An essay, concerning silver and paper currencies more especially with regard to the British colonies in New-England.

An Essay, concerning Silver and Paper Currency.

_PAPER Currency at a great Dis|count, has prevailed for several Years in many of our Colonies, and by Ad|vocates for it both in Conversation and Print, deluding the People with false Appearances and Repre|sentations; it is likely to continue and multiply amongst us to greater Disadvantages than ever: As ap|pears by the late large labouring Emission of 90,000 l. in Maryland, the enacted but not as yet current Emission of 48,300 l. in New York, the printed Projection for 180 000 l. in this Province, and by the Apprehensions we are under of a further Rhode Island Emission.

In Affairs of this Nature, a true historical Account of Facts and their Consequences, is called political Experi|ence; and as Things are more naturally understood by their Eff••cts, than by their Principles: I shall endeavour, by relating bare historical Facts, concerning Currencies, with some short Remarks upon the same; to set our Plantation Paper Currencies, more especially with Regard to this Province, in a true Light.

Silver be••ng a staple Merchandize all over the World, as well as an adequate Pledge, did naturally, and by the Consent of all trading Nations, become the universal Currency or Medium, by which Goods are bartered and Contracts m••de: Therefore Silver (ascertained in Weight

and Fineness) Coin ought to be the only legal Tender in the Trade 〈◊〉〈◊〉 all Countries. The Varieties of compu|tative or nummary Denominations of different Countries, are no Hindrance; they are reconciled or adjusted by, what is called, the Par of Exchange.

Par of Exchange, is the intrinsick Value (in Weight and Fineness) of the Silver Coin or Denominations of one Country, reduced to the like Value of Denomina|tions of another Country. Sir Isaac Newton's Table of the Assays, Weights, and sterling Values of foreign Coins, published by Dr. Arbuthnot, A 1727, is a proper Standard. From this no Country swerves, excepting by a small Variation, called, the Difference of Exchange.

Difference of Exchange, is a small Premium allowed for the Trouble and Risque of having Silver (that uni|versal Staple and Medium of Trade) remitted to answer the Ballance of Trade; according as the Imports and Ex|ports of Countries in other Goods, do exceed one the other. The printed Prices current of several trading Towns, from Time to Time informs us of this.

Originally the nummary Denomination of Silver, seems to have been the same as its Weight or ponderal Deno|mination It would have been happy and facile for the World, if it had so continued; but from the corrupt civil Administrations (not from the Ballance of Trade) from Time to Time, in all Countries, the Value of the Num|mary from that of the ponderal Denomination has been altered, to Defraud Creditors, and more especially to cheat the Creditors of the publick.

In England for many Ages before the 14th Century, the nummary Pound was the same with the Pound weight of Silver (this was in a proper Sense the natural Pound) that is a computative Pound Sterling was 12 Oz of Silver, a Mark, or 13 s. 4 d. ••••s 8 Oz of Silver. Iniquitous Ad|ministrations since the Beginning of the 14th Century, have from Time to Time, reduced the nummary Deno|minations to a less Value than its Weight, and cheated Creditors of some Part of their just Dues and Demands: For the Space of about 250 Years the Weight of Silver in the several nummary Denominations, has at Times, been lessened (that is the nummary Denominations de|preciated) excepting in the Minority of Henry VI. when the Denomination call'd a Shilling rose from 142 Gr to 176 Gr. of fine Silver; but during the Confusions occasi|oned by the hot Disputes, between the Families of Y••rk

and Lancaster, it fell again to 142 Gr 〈◊〉〈◊〉 it continued un|til the arbitrary Reign of Henry VIII, it fell more and more, and A 1546 it was only 40 Gr; A 1551 by the bad Administration of the Duke of Somerset Lord Pro|tector in the Minority of Edward VI. it was reduced to 20 Gr. but immediately after the Duke of Somerset's be|ing beheaded, it rose to 88 Gr. and remained so, until A. 1601 it suffered a small Reduction to 86 Gr. where it continues to this Day. Thus our present nummary Pound contains only about 4 Oz. of Silver, that is only one Third of what it originally contained.

In all other Nations the like has been done in bad Administrations. The Dutch Pond Ulams (6 Guilders) which originally contained 12 Oz Silver, at present is 2 Oz Silver. The French Livre originally was a Pound or 12 Oz. Silver, at present it is reduced to 4 Penny weight of Silver.

These almost incredible Depravations of the several nummary Denominations, had not the least Relation to the Ballance of Trade, and the most considerable of them happened in Times prior to their several Nations being much concerned in Trade; excepting what happened in France in the End of Lewis XIV. and Beginning of Lewis XV. Reigns; Silver from a Mark or 8 Oz at 27 Livres was at length A. 1719 imposed upon the People at 120 Livres: The Iniquity of the Administration, not the Ballance of Trade was the Cause. Trade has quite a different Operation, and in Fact ever since Trade be|came extensive in England, that is, in the last 180 Years, the nummary Denominations have lost only 2 in 88 Gr. The Credit of Merchants in the commercial World is be|come more sacred, than the Probity of Ministers in the civil Administration, and is a Check upon them Ever since the French began to have Commerce truly at Heart, which at present they seem to have as much, if not more, than their Neighbours; that is, ever since the Beginning of Cardinal Fleuri's Administration, there has been no Alteration in their Coin and Denominations.

In Europe all Nations have had the Ballance of Trade sometimes in their Favour, sometimes against them; and each of them more or less at different Times; foreign Wars, civil Wars, Loss of Trade, Increase in Trade; without altering the Value of their nummary Denomina|tions in Respect of standard Silver.

In all the American Colonies at their first Settling, and from some Years thereafter, their Currency was the same, with that of their Mother-Country: But by the Iniquity of some Administrations, all of them have cheated their Cre|ditors at Home, in lessening the Value of their nummary Denominations: Thus the Dutch Colonies have cheated 20 per Cent a Holland Guilder passes with them for 24 Stivers: The French Settlements, have defrauded their Principles at Home 50 per Cent.

In the British Plantations originally an English Crown was 5 s. Denomination; in Process of Time, they re|mitted to their Creditors at Home a Piece of Eight, which is only 4 s. 4 d. Sterling, at the Rate of 5 s.; some Time after that in most of our Colonies this Piece of Eight was paid away to their Creditors at 6 s. and would have gone further, by Persons in Debt getting into the Administra|tion or Power of defrauding their Creditors; if the Mer|chants at Home had not procured an Act of Parliament called the Plantation Act, whereby a Piece of Eight in all our Colonies was fixed at 6 s. for 6 s. 10 d., per Oz. Silver: In these Colonies, who upon this Act passed their Silver by Weight only as a Currency (Barbados, Ber|mudas, &c.) it continues so to this Day, being 33 per Cent. Exchange: But in some of the Colonies (Leeward West India Islands, New York, New England) not using Weight, they continue to carry on the Cheat by passing a light clipt Piece of Eight for 6 s. which is about 8 s. per Oz Silver; there being no Bounds to their Clipping, they were obliged to come into the Use of Weights, but continued the Ounce of Silver at 8 s. Denomination, is 50 per Cent Exchange. In many of our Colonies they have gone greater Lengths, and by Floods of provincial Paper Credit or Money, they have made vile Work of it; so that Exchange with Sterling is at present in Jersies and Pensilvania 60 or 70 per Cent. Advance; Maryland 100 per Cent.; the New England Colonies and Nova Scotia 400 per Cent: South Carolina, 700 per Cent; and North Caro|lina still worse. (Virginia have gone astray the least, be|ing at present only 25 per Cent. worse than Sterling) thus that salutary Proclamation Act was frustrated: seeing the late Instruction relating to this Affair, to his Governours is not regarded, we could not complain if the British Parliament should take Cognizance of the same. This leads me to the Article of Paper Currency.

Because in common Equity, nothing ought to be a Tender in Trade in any particular Country, but what is a general Tender all over the commercial World, Trans|fers in the Bank of Amsterdam are an Exception, because of their universal commercial Credit, and their being bet|ter than common Currency) the Wisdom of the British Legislature, have not thought it convenient to make our Paper Effects; that is Bank, East India and South-Sea Trans|fers; Bank Notes, East India and South Sea Company Bonds, a legal Tender: Notwithstanding of their being better than Silver, being at any Time reducable to Silver; so that they are as Cash bearing Interest (Bank Notes excepted) which Silver Cash does not: Hence it is that in Exchange for (Silver) Currency they bear a Premium.

I shall, here give some Instances of the bad Effects of Paper Currency made a legal Tender. The Arbitrary Go|vernment of France, after much Damage done to the Subjects in depreciating their nummary Denominations by recoinages; did A. 1719, to compleat their Misery, em|brace Mr. Law's Project of a Paper Currency; Silver was banished by severe Penalties, Paper was made the only legal Tender. The Operation was; the Nation reduced to the utmost Confusion, Mr. Law and his Abettor Mr. D'Argenson were disgraced; Silver again introduced as a Currency, and the only legal Tender.

Baron Gortz about 20 Years ago, had reduced Sweden to extreme Misery, by imposing Government Notes instead of Specie. Upon the King of Sweden's Death, the Baron suffered capital Punishment, this being one of the prin|cipal Crimes alledged against him. The Paper Currency was called in; the Silver and Copper Currency was re|stored, upon the same footing as before Charles XII. Ac|cession.

We have a very good Instance in one of our own Co|lonies. Barbados A. 1702 emitted 16,000 l. Bills of Credit on Funds, to be brought in again by a Tax of 3 s. 9 d. on Negroes: At first they passed at a Discount, but no more being then emitted, and the Time of the coming in being at Hand, they rose again to near Par. Encouraged by this, they made a large Emission of 30,000 l. Bills on Land security at 4 per Cent. payable after 5 Years: These Bills immediately fell to 40 per Cent. below Silver; but by an Order from Home they were all called in soon, and their Currency became Silver Value as before. Ballance of Trade had not the least Concern here.

A Paper Credit well founded and under good Regu|lations, and not larger than what the Silver Specie Cur|rency will bear; has been found to be a very good Ex|pedient in Business, and it leaves the Silver Species at more Liberty to be used as Merchandize, and for petty Occasi|ons. In Holland all large Transactions are in Bank Transfers of Amsterdam, their Credit being better than that of the Government, and their Bank Money 3 a 5 per Cent. better than the common Currency. The Use and Credit of the Bank Notes in England we all know, their Fund being a valuable Depositum, a Call upon Oc|casion on the Proprietors, and about Ten Millions Sterling in the Government's Hands; yet their Notes are no le|gal Tender. If Paper Credit exceeds a certain Proportion of the concomitant Silver Currency, its Effects are bad, and ruinous; by its precarious Loss of Value. The Bank of Venice was originally two Millions of Ducats given in, and Bills to a limited Sum given out, upon the Security of the same: This Scheme was so good that their Bank Money became 28 per Cent. better than common Curren|cy: from this good Success the Government allowed them to issue out more Bills, only to the Value of 300,000 Ducats; this small Addition brought down their Bills to 20 per Cent. Advance. N. B. By continued Additions they might have brought them down to Par, and from thence to a Discount, even so low as 400 per Cent, as is our Case at present.

Our Province Bills from the various Operations of fre|quent large Emissions, distant Periods, and Periods postpon'd; are become 400 per Cent. worse than Sterling, and above 200 per Cent. worse than themselves 25 Years ago.

All well regulated Corporations are restricted, to issue Bills or Notes not exceeding a certain Value: Thus it is with English Bank Notes, East-India and South Sea Com|panies Bonds; lest by too large Emissions, they might de|preciate their Notes and Bonds, to the Damage of the So+ciety itself, and Creditors. The King by an Instruction to his Governour of this Province, limits us to 30,000 l. per Ann. (to be understood Proclamation Money or its Value) for extraordinary Charges of Government.

The principal Design of a Currency or Medium of Trade, is to avoid the Inconveniencies of Barter: Paper Currency in large Quantities does not answer this End; because of its Fluctuation, or rather progressive less Value; which obliges the Merchant at length to return to Bar|ter

again, as being safe and better. In South Carolina, the Quantity of Paper Currency has so depreciated itself, that all considerable Contracts, are made, not in Pro|vince Bills, but in their Produce Rice. In North Caro|lina their Produce, they call Specie, is 50 to 100 per Cent. better than their Paper Currency.

Silver is a staple Merchandize, an adequate Pledge, and an universal commercial Medium. Our Province Bills have no intrinsick Value, and as a Depositum, are no better than waste Paper; they are no exportable Mer|chandize, and receivable no where but in New England, being only an ill contrived provincial or municipal Medi|um. Barter is Merchandize (not so staple, and more bulky and perishing than Silver) exportable, and upon that Account preferable to Province Bills as a Medium.

In Virginia, Tobacco is their Medium, and answers bet|ter than Paper, because it is an exportable staple Merchandize. Let us suppose, that at any Time it should become (as are our Bills) not exportable, and that Laws should be made there from Time to Time, for planting of greater Quantities, to increase their Medium; it would become in Course such a Drug, that more and more of it would be given, for a certain Quantity of Silver or any other Goods, and at length be of no Value; but if their Government being sensible of their Error, should forbid planting above such a Quantity, their Me|dium would become good as before.

As to the Quantity of Paper Currency which the Sil|ver Currency will bear, without depreciating its Deno|minations; it is only to be learnt by Experience. In New England we found that A. 1713 there were 194,000l. in Province Bills at Par with Silver at 8 s. per Oz. When we began to exceed that Sum, our Paper began to loose of its Value: Here we ought to have stopt and kept within that Sum in our future Emissions. New York never exceed 40,000 l. in Province Bills (at present only about 37,000 l.) and so kept up their Value at 8 s. per Oz. Silver.

The larger the Paper Currency of any Country, the more it labours, and is circulated to the greater Disadvantage. The greatest Quantity of Exchequer Bills in England (never were made a legal Tender but in Taxes) at one Time extant was A. 1716, being a 4,596,184 l. Debt, much of it contracted in the bad Administrations of the latter End of Queen Ann's Reign; Notwithstanding of their

being above one Fourth of the Nation's Currency their being receivable in Taxes and all Treasury Affairs, and bearing Interest 3 per Cent. per Annum; they began to depreciate, and the Government was obliged to allow the Bank an Annuity to cancel Two Millions Sterling Value of them, and 3 per Cent. Premium to circulate, and specify the Remainder while above One Million, and afterwards only 1 per Cent. Premium. Anno 1702 there were extant Two Millions Sterling Value in Exchequer Notes, the Government allows the Bank 3 per Cent. to circulate them while above One Million, and 1 per Cent. when not exceeding One Million. Since that Time, if Exchequer Notes are at any Time used towards defraying the Charges of Government, they are honestly paid off next Sessions of Parliament. The last Emission of Ex+chequer Notes was A 1730, being 510,000 l. towards the Charges of that Year, and were paid off A. 1731, the Year following.

If Paper Credit upon future Taxes or upon Loan, would answer as a Medium; how is it that the Govern|ments in Europe, find it so intricate an Affair to raise Mo|ney for publick Charges in Time of War,or other extra|ordinary Occasions? When attempted by arbitrary Go|vernments, they always tend to the Ruin of the Subject: The State Bills of France in King Lewis XIV. last War, were sold at 50 or 60 per Cent. Discount. Baron Gorz's State Bills in Sweden were Part of the Crimes for which he suffered Death.

Upon any extraordinary Emergency or Charge incur'd by the Government (we were by the King's Instructi|on allowed to emit, not exceeding 30,000 l. Proclamati|on Value per Ann.) it may be proper to satisfie it, by publick Bills of Credit, to be received again next Year in Taxes. This is only good Oeconomy, to lay Part of the extraordinary Charge of a preceeding Year, upon the Taxes of the Year following; they will be as good as Silver Cash, or better, if the Circulation is encouraged by a 5 per Cent. Premium or advance Allowance in the Treasury. By this good Management of cancelling the Bills in a Year or two, we kept up their Credit till A 1713.

To emit large Sums of Paper Money, upon Funds of Taxes payable after many Years; or upon Loans not to be paid in until after 10, 20, or 45 Years, as are the last Payments in Maryland, is leaving a heavy Debt of

Funds and Loans, contracted by our own Extravagancies and perverse Humours; as a Burden, to be discharged by the succeeding Generation. As it is a natural Instinct in Animals to provide for Posterity, it must be deem'd very unnatural and wicked in us, instead of doing so, to contribute to their future Misery.

So much Paper as is current in a Province, so much re|ally is that Province in Debt; for the Funds Part, the Publick is in Debt; for the Loans Part, private Persons are in Debt: It is a Contradiction co assert that a Coun|try my grow rich by (Paper Money) running in Debt? As neither Publick nor Private are now ashamed to con|tinue in Debt, we may say of those Paper-Money Coun|tries, with Regard to their Mother-Country; what is commonly said, and is in Fact true of many of our Shop|keepers with Regard to the Merchants; if they would be rich they must run boldly in Debt, and not be asham'd of being dunn'd.

If a private Man's Notes or Bonds are negotiated at a Discount, he is deem'd a Bankrupt capable of paying only — in the Pound. So it may be said of our Colonies, with Paper Currencies at a great Discount; and the Discount encreasing daily, they are in a State of lawless Bankrupcy.

Private Credit or Notes on a good solid Foundation, are better than publick Bills; the former cannot, impune, break their Faith; they are under Coercion: The pub|lick is the Dernier resort and in bad Administrations fre|quently break their publick Faith. Hence, the Credit of a well regulated Commerce or Corporation, is bet|ter than that of the civil Administration; the Bank Money of Venice is 20 per Cent. of Hamburg 12 per Cent. of Holland 5 per Cent. better than common Currency.

This private commercial Credit in all polite Nations, is so sacred at present, that the civil Government stand corrected by it. The Generality of the united Provinces did A 1693 coin alloy'd Pieces called quaad Schellings at 6 Stivers, being near 10 per Cent. above their intrinsick Value. The Bank retain'd their Integrity, and it again rose to 13 or 15 per Cent. this obliged the Government to reduce these Schellings to 5 and an Half Stivers their intrinsick Value, and have continued so ever since, and the Agio of the Bank fell to 3 or 5 per Cent. as formerly. A 1720, France being in the most dismal Confusion, by their Paper Currency, their Court was obliged to apply

to the Merchants and Bankers for their Advice, concern|ing a Method to be used to find out the natural Pro|portion between publick Bills and Silver Species, and to limit their Paper Effects to a certain Sum.

A plain Illustration, that Private is better than publick Credit, we have amongst ourselves. Our Merchant's Notes, so called, being well founded, were 11 and an Half per Cent. in Decemb 1737, will be 18 per Cent. in Decem. 1738, 12 and an Half per Cent. (3 7ths of them then paid off) in Decemb. 1739, 19 and an Half per Cent. in Decem. 1740, 26 and an Half per Cent. in Decemb 1741, and 34 per Cent. in Decemb 1742, better than the present Value of our Province Bills at 27 per Cent.; because they are continually growing better, until they come to their fixed Value, at which they are to be paid off.

The Scheme for emitting of 60,000l. Bills of the new Tenour, equal to is 180,000l of the common New England Bills, by Undertakers or Subscribers, probably will drop, and therefore requires no Disquisition: Only we may observe 1st. The Emission is too large, and the Periods too distant. 2dly. The Subscribers or Circulators require a good Premium; because if let go, at the Rate of 27 s. per Oz. Silver, the present Value of our Currency, and it is paid in again 1 10th yearly, at 20 s. per Oz. Value, al|lowing for their Profits by Interest; every 1000 l. new Tenour, that is 3000 l. common Currency, will loose 262 l. 10 s.: If Silver rise higher, as it naturally does upon all large Paper Emissions, the Loss will be proportionably greater, after the Rate of 150 l for every Shilling advance upon the Ounce of Silver. 3dly. If the Assembly our Le|gislature, being under no Coercion as private Banks are, should postpone the Periods of paying the Possessor; the Value of these Bills will further depreciate very much. 4thly. The grand Deformity of the Scheme is; that this Money shall answer all Specialties, past, present, and to come: The like was never imposed (seeing it is ordered to be printed, it may with Freedom be canvassed) upon the Subject, by the most arbitrary and iniquitous Govern|ments in the World; particularly it is equivalent to a Bill of Attainder, against every one of the Committee or Subscribers of the Merchant's Notes.

The Uncertainty and Confusion of Paper Currency in our several Colonies, and in the same Colony at different Times; might be illustrated by the History of the various Paper Currencies of our Colonies; but to avoid Prolixity▪ we

shall only observe, That Massachusetts Bay in New Eng|land led the Way, by an Act of Assembly in Decemb. 1690, emitting a small Sum in Province Bills or Deben|tures, to satisfy some extraordinary Charges incurr'd by the expensive and fruitless Expedition to Canada that Year; afterwards more were issued towards the Charges of the succeeding Years: But were no legal Tender, on|ly receivable for Taxes, and cancelled after a Year or two: Thus they kept up their Credit, and were at Par with Silver until A. 1713: From that Time, by Funds and Loans in large Sums they lost their Credit, and are at present 27 s. the Ounce of Silver.

Barbados followed our Example A. 1702, and by a large Emission upon Loan they run into Confusion; but by an Order from England they were cancelled, and the Island came immediately to rights again. South Carolina upon their Expedition against St. Augustine, A. 1702, began to issue Paper Money; by their subsequent large Emissions on Funds and Loans, and by their vile Breach of publick Faith in Postponings, have arrived to 42 s. 6d. per Oz. Connecticut in New-England, their first Emission was A. 1709. Rhode-Island in New-England, came into it A. 1710, as did New-Hampshire in New-England, about the same Time; they are all over New-England 27 s. per Oz. Silver. New-York's first Emission was A. 1734, as their present Currency does not exceed 37,000 l., Silver with them is only 8 s. or 8 s. 6 d. per Oz. Jersey's Bills are at the same Price. Pensylvania begun A. 1723, but do not exceed 69,000 l. and are at 8 s. 6 d to 9 s. per Oz of Sil|ver. Maryland's first Emission A. 1754, was of 90,000 l. at long Periods, and are at 10 s. to 11 s. per Oz of Silver.

A Glut of this Provincial confused Paper Currency, by frequent and large Emissions, did naturally make it a Drug, and cheaper than Silver the general Standard of Merchandize: So that the Merchant was obliged to ad|vance upon his Goods, bought for Silver, & sold for this Pa|per; and in Consequence the Consumer of them obliged to raise the Price of his Labour and Country Produe, paid in Paper.

When Paper Money is in a continued Course of depre|ciating, all Debts and other Contracts are paid in a less Value than they are contracted for; which is an unjust but natural Operation of this false Medium; the generous foreign Adventurer or Merchant, and consequently Trade in its genuine Sense, is hurt; the Gainers are the Shop|keepers

and Merchant Hucksters, who have a long Credit from their Merchant, and abuse this Credit.

Large Emissions of Paper Currency, have encouraged the unwary Merchant at Home to send large Quantities of Goods, supposing our Money to be good: And therefore has a natural Tendency to make the Ballance of Trade against us, by increasing our Imports

A large Emission of publick Paper Credit on Loan, to be paid at a distant Period or long Credit; gives the despe|rate and unthinking Borrowers or Subscribers, an Oppor|tunity of ruining themselves, by taking up this Money and spending it extravagantly: Industry and Frugality (the only Means of becoming rich) are turned aside▪ In Place of being industrious, our young Men called Gen+tlemen, follow no other Business but Drinking and G••+ming; many in Quality of Shopkeepers become 〈◊〉〈◊〉 Tradesmen of all Occupations in Boston, loi••er away much of their Time; the Husbandmen in the Country spend many idle Days in their little Rum Taverns. Frugali|ty is superseeded by Prodigality and Extravagance, as is too aparent in our fine Houses and Furniture, Chaises and other Equipages, Velvets and Scarlets, rich Silks and Laces, &c. The Parliament of Bretagne in France, in their Remonstrance to the Court of France, A. 1719, say,

That many of their Families are ruined by Paper Money, it gives an unbounded Loose to Excess in Ap|parel and other Extravagancies

This is the natural Consequence of large Quantities of Paper Credit in all Countries.

These Extravagancies the Consequencies of our Paper Cur|rency, hurt us as to the Ballance of Trade in both Respects: They encourage a Consumption of foreign Commodities, that is, they increase our Imports; instead of employing our Paper Credit to procure Exports, and to set up Ma|nufactures and other Improvements; it is expended in fine Houses, Equipages, and Apparel, or to pay Debts contracted by a long Credit: The Hands employ'd in fitting out these Extravagancies, would have been more profitably employ'd, about Things for Exports, or in manufacturing such Things, as would have lessened our Imports.

This leads us, to an Argument much used by some, in Favour of Paper Credit▪ viz. The fine Figure Boston now makes, in Houses, Equipages, &c. is owing to it. This is Truth, but not to be boasted of, no Man is the richer

for these Extravagancies, he thereby starves his Trade, and disappoints his Merchants and other Creditors: We are not to judge by Appearances only; Boston never was more extravagant and gay than at present, but never were more in Debt, never more incapable and back|ward in paying Debts. From the repeated large Emis|sions of Paper Credit, the Value of our nummary Deno|minations did continually become less, and the Mer|chants at Home were from Time to Time paid a less Va|lue than they contracted for; thus, for a Debt contrac|ted 25 Years ago, he now receives only 7 s. in the Pound, that is the Debtor (defrauds) retains 13 s. in the Pound of the Merchant's Money, and with this he builds fine Houses, makes Purchases, &c.: Let us not boast of these Things, lest it may be said of our Posterity, and of those who are to enjoy them: Happy is the Child whose Father 〈◊〉〈◊〉 to the Devil

Seeing then a Creditor paid in these depreciating De|nominations, does not receive the Value he contracted for: is it possible that any Man (if in his right Senses) of a monied Estate, that is, in Cash, or out upon Bond or any other kind of Debt, can desire such a Moth of a Cur|rency. Every Act for Emissions of large Sums of Paper Credit, unless upon a solid Fund, or to be cancelled in a Year or two by Taxes; may properly be called An Act for the Relief of insolvent Debtors; or rather, An Act to encourage and enable Debtors to defraud their Creditors, by com••••unding at — Shillings in the Pound, and every Creditor looses thereby a certain Portion of his Estate. This is one of the most pernicious Operations of this Paper Credit, viz. That all who have the Art and Assurance of running in Debt, and postponing Payments from Time to Time, are in a certain Way of getting an Estate; to the Damage, or Ruin of their Creditors and Benefactors

In all Countries where there have been several sorts of Currencies at a Time; the basest only remains for com|mon Currency: In Holland, quaad Schellings are now their common Currency. In our Leeward-Islands are two Currencies▪ viz Silver and Gold, upon unequal footing; Silver being upon the best footing is shipt off, Gold re|mains; and in changing of Gold for Silver, there is an Advance upon the Silver. Where there have been good and bad Currencies ••n the same Place; all the good, if 〈…〉〈…〉 as is Silver and Gold; if not

Merchandize, but upon a fixed Foundation as to Value and Period of Specification or Payment, they are hoarded up, because daily growing better as these Periods approach; as is the Case of our Merchant's Notes.

We have no Reason to fear Want of a Medium, if the Grievance of publick Paper Credit were gradually re|moved. Trade will find its own natural proper Medium, viz. Silver and Gold: They are imported here from Time to Time; when we have no other Cash, the Merchant must retain some of it to serve as Cash; Cash is a Mer|chant's Tool or Instrument of Trade, by which he carries on his Trade and Business; and therefore will require no Laws, to hinder its Exportation.

Our Government of Massachusetts-Bay in New England, from the Inconveniencies, in their own Experience, and from the notorious bad Consequences of the like Practices in other Colonies; are now beginning to reform this Er|ror of a vague Paper Currency, by reducing it to a certain Silver Standard and Fund. Upon this Occasion I beg Leave to observe; that in our Bills of the new Tenour, if Gold had been put at 5 l. (instead of 4 l. 18 s.) per Oz. it would have been nearer at Par with Silver at 6 s. 8 d. per Oz.; and the Gold Penny-weight, being thus at 5 s, would have been without a Fraction, as is the Silver Pen|ny-weight at 4 d. The Leeward Islands and New-York, have erred on the other Side, viz. Silver at 8 s. per Oz., and a Pistole at 28 s.

Some harsh sounding Words, are not designed as a Re|flection upon this Country in general (the Country is not without its Merit, and their People in their natural Ge|nius do excel) the Errors of all Countries in bad Admi|nistrations, are to be imputed, to the Iniquity of Admi|nistration, but not to the People in general.

There has lately appeared here in print a small Piece (Some Observations, &c.) in Favour of a Paper Curren|cy: But unluckily for the Author and his Cause, most of his Arguments, when cleared of unnatural Incumbrances, recoil upon himself, and they point out the many Incon|veniencies which attend a large publick Paper Credit. As it seems designed for the Vulgar great and small; not|withstanding, what I have already related, is a full An|swer to the whole; I must by a closer Application, re|tort his Arguments. I shall forbear any idle Criticism upon his Calculations, Figures, and technical commercial Words, as being out of the Question. Here I cannot but

observe, that in all his spacious Calculations, he is obli|ged to make Use of Silver at a certain Value, and recei|vable at certain Periods, as a Basis; neglecting his dar|ling Paper Currency's Uncertainties, as not qualified for a proper Foundation.

He introduces these Words, Ballance of Trade, upon all Occasions, with no true Meaning and Application.

Ballance of Trade is Cash (Silver and Gold) impor|ted to, or exported from a Country, according as the general Exports or Imports of Merchandize exceed one the other. The Silver and Gold which we send to Eng|land, are no Part of the Ballance of Trade against us, being truly, as Merchandize only. England sometimes exports Two Millions Sterling Value of Silver and Gold per Ann. to Holland, East Indies, &c. by way of Merchan|dize; the Ballance of Trade continuing in Favour of England notwithstanding. Ballance of Trade is also a|gainst a Country, not only when they export their Me|dium, but also when the Country runs in Debt, by ex|pending in fine Houses, Apparel, &c that which ought to have purchased Exports; this is our present Case.

The whole of his Book may be summ'd up in this Sentence, The sinking Value of our Bills is from and in Proportion to the Ballance of Trade being against us. Is it possible that a Country should continue to trade, or be capable of trading, when by the Ballance of Trade be|ing against them, should meerly upon that Account in 25 Years Time, loose two Thirds of their Substance, as our Bills have lost above two Thirds of their Value. In any Country if the Ballance of Trade, is very much against them for a Series of Years; their Merchants na|turally become Bankrupts, to the Damage of their fo|reign Creditors; the Country looses its Credit, and is no more a Place of Trade. Paper Money cannot satisfy a Ballance of Trade, it is not exportable or to be negotiated abroad.

If we find that in all our Colonies where is no Paper Credit, that, the Value of their nummary Denominations, continues the same; and in all Colonies where Paper Currencies has prevailed, their Denominations have de|preciated; Hand in Hand with their repeated Paper E|missions, ought we to have Recourse to any other Con|ceit (as Ballance of Trade) for its Cause, but only to the Operation of these Bills, would he not be reckoned a wrong Head, who should asign any other Regulator of

the Tides but the Moon, seeing at all Times and every where they vary pari passu, Barbados h••s had its Visici|tudes of good and bad Crops; their Planters sometimes rich, sometimes much in Debt: But having no Paper Credit, their nummary Denominations are constantly of the same Value. Pensylvania (I mean the three upper Counties) has ever been in a progressive growing Con|dition: Their nummary Denominations continue of the same fixed (Proclamation 6 s 10 d. half-penny per Oz) Value; until their Emissions and Re-emissions of Paper Money A. 1723, 1724, 1726, and 1729, raised Silver to 9 s. per Oz., tho' at present their whole Paper Currency does not exceed 69,000 l. Maryland the last of our Co|lonies, that has fallen into this Expedient of Debtors cheating their Creditors (a Debt of 100 Weight of To|bacco, 10 s. Denomination before, is now paid by 10 s. Denomination of this Paper, which purchases only, and consequently is worth no more that 50 Weight of To|bacco) A. 1734 they emitted 90 000 l. on a Silver, or Pro|clamation Bottom; but the Emission being too large, and the Payments to the Possessors at too distant Periods (15, 30, and 45 Years) not being receivable in the Proprietors Quit-Rents, nor in Taxes, and being made a legal Tender; Exchange rose directly from 33 to 100 per Cent. Where the natural Causes of this Rise are so plain, is it reasona|ble to introduce some chimaerical invisible Ballance of Trade, opperating so suddenly and so violently, while their Trade (Imports and Exports) in Appearance is still the same. In New-England, by unlucky incident, in the Fall A. 1733 Massachusetts Bay emitted 70,000 l. Rhode-Island 104 000 l., Connecticut 50,000 l.: The Ope|ration of these Emissions was exactly the same; Exchange rose from 275 to 440 per Cent. Imports exceeding the Exports in Trade, is therefore not the true adequate Cause of the Minoration of the Value of our nummary Denominations. In South-Carolina where the Paper Cre|dit is the lowest, 42 s. 6 d. per Oz Silver; their Rice and Deer-Skins or Exports are of much greater Value than their Imports, being now fully stockt with Negroes.

He says, That Province Bills ought to be emitted from Time to Time, and postponed; until the Quantity exceeds the Demand. This is impracticable in the Nature of the Currency: By Experience we find, that the more Emis|sions from Time to Time, the Value of these Bills is the less, and consequently the greater Quantity of them is re|quired

(that is the Demand is the greater) to carry on the same Business. A 1713, when our Bills began to depreciate, there was current in all New England 194,000 l. in publick Bills of Bredit, at 8 s. per Oz. (the Value at that Time) is 485,000 Ounces Silver Value, besides a considerable concomitant Silver Currency: Our Paper Currency at present (Merchant's Notes not in|cluded) is about 580,000 l. (triple the former) at 27 s. per Oz. Silver Value, is only 429,629 Oz. without any concomitant Silver Currency; so that our real Medium of Trade or Currency is considerably less at present, than it was A. 1713; notwithstanding the emitted large Sums, of this imaginary fallacious nominal Currency. This is the certain and constant Operation of a publick Paper Currency in large Quantities, over all our Colo|nies; that is, when it exceeds a certain Proportion; the more that is emitted the more it depreciates, and by continued multiplied Emissions, at length, Province Bills may become in Value equal to Waste Paper.

He says, A 20 s. Bill is the natural Pound of New-England. This ought to be understood no otherways, than as a Banter upon our publick Bills, because they are continually fluctuating; and may be compared to the Inscription, semper eadem upon a Vane in Camb••••dige, in the Time of the Administration latter End of Queen Ann's Reign. Or in a more familiar Comparison, of the Loads of Hay brought to Boston, which originally were design'd and understood to be 20 Hund. Wt. or a Tun, at present if a Country Man's Load is reduced to a Standard Weight, and found to be only 12 Hund. Wt.; would it satisfy the Buyer of this Load or Tun of Hay, the Country Man's saying, it is all right, this is my natural Tun or Load: This is what our Author in another Place says, that every Man may have his own natural Pound: Which cannot possibly be, until Society is dissolved.

'Silver falling in infinitum, and Bills growing better in infinitum' This is a Delirium, without any Connec|tion or Meaning; as are sundry other Passages in tha•• Book, which I do not understand, and therefore cannot presume to explain.

'The Ballance of Debt against us, will fall our Bills ad infinitum.' I suppose he means not below the Value of Waste Paper. Where is then the Value of these Bills? Is it not a Burlesque upon us, to call a 20 Shilling Bill not fix'd, but left free to its Course in the Marker, and

at length become equal to Nothing; New England's na|tural Pound Value? Are those natural Pounds in any Country, which in the Space of 25 Years have fluctuated or rather sunk from 50 per Cent. Exchange to 400 per Cent, and may still sink in infinitum?

What he calls Buying with our Bills Silver at a Mar|ket Price; is, in a mercantile Phrase, discounting our Bills at a Market Price, with Silver, which is the fixed universal commercial Medium; thus he endeavours to per|swade us, that our Bills are of a fixed Value, and that Silver fluctuates; after this same Manner, as if aboard of a coasting Vessel under Sail or fluctuating, he should endeavour to perswade Passengers, that the Ship stands still, and the Land fluctuates or alters: He might per|haps from Appearances perswade one who had not the right Use of his Reason. To say this Bill shall be in Value equal to Money without fixing any standard Va|lue, is only saying, Valeat quantum valera potest. Qui vult decipi, decipiatur

Of the same Nature is his Assertion, That when Goods rise or fall in our Market, the Change must be in our Goods, but not in Paper Credit. Whereas in Fact Goods and Produce in this Place, communibus annis, have nearly re|tain'd the same Price (or rather of late are cheaper) for many Years, with Regard to Silver the universal com|mercial Medium: That is, the same Quantity of Silver will buy the same Quantity of Cloth, Woollens and Lin|nens of any particular Sort, and build the same Tunnage of Vessels (when Silver was at 8 s. per Oz Ships from 200 to 300 Tun to the Builder, cost about 4 l per Tun, and 10 s. for Extras as was the Custom at that Time; at present 15 l. per Tun, Extras included.) Labour is rather cheaper, a Ship-Carpenter when Silver was 8 s., had 5 s. a Day, or 5 8ths of an Oz; at present he has only 12 s. a Day, which is not Half an Oz. at 27 s. per Oz

The Author is a Stranger to the Affairs of Exchange-Alley in London. He compares the continued great Falls of our Province Bills from 50 to 400 per Cent. (I suppose he means the Bubles A 1720) to the Changes in the Stocks negotiated there, which is only a small Fluctuation, pro|ceeding not from Ballance of Trade, or Variations in nummary Denominations, or Addition of more Stock on the same Fund; but from some St••ck jabbing little Arts or Tricks. He is not acquainted with the Nature of East-India Bonds: He says they are not fit for a Market, be|cause

they promise Money only at a distant Time, and a supposed Interest of 6 per Cent. Whereas the Possessor or Bond-Holder may demand at Pleasure (or be allowed in any of their Sales as ready Money) but the East-In|dia Company cannot oblige the Bond-Holder to quit (have it discharged) his Bond, but at half Years Notice. Hence it is, that they bear an Interest lower than the common Interest (3 or 3 and an Half per Cent.) and sell for a Premium; because they are as Cash bearing Interest, which Silver Cash does not.

'Paper Money not being emitted in Quantities, is the Reason why the natural Interest amongst us rises.' This unnatural Medium in Quantities, has a quite different Ope|ration; from that of the natural Medium Silver in Plenty, which effectually lowers the Interest of Money. The Quantity of Paper Credit sinks the Value of the Princi|pal, and the Lender to save himself, is obliged to lay the growing Loss of the Principal, upon the Interest. Rhode-Island who have much exceeded us in their Emissions, have for some Time rose their Rate of Interest to 10 or 12 per Cent and give this very Reason for so doing.

'No Man can say, but that his Money will now bring him in, as much Interest as ever.' The Matter of Fact is, 100 l. in Province Bills 25 Years ago, brought in 15 Oz. of Silver per Ann.; the same 100•• l, at present does not bring in 5 Oz, is 5 equal to 15, or 1 to 3.

His tacit Consent of the Multitude to the Schemes of Pa|per Money; is a weak Argument in its Favour. I re|member some Years ago, when we had got into the Hu|mour of Lotteries: Notwithstanding the Discount upon the benefit Tickets for Charges, and other great Frauds (v. g. in one of the First of these Lotteries, a House was set at 1600 l, the Proprietors of this benefit Ticket, after this House had been upon Sale many Months, could get no more than 100•• (for it, which is a Discount of 37 per Cent.) yet without Imputation of Knavery on the one Side, or Folly on the other; People did continue in sub|sequent Lotteries to sink their Substance, and would have continued longer in the same Manner; if the Wisdom of our Legislature had not put a Stop to it.

He alledges that long Credit (our great Grievance) is from the Scarcity of Paper Money. No. It is from too great Imports, encouraged by large Emissions. The Mer|chant or Factor cannot dispose of so much, at a reasonable ready-money Price, and therefore, that their Goods may

not lay long upon Hand, are obliged to give a long Credit.

I canot avoid, by way of Digression, to make some Re|marks on long Credit. It makes the Unthinking buy profusely. Whereas ready Money, or a short Credit, would not allow a Man to buy and spend more, than his present Earning could afford, consequently he would live frugally, and keep clear of Debt: Foreign Com|modities would not be imported in such Quantities, be|cause they could not be consumed faster than our Earn|ings (our Returns) would admit of; and would answer the Intention of sumptuary Laws, which our stated De|pendance on a trading Mother Country cannot allow of. Ready Money or a short Credit, makes a quick Circula|tion; the quicker the Circulation, the less Quantity of a Currency or Medium is required to carry on any Trade and Business. This would be an effectual Method, and equivalent to enlarging our Currency.

He alledges also, that Shop Notes (another great Grie|vance) were introduced from the Scarcity of Paper Curren|cy. This is ill judged. Because the Merchant to pro|cure a greater Advantage upon his Goods, than if sold for Cash; contracted with the Shop-keeper, to take it out in his Way by Tradesmen's Notes: The Shop-keeper by imposing upon the Tradesmen and Labourers, Possessors of these Notes, found their Profit in it; this made the Shop keepers chuse to buy, to be drawn out in Notes. The Factor also found his Advantage in it, by dazling his Employer with a large Account of Sales, & by encreasing his Commissions. This is become an Iniquity as it were by compact.

He encourages the Rhode Islanders to more Emissions of Bills, 'And they will find their Account in it, if they go on to emit a sufficient Quantity of Bills.' He advises this Province to follow their Example, in emitting a great Quantity before it be too late. He does not consider that if this Province were to emit a Quantity of Bills in pro|portion to what Rhode-Island have emitted, (Massachu|sets Bay Colony being to that of Rhode Island nearly as 6 is to 1) they would be so depreciated by their Quan|tity, as not to answer the End of a Currency, and oblige us to a Truck Trade; as in North Carolina, where their Truck call'd Specie, passes at a great Advance above their Province Bills; and in South-Carolina, by reason of their large Emissions, all considerable Contracts are made

in their Produce Rice, not in Bills. A Man of a landed Estate perswades some Merchants his Neighbours and and Friends to accept his Notes for Goods and other Necessaries payable after 10 or 20 Years, and to circulate them all that Time without any Premium: And this Man a trading with these Goods to his own private Profit. It is scarce credible that there could be such Infatuation on the one Side, and such bare fac'd Impo|sition on the Other. This is the very Case between this Province and Rhode-Island. It is in vain to think, that we may follow their Example; it is impracticable so to multiply Bills to our Advantage, unless we could per|swade (it is Folly to imagine it) all our Continent Plan|tations, to circulate them; Rhode-Island bears no greater a Proportion to this Province, than this Province does to all our other Colonies upon this Continent.

He is an inexorable Enemy to Silver, for the following Reasons, as he says.

Silver has been and may be greatly depreciated by the Excess of its Quantity. Silver is of so universal Demand all over the World; that the continued Additions to it is like throwing of Water into the Ocean, making no sensible Alteration: But a continued Emission of any pe|culiar provincial Paper Money, above a certain Sum, is like continued Pourings of Liquor into a Cask, which is soon full, runs over, and the Additions are lost. In Fact, the computative or nummary Denominations, instead of containing more Silver, as it might be imagined from its Excess, do contain considerably less, v. g in England instead of 12 Oz to a Pound Sterling, as it was when Sil|ver was scarce, it is at present only 4 Oz when Silver a|bounds: But, as we have already proved, this proceeds from none of the Qualities of Silver; it is meerly from the Iniquity of civil Administrations. The Silver Mines of Potsio are said to have been first discovered A. 1545, the nummary Denominations, as to Quantity of Silver, varied much before that Time, and since Anno 1552 (prior to this our Import of Silver was inconsiderable) in England they have altered or varied only Two, in Eighty Eight.

Bills are a Commodity, not as a Pledge given but as Value paid, and therefore preferable to Silver. Is it not more natural to say, Silver is as a certain Value paid, as a Pledge, and as Returns or Merchandize; therefore it is prefera|ble to publick Bills, which are only as a precarious Va|lue

paid, but no Pledge, and no Returns or Merchan|dize.

Bills are less bulky and more handy than Silver. Is a Shop-keeper's (whose Notes are already at a great Dis|count) promisary Note of Hand, better than a Bag of Silver.

Notes on a fixed real Fund, are worse than Notes that have no such Fund; because the former cannot grow bet|ter beyond that fixed Standard: But the others being bad, may grow better in infinitum. This is ludicrous. I can answer only by a like Story: A certain Quack in the Cure of a sick Person, being told that by his Ma|nagement, the Patient did grow worse and worse: So much the better, answered the Quack, because when Things are come to the worst, then they will mend. The Truth of the Case is, the first can be no worse, than the just Discount for the Distance of the Time of Pay|ment; but the Others may grow worse and worse, in infinitum.

If we make Bills promising Silver or any Thing of a cer|tain Value, it will occasion their being hoarded up. It will be so, where there are also current Bills, promising a precarious or no Value; because such will be hoarded up by no Body, but be gladly parted with, even at a Discount, and Discount upon Discount, until we discount near the whole, that is until they are of no further Cur|rency or Value: Accordingly in this Province, we are now arrived to a Discount of more than two Thirds of what these Bills were first emitted for. That a Bill without Limitation of Value or Period, and continually growing worse, should be preferable to a Bill with the Advan|tage of Period, and Value certain, and yearly meliorating, as are Bills on a fixed Silver Bottom; is a strange Para|dox. Some keep up the Massachusets Bills and pass away the Rhode-Island Bills; are the Rhode Island Bills there|fore better than the Massachusetts? Amongst our pre|sent publick Bills, what are tore and defac'd, or suspect|ted, are passed away first; are they therefore a better Currency, than a good fair Bill?

There ought to be no Silver Fund for Bills, because it will rise the Price of Silver, to make good this Fund. That is, all our Banks in Europe are ill founded, both Pub|lick and Private; because they are all upon a Silver Bottom.

To pay Contracts according to a fixed Weight of Silver; would have an unavoidable Tendency to raise the Price of it. It does not happen so in Europe, where Silver is their only legal Tender. In New England, paying of Contracts in Province Bills, does not rise the Price of them.

Our Bills are better than Silver, because they are by our Acts of Assembly a Tender, and consequently must pass: Silver passes only by Consent, which may be withdrawn. That is, a forced provincial Tender, passable no where else, is better than a natural, universal, and legal (Pro|clamation Act) Tender, from which no trading Consent ever was or will be withdrawn: And 27s. in Bills the present Value of One Ounce of Silver, is better than 27 s. which was the Value of Three Ounces and an Half Silver Twenty Five Years ago; or in plain Words, One is more than Three.

The following Clauses in his Book I cannot under|stand, viz. Province Bills may be fixed to an assigned In|terest, and so be made a just Measure or Standard of the Va|lue of all Things bought or sold, which Silver cannot be. —When Silver falls the Government may stop it at any fixed Rate, and make that the Silver Pound or legal Tender. Why not also when Silver rises if it were practicable. —Lowering the Price of Silver in England, where the nummary Denomination continues of the same Weight in our Coin, it is a Contradiction in itself. — By Means of a Paper Currency, to introduce Silver to pass current.

He concludes thus. That he might now shew, how the Bills of the old Tenour, might be qualified, for the true Ends and Uses thereof; and the like of private Notes of the same Nature, but having exceeded the Bounds of a Letter, he must forbear. Cui bono is the whole, since he concludes without entring upon the main and only Affair?

Most political Affairs have some Resemblance, to na|tural oscillatory Motions, when got to their Extent on the one Side; they must return gradually and in the same Path to the other Side. Large Emissions of a bad Currency, long Credit, Insensibility of Discredit, Idle|ness, Extravigance, and Intemprance, have carried us to the Extent of bad Circumstances: We must return by

gradually cancelling our bad Medium, by shortning our Credit, by being more upon the Punctos of Honour and Honesty, by being more industrious, by being more Fru|gal, and by abandoning the plentiful Use of Rum, that execrable Bane of all our Plantations, and perniciously recommended by some of our Practitioners in Physick, as more wholesome than Wine.

FINIS.