monetary history of the united states

8/7/2019 MONETARY HISTORY OF THE UNITED STATES

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C L A S S I IC R E .P R I IN T S IE R I IE S

ErSSAYS ON THEMONETARY

HIS,T'ORY OF THEUNITED STATES,


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OF

THE CITIZEN S LIBRARY

ECONOMICS, P LITICS, ANDSOCIO OGY

DJRECTOR OF THE SCH OL OF ECONOMlCS,POLITICAL SCmNCl! AND HISTORY.

UNIVER.SJTV 0 WISCONSIN

BYRICHARD LL.D.

ESSAYS ON THE MON TARY HISTORY OFSTATES



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THE CITIZEN'S LIBRARY OF ECONOMICS,POLITICS, AND SOCIOLOGY.

rzmo. Half leather. $1.2S 1ut each.MONOPOLIES AND TR USTS.

By RICHARD T. ELY, PH.D., LL.D.THE ECONOMICS OF DISTRIBUTIOli.

By JOHN A. HOBSON.WORLD POLlTICS.

By PAUL S. Rl!Ir\SCH, PH.D., LL.B.ECONOMIC CR1SEs.

By EDWARD D. JONES, PH.D.OUTLINE OF ECONOMJCS.By RICHARD T. ELY.

GOVERNMENT IN SWITZERLAND.Bv JOHN MARTH'" VIXC&,T, PH.D.

IN PREPARATION.ESSAYS IN THE MONETARY HISTORY OF

THE UNITED STATES.Dv CHARLES J. BULLOCK, PR.D.

HISTORY OF POLITICAL PARTIES IN THEUN1TED STATES.

By JESSE MACY, LL.D.MUNICIPAL ENGINEERING ANO SANITATION.

By MR. M. N. BAKER.

THE MACMILLAN COMPANY,66 FIFfH AVENUE.



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HIGH-QUALITY SAMPLE PAGECITIZE.LY'S LIBRAR

ESSAYS ONThe Monetary Histor of

the United States

EV

CHARLES J . BULLOCK, PH. .ASSISTANT PROFESSOR OF ECONOMICS IN ' WILLIA~IS C liECE

:Nr lD ~ o r i tTHE MACMILLAN COMPANLONDON: MACMILLAN AND co, LTD.

1900



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THIS nOOK IS DEDICATEDA 1 1 0 [ RK OF GRATITUDE AND AFFECIIONATE RE.\{EMBRAXCE

JW H1S FORl\:Il::R Fl,i'PIL

TO< ! u g u s s t u s s 1 ! 1 . 1 3 u t k

PROFESSOR OF GREEK ]N BOSTON' UNlVERSITY

THE AlJ.THOR



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THE three e says in this volume are based upona part of the aterials that the author collectedsome years ag J when lecturing upo,n the mone-tary and finan ial history of the United States.They are now ublished in the hope that they willprove to be of orne value to students and investi-gators in this eld. The author desires to makegrateful ackno ledgment of the constant aid re-ceived from h s wife, who has devoted severalmonths to the work of gathering materials andassisting in th preparation of the book.

CHARLES J. BULLOCK.

PREFACE

WILLIAMSTOWN, MASS.,August, I:



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THREE CENTURIES OF C EAP MONEY IN TEEUNITED STATES

CHAPTER rAGSI. I}lTRODUCTION 1II. WA:\JPU!\l AND BARTER CURRENCY. 7

I I I . SILVER AND GOLD CUR ENCIES 13I V . COWNIAL PAPEl{ MONE 29V. CONTINENTAL PAPER M NEY 60VI. STATE BANKS OF ISSUE . 79VII. A RETURN TO GOVERNA , ENT PArER MONEY 94VIII. GOLD AND SILVER . 110

PART IITHE PAPER CURRENCY F NORTH CAROLINAI. EARLY ISSUES (1712-17 8)II. THE LAST COLONIAL Is UES (1749-1774)III. THE LAST ISSUES (1775 1788)

IX



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x CONTENTS

PART IIITH PAPER CURRENCY OF NE W HAlIfPSHIRE

CHArTE~ FAGE

1. OLONIAL ISSUES (1709-1739)II. OLONIAL ISSUES (1740-1774)III. EVOLuTtQNARY ISSOES (1775-1788)

. 207232Z O O

APHY . 275

INDEX.



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PART ITHREE CENTURIES OF CHEAP MON Y

IN THE UNITED STATES



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ur while tamiiar hlst rical eventsrimary fact ~ the full 5 1eldorn been app eciatehese facts ret fi sr, thaavor of che p me ey ha xishi s co untry fro m the ea Ii stjan; and, se cad, hat t pegitation ha bee due,ing le cau se, to th consestward ov larg areas thinIy popul ed. Withhe rise of

ussion thatrtai n1y d iffi..new or orig i-s that haveprove worth

ew nd interpretJ jg t of certaince f wbich hasffie nt measure.ng ovem ent ind co tin uously inerio 01 colcniea-sten e of such anan 0 any otherad settle mentsVI! 1 ng remainedwth of n umbers ,om c rcia Ind us-the desire for ainis ed ; but thise re populousve eap peared iny ] calltles that

z m n FDfZ(I!Im 8 0 0 1 1 . . : .


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MONETARYh a v echieflynishedBackmediupeoplesupplycry hascationuNo cmore cM o n e Y Jtho se \credit

ned sparsel ' J pe led andagricul tura l pllrsui s have a Ivorable field for th ld pro p

devoteays furanda.

wine

all the strivingsf exchange, eacha l w a y s heard theoney has bee n inriably rurnished a

th e underlying caulain t,,. wro te Ad amon than that of a

e wine. must alwha ve neither whearrow it. Those

e in want either o f t -h they have ceca i

xpensieneraeio of ouomplaint that oudent; 1 and thinmi stak ble indio f the ita t ionrnith , in 7 ']6, fj icard ty 0 moneys be sc ce withal to b y itt nohave e her, wilmoney r .o f thn foe." t In th

l)'plcal o r ibe'iwtedand bu

t ' : u l i t~ of tht~ comp tm..i. is f c . l ; I , n d in . i i i . t e s o l ' U . t "Court o r M : k S S a C ; h U l . ~ U : & i e yellt. I. I t n .at c:o mplal ntl o f lll.kr ti hat a part 0 ;lmI., we: III W h I:n'!i15 ' I D - ' I n y mm i t e pl..&.! :1tal ion rut: in detJ.

j ot Ilum~ ~u!'F.del'lt In d l.Il!'"i~ the I me, thol;l,.Gil d I:o adl sh.ould . bee 10... f )uJfe th II' w ortht

t i l . Iht:t'Fed u . p 0 1 " l liiCllEle 11. e a;ec.uricnl~ wherl:!bJr the people in 'the COil" Y ' b I : ! u:nd DC, and 1t $ :iI IH sfi~ ~ !! The Co 1b~ prnce ~d to "an

I ' L t dAtbtots. :nU l. ,. 307. Job Winthmetch : i l ln rs had hro~cht~!(II "I now 1 1 1 1 our mo

Eng .,t n. 7.~ o r N., n. 9. A ~:i II. l ' Of l Iiitel' l o " ' nc - r , with maar ii, we 1.". .,t 11 YI: PIper fthut i s . such a lurcilr C Id and $ ' i . 1V m iI1ake the:it OWn tl , Of t i f: U t

citJ' of Rold , . nd liler j ." WOf'k~ I

e:.:pc:rienc:great po rU U ! ! : L f del'dil!f to

"Totc: "..i~ mtiljUit? Ntllyl ro r l

e zm n FDlJ 'Dllm Boou


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tNT ODUC

as been ~ngaged*cupying and devnd, While naturach newly settled dlac k of the capita 1Itivationt to supply

o develop rna n ufactigh t have been liple j but wit h usbstacle, which hasrowth of we; !th aness a. Su ff ic le n t su ppust conyen a portif gold or silver cuixpensive, eve n undtan ces. In the Uover y o f m ines o rilet could be obith fore i gn COL1 ntriain tenanee of an aade especially dieop1e i all sorts

tcnsifi ed 5till furth

1This wu well 'll:a~d740: I' A .nd ~ th l : : f i r . ; ; t St:!to n : C t . 1 o c : 1 t : e d -.,trh let'l,l'.an~f t a ' l , t O i d r a b l y 5~a~d uptfnsil$iot ~-u,ba ...dfy :aod

of R. 1.1 v. 8.

prismJ " near y th reeoping vasts ha

lute

progandonl by thIn rder t

of me a lie rno ey, ao f it a pita] into a0 1 " " bul ~ ,a p ocC 'Ssthe 0 t favo ab leed St e I pri to tprec 0 S met Is~gocd on throu h ex a .~ and t e acq iremendant tallicult bycapita + iffieu lby the s arsen s o fle is a ion 0 hou

whi h rna

e zm n FDlJ 'Dllm Boou _. foraDltm1.noh.lII1I I


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MONETA

f currency reqnumber of exco f our indusito other thingseslrcd to em 1w hate ver goldhe had m an

ca pi It and could U Istock f m on ey that a?hercfore it happreci us Inetals secuo ut 0 co lo nies inthat felt lobe mexplaiwrite

lncree transah e : accu

tingapital In the:vas t a the at



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CUrl ywaedium wasand Jesstry h a exp rie

r silve t and avesom e fo rm f cuThe contiIhe

a ancloned ja.nd someu st ituted. I laterpulcus regions o fd a similar scarcityn cq ua Uy d esi reuscy that wou ld beu d growth of newa served. to perpet-

an agit4llion forin with us.his first essay to

is ory of the Unileds just sta teet and tor en cy expe r ime nt Se n vexed fo r nea rlynd fundam enta lIy,e ium o f exchange.. thesis is entlrel ye essay is th c firstn tary jnterpreta tionito ry o f Am ericanid ossa ys COn ta inedtigation~ into sub-known hitherto.

ose, ten,iew t e enti man taryS t tes n the Hg t o f t e fsh W ' h taU c va ed

opJe aveve be ~ fia . ch ap 1imed hat

is bel ved atto sup ly a .crs i theeco nd andprim rily ilittle has

lb $ r : J t 1 "ay ICk,.rly. S e e -~ in first Ccnlu..,.~ : i l J 8 -r at IIthe n'lQnttDry hi5tory~ on liintil ncl'w ;. a hi$fu1J '

nt}'.'1 l'rOfl1:lIill F. J .~ If:~D lh' pft5en1 s i l w e 1 '

tiODl o r lI :a rJ ier ""~2.

e zm n FDlJ 'D llm B oow..:.


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TlIE first i\VA

nee t e . y wereof c pital, So

p1antatio s

ctherlanded peltryg with thempum J theo o n b e g a n

ings am 0 g bernselves,c:oun try he quest foretallic m

c:eden. I.i Fernow t


a satisfac-largely at

j B ruce. 1 1.I DolS .. o f


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the eII thelabortiODJamou tedEng] h seableaftermine

ong sl d, w ere vf wa p m is m ade. ~ Muchwere req ired for j prod uc-ndia s ufacturefew pe ce a y." But thethe r ion i plem ts, \ \ I I ere

e 0 tpu g tly * spec iall yo Isl nd n at Uthe5 a esult, he warn-1649 Mass ell uscrtsrece t n p a men t of taxes,

wed a le tenderrfdtingium, thens from

!OUS inreceivedf rom well asdirec ly rom h e c kle-shelli ustrio sl by teE

I 1641. pIai ts w e madepre ent c culan ngno t ing b t rought hit r fromolish d Warn-

e zm n FDfZ(I!Im Boou


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a d ex orted.~JpUl IIof Stoyea n ofeads,' Was in ton rving b

aels o f f ac t I r ls hu o rOU$ d

In

; McMa.h,.11. 42-4 'n hll"'ing own

-.~ob.DI1


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HISTxtensively n C Y J~ 41 were in in E

lways w1thout m be cor its uivalent, U CaroHere sed for a si ilar rpose. assachu etts,uS3 t made corn a la fu 1 tend or aU d bu.cept incases wh rc b ver o r 0 ey shou beccifi d.l In addi 0n to he com 0 ltles alr ad y

cd, we find that e vari u colon ie , ate o r aneth o rised h paym t o fr private de ts in hea r, 0 ts, barley, eas,pork, beef. sh, fl ,woo]~ s gar, bra dy,

hiske , and even mus t balls. cst of theUegh nies, in Te ness e and K ntucky, Mr~oose elt tells us at a 5 1mi lar a tet curr ncyuse during tb e 1 t deca e of th e igh-

ntury j an as la e a s I8 5J he BisfU rtkribn, reports th t go her tai l ere at thatt me mployed as In ofakot ~tThe use of th

in e furs, U k ee. and uld

e ted into co in

of ~~ u try pay, I or1 y e ough, it w s some me!;he c.rglin.So, 5 Ha...k, I]. 163; D l\aHj DiI( Wst.o f S . Co, II. 37 C o l. Ct- N. c, IV 9iZO. FoOt Mu,.-

d IhuJ. -torn 'Shill

:I : 9.e zm n F~~ Boou

,

-.~ob.DI1


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INand

'1

rtion.dolpho f illCoU.

of the initial pov ft uence 0f th

e e of indu stryto the moresidereble am

CD rencies,rnmer e raduallyausot h planta-E spe e, f whichrculati n. In tb en slsted c Left y 0fin the ei htecnth,

Braz Ua . mines,rtheless,helt w.y

'! ope inl in'll!$ti-m o r e l RII.:I.~

nab e quutitield, ,. e ukhtnsgli5century gold was mu.tb


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lrculat io n reccepted Soit will be nnee tha.t pt of specie

h in rue eY t Pcontin u d unti J

r p noted in his IJeu &ich broughto nd 5ugar:'J

n years later ,wen~:(Q" b~rinl I

tl th ll! . .no prtl 'd ue 'nd ~7fio. as it IblDwn in.V....l IUI . . . u : ;* . . . . ~ ~II"'!. P.

'lJUIII;l!Ul~m Dl'" 'MAllO~~a168t-I,00t70f-r,:tO17~1-1:140J74l-l} 6 0'be.:t'~ t

. . . . . .. . +

IS8.~I6001 6 8 J - t7 O ( J1731-17401741-11 6 0

.... +. . . . . .I lIuhrnp, N. E~., 1.

I

e Inn FDlJ 'Dllm Boou


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la . g mcdiu m into a uhi fonnI 71~Ogilby wrote (MaI'j d,t no t, besides Eng lis a .nd the r

C y S, some of his L ship's owni mia , Mr. B ruce fin s abun antn idcra b le accu m u la tio s o f m neyre i the clo se o f the sev ntccnth cen-

pley bas reached thal o f m etallic tn oneye p ially in the tidewa r distr dS.3, G abriel T ho rn as r potted that

ti u1 in the vicinity 0f hiladel h ia,Ser Jo hn Fysack wro COntesy vania, New York, a d Newis new in the Planta ons a rcata . ish mOD ey Plate and Bullion and

able." 4 Inaper-Mbound In

S01 J .R i ,phy . I[B. U9- I LIlI.te-mem 01 Willillim Fi 'btnUliel i



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s is 0 1 y iii tithesented upon this:tnishiug t e money.the W st Indjes,land s u red the~ and it

ight wasne-third.Ibroad~the colo-smce thein circu-e v en the

is was practisew en ce the colon I,In er part o f tco rtinued until01 en reduced inT e Jight weigh tpi ces o r eigh tni ts rnay havech aper money wIa on. For iteli ped money in ong asling i Hco u ntry

when comparedamountedht doUa r

rJ5 j.i2 : i F e - .e of I.. n l 'O n J o ~

. Work, cfr l i a U ' l C " n t L ' U " p...~b~n~fidl.l85It nc r DILU ' d ,to E"cla l l icJ

It)" Daug l 1 1& tI t t }:("t;!_~ VU~O'l.l't )OJ-.)05..nirlt \ ' I , " I i 1 I $ J 2'/.nell tlut theCom.uticut.


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] 7 . dsideped duld ceus the

n less) b fore itp3 . y . ' '

pent::n essaryother 0silver

grains6d. aeighty

-t vll'64 In Sa~lhlime du wilhout



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): ONETARY H STORYts g rad ua l l y diof the dollar4 ; and, so Io n41~ 6t:/., the cole pound ster linbusctts raised td Conneetlcut 0

ear,tIn 1645rt th is valuationThus began tmetallic curren ilis h ed a rni nt,were : z 2 - 1 perdald." Uponbeen worth aand 1697t no fvance the piecsides existed ind ifferent lo call 11.61)-6%5" " 'Z48~ O : I : r : I ' D . R-eli:!h Uz. U4.tit, JO -J .5 ' H lrtehlt R~-~ VII. 249 " rN eU' Enctl.n d Ih illiVll .2S:2: ..t 61. Arch. of M .

a sac h usetrs esshi lIings that

the sterling Itn lar would h av

5 0 S than Between 167 [nine c 1 nies began to. e ; a nd t .?Co great divs giv n to this co in

N. V _I pJe(:ti or ri t that w~te C l f funanl:~ to 6 . . t . M a 5 i ! S R1I!1 : :5 .1 [ V ~ "'ad J1.Qlb~f inMl.ncei r~~ d w _ sec Papcn oflk ap. 1 . 2QI; Yal...Ji. '1Vn. :161, : z . 6 J j. R

: rH c : ~ : rr : : z S s .: I 9 .s .. 5 ~ : M . i ' C . of ~DfI'j I ll. l~ : rut:e:., II. SO ,...51 t -per, 115-n!> ..!~65 .

e zm n FD lJ 'D llm B o ow .:. _. foraDltm1.noh.DI1I I


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giniat ter hin 1683. a n wed juth Ca lina fw iChing J 2 dwtva ue for ely!l

Y rk, a d llar ww ile one eigh

GOLD

e zm n FDlJ 'Dllm Boou -.~ob.lII1


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was

Yak R ., V I L 10; D o u i - -, S 0 -6 3 . IC h~1 ~ 1S .V I [. ~ Th e sll:rl n a V31uc o rlaw of [']07 allo",ed I. f1Lin~ one-

lianu Yi.. hc-n theDoul : l~D

\Vc:~de:ll.,F cm 0W 't

Pdt, I S o jt 1061III ;


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GOLD CURRENel ES

assac hu sells retired her paped a specie basis, Spanl hdwts, were rated at 6.r~~a d 8d+ per ounee.] This s

s fixed In the Parliaments yJ 707. A som ew ha t sim il ar proce s11er C' Jon ies tba t redee med orred u dan t paper currencies, but t e

the dollar were not Uni to

i .P o n ~t an d Rider, 99 : B rn~ lJ , 7- o f J ~ m = B Q r . rVII. -fO~



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p,.1QNETARYIn P enney

aw re, an Maryland t tFin lly New Vorse led up n a Tilting ofwe e ret ai d un ti l the eta currc nc es w u per-

sed d by a national 5y t m afte [78 Theres lti ng 1 '1Iu sion that te n ded . terst te dea l-ily be imaginIt a f this pro grnpt ressi deprecia lion 0 the colo ial CUas ompat d with the st r ing sta dard."

the Span' dollar, whit 41-ra at . the coloniaor r 47 grains o f e silver.

co l n ia 1 m ncy equa lled 00 st erldo l ar ad need to 6s., th colonia I$3 . 3! Or I 8 9 grains of re met t whllof olonia] currency eq u ] d 1rali g o f 7 . 6ti. fOT the pi e of eigco l nial p nd to S2 . 6 6 t r [03 r g

Del-

a n d

the1 1 t o133 ! -A

C ar iaa u . - W l'M:$ ed br t

2 ill:i~0. J6;

j 0" J:7~Do ~ Diso r . V .I V ].~dbfl

]V. 5:43 ; Dip- rr.91. I Soo th,8], the dell ... W'1Ui , Q . val ill: n t hilld~ptedalion o f tb R ::tm " 1. J 6 . t , .26-27; Act5 O r J.~7; I W!!i~' d 17BII

1 0 o f Del. , H, 731 -7 :. D ip . Co f. af R ., U.91-u:r W1i I J i ClItrSLt in ~111 V'k !)s. J d . .~ 31 :t. TllfO yc. hll et' it h:U ~bout 9'.6 . g - . 1m J 756 . Sm i "'tote th i l l sinee t e t "*iU'' l , l ; L L l u c : d I.t about . u. Smi I N . V III J T h i . ,we, would milk ~ t.h~ lIaf Vl'Mlhlw: r l g l l r . e . Set: H e

c.rtdl n see Wlni:lmson, [I.t n thls Ii e:r-allu"bjec:t_- ieI'.: A I .

th eNfl

o lBIB FDlJ'Dllm Boow.:. -"~ob.DI1


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a made 00 sterlin .va ued at Ss.$2 SOt Dr 961o f co lonial mIi

he chiefti of the cth t the colo

deprecia-s the f:lete could be

a nis there, II 1 is xpediof money, so o t n ployto e [avcred i

th e settlerse stock ofburden 0

w not spc i

t ir MoneYIth Money;o m ost H our~o r the valuein E rr p was likelybe poverty

ac mulatc a.net lightenedst ob]igatioas

m its opera-ea u re sho uldof people

the

S e - e note b)"tb compl.f ii01 tll ai i i . A d l ( . ' T .

~nl.5j7e zm n FDlJ 'D llm B oow..:.


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i eot of those th at sh 1 bring mo ys.vine j'l or so me 51mila object 1 hel&ti n of 1704 allege Ii the ndi ectra ing the Money f r m one P ta t a . -a cause (or the imperi

ial currencies; a d FTa kUna imilar mot lve fo thepee 1!.2 0f course, in e long ttl~ce: rendered. nugat ry alllume of money i this

ere the nil tneroexpo rta.tion ofhad rhe same ge e rat p

a te lals were availa b e, ite :im ine at leng th e atte pt o f

010'0 es to regulate the ra tesins should circa la e cone

tll . .2 ; su,t.or s. C.In. J6 [J8~ H iort.N +H , 1 . . . . . s j .N: I l4 . Ret:S.~V . S': Felt. 6..IW I lntetC lti~ pctitiont ill i ! l . , ! : l~t C DJi

p ~ 1 ' 1 , . I. 5 . 3 - S 4 : Dees, r N_V.I Iloti CJyi..! . o r Fmnk.li n, IV 81--8 1 ..v~ I the j1LCr~~ in t},t: ~ III o t tbtlbut to th Infl~RC'e oi I e p....~~1. J I ; Smith. N. Yt J ,3 '2 - lJ .

t h e - I : C - jMl : r e f e u l ! " d e o , I I 11atCl he ra c l i l C ,Jt a s be t e - . - m e d it: III b a l l l l \ o C o f t-Id II Piilvu is fan a...it \ 1 ' 1 1 1 1pri o f thai!" ~1. iu pKlJI(!tht m I ! Y , 1 o : IlSI 36, BtonIoI\, '1-1 S;. a 6 . t j . Femow , lO S i McM


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VER AND

to

r were-reedup to 6: l.lin I S prhile si yeats late a ratio f 5 : Ipreyestabl shed rati of I :J in th e

as ch nge to 15 : J thirteen earsa rati o f : r w reesta b lis ed .3chus tts i ucd b' Is oj credit of a

h \Vhil to conside theshow th at gold oinsmuch larger nu bersrly be the ca se, Inand 739. therehe rat at whichthe

clared to be Hequ 1 ingold n d silver,y be c mpu ted ....

mp.utlfj; i . III artbe r . t . n e ont.entsS . c.. I . 1 95. IStat.j V . S I5

~.ol~It z 8.t9~X.l . I 7t uS;



46/314

ing for resu&ilver colns compute thee made pay: l.a Gold

OUCO d i ions , fo reign obliga. ti n at ura 11y weby s 1 1 pping silver out o f th r v ince - '" In %ac w s passed maki ng gol al tender atof ab ut 4.22 gra.ins for a hi 1ng. Sinceve c ins in acto a 1 eire ula t n ssed at 62-9

Y I j t /{n",* V l l . 413-4140 Til ith~ ~o 1::!Jillti 1tulIl n:m::ivcd t1 :1 II: ~\ 1 . . 1 e .. 'Shilliat or l h c - litwet cu eeob i: . n ,atio o f 14.9P 1.

Y I I I t" R~. j VII. "'4- Tilllki.r:ll!:. ( : 1 W I 1 c l r e t l1 . . & t lo n , Profetto

e y,ah.le of I. :I .'V I)rab1iI fill t ' i ! n IiL beC l. in C :;I'( ;!;.II

drrwril~1"t "wmm t. l ! i :d Ihe ad

Kt'fI.t VI t, 414. B~t H'n'I.. de , c o l d a 1~n.Mrla l r L e c ] t

lite epi ion. H IIlebimon, Hist., ]] .Sg beerJ lil9~ H l ,nch"nKlDj Hi "' 1 . !J9.

26o lB I B F D lJ 'D llm B o o w . . : . _ . fo raDl tom1 .noh.DI1I I I II I .-.,.-----


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AND

; while, rgold a d

As a res It,prov ince o fffeet wa~ asdepreci:le4 f pe cent.1If: raf ngs f gold a .nd

H .,. 'V II .,. a ttt 99. All o f t

,lolJd ld at lIhout is



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SOON fter ththe rati gs of tseries o f attemmust be rememn ial per ad, thbate h of paperappear only ratury as t e func ioassumed g reate iDuring he sev nduring 5 elosi gcredit h d beeno rthe Europunknow. Na

I V

ount aveban ing,n uryt mo espec all ypublic nd patein the ountrie o fth at wa previ usl ythe rea] nature andagency us cr ted. Iwas p reelved thaty he contr lover api-

a company; but it wasc edit is n t the arneta cannot be di etlyh ts o f ! fficie cy m a be's pro] e ts, thece, the E U sbau h Sea ubbleh

~IONEY



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V HISTORY

Trpr p y for a

deposit

manyotherthe m; sundersta n

ce ing the nature and pe . s and plans of 3. papper in England as ear s

(liter pllblis h ed HThe K yway for Improvin f

es followed, a n ofthcr m cd ium than maFer credi t. For this p T-

e c and ise 0r pledges of a dg ted.1 In England the xi t~id ustria1 co nd ltl ens ant ege upply of capita] facili t dd r vi ews concern ing the tr ebasi of cred it, but these 1 sun i much sad experienc h dn !1C ban king ventures;od f restri ction [rom 17

unreason had to bebef ore it was genmi um on bullion wasthe paper currenc y,tyof gold.' In the A

I the econom ic condrc se of those which preU t Y ~ and a n cireumsof if: rrnncous ideas.

in Engb.nd, see R(I~~, T rwnba.nl 6-7.

e zm n FDlJ 'Dllm Boou -.~ob.DI1


51/314

COLONIALA t me time prev

5 em to have circulatC usetts and there isr iseing a Banke. III

eaLth, ' o r some 5ime to the 3tention

o Con ccticut ; for,e tertai ing j j some prt de a d banke ~o] er, th Rev. JObde t ufo erecting a F

priva e. Persons, inM" lantlUt-Lrffll6

J 86, P iate baeksasS3.C use tts ; andu on th security of "a1so rsorta IEstano subject to pej ects I however, pro

men be distinctries that were th1690 Massachuseu

lonles, em iteed its

. I is ntCfeStiin 1i . s prQ j

J Ydt, 3 ; Peee, Ant+, Ttll.m U . 8-9 ~ WecdICfI,aTrw.m tt, 4-7, 9-11; W

41 4 - S ...PrIX. nt. Scc:.t 1866. ,H , 45" -4 ; Tnunbull, 11-1o C o T h i t i s . : ! i b o w r : ! . by Tnullbul ,

in he m . ' < 3 I: eolarri.CSI 'IbonaBudd. Go o d 0e zm n D I J ' D I I m Boou


52/314

Sue s to divertvate bank.733~ 1739,wer e project in A t assa-

I y sup pressed wi tn greats, however, th se associa-considerable uantity 0(

ire latio ~ The g reat nd Banka.b ut 5,000 of notesSS l1gg to maintain it exjstcncc.1shi e, C o nectlcut, and outh C aro -

sod ti ns vere orm ed, betwee [732 andr th ur se 0 engaging in i01i1ar ven-an d a iii. later da te we hea of other

P en sylv Butent in rf red) n 1741;4 by c tending torov lsi ns of the ,. B bble Act, II

n ssed wenty-one yea. earber inp ess such swindles as h d occu nede of the S uth Sea Com any.

on y tha so lo ng cu rsed th e Am eri-as isued y acts o f the veral legls-! B 9 , 9 '7 H utehinson, H i! i . , II. 188-189.

I , c ill" "'-9 : r /. E., X J. 15"""91, l6 -J 43.ist., 11." j :2-JS5; F~lt. 97- 09; .Dougl~1i1; S mm!:t~lnkingj 9-1!; W o e C '~ 486-491 ~S i; PIlX'. t. Sol : ApIa, 189 H.. V. 68).. '[i'~lt..91-92:, n l O C l , 4:i-43"ougt.. Dbc:OUfU", J~OI l ,:SMpherd,

[99 ~ Llmnel"j nanking. 8 . . . II.l. C '. 8, J 4 - GI:Q. JI. c.37 ct. S.tnna,

e zm n FD lJ 'D llm B o ow .:.


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mbed last, in 17e sulng years.1A second exend at an early dai1ted :lpuhlic I are loaned to its ens at intere t,

his I! : edien]y all f the tisranc d all

:l-l6J.c J io l7

t i n ! l l O n . Jp~tlO

c ;: .ll!d lmI

.n e tieut I I I n d M:u,lllLd i17 s . cei. R-ea.. of N.i H :M ;_ bm :- . B Illa ofo nly co lo ny th.1 didn rheee, only fh~P l1 illips. 1 . 19S. 'It Vllltl1:a.fuM ptpc:r J D C Ia e : r - \h ' rcrm. fI I7;39, 0 i:\u.s wr

I!.dle had L5l IaXd p j 'llpon l I t : ~ "v i....:I o(HII i ll 5! ! ji , D~ IJII I J t . 5 . 4l:1.d.. dr a . r i t e - f0f'lll5 o r tel:'lJfil!,llp wh;c.biM ~d. O n . the l oan bill 'kt. I

34

ues i thewasU n a

. ,a~-

j andf81) ...HI1J:Ic!j.],'27lofeo.

lBIB FlllJ'Dllm B o o w . . : . -.~ob.lII1


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56/314


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58/314

e

14 ~ Rip f.,/, 16;S A m w m : J . f 1 U. 2



59/314

COLON AL PAti s of pap Tradlie build) shad twere ne 00, anddone by setting tThe exponclusive

R MONEYwas said tobe construct d,osens of oth thprinting prthe co lon ies d essib ility o f & tisfUby issuing a Pmcnced atas tim If: wen on.ngc was 133 n I 02,to the ra tin o f het gland ste ing exco rres pan d ng exa

t 61. In I7 I3~ itS 5 0 by t e year 4 0 +in Massa huse tts a d C o 0ne c tlcu

7 OJ when exchang was quotedin ti g a de ecia tion of near ly 9R od Island. th o ld ten r bills f i n aHy sanIn the .ddle co nics the dep eci

~e lsllind', I ,.,Mr. n.b:c lemand r l O r he 'DtJ:t. t,~ n o o l h p. to c..l~o f a nani1 of Infm~cnee more I de taxes r-. . r n t th.Jng 0 ' I U 1 ' e r . l l n n.

es thtjjt: ~ p!a in t : l ! i o fHutch ttL IO H1Acryl J

hen. !he '1tiU had lIS \!

r, JJ-J4;j. Bmasen, ;}2'" Shepbnd,

76 .. 77

:In. 3(0. 341J50.,0'Jo andtitioMd the 1, aub ewopb.in

TU iHIaC I o r p a pIltc-hin '!o n, H ~ c

. .. j . F e m f 1 ' l r " , 3:J i ii P l I 1 U

e zm n FlltJ'Dllm Boou


60/314

I801 whias not higrose fr-om Ilina the

Pennsylvthe pa.rthan Ito 250.r curren iessterlmg.!d of v lue

ne-ten h the va Iuen the sta

wr ught lnt hips, InSh rley sate i his m ssage to thle .shttu e: credi r who has

tstandi g debt, of t con tr cted 3no

re eive c in 0 r courts ofth n th of a . out 650 poB ween 174 and 11 9 exchangeto 100, 0 t B., as D ug lass said)

not n d b lost a ut. one-halfA had had a

+U4 Harv rdd the Sc h

d 1 1 1 pn tal, I~c" Doug .mm l.ff) I. 94,; .bode h. '0 [1 .P o ner .. n d I f 1 : r . 1013. Fo th.UCh! .~, L immary. I. -494t 1 . 365. FOC ' theI. 1:68~ oqglQ5, Snm~ ~II. 494-Ilfy~I. 49 II. 'of



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62/314

rencyNew r issues; a .

o treasury otes, r alloweS Jlt a hi h ra 0f deprptlon in Mass

"'00 ld dcpriv

currenPrior timpor t ioo f M as ae

ports) anr obstina adhe ence tocy.11 ' i ! . . I t . . 18~ Bmn50.nt 6VI. .I2S, 2 6 . It. s ,

Ridef. 6 ? 3D.~It s e m$

' 1 i Pt.pen o r N. H.V ., I; . 5 ; HelleN-pI J . 425

Brit:alD.t'a ~

e zm n FDlJ'Dllm Boo


63/314


64/314

nf popul rroyal 01 1 the

ng any 0erni .ng billsr j but pe

that shot lds from. t cgiven a 0restrlctlo

in e

he .



65/314


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67/314

COL NIAL PAPERj t appreciati n of its evils;s em to have been conccrne cp ospect that heir fixed salari spaid in ba money; an d, He f!n ugh~ t e

eived from England explic istru tio nsw re intended to leave them no op rtunite erclse their own discre tio n - co o n yc lonY i party li ies came to be d aw upo this

e; and wh n opposition wa e oun ered f 0gnverno rs or councils, de d l k ssued. Puh disturbances o fthese cant versles over pe

.sorderl y spirit 'tVere can be 0 doubt that th dle, accorded tp rtY i an d co ducted a persist nt

c en p c urrenc with which e istimore easil paid.t1 cny~ in 17 the truth o r t e

s me Colon les, at least, pap eis ued dwith f andu len t views ~ ugh the ie cc of the btor cla.sses.a Do g las1 49: jIThe arties in M:ls ac sett Ba

t he Loyal and Ja bite th ce nor and C ou try, Whig and T ry,S tary deno na tions, but th

l .1 . . cll p,o~d 1M'1e. It 1 1 : ' 1 = 1 1g r paper) and 11:0 O\Iteenor had yie\ded, Se I ' l ."C:

:!Tbil 111~i h been tuatc-ti sy,ffic- "tly II5~. in . I I d r J i l i . o f l Do~11.5It D i5co lJU l:, J I, Wed .s of F:ran lln, IV. B 9 .


68/314


69/314

COLONIAL Po f suppore it as (as aslittle pr e.this is the con isc

ers from ewf the b ill o f

a.tUTC to emit no meu tstanding ithe same ties to opposn 1723~ 44hia I~ pointettendi ng the

1 II. )3,! 11 . 164 , ; C.t tQ11 IInl$ seem r o O itll.'V dr wn t

o.ts OJ rle of 1'd.de, C Iin t e i .b~ary o! Jalnl::1 L

P t oud . II, ISm~nts {ramit, D o .copy o f

,Obe f the ~~c.tQi"l.


70/314

Frank lin hasissues of '7posed any arency~ f romdepreciate,the pre) udic echants o f

not OU r largeo f Rhode Isagainst thestating thatmortgage d tai:tended bytheir interestorder tbat

the Pcnnsyly ih ab itan ts.nst all papertha.t it wNew England toJ In 1731,against renehode I slan d.'3s us ~ that, wender considers tiou,ipal m erchanject, . . I jis said that 41 t eya per Medium I are

S o , leading c]tig a remonstr cea .per..ro o ney pa Y If the co lony adrity fo r the 1 0 ns

CC~ a now found i tothe 0]um e o f papc inp a .y their debts itho ye rs la fer twenty- ve

o f H o rd prese n ted tofonowing inter st-m edium o f tr de

emissions of~fa s s a c huset utc son tth e land ban f 17 was.. m en o f est and t e prithe prov ince thenearl y the sa e date oug 1who ca II 01J t 1 de st 0 this

the Conn eeticing petition f.1Wo~bo r Ftil Ree0r4~ o rIHuI.Chin'B(ln..'Disecut'5e, J . .'RecotdsofR

8~1e Inn FDlJ 'D llm B oow..:. -.~ob.DI1


71/314

gs are ak it oug t to beas any eights aorder mainta n

t ble ; for as a f a1 eC IS an bomin ati

a . false a d unstab eas mu b

njurious. 'I1 Finally,licit stat ..

measu sjusticeweight ato the

ment : nproper ywished to hav he asseo f ParI ent, fr m the ption of a . 1 gal - d er to tAttbrieflyeighte

heretcfc es restrai ed by a tof givin the san ..paper m

ears reeaJing wppearedveremen

s ~mphle r ~ i ! ! . "Llta pipet

ry it to r . .Mt

a given by T mb'4lt"1 S-I \motet or M e of

bidi.! c.~~e zm n FDlJ 'Dllm Boou


72/314

dcd in amf lo o d o f pue century. wConstitutionissues of bi le advoca tcs 0

ations co tin ucdn it was t oughtf inaU y ned thf credit ~

secureepted thi pica,The cpp nents a

r hitnd , that ade quate tock ofed until it \II s displaced y a chey ~ and tha om plaints of a seanever so Co on as th al\III ysated em issio s of bills credit,nee, the jn Massvoring to

17 J Judge Sele . lature : II I

it was the'lating medirians have

V ceden, 4 8 5 ~rumbull gh"ts eo iu extt.l c til, Iextr.l~ ma), b OUM i~ Q.

~ ~f seeres I O f 'uc: 'b 1 i c : . ..lions ..y be r oUf.~ and Dou .J . Fill- R lst., t & - 146 .

I n l O 1 ' , V + 1']0-]' S C " e . (mll.\ly! r e p r i e t 1 0h i O ' l . C l n t )n P roe. Hilt.. S e c . , F eb . , r8 g

gI~ DiBcom .uK; 41 A IIItryP'II1 D'fiIt~ 74 . In ~ p ~ t of fin m MtI.,C:ll.ture. in 1140~nQwidC 'Wonls ;depreciate tb~ b 'I e pape r eu I!nqr. tbal

u :; a , ~ '1 , ti l a s . mll !d i1 . lm C e - zC ' b l 'D:il!!! a d all - C : Q m in.1I oJof ey ,greEltly ill" "'Reee.. Q R. L, IV ~ S

111111FDlJ'Dllm o o u -.~ob.DI1


73/314

rcasury ~tl 1740: UTh

ey were not rnant of Mone}, iDouglass argugrows in good T a

di ,It 0 Trade it acq ulrith rs poon , Pe latiahe vo ced 5 1mllar opinisi ted, as DOllg lastrad ig C o u ntry ml1stIf:rc ia 1 Med i urn,

to a . DL9ad van ta

e more t I't a later tel]ter, and Tomashese writ al ayone in 174 J that j~ aeg;ard to th un i rsa

I Silver i or cheat, anike Paine, they nq ired: j.But whYJ sinenienal c stom of the orld has establoney as t e m o t nvennd comm J sh ld pape be set up in p f r-nee to go ld and s ve t' 6 Frequent ly) theates o f b i n o f ed t arc :u th at a largeurrency w uld s m ate ade, and thus lihe weight f the ta es th t would uItim atevied for r deem g the h 1s issued.'

i sen, Hjato, I[ J 9 7 1 i 3 0. 4Q-o]4.1 D ou,g lus I.fgued tmi~ o f . ( I , ptc"Ii:UI!tl:: pe'I C-U fenC)' It' does t!loL .Icldl M l : d i l " l l ' P ~ ut fat r c l i iniih (com il.1i D i 5 C : C J.:Irty Jl I ! :Br! ! i ; I:d , ' P o l l ! ! ' II h ~ I!I" I n l L I l e th", !$ ;jIm . egn '~bs~~, 1 5 . \V it i r . : it! '7 l>o:n ass!.ap 'bat, with. 4 6r paper eire'll itlg In ~ .Money ' f i " 1 I ! J never ! ! iQ

"eI Debtt. wor 33. 0. also Itltm. 3IColl+ ~us. VL ]66.:l I Discourse,::IWithenp.o

tTbDme PainiDi!iC01l.r.5~-I aUt1 :b . i

Webltet. Est .. . ! ! . jredal1y, wt1.ti np. U.II~ 1 1 . '78 .to tbeR afg .. mc-nl1 .

e zm n FD lJ 'D llm B o ow .:.


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repl led that in fI at ca used extra aganula tio n : and Pai etorted r " P perdram d rinking ; iT licves for aful sensa tion, but ad uall y d imiheat, and leaves body worse t an i oun d it."When the inflati its urged that ag tent pub1lc im pm vem cnts c uld be unde take by meanof government . )z Douglas re ided thethat some one u t ultimately ay r a n sueind ulgences, Ii A a n, w hen de recia . n set ina nd specie rose prem iu m . th f rie s o f papea . lwa y5 claim ed t the bills 0 ere t had nodeteriora ted. butaccount of the d nds of perso $ Wcxpor t bu lllon . this effect ra nk wrote iJ 129: "I need sa y any thin tojudiciou s that au b lls h ave notthere is and has

and specncy is 1 1 kby deceit

nvince rhk. thougbetweat the d ifhem an d silver ;fen: nee is cccasi

w b i c b is now befalling 1ie otheror less demand

erecause it is ev i ent

e by the scar ity 0e a mere h a dise, lsmg anmodities as here i 3. grea ter it or as it is re or lea

!Dj~lJn.tt J40-J4 5 : JI.ainel It18'!Se~ q'llotlolml gj'" '1 1 1 ' " - 1 : 1 1 1 6 5 _ , : l .

i n K ' Rhot.l.~ ]:5i!;j!I'!,j\ is5" -rgned th;U the mefor pllbl-K: buildinGs, fa i . i l . t iom.. aDd. tb.~ lie.bland, V.8-'4. Cf. I t inson. Hisl., II. 19,2)1

IIThe unthj~kj I 1 . g o J r of Cl"ur ~opk: notvtty tmiHion ef P3pc dit ~aned Mo:l ' l~Y i : ! . I I I) ' iu:pon 'III) ....bi1:h. in Tim w II c:onlriba.t~ to UiseJ4J. . 34 4

&ldn, th hult)' 1 "

II Di!5t:CI'LIcM

_" foraDltm1.noh.DI1i"r-I----


75/314

1i2apcr h d go toer be deniethege fall i764, F[iI.~ 'k 1 . J ]

t pipe ...ip ...plf:....duogc: harJ

55e zm n FDlJ 'Dllm Boou -.~ob.lII1


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insensible t x 1great harmmistic viewwas the mde ...sed foronly thosenot avoid itand d ishon e twidows and rundertakin

it had opera t d a gradual andn the com un ; so that non done aft r . To this opti-readily rep li d at such ;1 taxjust and ha m f 1 method everng public exp nd ures, It taxedere so sitlJ a d hat the)' couldbe~efited ! i f a r re, s peeu Iators,

rhe estates oftimate bus inessnjury to publiccates of a de-t b iUs 0 r credit

o rnment shouldmo ney directJ yh n s e v e r b e e nwords of wn~s elftep ling in

ernment finpte who byon1y for I hSupport of 0This cha e

a suffic len t 1cenain imp rbefore wepaper curre

e that a Gov-it is th e P ee-y, pro -v ide no tt also for theislOry presentspicture. Butn to be notedo f provincialthe people of

1 D l)l1t!e. JZ2~3:1SiWe r, 3 ( ) . o . J ' I .J-lU,

e 1 I n FDfZ(I!Im Boou


77/314

the colon es w re schoof credit urnis ed 3. pof defray ng p blic exas extrao 'dina y. Sudeprecia ~ an. c::ouddiated, OJ con]face valu. Uirab ly d etop a stro

be practishe uhllc netaxe s rea ily a d reguwhile it i lost ith the

Iln M .apoliq o f thi n c : r C " : l S i n c : eand. l,nger iDl,lnng & .1C ; ' { pC "nkS . .mod


78/314

It isCon in ental grcssed to have en te Iined

taxes upon iy agn.in s (i ta x-also agai s t tax-

moneY f th a measurof Great

arliam nt was Cr hibitiJ g colonial is! uesYork ssem bly r solvedtrary to t C con-I inco patible w th theglish en, and li elYto



79/314

me .ca to t e absclutn a By t en by G ros bi ter fee Ings o f relaw 0 J 54 vas ena ted at a tiof A e it s were xcited ov

om 0f he rcstric

the ens, Franat one rt which

xamingnve it as 15fo r t c irn A-:

418. c r. IV 0he 6nt write '" I LPP~c : i . e

OlIn!) FDlJ 'Dllm Boou I _.f......DItm1.noh.DI1I I I .-.,.-----


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81/314

Jution was prac iasscm bl ies, Codel phis. until Missue hi!ls of cr une 22'.

D Aprilhad a doney:; and Mameasu re seven dDefore th e mouI s tan d pursuedN ew H am pshirelina fo l lowed s u i.aII the other coldecided to pr ovidb ills o f cred it.4 .Alth 0ugh the1u tionary asse mb

attcm ptcd to assmu ion :! .} govern ma course \VOu ldthat body. It wblage, whose p r were .mited bth e several colo i. I order t

Cong rh a d June,

Carowonths

maintain any rha.d to be governems: and, In res

for its au thby the te Inpert to th proper

\ J oam .. o r Con,;:., J" 'CO fLlI- Ret& . j X [V~ J t Fo~ It18 .2- 'R~. (If R. L V I .11!. FOit So~ .uhC a tO l

her I . . See Fmi: : l : : . I.. F r;nce;, I [_ I,SS I. .u]. 197 57S t

S71 - S 8 6 t Laws Q f Md I 8 '0, - t.:n nete,61o lBIB FDlJ'Dllm oou -.~ob.DI1


82/314

tbe eople ofeen ind ie t d w th sufficinon of tb

lreadyess by thel1es.1 These

t ie that telp securthe ann

nd that tethod of

ple ;t. sure t, an wisestnditu 5. ut the

bou d by itseslre o r thend robably

thered

seem tond theYork asconveyed.plicit staactions

1For II KIIIThI: ' N - c = we . New Y C l ~ : k

w r 1 . 1 di knt "j~ H'k pro inci.al c:ottg~1I i :I: gale'5I U Phit.dd

i 'b le co:l! ld uC l. tO ' a t il;::l)nride( th

e t" the , . e - : 5 , 1 1 1t SS . Thi!: N

' IL~~""C" i I I ( , Mpet ~'Ill'Ttnf .VOt ' o r aopt.ed : A n d+ f :162-1 264, JiIlpet mCM;f.

e Inn FDlJ 'Dllm Boou


83/314

MONEY'1more

arry on the st rug-f biUs of credit.ere fu] I appred ..er o f the greatista kea, Recen t

. . " 'L : s . Th .. Obs r'latial'l~" pal.j ne t been mill::h la..zed II and

o r L a ilt1on) , ,..1 " e J a y i l " l i"ty, wo d b..W been madn

ttion o f the colof!ilel ,own i t ! . lome UObief.W i l! ! 1 ' ~ ' S e n t fO Fn n .U i ,n..t, 5i.1'L~t: Am.t!fic::l. ' h a d",11$ j, ' L l . pcn rbe very

p u,) unku ftom Ihe lu~, 5 . J C I a.rn~ o r Cong,~ IL

har tbe dtbtot elmu wea lde zm F lllJ 'D llm B o ow ..:.


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Conmoneystatesbills b

re given.I Slunn~f l Fi :a n~rl I. I -

requisi 0be rais byimposetial co

do if



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Congressdopted Nf moneyseful as

'e tsank n aluractlca ly wo ris she n by7~ tha IIwhe

wascur-

to such anles .1solutiona quantity

eels what ists o-mpara.c .'11 Butto Ivy taxes, seem ed

r~J rg-lelll LillI Alncri-on PPlilr.b: un . t ! J ; p 1 j l m by



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nen 1 isucs, hen tthe states were requestten cr fo r all debts j anwas \villingly cepted.p edt and ery pf0 t h e eire I a r ion

reciate,a leg~1ndation

to

ce con-S made1Wash-uppliespel theprices.!to vio-provedlands,paperstallers,ned toceec1cdd mer-; 6 butss, and

s, 0r me hand lse for near!wer stigm ati d as III tr an d enemies 0 liberty f ut p ceas t he in ation 0

Stores were c1were In bbed,

N .;r~ fin~s..

f t u f t : run: D r dilbb; e , c o n . 6 ! c ;D . -holdill.g

o lBIB D I J ' D I I m Boou -.~ob.DI1


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ven Wash-ause of thethose wholUng nandithcrspoon

he prices -0 f~ I. 3 3 . 80, J J .. J47~ UW'I o r

moD nj4\V~ ~ IiiLlllfalyof' 2 : 4 , 'S~I.2 4 - : 1 -:I M ; a I' l Y 1

M 'I I l f O f d ~ 4 6W.sl1I I1r :o~Itos:K:l'1,"l O C i e t y ' " . nt J i l ! l C O pup'"But ' V : : L ' 5 h inthe pa.petCQst i s lOt

.f$: jf \Y ,, = ~ ~ illlr-tplating bU l ,IXue 1he .tom-PClttm wrote :

: ! i n Nt:yt:r :Jl,IIQl Si:-:th $o'ia., IV. IIi~ PiC'i=rinl,. BW !I5im . 9 r ;1 -;9.. 6 z .- 6 4 , i 7b.llen.~ud en-

.. j~ pt1I!o o fh i , L : : b C - f lbaD th.~\On. V 1 1 - z . 8 " l .minaling mga.;I1!i l

"!i~d John PI I : rkcr 5h aU h ~~ som'l:"

he adviseth~ pll.l' seigb t be eve hI,.21,,-216. IG more 0]

in other lands,me1l:[]:;' o f livingI~J iJih Waslt

.. fL t .. the prmntb.~ IIDew:r 'MI.I

._5hmit l lg CI t ' six-]1]. 20.



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MONEYn

very oth r considera en ~ aof men II1 Tepadoor to the most hamef

,.~Ntu. R~ lI.

o lB I B F D lJ 'D llm Boou _. foraDltm1.noh.DI1I I I .-.,-----


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HISTORY

in iquiof ouslonpublithouhadpeopllnlO

nd orphans in aper tatst fraction of ts nom' alr could well ay of~ had ~~poUut the eqinto engines of 0pp

p led the justi e ofestroyed the ortun est confidence i it ; .~oy the mora] ty ofthose ti rnes w re bunest men wh witnes ed

..-.-tithed, whilt- the p rO G r 4 0C qIn I,8fi~ the IUP rio: couin C'quit)' b!:Q ~.Q ;ht 1 peoplewith werthl!::!. p a p r, The- 4 ; : O \ : I ; r l by tbc lO L c .k f .B a te . . . .YOrl.ble v1f:W ~l le c:on!"."et"ing"WeJf 1 1 [ r J wb II!n Ih fJl.ptl" m 11

Ikot~Tt ~fta. letl: bnnh..ldtefll. W~dOWI, orphilna,n :ipede. witb d e c i ate-.tl i : i I ! iR. ' B r o l ! c ' k . . , : 1vc:n~d the fonune r hi" , . ... ...-

~ 1779.h. only jJll e in 'Spec' ,.h~ prQn to'ClLil'lltntl.l pi p :a t lti. noi n . Grnl~.f. ;ud t J l r !'fobmOl( i r l temriJl I ! : tll!rpl!nld eurre1 " loC: ;Y~n lbe St ' l ' lH:mec'k b;jlll Krit.tc-n: Ulil.llything t h l l t ctiet o r honotJed.~1 Sf eck, : 2 ' 8 .

e zm n FDlJ 'Dllm Boou -.~ob.DI1


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o lee er,gress next proco ~'to he amount of abou

quick y deprecla d. Thefo the new\Ylthlf:1pCCn,. QJ:k.t;~ IX . II I I,l"ordlWti!inp o r Je&nonl V. t . s +Wgrb (If Fr:m. lin, VI, J 4S .

o lBIB D I J ' D I I m Boou -.~ob.DI1


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MONEf vored 5 eh polity.1g i tion stR ed y the deb r

ay s Rebel ion! nd order w ssldcrab e di cu 1ty . Per-ost sb ete declarer ~

a . stron patty wh 1Massa husetts, theclasses resulted inSnot re rored witho uhaps t e baldest aever is ued duringmay b found in twas ad pte d in thein [78 : 2 ~.Votedmend the Sf!vethey istreet theirinH uen e in the nexa bank of paper Inmaci r3 it IIt~/uiwa.nd g J d, to be issmonwe lth's securiwriter ho as ital icizrende r un necessaryof the s precio us p poBut e experien of th e co u

paper cur finaIlro ved e f feet

fo r pa.per monre lu tlo u, whiHa psh ire coun y conventio

t h t this on nticn reco -] tbi county th tves to use thert to have emittI I I dtprec illIi ,

paYln til e ual to si1 '1order to c 1 1 in the co -Th '910 S that tso stil tlin y clear as

up n the villaith a deprht a less

IITI I::W Hamp!ihir~Bc:lk n . m p , II L 4 6 o-.tn ,Foe' lhe piaing o r theBany. I I. 2lg..:lI(io j. '\:Conhedi ..l a pa.pet-ftJM :.ryla..n there " " 0 1 1 1 ~ bil1e1~1ia!.atut. St;:hl.tft I].I. : I I im i b . r g n t _ e , t OI : I i :UCTI I :liiition oj the gn=:d r~dt=:aow:mc t ia. ' ..~r of p a p331'; Li b Y i 66 -6 ; .

onll:f PI )" il \84J-3" , Ep a r y ~ isLed .

beti l~1I ! :mph. on)'t 61-62.

e zm n FDlJ 'D llm B oow..:. - . fo rao itm hoooh.lII1


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PAPERnmentrite I tr

5 nee the:a v e b e e

could

majority 0t made itrom CongT! and tha

een a c corn

e st res orof credit.rohib-ie n t.3nven-ltu . n the

u n thede cgates

le r th t theythe powery b lievcded.~ The

7 5


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enacted,.d-mon~)Ireciated,

y th fore sed-e U it d States

of the

a r licst _ l eg iss eclare,wi th en tiref men of he Co stitut io n, ant early st tutes n this subje t

, + th cy a d fel ) and therefot evils o f a. pa me:d iu m j t\ 1 1 usly g ed t e currencyfr I'll d eb ment The leg 1U ited Sta s was gold and sa subject i reg d to whichin 0 no fo11

But if tb a1gove rnmethe papecurrency diopportunitm nt was fund i th e develo

Th Bank o f Nonh

ad, f r the tlme,ney licy, thet dl ut in the

h a move-anks ofblishcdm f l C Y ifI , l Iar o n F o r t It : Ia n twentyrY L anc~, Tn. 09. D ton lutes thQ t Gp1 1r ilnd tol 11)'jl I. , ; : I I t hU.rtty )'eiln

e o U 5 0 flltlQ by the \. o f J 792. Bc-I'IIea $'lIver tot... Wbl d i 11(" br Ulbtr .'t Jtf l"c-rwn rde- red r luspe"," ,io n o f bw after r 806. Wa.tIO n 7]-74 -Annnb; j J f ul: . [4 b CQuI . , . J st Sarped stre UQ a.! iil) ' \ : r ! I 1 j~ tht' Rovt:1"D fIintended I b r = : A . h -DU i lT lC -Y ~~rn e

d bib li apbl oa bank iiiSerl. Elli Doc.,.)8- Til t II :M a c : 1 e o r Dict,! If i p . - - 1 9 5

V e ~ 1 . 198- IIi Wk ~~ ~i a.llid Sk lnsl :IllI!tlI! , nw is l II! 11 l ! . dmK ~orlr p

ee paherrs;n hll rhe I[ adf:t m., bl1 I"o n U 1M ' S u b j c : Idisc i n thil chapt

! " ~d IIcom-p t i o J : ! . of ...

.44"Z.. ~t'Ii ~ri~t Sp. il .money, 10oinl l l~ I) s . j 1 v e r dol

:n ~ 8J4 , &0&ited SlatCit\ 1.436-i1~d St.mtl:S

e zm n D I J 'D I Im B o o w .: .


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monetary history of the united states

Documents