all near one
and a half Million; whereof
about £230,000 still outstanding, and if publick Faith be better kept will be gradually
cancelled by
A.1742. The ordinary Charges of Government may be about £40,000
New England Currency
per Ann. Exchange with Great Britain 4.50 per Cent. Advance, or five and an half
New
England for one Sterl. RHODE-ISLAND, their first Emissions were A. 1710, towards
paying more readily their Quota of
Charges on the Expedition against Port Royal (now Annapolis Royal) in
Nova Scotia, and have
emitted from Time to Time, in all £399,300 whereof only £19,300 upon Funds of
Taxes for
Government Charges, and £360,000 upon Loans, whereof there is at present
outstanding (all
upon Loans) £330,000 circiter; which, if their publick Faith should chance to be kept in
Time
coming, will not be finished cancelling until A. 1759. The Interest of those publick
Loans defreys
the Charges of Government, and of their Towns.
I shall embrace this Opportunity of exemplifying the Iniquity of Colony publick Bills of
Credit by
the Instance of Rhode-Island, a small Colony containing about 18,000 Souls, under an old
Charter
very lax and general; they admit of no Instructions from the King, Council, or Board
of Trade and
Plantations; the King having no Representative or Commissioned
Governour in their Legislature.
This handful of People have lately made a very profitable Branch of Trade and Commerce
by
negociating their own Paper Money in various Shapes; their Money being Loans of Paper
Credit
called Bills, from their Government to private Persons upon Lands Security; to be repaid not in
the same real Value, but in the same depreciating fallacious Denominations.
1. Their first Loan was A. 1715 for 10 Years, but have by subsequent Acts
postponed and
prolonged the Payments, so that the last Payment was A. 1738, thus A.
1715 Exchange was at 65
per Cent. with England, A. 1738 Exchange was at 400
per Cent. Advance; that is for £100 Sterl.
Value received, they pay only after the Rate of £33 Sterl. Suppose further, that the same
Person
upon the same Land Security, borrows again of the new Emission A. 1738, this
£33 Sterl. Value;
and, as formerly by repeated large Emissions, Exchange becomes as at present in
North-Carolina10 for 1 Sterl. by A. 1758 the period of this Loan,
the original £100 Sterl. Value
will be redeemed with £16 Sterl. Value. And if this Paper Money Loan Trade,
could be
supposed to continue, the Land Security would gradually vanish, the Land redeem'd and
the Debt
paid with nothing.
2. They who take up this Loan Money are called Sharers; and for the first ten
Years pay into the
Treasury 5 per Cent. per Annum Interest; and for the other ten Years pay 10
per Cent. per
Annum of the Principal, without Interest. The Sharers let out this Money, in their
own &
neighbouring Colonies at 10 per Cent. for the said twenty Years (some let it at a
higher Interest)
is at the Expiration of the twenty years £300 for every £100 Loan, Principal and
simple Interest;
for which only £150 is paid into the Colony Treasury, & £150 is clear Gain:
So that in this
Shape for every £100,000 Emission, their People in the space of twenty Years, have after
the
Rate of £150,000 clear Profits.
3. In another Shape; upon a new Emission, Interest is made with the Managers,
to obtain Shares
in the Loan: the Sharers immediately sell (or may sell) their Privilege, as it is called,
for ready
Money Premium; at the Emission A. 1738 the Premium was 35 per
Cent: that is, the Emission
of £100,000 does immediately produce after the Rate of £35,000 ready Money
profit.
4. Rhode-Island purchases from their neighbouring large Province of the
Massachusetts-Bay, all
Sorts of British and Foreign Goods with this Paper Manufacture which costs nothing, which
enables them to rival us in Trade, particularly in that valuable Branch of it to the West India
Islands, and to which by some unaccountable Infatuation we give a Currency; while at the same
Time our Merchants cannot make Returns by any Colony Paper Money, for these Goods; it is
true, sometimes they bring us Molasses from the Sugar Islands. We have a late good Law
against
the Currency of such Bills, but not being put in Execution, is of no Effect. The only
Reason that
can be assigned for giving the Rhode-Island Bills a Currency, is, that they are received in
all
Payments by Consent: The same Reason may hold good for passing of any Bills, even
the £500,000 lately proposed without Fund or Period; and of counterfeit Bills, as in Fact
some
Bills of Connecticut of small Denominations, tho' known to be Counterfeit, have a
currency.
CONNECTICUTT, a Charter Colony of industrious Husbandmen, having, with much
Prudence
emitted only small Quantities of Bills; Silver would have continued with them at 8 s. Per Oz. as
it
did in New York their neighbouring Government westward, if their People had not
given a
Currency to the publick Bills of their Brethren, in the neighbouring Colonies of New
England.
Connecticut emitted Bills only for the present necessary Charges of Government upon
Funds of
Taxes, until A. 1733, having granted a Charter for Trade
and Commerce to a Society in
New-London, this Society manufactured some Bills of their own, but their Currency
being soon at
a Stand; the Government were obliged in Justice to the Possessors, to emit £50,000 upon
Loan
to enable those concerned in the Society to pay off their Society Bills in Colony Bills;
their
Charter was vacated, and a wholsome Law enacted, That for any single Person, or Society
of
Persons to emit and pass Bills for Commerce or in imitation of Colony Bills, Penalty should be
as in Case of Forgery, or of counterfeiting Colony Bills. Their first Emission of Colony
Bills was
in A. 1709, and may have emitted in all £155,000 whereof only the above
£50,000 upon Loan.
There are at present outstanding about £60,000 which will be gradually cancelled by
A. 1742, if
the present good Assistants (Council) continue to be annually elected. They have at Times been
guilty of emitting small Sums for the present Supply of Government (by oversight and not with
any sinister Design) without annexing a Fund or Period; but have soon after been cancelled by
Taxes. Their ordinary charge of Government does not exceed £3,000 New
England Currency
per Annum.
N.B. This promiscuous Currency in the four Governments of New
England, that is, one Colony
giving a Currency to the enormous Paper Credit Emissions of one of the other Colonies, has the
same Effect as if that Colony did emit Bills of its own: thus the King's Instructions to the
commissioned Governments are evaded, by the popular Charter Governments, rendring
them of
no Effect, having as it were no Dependance on the Crown. A Parliamentary Regulation is
the
only adequate Remedy.
NEW-YORK chancered Proclamation Money to 8 s. per Oz. of Silver, at the same Time and
for
the same Reasons, as has been said of Massachusetts-Bay Government:
A. 1709 towards the
charge of an intended Expedition against Canada (upon this same Occasion, began
the first Paper
Money Emissions of New Jerseys & Connecticut) they issued
£13,000 publick Bills of Credit
bearing Interest: A. 1710 the Interest was taken off upon pretence, that it occasion'd
them to be
hoarded up as Bonds, and did frustrate their Currency; and £10,000 more Bills without
Interest
were issued. All these Bills being small Sums and faithfully paid off & sunk in Taxes,
did not
affect Exchange with England.
A. 1714. By collusion of the Governour, Council and
Representatives, a large Sum of £27,680
in Bills, was issued, to pay off Government Debts, whereoff some Part consisted of their
own ill
founded Claims; gradually to be cancelled by Excise on Liquors to A. 1734:
these were issued
with the Royal Assent. -- A. 1717 for paying of Government Charges
& Debts were
issued £16,607 without waiting for the Royal Approbation, gradually to be
cancelled by a
Duty upon Wines and Rum for 17 Years and Excise continued from
A. 1734 to A. 1739: this
Emission was connived at by the Boards of Council, Trade and Plantations at Home;
lest many
Persons who had bona fide received them for valuable Considerations, might suffer
by their being
suppressed. Which Indulgence this Government have abused, by never waiting for the Royal
Assent in their future Emissions.
In the intermediate Years were some small Emissions for Charges of Government, and
regularly
cancelled. -- A. 1734 issued £12,000 in Bills for Fortifications to
be gradually sunk before A.
1746 by Imposts -- A. 1738 issued £48,300 Bills, whereof
£40,000 upon Loan; all to be sunk
and paid in by A. 1750: this rais'd Exchange to 70 per Cent. and Silver
to 9 s. 3 d. per Oz. The
Lieut. Governour to obtain of the People a Governour's Allowance consented to humour them in
this Emission.
A. 1739, the Funds being otherways applied, it was found that contrary to
publick Faith, £15,000
of the Emissions A. 1714 & 1717 were still current, and fifteen Years more
upon Excise were
enacted to cancel them. So that now there is about £70,000 in Bills of
New-York current.
NEW JERSIES, A. 1709, issued £3,000 publick Bills of
Credit upon the intended Expedition
against Canada; and A. 1711 upon another intended Canada Expedition
£5,000 more Bills were
emitted, to be cancelled gradually before A. 1713; but were by Acts of Assembly
postponed, &
many bills of both Emissions were currant A. 1723.
A. 1724 emitted £40,000 in Bills whereof some small Part was to cancel
the old outstanding
Bills, and the rest upon Loan, to be paid in gradually in twelve Years. This being too large
an
Emission for a small Colony, their Bills became of less Value than those of
New-York; but being
yearly in good Faith, sunk, they became equal, and after some years 2 s. in the
Pound better than
New-York Bills. This is a Demonstration, that the Quantity of Paper Money
increasing or
faithfully decreasing, sinks or raises the Value of it. -- A. 1733, was issued
£20,000 more upon
Loan to be gradually paid in sixteen Years: this Emission fell their Bills to near Par
with
New-York. -- A. 1734, the first Loan of A. 1724, being near
sunk, the Assembly enacted a £40,000
Loan, but was not issued till A. 1736, having then obtain'd the Royal
Approbation, and passed
scarce at Par with New-York; but upon the New-York Emission of
£48,300 A. 1738, the
Jersey Bills were 6 d. in the Pound better than New-York Bills, and 1 s.
in the Pound better than
those of Pensylvania.
The Jersey Bills keep their Credit better than those of Pensylvania
and New-York for these two
Reasons, 1. New-York bills not being current in Pensylvania, and
Pensylvania Bills not being
current in New-York; but Jersey Bills current in both, all Payments
between New-York and
Pensylvania are made in Jersey Bills. 2. In the Jerseys
failure of the Loan Payments, at the Day
appointed; is equivalent to Judgment, and thereafter only
30 Days Redemption of Mortgages is
allowed.
The 5 per Cent. Interest of publick Loans defrays all Charges of
Government. In the Jerseys at
present about £60,000 in publick Bills current all upon Loan.
In the two Governments of PENSYLVANIA their Currency continued Silver Proclamation
Value, until A. 1723: The three Upper counties (strictly called Pensylvania) emitted
upon
Loan £15,000 in Bills, and A. 1724 emitted £30,000 more; but A. 1726
finding that in strictness
of the two preceeding Acts £6100 part of the Capital of £45,000 was sunk, the
Encouragers of
Paper Money procured an Act for re-emitting what should be annually paid in of the remainder
by
the Borrowers; and A. 1729 emitted £30,000 which have generally been
continued out by
re-emitting Acts from Time to Time. A. 1739 they made an Addition of
about £11,100 upon
Loan on the same Terms; so that at present they have £80,000 all upon Loan. Exchange
with
London 75 per Cent. before Emissions of Paper Money it was only 33 per
Cent.
The three Lower Counties have also Paper Currency in small Quantities, and upon the same
footing.
In MARYLAND Silver continued at Proclamation Value until A. 1734, with a
considerable
Concomitant Truck Trade as a Medium, viz. Tobacco; they
then emitted £90,000 in Bills, which tho' payable to the Possessors in Sterling well secured, the Sum being too large, and the Periods
too long, viz. three partial Payments of 15 Years Periods each; Exchange immediately rose
from 33 to 100 per Cent.
VIRGINIA has the same considerable Truck Trade Medium, viz.
Tobacco; and with regard to
Silver Currency have kept their Integrity better than the other Colonies. It is true, Lord
Culpeper
their Governour, about A. 1680, by an arbitrary Proceeding in the Quality of
the King's
Representative, did, by virtue of his own Proclamation, alter the Value of their Silver Coin for
his
own Profit, to defraud an English Regiment then paid off and disbanded, (this Regiment was sent
from England to quell an Insurrection or mutiny in Virginia under
Bacon) but soon finding, that it
occasioned much Confusion in Business, and did particularly affect his own Perquisites; he
reduced it again to the former Standard. Silver a few Years ago was 6 s. A Crown British, or 6 s.
3 d. per Oz. Silver, at present it is 6 s. 8 d. per Oz. of Silver, and £5 per Oz. Gold;
is 25 per
Cent. worse than Sterling.
NORTH CAROLINA, an inconsiderable Colony scarce capable of any Fund for Paper
Emissions;
have notwithstanding £40,000 upon Loan, and £12,500 upon Funds of
Taxes. At present
Exchange is settled by their Legislature at 10 North
Carolina for 1 Sterling.
In SOUTH CAROLINA their first Emission of publick Paper Credit was A. 1702, towards
the
Charges of an Expedition against St. Augustine. Their Legislature have been most
notoriously
guilty of breach of publick Faith in not cancelling their Bills. Besides the Emissions for
ordinary
Charges of Government, and their Expeditions against the North Carolina Indians A.
1711, and
against the Southern Indians A. 1715, they have large Sums upon Loans.
They may have at
present outstanding about £250,000 in Province Bills (whereof above £100,000
without Fund or
Period) besides private Notes of substantial Merchants negociated, payable upon Demand in
Province Bills; they have also a valuable Truck, viz. Rice. Their present
Exchange with London
as settled by their Legislature to ascertain the Value of Debts contracted, is 8 South
Carolina for1
Sterling.
In the new Colony of GEORGIA, their Currency are the Trustees sola Bills
Sterling: The Funds
are the Allowances by Parliament, and private Subscriptions to carry on the settlement.
PROVIDENCE including the rest of the Bahama Islands is scarce reckoned a
Colony.
In BERMUDAS a Colony of Sea Carriers; their Currency continues Proclamation
Value.
BARBADOES: Their Currency is Proclamation Value, by weight 6 s. 10 d
farthing per Oz.
Silver. By the Advice of Mr. W. from New England, they made the
Experiment of a Paper
Currency, and emitted £16,000 upon the Negroe Tax Fund, and soon after
£80,000 more upon
Loan; these Bills immediately fell 40 per Cent. below Silver, and upon
Complaint were directly
suppressed by an Order from England; and some of the Possessors who gave them a
Currency have Quantities of them to show as a Monument of this Folly, and of Paper
Money
becoming waste Paper.
Here as in all our Sugar Island, Sugar according to its Quality at the Market
Price, serves as a
Truck Medium to pay Debts. The Par of Exchange is 33 per Cent. but
generally lower and in
favour of Barbadoes.
The CARRIBEE LEEWARD ISLANDS of Antegoe, Newis, St. Christophers,
Montserrat, & the
Virgins, have depreciated from Silver Proclamation Value to 8 s. per Oz. in
the same Manner as
has been said of Massachusetts-Bay; but never proceeded to that Fraud, Paper
Money: light
Pieces of eight are current by Tale. Exchange 50 per Cent Advance.
In JAMAICA formerly a heavy Piece of Eight current at 5 s. but light Money taking Place as
a
Currency; the heavy Money was ship'd off in course of Time at 10, 15, 20 & 25 per
Cent. as at
present, Difference. At this time a light Piece of eight passes at 5 s. a heavy Piece of Eight at 6 s.
3 d. and Silver at 7 s. 2 d. per Oz. The Par of Exchange with London is about 36 per Cent.
difference, but generally higher and in favour of London.
Thus we see, that particularly in our Paper Money Colonies, the Currencies have
incredibly
depreciated from Sterling, and from one another. Exchange with Great Britain
being at this
Time (Febr. 1739) in New England 450 per Cent. in New-York, Jerseys,
& Pennsylvania 70 to 75
per Cent. in Maryland 100 per Cent. in
North Carolina 900 per Cent. in South
Carolina 700 per
Cent. worse than Sterling.
To make a Bill or Note bearing no Interest, and not payable till after a dozen or score of
Years, a
legal Tender (under the highest Penalties as in
New-York and Jerseys) in Payment of Debts, is the
highest of despotick and arbitrary Government: France never made their
State Bills a common
Tender. Our Paper Money Colonies have carried the Iniquity still further; the Popular or
Democratick Part of the Constitution are generally in Debt, and by their too great
Weight or
Influence in Elections, have made a depreciating Currency, a Tender for Contracts done may
Years before; that is, they impose upon the Creditor side in private Contracts, which
the most
despotick Powers never assumed. An Instance of a still further arbitrary Proceeding in relation to
Paper Money was an Act of Assembly in New Jerseys A. 1723, whereby
Executions for Debt were
stayed until Paper Money should be issued.
The Mystery of the infatuation of our Colonies running Headlong into a depreciating
Paper
Currency may be this: In many of our Plantations of late Years, by bad Management and
Extravagancies, the Majority of the People are become Debtors, hence their Elected
Representation in the Legislature have a great Chance to be generally of the Debtors Side: or in
other Words, the Representatives being generally Freeholders, and many of them
much in Debt;
by large Emissions their Lands rise in Denomination Value while their Debts become really less,
and the Creditor is defrauded in Part of his Debt. Thus our Colonies have defrauded more in a
few years than bad Administrations in Europe have formerly done in some
Centuries. The great
Damage done to the generous Merchants at Home, and to the industrious fair Dealers amongst
our selves; call aloud, for some speedy and effectual Relief from the supreme Legislature of the
Parliament of Great Britain.
There is an Argument, which tho' not much attended to here, may be of some Weight at
Home,
viz. That the Government at Home ought to connive at Paper Money in the Colonies,
because by
indulging them in this Error, all the Silver which they acquire from Time to Time is sent to
Great
Britain; and by the chimæra of a fallacious Cash, Extravagancies are
encouraged in favour of a
great Consumption of British Goods: This ought to be an Argument with us against that
Paper
Currency, which tends to turn the Ballance of Trade so much against us. It is true, That
Great
Britain naturally ought to reap some Profit by its Plantation Improvements; but a good
Farmer improves his Lands not by working them out of
Heart (as the Term is) but by manuring
them, that they may yield the better Crops; besides, what the British Merchants lose in their
Returns by the Colony Bills depreciating, and by the Bankruptcy of their Factors and Dealers
here; is much more then what Great Britain gets, on the abovesaid Accounts.
In the Sequel of this Discourse, I shall 1, Enumerate the Inconveniencies and bad Effects of
our
large Emissions of Paper Money. 2. Endeavour to remove the Prejudices which some designing
Men have infused into the Minds of the Populace in favour of Bills of Credit. 3. Consider
several
Projections or Schemes to rectify our Currency and present Circumstances, or to prevent their
growing worse.
The Mischiefs arising from a large Paper Currency are,
I. With regard to the particular and immediate Sufferers thereby.
1. The Labourers and Trades-men, who is all Countries, are the Heads which feed the Belly of
the Common Wealth, and therefore deserve our chief Regard. How much they have
suffered and
continue to suffer is obvious: For Instance, a Carpenter when Silver was at 8 s. per Oz. his
Wages
were 5 s. a Day all Cash. The Town House A. 1712 was built at this Rate; whereas
at present A.
1739. from the bad influence of Paper Money Silver being 29 s. per Oz. he has only 12 s. a Day,
equal only to 3 s. 4 d. of former Times; and even this is further reduced, by obliging him to take
one half in Shop Goods at 25 per Cent. or more Advance above the Money Price: this Iniquity
still grows, by reducing the Goods Part to the least vendable; the Shopkeeper refusing to let them
have Provisions, West India goods, or Goods of Great Britain that are in Demand.
To make the Case more familiar, Suppose a Tradesman laying in his Winter Store, when
Wages
were at 5 s. with one Day's Labour he purchases 15 Pound of Butter being 4d per Pound (I use
Butter because it rises the most uniformly of all Provisions) at present his 12 s a Day purchases
only 7 Pound of Butter at 20 d a Pound. The Clergy or settled Preachers to
Congregations in
Boston, no Offence in classing them with Labourers, when Silver was at 5 s. had
£3 per Week, at
present Silver at 29 s. per Oz. they have only £6 to £8 equal to 40 s. of former
Times.
The Shopkeepers are become as it were Bankers between the Merchants and
Tradesmen, and do
impose upon both egregiously. Shop Notes that great and insufferable Grievance of Tradesmen,
were not in Use until much Paper Money took Place: this Pay in goods which gnerally (sic.) are
of
no necessary Use (Provisions and West India Goods at this Time are removed from that
Denomination) encourage Extravagance in Apparel and Furniture much above our Condition.
2. The Merchants of Great Britain Adventurers to New England, because of their
largest
Dealings have suffered most. Their Goods are here generally sold at a long Credit, while
the
Denominations of the Money in which they are to be paid, continues depreciating; so that they
are
paid in a less Value than was contracted for: thus our Bills have successively depreciated from 8
s.
per Oz. Silver A. 1713, to 29 s. in this Year 1739; that is, if we could suppose the
same Person to
have constantly followed this Trade (without extraordinary Hits) for that space of Time, he
must
have reduced his Estate after the rate of 8 s. only for 29 s. For every Shilling in the Pound
that
Silver rises in Price, or, which is the same, for every Shilling in the Pound that the
Denominations
of our Paper Money depreciates, the Creditor actually looses 5 per Cent. of his Debt.
There have been from Time to Time seeking Factors, who to procure Business
from Home, have
entred into Engagements which could not possibly be complied with: these having little or
nothing
of their own to loose, soon make desperate Work of it; become Bankrupts, and from a general
insensibility of discredit, do notwithstanding keep their Countenance as before.
Many Factors to dazle their Employers for a Time, and in the mean while to
procure more
Consignments; send Home a high Account of Sales, by the Shopkeepers giving a great Advance
in
Consideration of a very long Credit, and to be drawn out in Shop Notes. This Practice has so
much prevailed, that it is now become a fixed tho' pernicious and ruinous Custom.
As Paper Money pays no Debts abroad, the Factor is obliged to give an extra Quantity of it,
to
purchase Silver, and other Returns; which can be exported, to satisfy Debts; in this Shape also
the
Merchant becomes a Sufferer.
3. Widows, Orphans, Funds for Charity at Interest, and all other Creditors; by
Bonds, Notes &
Book Debts, acquired by Industry, good Management, and Frugality; are great Sufferers from
Time to Time: For Instance, from Autumn A. 1733 to Autumn A. 1734 Silver rose from 22 s. to
27 s. per Oz. this was a Loss of 23 per Cent. of the Principal.
II. The repeated large Emissions of Paper Money are the Cause of the frequent rise of
the Price
of Silver and Exchange; that is, of the publick Bills of Currency depreciating in all the
Paper
Money Colonies; which do as regularly follow the same, as the Tides do the Phases
or course of
the Moon. When no larger Sums are emitted for some time, than what are cancelled of former
Emissions; Silver and Exchange are at a Stand; when less is emitted than cancelled (which
seldom
happens) Silver and Exchange do fall. This is plain to a kind of Demonstration, from the
Instance
in the History of our Paper Money Emissions in New England.
After Silver had rose A. 1706 to 8 s. per Oz. by light Pieces of Eight superseding
the heavy
Pieces; it continued at that rate, while Paper Emissions did not exceed a due Proportion to the
current Silver. A. 1714 we emitted £50,000 upon Loan, and A.
1715 in Rhode Island £40,000
besides Emissions on distant Funds for Charges of Government; in the Autumn A. 1715 Silver
became 15 per Cent. Advance above 8 s. that is about 9 s. 2 d. per Oz. Massachusetts-Bay
A.
1717 emitted £100,000 upon Loan and a very long Period; Silver rose to 12 s. per Oz.
A. 1721
Massachusetts-Bay emitted £50,000 and Rhode-Island
£40,000 upon Loan, Silver A. 1722
became 14 s. per Oz. From that Time a chargeable Indian War, required large Emissions, and
Silver rose to 16 s. per Oz it continued at this Rate till A. 1728, Emissions not being
larger than Cancellings. A. 1727 Massachusetts-Bay emitted £60,000 and
A. 1728
Rhode-Island emitted £40,000 upon Loans; Silver became 18 s. per Oz.
A. 1731
Rhode-Island emitted £60,000 upon Loan. (N.B. Besides the several Loans in
the course of this
History, all the Charges of he four Governments, were defrayed by Paper Emissions) and Silver
became A. 1732, 21 s. per Oz. A. 1733 Massachusetts-Bay
emitted £76,000 upon Funds of
Taxes, Rhode-Island £104,000 upon Loan and Taxes, Connecticut
£50,000 upon Loan, and A.
1734 Silver became 27 s. per Ounce. From A. 1734 to A. 1738 more
Bills were cancelled than
emitted, Exchange fell from 440 to 400 per Cent. Advance. A. 1738
Rhode-Island
emitted £100,000 upon Loan, Silver rose from 27 s. to 29 s. per Oz.
In New England, as in all other trading Countries, from some particular
Accident, and
Circumstances, there happened at Times, some small fluctuations in Exchange, without any
Regard to Emissions of Paper Money. At all Times, when Returns in Ship Building, Whale Oil
and Fins, Naval Stores &c. turn out well at Home; Silver and Exchange here suffer a small
fall: at
other Times when these prove bad Returns, Silver and Exchange rise a small Matter; the most
noted Instance was A. 1729, when the usual Returns to Great Britain
turned to bad Account; the
Merchants from Home, directed their Factors here, to make Remittances in Silver or Exchange
only, and at any Rate; together with an Agency from this Province and that of
Connecticut, fitted
out with a Silver Supply; Silver rose very considerably, but after a few Months fell again to the
former Price.
The Instance of Barbadoes must put this Assertion beyond all Dispute with sober
thinking honest
Men. A. 1702 by the Perswasion of Mr. W. from New England,
Barbadoes emitted £16,000 Bills
of publick Credit on a Fund of 3 s. 9 d. Negroe Tax; at first they passed at a Discount, but no
more being emitted, and the Period of cancelling being short, they rose again to near
Par: this
encouraged them to make an enormous Emission of £80,000 Bills on Land Security at 4
per Cent.
Principal payable after 5 Years: These Bills immediately fell 40 per Cent. below Silver: by an
Order from Home, they were soon suppressed, and their Currency became Silver Value as
before.
That Province has ever since kept their Currency up to Proclamation Value, Ballance of Trade in
their favour, Exchange to Great Britain being generally under 33 per Cent. the Par.
III. Large repeated Emissions of publick Bills of Credit, called Paper Money, is no
addition to
the Medium of Trade. No Country can have an indefinite or unlimitted Credit; the further
a
Country endeavours to stretch its Credit beyond a certain Pitch, the more it depreciates. The
Credit of a Country may be compared to that of a private Trader; if his Credit is equal to
£100,000
Sterl. his Notes of Hand for £100,000 will be as good as Silver; if it be known that he
passes
Notes of Hand for £200,000 Sterling. their full Credit will be suspected and eventually be
worth
no more than his real Credit £100,000 Sterl: if he can be supposed to utter £500,000
Bills or
Notes, his £5 Note will be worth only 20 s. Sterl.
In New England A. 1713 there were about two thirds Bills to
one third Silver current, equally to 8
s. per Oz Silver Value; there being an Allowance of 5 per Cent. in all publick Payments in favour
of Bills only, gave them a Credit beyond their natural Stretch. At that Time the publick Bills of
the
four Provinces were about £175,000 at 8 s. per Oz. Silver value (we use always the nearest
round
Numbers) is 438,000 Oz. Value, with 219,000 Oz of Silver Currency is 657,000 Oz. Silver
Value.
A. 1718 the publick bills of New England were £300,000 (Silver
all drove away by the worse
Currency of Bills) at 12 s. per Oz. Silver; is 500,000 Oz. Value in Silver.
A.1731 New England
publick Bills were £470,000 at 20 s. per Silver, is 470,000 Oz. Silver value.
A. 1739 the current
Paper Money of New England was £630,000 at 29 s. per Oz. Silver is in value
434,000 Oz.
Silver. Here it is plain that the more Paper Money we emit our real Value of Currency or
Medium
becomes less, and what we emit beyond the trading Credit of the Country does not
add to the real
Medium, but rather diminishes from it, by creating an Opinion against us, of bad Oeconomy and
sinking Credit.
A Country may exceed in any Commodity or Medium, excepting in that
universally Staple
Commodity and Medium Silver; and a smaller Quantity of any other Commodity or Medium will
turn to the same or better Account than a larger. In Holland upon a too large
Importation of
Spices, they destroy some Part, to keep up the Value of Spices. Not long since in
Virginia,
finding that Tobacco (their Currency as well as Export) by its too large Cultivation began to
depreciate; by Act of Assembly they restricted it to 1000 l. wt. per Annum per Tythable. In
Maryland A. 1734 & A. 1735 for the same Reason they burnt 150 l. wt. per Rateable. If our
House of Representatives allow our Paper Money to be cancelled in course, and be sparing in the
Manufacture of more; the Value of the remainder, would be equal to the Value of the whole now
current, or proposed to be added to the Currency.
It is therefore vain and inconsistent to make Provincial or Municipal Bills of
Credit, for a Medium
of general Trade: Merchants know how to find their own Tools or Medium of Trade,
better than
any Civil Administration can prescribe: in Fact, they who call out loudest for this Paper
Medium,
are not our large Traders; but such as would take up Money at any bad lay, viz. the
Idle, those in
desperate Circumstances, and the Extravagant; who never can have any other Claim to Money
but
by Fraud; we must except some who tho' naturally honest are misguided. Publick Bills of Credit
in a proper Sense are only to defray the incident Charges of Government which may accrue,
before the proper Ways and Means of Taxes can take Place; but so soon as can be, to be
cancelled
by those Taxes. We know of no Country in Europe, where Exchequer Notes, State
Bills, or other
Bills of publick Credit, have been issued by the Government for a Medium of Trade.
IV. This infatuation in favour of Paper Money has had a mutinous bad Effect upon the
Civil
Government, in several of our Colonies. The Representatives of the People, have
frequently
refused to provide for the necessary Charges of Government, and other wholesome Laws;
because the Governours & Councils, would not (in breach of their Instructions from the
Crown)
concur in emitting large Sums of Paper Money to defraud the industrious Creditor and fair
Dealer.
I shall mention only a few Instances. In S. Carolina A. 1719 the People deposed the
Proprietors
Governour on this Account: it is true, the King did not much resent this Mutiny;
perhaps, that the
Proprietors might be weary of their Property and government; and accordingly seven of the eight
Proprietors, for a small Consideration, did A. 1729 resign and sell to the Crown:
Upon Governour
Johnson's arrival in S. Carolina A. 1731, there had been no Supply
granted in the four preceeding
Years. The Government of the Massachusetts-Bay, has from Time to Time been
distressed, by
our Representatives refusing Supplies for the necessary Charges of Government, and other
publick Affairs neglected on this Account: Our present Governour's fortitude and steady
Adherence to the King's Instructions, & his having shortned the long Periods of Emissions
for
Charges of Government (I am under no Obligation to flatter) are highly laudable.
New
Hampshire Representatives for five Years preceeding A. 1736 granted no
Supply. As the French
humour of building Forts, to protect their Settlements against an Enemy; and as the Spanish
humour of Devotion, in building Churches and Convents, is perverted, by their becoming
Nurseries of Idleness and other Vices; so the English Liberty and Property of the
Subject, in
many of our Plantations are somewhat abused, to levelling and licentiousness; it is true, all Men
are naturally equal, but Society requires subordination.
V. Long Credit, is not one of the least of the bad Effects of Paper Money.
People run in Debt,
endeavour after a long Credit, and refuse paying their Debts when due; because while Bills are
continually depreciating, the longer the Debt is outstanding, they pay their Creditors with a less
and less Value, than was contracted for. Sir Alexander Cumings in his Defence
wrote A. 1729
says, that in his Time in South Carolina, pay, after twelve Months, was reckoned as
ready Money.
Long Credit thus obtained, does in its turn, forward a bad Currency, they go Hand in Hand. A
Creditor after being long out of his Money, chuses rather to take the bad Currency and run the
Risque of passing it off again (as was the Case of the Rhode-Island Emissions
A. 1733 & 1738)
than of losing his Debt, if another Creditor should take it, and the Debtor afterwards become
Insolvent.
With ready Money or short Credit, Business goes on brisk and easy. Long
Credit occasions the
unthinking of all Conditions and Occupations, to involve themselves. A Merchant over-trades
himself, a Shopkeeper buys more Goods, and at a greater Advance than he can afterwards
comply
with; the Countryman buys and Mortgages Lands, to his final Ruin.
VI. Insensibility of Discredit, does naturally follow long Credit: All Shame and
Modesty is
banished even in the Creditor; who, tho' formerly a modest forbearing man, is now obliged to
Dun
incessantly or lose his Debt. Ready Money and short Credit, give a quick Circulation; the
quicker
the Circulation, the less Quantity of Medium is required to carry on the same Trade
and Business;
long Credit, and insensibility of Discredit, have the contrary Effect. There are at present extant
of
New England publick Bills of Credit about £630,000 a much larger Sum than
ever was extant at
any other Time; yet Money was never so scarce and Debts worse paid: People chuse rather
to
hoard it up, and wait for better Times, than put it out and not be able to recover it again,
but after
an unreasonable Length of Time and much Trouble; Money hoarded up, is the same as if not in
being, as to Currency. If a Shopkeeper does not clear with his Merchant, till after two or three
Years due; he is notwithstanding esteem'd as honest as his Neighbour: Our Courts are full of
plain
Bonds, and Notes of Hand; Appeals on them are allowed, Executions delay'd &c. This
insensibility of Discredit, breaks all Friendship; it makes a Man cautious of lending his Money to
his best Friend, and nearest Relation.
A general Clamour for a depreciating Paper Currency, is a certain Sign of the Country being
generally in bad Circumstances, that is, in Debt; because all Creditors who by their
Industry and
Frugality have acquired Rents, Bonds, Notes and Book Debts, loose by its depreciating; and the
Debtors (the Idle and Extravagant Part of the People) come off easy by the Creditors loss.
Seeing
they who are desperately in Debt, and want to pay a smaller Value than contracted for, or
they
who have nothing to loose, are generally of the Party for Paper Money; this ought to be a
strong
Prejudice against it, with sober thinking Men.
We have some prevailing Customs and some Laws in force, which seem to
encourage this
insensibility of Discredit in Debtors; 1. A Maxim amongst Shopkeepers;
That the most ready
Way to grow rich, without any Expence of Industry; is, to run boldly in Debt, procure a long
Credit, after Time of Payment is elapsed to bear Dunning with a good Face, and finally to let the
Debt take its full Course in the Law, which further requires twelve Months or more, at a small
Cost: Notwithstanding this Chain of Iniquity, the Debtor keeps his Countenance, and many
Factors continue to trust him with their Employers Goods as formerly. 2. Estates too easily
allowed to be represented as Insolvent; whereby Creditors are defrauded of some Part of
their
Due. 3. Appeals upon plain Bonds, Notes of Hand, and Defaults, to the great Relief
of the
fraudulent Debtor, and the Damage of the honest Creditor. 4. Sheriffs impune
delay of
Executions, while the Creditor is allowed neither Interest nor Damage upon the Debt. 5.
The too
general Laws for the relief of insolvent Debtors, whereby the Fraudulent, the Idle, and the
Extravagant, when sent to Goal; are too soon, and at too easy a Rate turned loose to follow the
same Courses. What I have here said, cannot be understood in contempt of our Legislative
Authority; because of that valuable Privilege belonging to our Constitution, viz. of
repealing,
amending, or explaining what Laws from Experience may be found to require the same.
The Arguments current amongst the Populace in favour of Paper Money are,
I. In most of the Paper Money Colonies one of the principal Reasons
alledged for their first
Emissions; was, to prevent Usurers imposing high Interest upon Borrowers, from the
scarcity of
Silver Money. It is true, that in all Countries the increased Quantity of Silver, falls the
Interest or
use of Money; but large Emissions of Paper Money does naturally rise the Interest to make good
the sinking Principal: for Instance, in the Autumn A. 1727 Silver was at 26 s.
to 27 s. per Oz. but
by a large Rhode Island Emission, it became in Autumn 1739, 29 s. per Oz. this is 7
per Cent. loss
of Principal, therefore the Lender to save his Principal from sinking requires 13 per Cent. natural
Interest (our legal Interest being 6 per Cent.) for that Year. In Autumn A. 1733
Silver was 22 s.
per Oz. by large Emissions it became 27 s. in the Autumn A. 1734; is 22 per Cent.
loss of
Principal, and the Lender to save his Principal requires 28 per Cent. natural Interest
for that Year.
Thus the larger the Emissions, natural Interest becomes the higher; therefore the
Advocates of
Paper Money (who are generally indigent Men, and Borrowers) ought not to complain, when
they
hire Money at a dear nominal Rate.
If Bills were to depreciate after a certain Rate, Justice might be done to both contracting
Parties,
by imposing the loss, which the Principal may sustain in any certain space of Time (the Period of
Payment) upon the Interest of a bond or Price of Goods: but as depreciations are uncertain, great
Confusions in Dealings happen.
II. That the Merchants arbitrary Rise upon the Price of Goods, does from Time to Time
depreciate the Denominations of our Paper Money, is imposed upon the unthinking Part
the
People, as a certain Truth, by designing Men. It is certain, that in all Countries of Europe, where
by Recoinages or Proclamations, the current Specie has been debased; the nominal Price of
Goods
did naturally rise in Proportion: is it not more natural to say, that formerly in France their
recoinings or lessening the Value of their Denominations, did rise the Price of Goods; than to say
that the Rise of the Price of Goods, was the Cause of their Recoinages. A continued Rise on
Goods in general is from a depreciating Medium; but fluctuations in particular
Goods, are from
the Quantities and Demand; thus A. 1739 Provisions the most Staple of all
Commodities have
been cheap, viz. Wheat at 10 s. per Bushel, Silver being 29 s. per Ounce, whereas
A. 1738 Wheat
was at 18 s. per Bushel, when Silver was only 27 s. per Oz.
When a large Emission can be foreseen the Price of Goods rises; because being sold upon
long
Credit, the effects of the Emission will take Place before the time of Payment: hence it is that
generally the Price of Goods Advances, before Exchange and Silver do rise;
Exchange and Silver
being bought with ready Money, cannot take Place until the Addition is made to the Currency by
this new Emission, and then only gradually as the Merchant receives his Pay; thus the large
Emissions of A. 1733 did not bring Silver to its height, 27 s. per Oz. until Autumn,
A. 1734:
Hence proceeds that inculcated Fallacy of the Advance on Goods rising the Price of Silver and
Exchange. The same Reason for Lenders of Money, imposing a high Interest, holds in the Rise
of
the Price of Goods: Custom has given a long Credit, Insensibility of Discredit makes it still
longer,
and before the Merchant is paid, the Currency is become much depreciated.
III. The Sticklers for Paper-Credit requiring long Periods, as well as large Emissions is
a most
unnatural Desire. Some of the Massachusetts-Bay Loan, of A.
1717 is still outstanding A. 1739:
The several Rhode-Island Loans do not terminate in less than 20 Years: By this
unnaturalContrivance they oblige Posterity to supply the
Extravagancies of their Parents and
Ancestors, instead of the common and natural Instinct of Parents providing for their Children.
IV. It is not repeated large Emissions of a base Paper-Currency, but our Imports
exceeding our
Exports, that occasions Silver to be ship'd off in Ballance; therefore we are not to expect a
Silver-Currency supposing all Bills cancelled. Before Paper-Money took Place in
New England,
Silver abounded in Currency as much and perhaps more, than in many of our Colonies: Our
Exports are always in Demand, viz. Ship-building, all Branches of Fishery, Naval-Stores to
Great
Britain, Logwood from the Bay of Honduras, Lumber, Stock, and other
Provisions to the other
Colonies; and (Bermudians excepted) our Navigation is the cheapest of all Carriers.
Silver began
to be generally ship'd off as paper became the Currency; which gave the Merchant the Liberty of
shipping off his Silver as Merchandise, which otherways he must have kept as Cash, seeing no
business can be carried on to Advantage without Cash. In all Countries if a bad
Medium is
introduced, People take care to secure the better Mediums and they are no more
current.
The Fallacy of Quantities of Paper-Money, has increased our superfluous Imports, much
beyond
what was in former Times. The seeking Factors upon a large Emission, advise the
Merchant in
Great Britain, that Money being now very Plenty, a large Quantity of Goods will
sell:
Accordingly a Glut of Goods is sent to New England, more than can be sold for
ready Money and
short Credit; the Consequence is, a long Credit, with its consequential Multitude of Evils; that is
Returns or Exports in full, are never, or not, till after a long Time, ship'd off.
Our Paper-Money being only passable amongst our selves, is the Reason, why, they
who deal only
in buying and selling a Shore, get the most Money; all their Profits are upon our selves,
and run
no Risque of Precarious Returns; while the generous Merchant looses upon his Exports to a
foreign Market. This is a ruinous Case.
As Paper-Money grows scarce, Imports will be less, and be sold cheaper; no
Country can want a
true real Medium of Trade, while their Exports exceed their Imports: Let us then lessen our
Imports by our Frugality, and add to our Exports by our Industry; and we shall have no occasion
for this chimerical ill founded Medium, Paper Money.
V. The goodly Appearance, which Boston and the Country in general at present, make
in fine
Houses, Equipage, and Dress, is owing to Paper Money. All our Plantations from some
Infatuation, are inclinable to run into Prodigality, Profuseness, and Show: these Paper Loans
(from publick or private Schemes) upon long Periods, give the unthinking and unwary,
Opportunities of involving themselves, by thus sinking what they have borrowed; by repeated
emissions, they have Opportunities of paying a former Debt, by running further in Debt, till at
length they become Insolvents. People do not consider, that all Emissions upon Funds of Taxes
or upon Loans, is running the Country more and more in Debt, and will in Course fall heavy
upon
every Individual. Never were greater Complaints of want of Money, while at the same Time,
never more extravagance in Equipages and Dress. Boston, like a Private Man of small
Fortune,
does not become richer but poorer, by a rich goodly Appearance.
What Part of these Emissions have we laid out in Improvements of Produce, or Manufacture?
Not any. It is true, it gave some Men Opportunities of building Vessels and running into Trade;
but their Education and Experience not laying that Way, and having no other Bottom of their
own, they soon became broken Merchants.
Expending in fine Houses & Apparel what ought to have purchased Exports, is one of
the
Reasons, why Ballance of Trade is against us.
There is another Fund for all this finery, and of which we ought not to boast, but
be ashamed.
By the Means of a depreciating Currency the Merchant at Home, has been paid in less Value,
than
was contracted for; his Loss was our Gain. Several Factors from Time to Time, have by Artifice,
& Assurance, procured large Commissions from Home, and with Effrontery and
Insensibility of
Discredit, have become Bankrupts: Thus the Produce of these Effects remained here, and makes
good in some Sense, that Position of Dr. Mandevilles; Private Vices are publick
Benefits.
VI. This Country formerly had but a small Trade, now our Trade being much enlarged,
we
require a large Medium. This like all Arguments commonly used to pervert the People is
very
unnatural: because the more a Country grows in good Trade, the more true Medium
of Trade it
acquires, and would have no Occasion, to have recourse to a fallacious Succedanium
or Shift.
Notwithstanding the vast Floods of Paper Money lately emitted, and our Trade also more
general;
we find that in former Times, the People were more willing and able to pay high Rates, than at
present. The first Assembly upon the new Charter, did in June A. 1692, lay a Tax of
£30,000
(equal to upwards of £120,000 present Currency) payable within the Year, viz.
one half before
25th of December A. 1692, and the other half before 1st of May 1693;
towards paying off
Charges formerly incurred by the Canada Expedition and Charges of that Year. A.
1694 the Tax
was £17,589 (equal of upwards of £70,000 present Currency) towards paying off the
Government Charges of that and the preceeding Year. Whereas, we who reckon our selves so
much increased in Trade at present A. 1739 refuse a small Rate of about only
£50,000 towards
paying Government Charges incurred A. 1728, A. 1733, and
A. 1737.
VII. How can we pay our Taxes and Debts, if the Government do not make large
Emissions of
Paper Money? In all Countries excepting in Paper Money Colonies, the People support the
Government; it is absurd to imagine that a Government finds Money for its People, it is the
People who by their Trade and Industry, provide not only for their own Subsistence, but also for
the Support of Government, and to find their own Tools or Medium of
Trade. It is true, the
Government, that is, the Stewards of the Publick, may by the Consent of their Principals, the
collective Body of the People; raise Money upon the Credit of the Real and Personal Estates of
the People: but this in Propriety of Speech, is not making (or acquiring) of Money as we term it,
but the reverse: A Prodigal who involves his Estate to raise ready Money, is it not ridiculous to
say he has made so much Money; whereas in effect he has spent so much Money by sinking
some
Part of his Estate. The unthinking Part of our People do not consider, that every Emission
of
Paper Credit called Money, is laying a heavy Tax upon us, which in Time will contribute
to our
Misery: and is really analogous to the Negroes in Guinea, who sell their Progeny into Slavery,
for
the sake of raising some ready Pence.
Our present Rates, are only a calling in Bills formerly Emitted, and therefore are supposed in
being, and do not require a new Emission. This Cry is the same, as if a private Person borrows
of
another £100 payable after some Time, and in the mean while by profuseness and bad
Oeconomy,
becomes incapable of satisfying the Debt when the Term of Payment is come: but says to the
Lender, you use me very ill, if you do not lend me £200 to enable me to pay the first
£100 and for
other Occasions: If the Lender proceeds thus to indulge the Borrower, this bad Husband must at
length be reduced to a State of Bankruptcy: Province Bills are as much a Debt upon the
collective Body of the People; as a private Man's Bonds and Notes of Hand, are of a Debt upon
himself.
VIII. The Emission of £35,000 to 40,000 per Ann. for the ordinary Charges of
Government, is a
small insignificant addition to our Currency; publick Loans have been found inconvenient; let us
then emit large Sums in Province Bills (the charge of making Bills is a Trifle) towards publick
Edifices, Fortifications, Guarda Costas, Bridges, Castles in the Air, or any Thing, tho' of no Use
or Consequence: they will draw out larger Sums, and considerably increase our Currency.
They
do not consider, that this contracting a large unnecessary Debt, to be redeemed after some years,
by heavy Rates and Taxes, will occasion a Clamour, perhaps a Mutiny, worse than the present
groundless Complaints of Oppression. Such unnecessary Impositions are frequently Grounds of
Complaint in the People against some Governours; but that the People should thus impose upon
themselves, is one of the unnatural Effects of Paper Money.
IX. Seeing, there is like to be no Stop to our Infatuation in receiving the depreciating
Bills of
Rhode-Island; why should they reap all the Profit in our Ruin: why should not some
of our
merciful Selves (as the Authors of the 500,000 Scheme call themselves) partake with them
in the
Plunder, by taking the Advantage of our present Indispositions & Weakness, Carry the
Imposition
further than that of Rhode-Island; even beyond what could have entred into the Heart
of Man, at
any other Time or Place, to conceive: I mean the emitting of 500,000 in Notes without Fund or
Period; a Project, to outdo the Rhode-Islanders in Fraud, & to make these Bills
more current,
because worse than those of Rhode-Island: it is almost incredible to what a Pitch of
Iniquity some
People are arrived, even prophanely to lard their Proposals with Scripture Phrases, to
impose
upon the Vulgar waste Paper, instead of a valuable Medium.
The several Projections or Schemes which occur at present, towards rectifying our Currency,
or
at least to prevent its growing worse, are
I. Of a publick Nature
1. Is palliative, to prevent its growing worse, by bringing it to a Standard. By
Act of Assembly
let the Governour and Council be impowred, with the Advice of Merchants, to settle once
or
twice a Year the Price of Exchange to London, or of Silver, in Province Bills; all Bonds,
Notes,
and Book Debts when paid, shall be received in Province Bills equal in Value to the Exchange or
Price of Silver, as it was thus settled at the Time of contracting: For Instance, if I contract
for £500 New England Bills of Credit when the Exchange is settled at 5
New England for 1
Sterling, and when the Contract is to be satisfied, Exchange is settled at 6 for 1; I must pay the
true or Sterling value, which is £600 New England Bills; this is strict Equity
and natural Justice, it
will effectually obviate the fraudulent Practices of those who are constantly clamouring for more
Province Bills, and prevent the neighbouring Colonies from imposing their depreciating Bills
upon
us. Both Carolina's have given us a successful Precedent.
2. As private Credit, being under Coercion, is better than publick Faith, which being above
the
Law, is lawless. Let the Legislature give a Sanction to some Society, of good substantial
Men,
who may be willing to emit Bills upon a good Silver Bottom, continually meliorating at a
small
Rate, v.g. 3 per Cent. per Ann. to prevent their being hoarded up; and receivable in
Taxes and all
publick Payments: Such bills will soon bring a Discount upon all other Bills. We have at this
Time (Christmas A 1739) a remarkable Instance of private credit being good, and
publick Faith of
no Account: Merchants Notes (a private Emission some Years ago upon a Silver
Bottom) are
sold at 33 per Cent. Advance, their true Value above common Currency; at the same Time,
our
Province Bills of the new Tenor, which in good Faith are 25 per
Cent. better than the other
Currencies, pass promiscuously with the bad Currencies at Par.
3. Let Massachusetts-Bay Bills only, be receivable by the Treasurer of the
Province, Counties, &
Towns; all Bills of the old Tenor when brought into their Treasury, to issue no more: that
all
publick Bills hereafter to be emitted, be of the Nature of our late Bills of a new Tenor,
with this
additional Clause, "And after the last of December A. ---- the Treasurer is hereby
directed,
without further Advice or Order, to pay to the Bearer --- Silver or --- Gold upon Sight" : The
fund for bringing in this Silver and Gold from abroad, to be Impost upon Goods, Tonnage, and
Light-House Money, payable in Silver or Gold only. At the several Emissions, let there be an
equal Sum taxed on subsequent years within the Period; and these Taxes at the same Time
assessed on the several Towns, ordering the Province Treasurer at the stated Times to issue out
his Warrants accordingly without further Order; to prevent breach of Faith in future Assemblies,
refusing to assess the Taxes of the Year, which is the same as postponing. thus all these Bills
will
have the Credit of a Silver Bottom, tho' in their nature they will be cancelled in
Course by Taxes,
before the Period of redeeming them by Silver arrive; that is, there will be
none left to make a
Demand upon the Treasury: the Silver lodged, will, after the Period, be ready for any
Exigency of
Government. In Fact, if breach of publick Faith do not intervene; the present Bills of the
new
Tenor will, by the end of December A. 1742 bring Silver to 20 s.
per Oz. -- Let all new Emissions
be in Bills of a second new Tenor, two for three of the first new Tenor, payable in
Silver or Gold
after the last of December A. --- if not paid in by Taxes as above. Thus Silver
will be brought
to13 s. 4 d. per Oz. ---- Finally, after some Years let all future
Emissions be in Bills of a third new
Tenor 1 for 2 of the second Tenor, payable in Silver or Gold after the last of
December A. ----
with the forementioned Circumstances; Silver will then be 6 s. 8 d.
per Oz. It is plain,
that £100,000 of this last Money, will be a larger Medium of Trade, than
£400,000 of the present
Currency. This promises best, and would be a gradual, gentle, and easy Method of making
our
Currency as valuable as that of Virginia, which is the most valuable of all our Colony
Currencies.
4. The Parliament of Great Britain are at this Time, perhaps, taking some more
summary Method
of setling our Plantation Currencies towards redressing the injured Merchants
at Home, and the
fair Dealers in the Colonies; they made some Steps towards it last Sessions of Parliament. It is
probable they may abridge the Plantations of this Privilege which they have assumed, of
making
their publick Bills of Credit, a Tender at any Rate they please to impose, which is
equal to the
King's Prerogative in Coins. And to prevent private Societies, from bubbling the People;
perhaps, they may extend, the Act 6th of Anne, to the Plantations, viz. That no
Partnership
exceeding Six shall act as Bankers.
II. Private Schemes. It happens unluckily for our Paper Money Advocates, that,
at this Time
when the Parliament are about redressing these Grievances, they should madly
advance many
more Schemes (some fraudulent, some foolish, and some good, but impracticable) than ever
before for multiplying of Paper Money; this makes good the old Saying, Quem Dues vult
perdere,
prius demantat.
All Private Banks for large Sums upon Subscription, have the same bad
Consequence which
attends publick Loans, viz. a Snare to the People, by giving the unwary, and the
Prodigal,
Opportunities of borrowing, that is, of involving & ruining themselves. Our
Legislature from
Experience, are become sensible of this Error, and for many Years have issued no publick Loans.
1 Land Banks. The famous Mr. Law, noted for his Knowledge in
the Chances of the Games
called Hazard, and for these Fallacies called Sharping: in favour of a Land Bank, being
preferable
to Silver, says, That Land Mortgaged serves for Money, and Culture, or Produce at
the same
Time; whereas Silver cannot serve for Money, and Plate at the same Time. As he did not
understand Trade, he did not consider that Silver serves for Money and Merchandize
at the same
Time, and that Trade is more profitable than Agriculture. A Land Credit or Bank may do in a
Country of no Trade: but it is ridiculous to imagine that it can serve as a Medium for
foreign
Commerce: it cannot be shipt off as Merchandize or Returns, as is the Case of Silver; it cannot be
transferred by Bills of Exchange; for so many Ounces of Silver received in Boston, I
can draw
upon my Correspondent for so many Ounces of Silver payable in London, but for so
many Acres
of Land made over to me in New England, I cannot draw upon England
for any Number of
Acres, quantity and quality adjusted.
In a Country where the Denominations of their Currency depreciates, Land being fixed in
itself,
rises in Denomination Value, whilst what is owing upon the Land becomes so much less as the
Denominations do depreciate: Hence it is, that a Land Bank is so much desired, by those who are
in Debt or Mortgage, or who desire to run in Debt by Mortgaging their Lands.
2. A Credit or Bank of Produce, and Manufacture, will never answer in a
Country where Idleness
and Indolence prevails; a late large Bounty upon Hemp did not encourage the raising
of any
considerable Quantity thereof: it would prove a most perplexed labouring Affair, viz.
inspecting
the Quality, settling from Time to Time the Market Price, Deficiencies in Case of bad Crops, and
other Misfortunes: Notes payable at these unweildy Stores, would be of the same
nature, and
attended with the same Inconveniencies, as the so much deservedly exclaimed against Shop
Notes. In the Infancy of Countries, particularly of this Province, some Part of the
Taxes were
paid in Produce, called Stock in the Treasury; but as our foreign Trade did grow, it
was found
most convenient to discontinue it.
I shall exemplify our present Projections of Banks upon Land, Produce, or Manufacture; by
only
one Instance. The Bubble of £450,000 upon Land and Produce, which
fills by Subscriptions a
great Pace; the Subscribers by their Articles give their Twelve Directors a Negative in the
whole
Management; a Power never before heard of in any Society of Bankers or joint Stocks; it
is true,
they deserve it; because, by the Face of their Bills, the Directors or Signers promise to
circulate
the whole£450,000. But is it possible, that any Man who gives himself the Trouble
of thinking
seriously, can imagine, that 12 Men of small Fortunes (who perhaps do not trade for
£30,000 per
Ann.) should in their Trade, immediately circulate £450,000? Can it be supposed possible
to
negotiate Notes of so great a Sum, upon so small a Bottom? In short, this Scheme is
so full of
Inconsistencies, that it seems to exceed any of the Bubbles (which were upwards of
100 in
Number) projected in London, in that Year of Bubbles A.1720.
3. A Credit upon a Silver Fund well regulated as to Periods and Discounts,
would answer, if there
were no concomitant bad Currency; but as a bad Currency already prevails, and will in all
probability increase; by two Years Charges of this Government to be emitted at once; by
a £100,000 Rhode-Island Emission, which they may throw in upon us at
Pleasure; and by a new
Emission of £100,000 from Connecticut, which they have been endeavouring
from Time to
Time, by trying to drop a majority of the present Assistants or Council; Silver will
then rise in
Price, and these Notes on a Silver Bottom becoming more valuable, will be hoarded up, lie
dormant, and answer no Design of a Currency: It is true, they will secure to the
Possessor his
Principal with a growing Interest; but as to Currency they are worse than common Bills,
which
being daily let upon Bond to circulate and promote Business, tho' at the same Time the Owner or
Creditor sinks part of his Principal, by its depreciating; and his Interest is ill paid from a general
insensibility of Discredit. Such Bills will never obtain a Currency, until they force a
Discount
upon the bad Currency.
An Experiment of this Kind, has already been made by the Merchants Notes so
called, without
any good Effect: they never became a Currency; they prov'd a Snare to many of the Subscribers
and Borrowers; Silver did rise in Price as much and perhaps more, than if they had never been
emitted. Any Scheme of this Nature if upon a longer Period, will on that Account, be the more
defective.
If the Scheme for emitting Company Notes or Bills, to be paid after 15
Years, with Silver at 20 s.
per Oz. can be so contrived, as to bring a growing Discount upon the bad Currency; it will
be of
the greatest Service to this Province. It seems to bid fair for it (I am no Undertaker nor Promoter
thereof, and therefore may be deeded impartial) the Undertakers are Men of known
Probity, of
the best Estates and of the largest Trade in this Place: by their Articles they oblige themselves
under high pecuniary Penalties, to circulate these Bills at a certain annually growing Value, until
they arrive at 20 s. per Oz. and, in conformity to a late Law of this Province, to refuse all future
Emissions of the neighbouring Governments, unless founded upon a Silver Bottom.
It may perhaps be advisable to suspend the Execution of any Paper Money Schemes, as
the
Affair of Colony Paper Credit, is this present Sessions, under the immediate Consideration of the
Parliament of Great Britain, our supreme and absolute Lawgiver: lest the Subscribers
(Undertakers) or Possessors of these Bills and Notes should suffer some considerable Damage,
by their peremptory Suppression.
The Projectors of the many various private Banks for Currency, seem to presume too much
upon
the Indulgence or Connivance of our Legislature: Some audaciously question their
Power to
prevent the People from bubbling one another, (being as they call it) an Act of
Liberty and
Property to pass and receive Notes of Hand; others impudently impeach the Integrity of
the
Majority of the Legislature, as being in a private Capacity Promoters and Encouragers of these
Bubbles. Doubtless our Legislature, as the natural Guardians of the
People, will
compassionately prevent their ruining themselves; by proper Laws, such as those in Great
Britain
6th Anne against Bankers, and sundry Acts against Bubbles; or to go no further for a
Precedent,
that of our neighbouring Colony Connecticut, A. 1733, against private Society or
Bank Bills.
There seems, at least for the present, an absolute Necessity to suppress those which will
unavoidably have a riotous Consequence; I mean the passing upon the unwary, for a valuable
Consideration, Bills without any true Fund or Bottom: Such Bills soon stop in
Currency, and the
poor innocent Possessors, the Tradesmen and Artificers, who for special Reasons (as they
express
it) are made their Dupes, will be provoked to use the Persons and Effects of the
Projectors and
Signers of those Bills in a riotous Manner. Our Assembly did formerly effectually
suppress the
pernicious Bubbles of private Lotteries. Our Law enacted in January, A.
1738, may be extended,
so as to comprehend private Societies amongst our selves. This Act forbids passing or
receiving
Bills to be issued by the neighbouring Governments, unless redeemable by lawful Money,
(Silver
Proclamation Value) upon good Security, (to appear upon the face of the Bill) within ten
Years
after their first Emission.
While this Affair of Colony Paper Money is under Consideration of Parliament
for Redress; it will
appear as a daring Presumption, to proceed to large Emissions, especially in those
Colonies who
have valuable Charters to lose. I mention this with a particular regard to
Connecticut, who have
hitherto behaved well; but at present their Eastern Borders being tainted by a bad (I had almost
said abandoned) Neighbourhood, the Colony in general ought to be upon their
Guard.
In redressing this Error, in which many of our Plantations have obstinately persisted for
many
years: it is to be hoped the Parliament of Great Britain, will not use any rigorous
sudden
Methods; but give us Time gently & gradually to extricate our Selves; That we may be
allowed
upon any sudden extraordinary publick Exigences to emit Government Notes to be a
Tender only
in publick Taxes, and to be called in as soon as may be by subsequent Taxes: that publick bills
may never be a Tender in Trade and Business. As to the calling in of publick Bills already
extant;
in those Governments where the Periods are short (in New-Hampshire, Massachusetts-Bay,
and
Connecticut, they do not extend beyond A. 1742) they may be allowed to run
their Course: Where
the Periods are long; if upon Taxes, as the Governments have the Privilege of Taxing
at any Time,
they may be required to assess the same at any Time sooner; if upon Loan the
Borrowers may be
obliged to pay in yearly for a few Years a certain Part of the Debt, but if they insist upon the
original long Period, let the Governments give Premium's upon all such Bills, as they are brought
in; thus few or none of these Bills will be left with the Borrowers, and at the Expiration of the
Periods of the Loans, they must pay in lawful Money Proclamation Value; which they will by all
Means endeavour to avoid, by paying as is directed.
FINIS.
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