ACCORDING to my Promiſe I now ſend you my Thoughts upon the State of the Paper Currency in New-England, which for ſeveral Years paſt has been the only general Medium of it's Trade; and for your better Information I have endeavour'd to trace the Account of it from it's firſt Emiſſion in the Province of the Maſſachuſetts-Bay, where it took it's Riſe, to it's preſent State there, and thereby to diſcover to you the real Cauſes of thoſe Miſchiefs, it has of late Years produced, and the ſeveral Expedients try'd by the Maſſachuſettſ Government for remedying of them, with the Succeſs which has attended thoſe Meaſures▪ And if in doing this, and communicating my own Obſervations thereupon I ſhall ſtrike out any Light for redreſſing the Evils 〈◊〉 •• is Currency, and promoting the united Intereſt 〈◊〉 •• is province and her Mother Country in this Particular, which I look upon to be inſeparably blended to •••••• I ſhall obtain the End, I propoſe in troubling you 〈…〉 Letter, and hope that will be a ſufficient Apology 〈…〉 for the Length of it.

The first Emiſſion of Bills of public Credit in New-England was of • .40,000 made by the Maſſachuſetts Government in the years 1690 and 1691, and projected up on an extroardinary Emergency to discharge some Govern ment Debts (due upon Debentures) which had been con tracted by the old Colony upon the First Expedition against the French at Canada▪ Theſe Bills were emitted upon Funds of Taxes, (as they are called in Contradiſtinction to the Bills ſince emitted upon Loans) that is to be drawn back into the Treaſury by Payment of the Duties of Exciſe, and Impoſt, and of Taxes upon Polls and Eſtates real and perſonal; and were iſſu'd out in Parcels: The firſt emitted Parcel, which amounted to l. 7,000 being a new Thing in the Country, and ill received by the People, were ſoon brought into Diſcredit, and ſuffer'd a Diſcount from 10 to 20 per Cent; but the next Parcel, which was emitted in the Spring following with the Advantage of being receiv'd at the Treaſury at 5 per Cent Advance, ſoon obtain'd a Currency at Par with Silver: Of theſe Bills l. 10,000 was cancell'd and burnt in October 1691, and no Emiſſions of new Bills were made in the Province 'till 1702; But in the intervening Years there were ſome Reemiſſions of the Remainder of the old Bills for defraying the neceſſary Charges of the Government, to be drawn back into the Treaſury by publick Duties and Rates: The laſt Re-emiſſion was of l. 9,000 of them in 1701, being the only Bills then extant in New-England, and which were drawn in and burnt the ſame and next ſucceeding Year: All theſe Bills were emitted and re-emitted by Votes or Orders of the General Court, and not by ſolemn, formal Acts of the Legiſlature, and were commonly call'd the old Charter Bills, on Account, I ſuppoſe, of their having been at firſt emitted before the granting of the new Charter by King WILLIAM and Queen MARY for incorporating the Inhabitants of the late Colony into the preſent Province, tho' not during the Continuance of the old Charter, which was in Reality vacated in 1684 by a Judgment obtain'd in the Court of Chancery upon a Writ of Scire Facias then proſecuted againſt the Governour and Company of the late Colony.

This ſpace of Time may not improperly be diſtinguiſh'd as the firſt Period of the Paper Currency in New-England, both on Account of the • mall Sum in Bills of Credit, which were then ſuffer'd by the Maſſachuſetts Go vernment to be current at one and the ſame Time, and of the Shortneſs of the Periods limited for drawing the Bills back into the Treaſury, which were confin'd to the Year next ſucceeding their reſpective Emiſſions at fartheſt.

During this Period I find that all the Bills, except the firſt emitted Parcel, were receiv'd at the Treaſury at 5 per Cent Advance, and paſſed Current at Par with Silver; and that an Act of the General Court was paſs'd in 1699, for compelling the Conſtables and other Collectors to gather & pay into the Treaſury the ſeveral Rates committed to their Charge at the Time limited in the Treaſurer's Warrants, by enabling the Treaſurer to iſſue out Executions againſt the Eſtates and Bodies of the deficient Conſtables and Collectors.

In 1702 begun a Series of new Emiſſions of Bills of Credit in the Province, which were annually repeated, and in ſuch large Sums toward the End of it, that the Bills made and emitted between the Years 1701 and 1713, amounted to 227629 l. 16 ſ. 6d. which Space of Time I ſhall call the ſecond Period of the Paper Currency, and obſerve upon it,

Firſt, That the Emiſſions in 1702 and 1703 were of only l. 10,000 each, and made by formal Acts of the General Court; the Preambles of which declare, That the Government was under a Neceſſity of emitting thoſe Bills for the preſent Supply of the Treaſury to pay the Soldiers and Seamen employed in His Majeſty's Service, and to carry on the War, and defray the other Expences of the Government; and that the Periods for drawing thoſe Bills back into the Treaſury were confined to the Years next ſucceeding thoſe of their reſpective Emiſſions; but that the Emiſſions of the ſubſequent Years grew by Degrees im moderate, particularly two of them with in the Year 1711, one of them of l. 40,000, and the other of 〈…〉 the Value of about l. 6 • ,000 Sterling▪ 〈…〉 theſe▪ Bills were emitted and re-emitted upon 〈◊〉 Votes or Orders of the Court with leſs and leſs Ceremony, and were to be drawn in by two, three, and ſometimes four Parcels; and that the Periods for drawing them in were gradually protracted from the firſt of the ſixth Year after their reſpective Emiſſions.

Secondly, That all the Bills of this Period were emitted upon Funds of Taxes for defraying the neceſſary Ch •• ges of the Government, except the Sum of 48,623 l. 16 ſ. 8 d. in 1711, which was emitted upon Loan to particular Merchants to enable them to furniſh her late Majeſty's Land and Sea Forces then rendezvous • d at Boſton, in order to proceed upon the Canada Expedition, with Proviſions and other Neceſſaries for that Purpoſe, which they had undertaken to do upon the Credit of Bills drawn by the Officers on the Government of Great Britain; ſo that in Effect this Emiſſion of Province-Bills was lent to her Majeſty's Government at Home for the Service of that Expedition.

Thirdly, That during this Period the Bills of Credit continued to be receiv'd at the Treaſury at 5 per Cent. Advance, and maintain'd their Value at Par with Silver.

Fourthly, That in the Year 1712, to ſupport the Value of the Province Bills, which appeared to be in ſome Danger of depreciating by the growing Scarcity of the Silver Currency, which was now reckon'd to be reduc'd to the Proportion of little more than a Third of what the Paper Currency amounted to, a Law was paſs'd that no Debtor, who ſhould tender Payment of any Debt contracted ſince October 1705, or to be contracted before the laſt Day of October 1715, (except in the Caſe of Specialties and Contracts in Writing) in Province-Bills, ſhould be liable to have an Execution levy'd or ſerv'd upon his Eſtate or Perſon; which Tender of Bills, tho' it would not diſcharge the Debt, yet it did what was tantamount, by taking away the Remedy which the Creditor had before the Recovery of Silver Money and ſo compell'd him to accept the Bills.

The Author of the Diſcourſe concerning the Currencies of the Britiſh Plantations in America, to whom this Pro vince in particular is oblig'd for his accurate and very judi cious Enquiry into the Effects of Paper Money, and the pro per Regulation of it, dates the firſt depreciating of the Bills of Credit in New-England in the Year 1714; ſome others I find place it in 1711; To avoid the Extreme of both Accounts I ſhall date it in 1713, in which Year the Price of Silver in Bills of Credit roſe from eight Shillings to eight Shillings and four Pence per Ounce, and Exchange between London and New-England from 40 to 50 per Cent. Advance in Favour of the former: From this Year the Bills continu'd to depreciate gradually in the Manner exhibited in the following Table.

Years. Price of Silver. Exchang. 50. p. cent.   Years. Price of Silver. Exchang. 160. p. Ct. 1713. 8ſ. 4d.oz. advance.   1723. 15ſ. p. oz. advance. 1714. 9ſ. 60.   1724. 16ſ. 200. 1715. 9ſ. 60.   1725. 16ſ. 200. 1716. 9ſ. 2d. 60.   1726. 16ſ. 200. 1717. 10ſ. 60.   1727. 16ſ. 200. 1718. 11ſ. 100.   1728. 16ſ. 6d. 200. 1719. 12ſ. 110.   1729. 19ſ. 240. 1720. 12ſ. 4d. 110.   1730. 18ſ. 6d. 240. 1721. 12ſ. 6d. 130.         1722. 14ſ. 160.        

Within this Period, which I ſhall diſtinguiſh by the Name of the third Period of the Bills l.458,000 was emitted upon Funds of Taxes, for defraying the neceſſary Charges of the Government, and l. 260,000 upon four Loans made chiefly for increaſing the Paper Medium; the firſt of theſe Emiſſions upon Loan was of l. 50,000 in 1714, to be let out by a Committee nam'd in the Act to the Inhabitants of the Province in certain Proportions according to their Diſ cretion, upon real Security at 5 per Cent, the Principal to be repaid by equal Proportions within five years to the Court for both Principal & Intereſt, which laſt was by the Act appropriated to the Support of the Government; the ſecond Emiſſion upon Loan was in 1716, of l. 100,000, with the ſame Appropriation of the Profits, and under the like Regu lation, except that it was to be diſtributed among the ſeveral Towns in Proportions limited by the Emiſſion-Act for ſuch Town, and let out to the Inhabitants of the reſpective Towns by different Committees nam'd for each County in the Act; the Principal to be repaid in ten years after the Date of the Mortgages, upon which it was to be lent; the third Emiſſion upon Loan was of l. 50,000 in 1720, to be diſtributed among the ſeveral Towns, in Proportions limited in the Emiſſion-Act, by Committees to be choſen by the Inhabitants of the reſpective Towns; the Improvements and Profits to be wholly for the Benefit of the ſeveral Towns, and the Principal to be drawn in by five Taxes of l. 10,000 each upon Polls and Eſtates in 1726, and the four ſucceeding Years; and in the Year 1727, there was a Re-emiſſion of l. 60,000 upon Loan, under the like Regulations with the laſt Loan as to the Diſtribution of it, and drawing the Bills back into the Treaſury in 1734, and the four next ſucceeding Years; and the Towns were oblig'd to pay 4 per Cent. per Annum for their reſpective Dividends of the l. 60,000 into the Treaſury, which was appropriated to the Support of the Government; and two per Cent. more was to be paid by the Borrowers for the Benefit of the Towns.

All the Bills of the l.48,000 Loan in 1711 were drawn in and burnt long ſince; but there is ſtill outſtanding of the l. 50,000 emitted in 1714, about l. 2000, with the like Arrear due for Intereſt; of the l. 100,000 Loan in 1716, about l. 7000, of the l. 50,000 Loan in 1720, l. 16, and of that of l. 60,000 in 1727, about l. 500; All which Sums are well ſecur'd, and may be expected to be drawn in within five or ſix Months.

I ſhall further obſerve upon theſe ſeveral Loans, That the firſt of 'em in 1711 was at leaſt excuſable, if not a laudable Inſtance of the Province's Zeal for his Majeſty's Service; but that the four ſubſequent Loans, which had not the ſame Reaſon for their Emiſſion, very much contributed by the largeneſs of their Sums and long Periods to depreciate the Bills of Credit in general, and in Conjunction with the Rhode-Iſland Loans, whoſe Bills begun now to obtain a general Currency in this Province, even to leſſen the real Quantity of that Medium of Trade, which they were deſign'd to increaſe; And that the Maſſachuſetts Government has long been ſo ſenſible of the Country's Error in making theſe Loans, that they would not, I am perſuaded, be in Danger of relapſing into it, tho' they ſhould be under no Reſtraint from His Majeſty's Inſtruction to his Governour.

In this Period alſo theſe further Particulars are obſervable,

Firſt, That the Bills continu'd to be taken at the Treaſury at 5 per Cent Advance 'till 1718, ever ſince which Year that Allowance upon the Payment of the Bills has been taken off by the General Court under a Notion that it did not contribute towards ſupporting the Value of the Bills.

Secondly, That the Silver and Gold Currency now decreas'd more and more every Year, and about the Year 1726 quite vaniſh'd, and coin'd Silver and Gold became from that Time mere Merchandize.

Thirdly, That the Periods for drawing back the Bills emitted upon Funds of Taxes into the Treaſury were more and more protracted, 'till by the Year 1721 they were lengthen'd out to the Diſtance of thirteen Years from their reſpective Emiſſions.

Fourthly, That the Inſtances of the Aſſembly's poſtponing the Apportionment of the Taxes for drawing in the Bills according to their limited Periods were very rare, and the Bills were generally actually drawn into the Treaſury till 1721, ſince which Year large Sums of the Bills emitted upon Funds of Taxes were ſuffer'd by the Government to be outſtanding beyond their ſtated Periods for want of Executions being iſſued out againſt the deficient Collectors of the Taxes according to the Province Law before-mention'd, ſo that by the End of the Year 1730 l. 164,755 5ſ. 5d. was outſtanding by that Means.

Laſtly, That the before-mention'd Province Law for making Bills of Credit a Tender prov'd in its Operation, during this whole Period, extremely injurious to ſuch Creditors, as had not aſcertain'd the Value of their outſtanding Debts either in Sterling or Proclamation Money by ſpecial Contracts: For by Force of it all other Creditors were oblig'd to accept of Province Bills according to their nominal Value, Penny for Penny, in Satisfaction of their Debts, tho' the Bills were greatly depreciated between the Time of the Debts being contracted and the Payment of them, ſo that great Loſſes enſued continually to the Britiſh Merchants trading to New-England, by ſuffering large Diſcounts upon their Debts, and to Widows and Orphans within the Province in particular: It alſo proved miſchievous in this Reſpect, that as the Debtor was by Means of the Act a Gainer by the depreciating of the Bills, and the longer his Debt was outſtanding the more the Value of it was diminiſhed, he was tempted to uſe every Artifice to keep his Creditor out of his juſt Due, to which he was alſo encouraged by the Fees of the Court of Judicature's being ſo leſſen'd through the depreciating of the Bills in which they were payable, and the Law's being grown ſo cheap that the People were habituated to ſuffer themſelves to be ſued for indiſputable Debts, and an Inſenſibility of the Diſcredit of it ſo much prevail'd, that it was not uncommon even for Perſons of ſome Circumſtances and Character to ſuffer Judgments to be given againſt 'em by Default to the Superiour Court of Judicature merely for Delay, whereby Law-Suits were ſcandalouſly multiply'd, and a litigious Spirit promoted among the lower Sort of People.

This Law firſt expir'd in 1715, was afterwards re-enacted in 1716, expir'd again in 1722, and was then reviv'd and continu'd to October 1730, and upon every Trial of it produc'd the ſame Miſchiefs, ſo that its pernicous Effects could not be in the leaſt doubted.

Hitherto His Majeſty's Governours were under no Reſtraint from his Royal Inſtructions as to the Bills of Credit current in the Province, except that they were enjoin'd the Obſervation of the Act of the ſixth of Queen ANNE for aſcertaining the Value of foreign Coins, and ſo were more excuſably betray'd into ſuffering Emiſſions upon Loans, and immoderate Sums to be outſtanding beyond their ſtated Periods: But in December 1730 I find that Governour BELCHER communicated to the Council and Houſe of Repreſentatives his Majeſty's 16th and 18th Inſtructions to him, by the former of which he was forbid to paſs any Act for iſſuing out Bills of Credit without a ſuſpending Clauſe, except only for the annual Support and Service of his Majeſty's Government; and was ordered to take eſpecial Care that no more than l. 30,000 of ſuch Bills ſhould be ever current at one and the ſame Time; and by the latter of 'em he was eſpecially directed to take Care that the Bills of Credit iſſued ſhould be call'd in and ſunk according to the Periods and Proviſions of the reſpective Acts, by which they were iſſued; and his Excellency then complain'd in his Speech to the Aſſembly that the Bills of Credit, according to the then Courſe and Manner of 'em, were a common Deluſion to Mankind, and wiſh'd ſome better Way might be ſeaſonably thought of either by the Legiſlature or the People in Trade, whereby they, might be ſupply'd with a better Medium than what then paſs'd; and when an engroſs'd Bill for reviving the Act to prevent the Oppreſſion of Debtors and make the Bills of Credit a Tender, then lately expir'd, was laid before him for his Conſent, two or three Days after he rejected it with this Meſſage to the Houſe of Repreſentatives, that he had not ſign'd the Bill, inaſmuch as he did not think it for his Majeſty's Service or the Good of the Province.

This ſeem'd to afford a promiſing Proſpect, among other Regulations of the Bills, that the great Quantity of 'em then outſtanding beyond their ſtated Periods would be ſoon drawn in, and thoſe Bills, whoſe Periods were not yet arriv'd, would be duly call'd in and ſunk upon their Arrival; and that now an End would be put to the ſeveral Miſchiefs, which had been occaſion'd by the late Law, which made the Bills a Tender; But the Royal Inſtructions ſeem not to have had their proper Influence: For upon comparing the Quantity of Bills, which were outſtanding beyond their limited Periods in 1730 with thoſe which were outſtanding in 1741, it appears from the Accounts of the Province Treaſurers given in from Year to Year to the General Court, that the former conſiſting wholly of Bills of the old Tenor did not exceed the Sum of l. 1647455 5s. 5d, and that the latter, which conſiſted of Bills of the old and middle Tenor, being all computed in Bills of the old Tenor, amounted to l. 390,863 14s. 7d. and exceeded the former Sum one third Part in their Value—and the latter Part of the Proſpect ſoon vaniſh'd upon his Excellency's conſenting to the Revival of the late Law for preventing the Oppreſſion of Debtors and making the Bills of Credit a Tender, without any Proviſion for ſecuring to Creditors the Value of their future Debts againſt the depreciating of the Bills, whereby were reviv'd for ten Years longer the ſame Miſchiefs, which the Province had ſo long felt before under the Effects of the ſame Law, and the Britiſh Merchants ſo juſtly complain'd of.

During this Adminiſtration, which I ſhall call the fourth Period of the Bills, the General Court in 1733 re-emitted l. 76,500 in old Tenor Bills of the ſame nominal Value with the Bills extant at the Time of reviving the before-mention'd Law in 1731 for making 'em a Tender, but of a leſs real Value by 20 per Cent. and in 1734 made another Re-emiſſion of Bills of like nominal but leſs real Value by 60 per Cent, and in 1735 another Re-emiſſion of Bills, of like nominal but a leſs real Value by 160 per Cent; all which Bills, tho' ſo much depreciated at the Time of their reſpective Re-emiſſions below the Value of the Bills in 1731, were by Force of the before-mention'd Province Law made a Tender for the Payment of Debts contracted in the Year 1731, at which Time Bills were of a much higher Value, ſo that the making of thoſe three Re-emiſſions of depreciated Bills, without providing that Creditors ſhould have an Allowance for their being ſunk below the Value of Bills in 1731, was the ſame Thing in Effect, as if the Government has paſs'd a Law in each of thoſe Years that the Creditors upon ſimple Contract (and ſuch all Creditors in Trade generally are) ſhould be oblig'd to accept in Satisfaction of their Debts contracted in 1731 20, 60, and 160 per Cent. leſs than the real Value of 'em; Which Obſervation will hold in a ſomething leſs Degree with Reſpect to the Debts contracted in 1732, 1733, and 1734.

This with Regard to the Governour ſeems to have been a moſt unparallel'd Proceeding, viz. that he ſhould not only give his Conſent to an Act, the paſſing of which he had but five Months before publickly declar'd to the Aſſembly would be neither for his Majeſty's Service nor the good of the Province, without making the leaſt Proviſion for preventing the Act's former miſchievous Effects for the future, but alſo go on from Year to Year with his Eyes open to conſent to the Emiſſion of ſuch Bills, as at the very Time of their being emitted were, not a Deluſion, as his Excellency was pleas'd in his before-mention'd Speech to call the Bills in general, but a palpable, groſs Impoſition (to ſay no worſe of 'em) upon the Creditor.

This Law had alſo the ſame pernicious Influence, which it had before, with reſpect to habituating Debtors to ſuffer themſelves to be ſued for indiſputable Debts, and to appeal from Judgments obtain'd againſt 'em upon their own Defaults to the Superior Court merely for Delay; and as the Fees of the Courts of Judicature were further leſſen'd (during the Continuance of this Law) by the depreciating of the Bills, ſo this Sort of Actions multiply'd in Proportion, to the great Hurt and Scandal of the Country; inſomuch that the Number of ſuch Suits within the Province was increas'd during this Adminiſtration, viz. between the Years 1730 and 1742, to near double what it was before.

In the Year 1736 the Government emitted l. 9000 in Bills of a new Form and Tenor, which afterwards obtain'd the Name of the middle Tenor Bills, by which I ſhall here diſtinguiſh 'em.—Theſe Bills were emitted upon Funds of Taxes to be drawn back into the Treaſury in 1741, with this Difference between them and the old Bills, that by their Tenor they were not to be accepted in Payment for the Duties of Impoſt, Tonnage of Shipping, and Incomes of the Light-Houſe, whereas the old Bills were by their Tenor to be accepted by the Treaſurer and ſubordinate Receivers in all publick Payments whatſoever; and by this Emiſſion-Act ſix Shillings and eight Pence of the middle Tenor Bills were made equal in Value to one Ounce of Troy Weight, Sterling Alloy.—And for better ſupporting the Value of theſe Bills Proviſion was made by the Act, that if any of 'em ſhould happen not to be paid into the Treaſury at their limited Periods, but be outſtanding in the Hands of private Perſons, the Poſſeſſors might at any Time after the laſt Day of December 1742 bring 'em to the Treaſury and receive in Exchange for every ſix Shillings and eight Pence one Ounce of Silver or the like Value in Gold, and proportionably for a greater or leſs Sum; and the Treaſurer was thereby order'd to exchange 'em accordingly.—And for raiſing a Fund of Silver and Gold for that Purpoſe, as well as for exchanging the Bills of the old Tenor, which were before emitted and ſhould be outſtanding in the Hands of private Perſons after December 1742, it was further provided by that Act that the Duties of Impoſt and Tonnage of Shipping, together with the Incomes of the Light-Houſe, ſhould be paid in Silver at ſix Shillings and eight Pence per Ounce, or in Gold of a proportionable Value, from and after the Seſſion of the General Court in May then next following, and until the End of the Seſſion in May 1742.

Two Things are obſervable in this Act, 1ſt. That it excludes the old Tenor Bills, as well as thoſe of the middle Tenor, from being receiv'd in Payment for the Duties of Impoſt, Tonnage of Shipping, and Incomes of the Light-Houſe: This the Government had a Right to do with Reſpect to the middle Tenor Bills, becauſe it was agreable to the Form and Tenor of 'em; but it was repugnant to the Tenor of the old Bills, by which they were to be accepted in all publick Poyments; and this the Merchants in the Time of it loudly complain'd of as an Act of Injuſtice to the Poſſeſſors of the old Bills, and a manifeſt Breach of publick Faith; as indeed it muſt be acknowledg'd to have been: And it ſeems an extraordinary Project for raiſing the Value and Credit of the Bills to make Uſe of an Expedient, which had a direct Tendency to leſſen their Credit; For what ſure Dependance could there be upon the Faith of an Act, (made for the ſecuring the Redemption of 'em ſix Years after) which was itſelf a preſent Inſtance of the Violation of the Publick Faith with regard to the old Tenor Bills.

2dly. That at the Time of emitting the middle Tenor Bills the Price of Silver in Bills of the old Tenor was twenty ſix Shillings and eight Pence at leaſt per Ounce, notwithſtanding which twenty Shillings in old Tenor Bills (which would not purchaſe more than three Quarters of an Ounce of Silver) was by that Act made equal in all publick Payments to ſix Shillings and eight Pence of the middle Tenor Bills, which by the ſame Act is valued as equal to an Ounce of Silver; and that the ſtating of this Proportion between the Value of theſe Bills, which was as one to three, when the true Proportion between 'em was one to four, (ſix Shillings and eight Pence being only a fourth Part of twenty ſix Shillings and eight Pence) ha • not the leaſt Effect to raiſe the Value of the old Tenor Bills, (which I ſuppoſe it might be intended to do) but on the contrary to ſink that of the middle Tenor Bills one third Part or 33 and a third per Cent. below their Denomination, and the Value, at which they were ſtated by the Act in Silver and Gold; For from the Time of their being firſt iſſued out of the Treaſury ſix Shillings and eight Pence in thoſe Bills would not purchaſe more than three Quarters of an Ounce of Silver, nor paſs in private Payments for more than twenty Shillings in Bills of the old Tenor, (which ſtill retain'd their former depreciated Value) and ſo vice verſ • twenty Shillings in the old Tenor Bills paſſed in common Currency equal to ſix Shillings and eight Pence in Bills of the middle Tenor.

In the Year 1737 two further Sums of l. 20,000, and 6,000 in Bills of the middle Tenor, and in 1738 another Sum of 6,000 in the ſame Tenor were emitted; for drawing back all which Bills into the Treaſury in the Years 1738, 1739 and 1740, three ſeveral Taxes of equal Value with thoſe Emiſſions were rais'd and apportion'd by the ſeveral Emiſſion Acts, and ſuch of theſe Bills alſo, as ſhould not be paid into the Treaſury for Taxes at their limited Periods, but remain in the Hands of private Perſons after December 1742, were made exchangeable at the Treaſury for Silver and Gold at the ſame Rates with the middle Tenor Bills of the firſt Emiſſion; and it's very remarkable, that notwithſtanding it had been found by Experience that the Bills of the firſt Emiſſion were depreciated 33 and a third per Cent, as is before-mention'd, by ſtating the Proportion between them and the outſtanding Bills of the old Tenor as one to three, or valuing ſix Shillings and eight Pence of the middle Tenor Bills at twenty Shillings only of the old Tenor Bills, yet the Government continued to ſtate the ſame Proportion between the middle Tenor Bills of theſe three other Emiſſions, and the Bills of the old Tenor, not only in all publick Payments, as was done by the Act in 1736, but all private Payments; which had the ſame Effect to depreciate the middle Tenor Bills of theſe three laſt Emiſſions ſucceſſively, as the ſtating of the ſame Proportion had before to depreciate thoſe of the firſt Emiſſion, without raiſing the Value of the old Tenor Bills in the leaſt.

And thus the Government perſever'd to miſ-ſtate the Proportion between the Value of the old and middle Tenor Bills, even when the Period limited for exchanging the outſtanding middle Tenor Bills for Silver and Gold at the Treaſury was within leſs than two Years and an Half of it's Arrival; the Conſequence of which was, that this Error coſt the Country in December 1742 the Value of l.42,000 old Tenor, to pay the Difference between the falſe Proportion of ſix Shillings and eight Pence middle Tenor for twenty Shillings in the old Tenor, and the true Proportion of ſix Shillings and eight Pence in the former for twenty ſix Shillings and eight Pence in the latter.

In the Year 1740, during the ſame Period, an Act of the General Court was paſs'd at their May Seſſion for emitting l.80,000 in Bills of the old Tenor, which were not made redeemable with Silver & Gold, as the Bills of the middle Tenor were; and a few Days after paſs'd an Order at the ſame Seſſion in July directing the Treaſurer to iſſue out ſuch of the Bills (which had been drawn into the Treaſury) both of the old and middle Tenor, as were not worn and defac'd, in lieu of the new Bills, which were to have been ſtruck off, and emitted by Virtue of that Act; and about l.17,000 in Bills of the middle Tenor (which had been drawn back into the Treaſury by public Payments) were iſſued out by the Treaſurer accordingly; and the ſame Proportion of one to three was ſtated between the Bills of the middle Tenor re-emitted by Virtue of this Order, and the Bills of the old Tenor, whereby theſe re-emitted middle Tenor Bills were a ſecond Time depreciated 33 and a third per Cent in like Manner, as all the other Bills of the ſame Tenor had been from Time to Time, by ſtating the ſame Proportion between them and the old Tenor Bills.

Theſe l.17,000 Bills indeed having been once drawn into the Treaſury and afterwards re-emitted in lieu of Bills, which the Government had not ſtipulated to exchange for Silver and Gold, were not exchangeable at the Treaſury for thoſe Species, as the other middle Tenor Bills, which ſhould be outſtanding upon the Foot of their Emiſſion Acts after December 1742 would be, yet as theſe non-redeemable Bills had no Ear-mark given 'em upon their Re-emiſſion to diſtinguiſh 'em from the redeemable Bills, with which they muſt neceſſarily be ſo blended in common Currency, as that the one could not be diſcriminated from the other by December 1742, it was evident that this Re-emiſſion of the l. 17,000 non-redeemable Bills muſt lay the Government under this Dilemma, either to admit the Demands of the Poſſeſſors of the outſtanding non-redeemable Bills in 1742, and exchange 'em for Silver in the Country's Wrong, or elſe to reject the Demands of the Poſſeſſors of the outſtanding redeemable Bills, who could not poſſibly make it appear that the Bills in their Poſſeſſion were not Part of the non-redeemable Bills; which would be an Act of great Injuſtice with Regard to them.

In December following when the Time for exchanging theſe Bills was advanc'd ſix Months nearer, the General Court paſs'd an Impoſt Act, whereby the Duties of Impoſt, Tonnage of Shipping, &c. that by the before-mentioned Act in 1736 were made payable 'till the End of May Seſſion 1742 in Gold and Silver only, which was to remain in the Treaſury as a Fund for exchanging ſuch of the redeemable Bills as ſhould be outſtanding after December 1742, were from thenceforward made payable in Bills both of the old and middle Tenor, ſo that twenty Shillings in the former, and ſix Shillings and eight Pence in the latter were from that Time accepted by the Impoſt Officer in Payment for thoſe Duties in lieu of ſix Shillings and eight Pence in coin'd Silver, or Gold of a proportionable Value: And the Treaſurer was by that Clauſe of the Act impower'd and directed to purchaſe Silver and Gold with the Bills thus paid in—By this Means the Fund provided in 1736 for the Security of the Poſſeſſors of the redeemable Bills, and to enable the Treaſurer to exchange 'em after December 1742 was from that Time neceſſarily leſſen'd at leaſt one third Part, or 33 and a 3d per Cent. as to the Duties to be collected from December 1740 till the End of May Seſſion 1742, (that being the Difference between the Value of the Bills and of the Silver to be purchas'd with 'em) ſo that the paſſing of this Act was in Effect deſtroying the Fund in Part, and ſo far repealing that Clauſe of the Act of 1736, which rais'd it for the Redemption of the outſtanding redeemable Bills in 1742, and ought to have been held inviolable, eſpecially by the Governour who is forbidden by His Majeſty's Inſtructions to conſent to the repealing of any Act (and conſequently any Part of an Act.) without inſerting a ſuſpending Clauſe in the Act, which repeals it, to prevent it's taking Effect, 'till his Majeſty's Royal Pleaſure ſhall be known upon it.

The Reaſon given in the Act for this Proceeding was that the Payment of the Duties of Impoſt, &c. in Silver and Gold had a Tendency to raiſe their Price within the Province: Whereas it is moſt manifeſt that ſuch Payment of the Duties had a direct contrary Tendency by promoting the Importation of Silver and Gold into the Province by Maſters of Veſſels liable to the Payment of thoſe Duties, who arrive here from Countries where there is a plenty of Silver and Gold: And on the other Hand the Treaſurer's purchaſing Silver and Gold within the Province with Bills muſt have as manifeſt a Tendency to raiſe the Price of Silver and Gold in it, and not only to depreciate the Bills in general, but to keep many of the middle Tenor Bills outſtanding beyond December 1742.

It is not improbable that the repeated Complaints of the Merchants might have a conſiderable Weight with the Government in Favour of the old Bills for admitting them to be receiv'd in Payment of the Duties of Impoſt, &c. for the future, according to the Tenor of 'em, tho' ſuch Motive could not with a good Grace be expreſs'd in the Act, 〈◊〉 that would have been a tacit Acknowlegement, that the Excluſion of 'em from being accepted the three former Years was a Wrong done to the Poſſeſſors: But whatever Neceſſity the Government might apprehend it ſelf to be under, with Regard to the old Tenor Bills, of breaking into the Fund rais'd for the Redemption of 'em by the before-mention'd Act of 1736, it was certainly under none with Reſpect to the middle Tenor Bills; and the admitting of them, contrary to their very Form and Tenor, to be receiv'd for thoſe Duties in lieu of Silver or Gold, in Diminution of the Fund, was as manifeſt a Breach of the publick Faith as the excluding of the old Tenor Bills was at firſt.

In Auguſt 1741, Governour BELCHER'S Adminiſtration ended and the preſent Governour's ſucceeded it, at which Time there was outſtanding beyond their ſtated Periods for want of Executions being iſſued out, according to the Province Law, againſt the deficient Collectors of the Taxes, to compell 'em to bring in their ſeveral Rates purſuant to the Treaſurer's Warrants, 267,964 l. 14 ſ. 7d. in Province Bills of the old Tenor, and 40,664 l. 6 ſ. 8d. in Bills of the middle Tenor, both which Sums computed in old Tenor make together 390,863 l. 14ſ. 7d; and at the ſame Time were outſtanding further Sums in Bills of the old & middle Tenor amounting in the whole to the Value of l. 106,525 old Tenor, for drawing back which laſt mention'd Sums into the Treaſury Taxes ought to have been apportioned in May 1739 and 1741, purſuant to their reſpective Emiſſion-Acts, but were poſtpon'd by the Aſſembly during Governour BELCHER'S Adminiſtration; ſo that thoſe Bills were, when he quitted the Chair, outſtanding without any Fund of Taxes for ſinking 'em.

In October 1741 (there being conſiderable Arrears of Wages due to the Officers and Servants of the Government) the Houſe of Repreſentatives and Council paſs'd a Supply Bill, to which the Governor refus'd his Aſſent, and pointed out to the Aſſembly in a Speech the ſeveral exceptionable Matters contain'd in it; and, among other Amendments, particularly recommended to 'em to make Proviſion for the ſpeedy drawing in of the l. 106,525 old Bills, and ſecuring to Creditors the full Value of their future Debts againſt the depreciating of the Bills of Credit; which laſt he preſs'd upon 'em in ſuch Terms, as in Effect to make it a Condition of his Conſent to the Bills continuing to be a Tender: As to the Arrear of l. 390,863 14ſ. 7d. in Bills outſtanding beyond their limited Periods, which had been, during the late Adminiſtration, occaſion'd by the Neglect of His Majeſty's 16th and 18th Inſtructions, which Governour BELCHER had communicated to the Aſſembly, as I have before mention'd, it was in the Governour's Power to draw that in without the Aid of the Aſſembly, as faſt as the Circumſtances of the People would admit of levying ſo heavy a Sum, by cauſing Executions to be iſſued out by the Treaſurer, purſuant to the Province Law in that Caſe already provided in 1699.—This Recommendation from the Governour had it's proper Influence upon the Aſſembly in their November Seſſion following, when a Bill was paſs'd for the Supply of the Treaſury, in which Proviſion was made for drawing in, within the Years 1742 & 1743, the outſtanding Bills of Credit, for which no Fund of Taxes had been yet raiſ'd, and a Clauſe was therein inſerted impowering the Treaſurer, in Caſe the General Court ſhould not apportion the Taxes for drawing in the Bills at the Times limited by the Act, to iſſue out his Warrants for aſſeſſing and levying 'em in the ſame Proportions, which the laſt Tax-Act had apportion'd the Taxes of the ſeveral Towns in; whereby it was put out of the Power of the Aſſembly to poſt-pone the drawing of the Bills in further: And the ſame Clauſe having been repeated in all the ſubſequent Supply-Acts, an effectual Method ſeems now to be eſtabliſh'd for preventing all future Poſtponing by the Aſſembly.

The Bills emitted by this Act were of the ſame Form and Tenor as to the Valuation of 'em, in Reſpect of Silver and Gold, with thoſe of the middle Tenor; but the Proportion ſtated between them and the Bills of the old Tenor was as one to four, inſtead of the former Proportion of one to three, by which Means they eſcaped the Fate, which all the Emiſſions of the middle Tenor Bills had ſhar'd, of being depreciated 33 and a 3d per Cent below their Denomination, and ſtill keep the ſame Difference in Value between themſelves and the old Tenor Bills: and it is evident beyond all reaſonable Doubt that if the Proportion of one to four had been ſtated from the Beginning between the ſeveral Emiſſions of the middle Tenor Bills, and the Bills of the old Tenor, it would have ſaved the Province at leaſt the l. 8,000 new Tenor Bills, which it was oblig'd in December 1742 to pay the Poſſeſſors of the middle Tenor Bills for the Difference between the two Proportions, ſo that it muſt have been an inexcuſable Error indeed if the Government had ſtill perſever'd in a Miſtake, which had been ſo thoroughly prov'd by the Experience of near five Years.

An Objection has indeed been made againſt raiſing the Denomination of the Bills from that of the old Tenor to either that of the middle or the new Tenor Bills, founded upon a Notion that it has occaſion'd the Riſe of the Price of Silver, and of Proviſions; but it is a Miſtake to imagine that any Denomination of the Bills of Credit whatſoever can affect the Price of Silver, or of any other Commodities in the Province; for beſides that one does not appear to have the leaſt Relation to, or Connection with the other, this ſingle Fact ſeems to be a full Confutation of that Notion, viz. That the greateſt Riſe of the Price of Silver, that ever happen'd in the Province within the ſame Compaſs of Time, was that between the Years 1733 and 1735, when it roſe from twenty Shillings per Ounce in Bills of the old Tenor to twenty-ſeven Shillings and ſix Pence, that is near 34 per Cent; and that happen'd before the Emiſſion either of the middle or new Tenor Bills, and when no other Bills were current but thoſe of the old Tenor: And on the other Hand, for about five Years next after the Emiſſion of the middle Tenor Bills, the Price of Silver continu'd very near at a Stand—As to the Price of Proviſions; That muſt of Neceſſity follow the Riſe of the Price of Silver and all other Commodities in general; For otherwiſe how is it poſſible for the Huſbandman to ſubſiſt? The Riſe of Proviſions does not indeed keep even Pace with that of the Price of Silver, which generally riſes by Starts, and then keeps at a Stand for ſome Time, but gradually as the Country man feels the Effects of the Riſe of Silver in the Prices of all other Commodities and Neceſſaries of Life, which he is oblig'd to purchaſe; And thus it happen'd that the utmoſt Extent of the Riſe of Proviſions, which neceſſarily follow'd the great Riſe of Silver and depreciating of the Bills between 1733 and 1735, did not diſcover itſelf 'till after the firſt Emiſſion of the middle Tenor Bills in 1736, and ſo what was really the Effect of the Riſe of the Price of Silver, (which neceſſarily depreciates the Bills of Credit, and by Degrees influences the Price of all other Commodities) is imputed by Miſtake to the different Denomination of the Bills of the middle Tenor and new Tenor from that of the old Bills; that is, to the mere Difference of Sound in the ſeveral Denominations; which is a groundleſs Notion, even tho' the Price of Proviſions ſold at Market had been uſually computed in Bills of the middle or new Tenor, but muſt entirely vaniſh, when it is conſider'd that the Price of 'em has been conſtantly computed in Bills of the old Tenor, ever ſince the Emiſſion of the middle and new Tenor Bills, juſt as it was before their Emiſſion, and with no more Regard to or Conſideration of either the middle or new Tenor Bills, than if they had never been emitted.

And it may be further added as a ſtrong Reaſon for the Governour's preferring Bills of this Denomination, that it is the moſt conformable to the Act of Parliament of the 6th of Queen ANEE, and her ſaid late Majeſty's Proclamation for aſcertaining the Value of foreign Coins; and to his Majeſty's Inſtruction to his Governour, which ſtrictly enjoins him the Obſervation of that Act; and it ſeems rather to be wonder'd at that the Province Act made in 1740 for emitting l. 80,000 in Bills of the old Tenor was ever conſented to, after the Aſſembly had been brought to conform to the Act of Parliament and his Majeſty's Inſtruction for four Years, than that Emiſſions of Bills of the old Tenor ſhould be continu'd.

In the ſame November Seſſion, a few Days after paſſing the beforemention'd Supply Bill, the Aſſembly paſs'd another Bill entitled an Act to aſcertain the Value of Money, and of the Bills of public Credit of this Province, &c. Whereby among other Things it was provided, that if the Bills then to be emitted, or other Bills thereafter to be made, ſhould be depreciated below the Value, at which the Bills then iſſued were emitted, or the Bills afterwards to be iſſued ſhould be emitted, in ſuch Caſe the Juſtices of the reſpective Courts of Judicature ſhould give Judgment for ſo much Silver, as the true Debt ſhould appear to be, and in want thereof for ſo much in ſaid Province Bills, with the Addition of ſo much more, as would make Amends for the depreciating of the Bills from the Value, at which they then were or ſhould be afterwards ſtated; and that there might be one certain uniform Rule, by which the ſeveral Courts ſhould proceed in making up their Judgments, it was provided that the General Aſſembly ſhould once in every ſix Months determine the Rates, that the ſaid Bills commonly paſs'd at in Proportion to Silver and Bills of Exchange payable in London; and upon their failing to do it, that a Committee of the Members of his Majeſty's Council ſhould do it; and in Caſe of their Failure, that the Juſtices of the Superior Court of Judicature, in their ſeveral Terms in the County of Suffolk, ſhould appoint five able and ſufficient Men to conſider and report the true Value of the Bills, as they would produce in Silver or Bills of Exchange to the beſt of their Judgment, &c.

This was the firſt Act of it's Kind, which was ever paſs'd in the Province, and being a new Thing and likely to prove unpopular in the Execution of it, neither the General Court nor the Members of his Majeſty's Council, nor the Judges of the Superior Court of Judicature, ſeem'd fond of carrying it into Execution; which was omitted to be done 'till the Governour call'd upon the Judges by his Letter to 'em for that Purpoſe, at their February Term in 1742, to do it; and by his ſpecial Directions the Act was accordingly then carried into Execution by their appointing a Committee to value the Bills, &c. and ſo has continued to be done in the ſame Channel (which is the moſt proper one for it) according to the Amendments made by a ſubſequent Act paſs'd in 1743, and will no doubt continue to be executed.

The Effect of this Act, as it was paſs'd at firſt, was that the Debtor was obliged to pay the Creditor, over and above the nominal Sum of his Debt, ſo much as the Bills were depreciated from the Value, at which they were firſt emitted; which upon the Experience of it proved inconvenient and oppreſſive to the Debtor, by compelling him to pay the Creditor in the firſt and only Inſtance of it's having been then carried into Execution ſeven and an half per Cent. more than was his juſt Due; wherefore in May 1743 the Aſſembly upon the Governour's Meſſage to 'em recommending the following Amendment of it, viz. That the Creditor ſhould be allow'd only ſo much, as the Bills ſhould be depreciated below the Value, which they were of at the Time of contracting the Debt, amended it accordingly: And thereby the true Point of Juſtice between the Debtor & Creditor, which is that every Debtor ſhould pay, and every Creditor receive the full Value of his Debt, and no more, was eſtabliſh'd upon a firm Baſis, all poſſible Over-reaching or Oppreſſion of the Debtor avoided, and the perpetual Execution of the Act well ſecur'd, which it would have been very difficult to have preſerv'd upon the Terms, in which the Act was fram'd at firſt.

And this is all that the Governour could poſſibly do for preventing the miſchievous Effects of the Bills; and it is evident that this Proviſion in the Act would effectually ſecure to every Perſon the Value of that Part of his Eſtate, which is outſtanding in Debts, and be an adequate Remedy for the Chief Miſchiefs, that aroſe before from the depreciating of the Bills, and check that litigious Spirit, which was grown to a conſiderable Head for want of ſuch an Act, if Creditors ſhall think fit to take the Benefit of it: In the Country they generally have; but in Boſton the Shopkeepers, who have long taſted the Sweets of the depreciating of the Bills, are averſe to complying with it voluntarily, and the Merchants their Creditors are tender of forcing 'em into it, by demanding an Allowance for the depreciating of the Bills in a Court of Law; and ſo it has had little or no Effect there; But all that Government can do, is to provide the Remedy, and to put it into the Power of the Creditor to recover the full Value of his Debt.

However this Act together with the Alteration made in the Fees of the Courts of Judicature in January 1741, by which they were rais'd to double what they were before the laſt Act for preventing the Oppreſſion of Debtors and making the Bills a Tender expir'd in November preceeding, ſeems to have had a very conſiderable Influence for retrenching the former exceſſive Number of Law Suits, which has by this Means been reduced near one Half, and in the Superior Court, with Reſpect to indiſputable Debts and Complaints upon Defaults, near two third Parts.

At their May Seſſions in 1742 the General Court found that the late Settlement of the Boundary Line between this Province and New-Hampſhire, whereby ſome whole Towns, which were before tax'd towards the Support of the Maſſachuſetts Government, were now included within the Limits of New-Hampſhire Government, and that other Towns under the ſame Situation were interſected by the Line, had made a new Valuation of the Eſtates of the ſeveral Towns throughout the Province neceſſary, before they could apportion the Taxes laid on that Year; and as the ſettling of a new Valuation Act is generally an Affair of ſome Length and Difficulty in the Houſe of Repreſentatives, and could not be compleated before the Governour's intended Interview with the Eaſtern Indians that Summer, that Affair and the Apportionment of the Taxes for that Year was put off 'till the next Meeting of the Court on the firſt of September, to which ſhort Day they were adjourn'd chiefly for that Purpoſe; But upon their Meeting then they could make ſo little Progreſs in it, before the Seaſon of the Year neceſſarily call'd the Country-Members Home, that they roſe again without compleating the new Valuation, but with a firm Reſolution to come fully prepared to go through the Valuation and Tax-Act by the End of November, to the 18th of which Month they were adjourn'd; But at their Meeting then alſo the Zeal of the ſeveral Repreſentatives for the Intereſt of their reſpective Towns ſo increas'd the Difficulties and Conteſts in ſettling the Valuation, that tho' the Committee for that Buſineſs attended it with the utmoſt Diligence and Aſſiduity, yet it was not finiſhed 'till January, and then the Aſſembly inſtantly proceeded to make their Tax-Act for 1742, ſo that by this unforeſeen Accident the Apportionment of the Taxes for that Year was inevitably delay'd about five Months beyond the Time limited by the before-mention'd Act in 1741, and the Time for paying the Taxes into the Treaſury about three Months, it being impracticable for the Treaſurer by iſſuing his Warrant to cauſe that Tax to be aſſeſsed and levy'd according to the Proportion ſettled by the laſt preceeding Tax-Act, as the Province had been ſince the making of that Act diſmember'd of ſome Towns, which were included in that Tax, ſo that the ſame Apportionment of the Taxes for the Year 1742 would have produc'd a Deficiency in the levying of 'em; for which Reaſon a new Apportionment was neceſſary to be made by the General Court; But at the next May Seſſion, the Aſſembly punctually apportion'd the Taxes for the Year 1743, ſo that they made two heavy Tax-Acts within the Space of five Months: Which fully ſhews that the Delay in the former Year was not in the leaſt affected, but proceeded intirely from the Difficulties, which the Houſe of Repreſentatives had in agreeing upon the new Valuation.

In the Beginning of the November Seſſion following the Governour in his Speech reminded the Aſſembly of the Engagements, they were under to the Poſſeſſors of the middle Tenor Bills; and preſs'd them to make a proper Proviſion for anſwering their Demands, and order'd the Treaſurer to lay before them for that Purpoſe the State of the Treaſury; upon which it was diſcover'd that in Conſequence of the repeated Miſtakes, which I have before-mention'd, upwards of l. 42,000 in Bills of the middle Tenor had been hoarded up by ſome money'd Men and was outſtanding, and that there was no more than about l.2,900 in Silver and Gold in the Treaſury to redeem them.

At this Time the middle Tenor Bills, which were current, paſs'd at 33 and a 3d per Cent leſs than the Rhode-Iſland Bills of the ſame Tenor and equal Denomination with themſelves, tho' the middle Tenor Bills were within eight or nine Weeks of the Time limited for their Redemption, and the Rhode-Iſland Bills were not redeemable at all with Silver and Gold, and the Period for drawing them in was at 18 Years Diſtance; ſo that according to the common Rule of Diſcount the Rhode-Iſland Bills were of leſs Value than the middle Tenor Bills 60 per Cent at leaſt: This is a demonſtrative Proof of what little Expectation the People in general had that the middle Tenor Bills would be exchang'd at the Treaſury, or rather of the general Perſuaſion, which prevail'd that the Poſſeſſors of thoſe Bills would have no Satisfaction from the Government; And indeed the Re-emiſſion of l.17,000 of theſe Bills in 1740, which were not intitled to be redeem'd at the Treaſury by the Stipulation of the Government, and their being ſo intermix'd with the redeemable Bills of the ſame Tenor, that the Redeemables could not be diſtinguiſh'd from the Non-redeemables, had in the Opinion of Perſons moſt judicious and knowing in the Temper of the Aſſembly laid ſuch an Obſtacle in the Way of the Redemption of any of the Bills, that very little or no Succeſs was then expected from the Governour's Application to the Houſe of Repreſentatives • ; and it is pain that the Council apprehended it to be a Matter, which much labour'd in the Houſe, from their preſſing Meſſage to it upon that Subject; and accordingly by the Journals of the Court it appears that it was the ſixth Week of the Seſſion before the Houſe could be brought to a Reſolution to make any Satisfaction to the Poſſeſſors of the middle Tenor Bills; and then they paſs'd a Vote that for the future in all Publick Payments twenty Shillings in Bills of the middle Tenor ſhould be receiv'd as equal to twenty Shillings in Bills of the laſt Emiſſion, (that is thoſe emitted ſince the preſent Governour's coming to the Adminiſtration, which tho' of no more than equal Denomination with the middle Tenor Bills paſs'd for about 33 and a third per Cent. more in publick and private Payments than they did) and ſo proratâ for a greater or leſs Sum; the Effect of which was that the middle Tenor Bills ſhould be receiv'din'all publick Payment, at near 34 per Cent. more than they had been receiv'd at before: But the Benefit of this Vote extending only to ſuch Poſſeſſors of the middle Tenor Bills, as had publick Payments to make, the Governour on the next Day of the Court's Sitting preſs'd the Houſe to provide for making Satisfaction to all the Poſſeſſors in general; and the Houſe immediately voted that the Treaſurer ſhould be directed to exchange to all Perſons whatſoever Province Bills of the laſt Emiſſion for Bills of the middle Tenor, that is to ſay, a twenty Shilling Bill of the laſt Emiſſion for a twenty Shilling Bill of the middle Tenor, and ſo pro ratâ: And an Act of the General Court was ſoon afterwards paſs'd for apportioning and aſſeſſing a Tax of l 8,000 in Bills of the Tenor and Form laſt emitted, to make good the Deficiency of the Funds of Taxes for drawing in the outſtanding Bills, which was occaſion'd by making this Satisfaction to the Poſſeſſors of the middle Tenor Bills.

I find this is the firſt Inſtance of the Maſſachuſetts Government's making a Recompence to the Poſſeſſors of any of the Bills of Credit for their being depreciated below the Value, at which they were firſt emitted; and it prov'd in the Time of it's Tranſaction an exceeding critical Event, and was then eſteem'd no ſmall Point gain'd to have gone this Length towards procuring Juſtice for the Poſſeſſors of the Bills, and ſaving the Credit of the Province from the Danger, it was brought into of being irretrievably lost: For as to the Province's purchaſing a ſufficient Quantity of Silver and Gold for exchanging the l.42,000 outſtanding Bills, it was not practicable, had the Aſſembly been diſpoſed to have done it, between the beginning of the November Seſſion, and the Time of the Redemption of the Bills; and the l.2,900 in the Treaſury, which would not have exceeded 9d. in the Pound when divided amongſt the Poſſeſſors of all the outſtanding Bills intitled to be exchanged by the before-mention'd Acts, was too trifling a Diſtribution to be thought of; ſo that Province Bills ſeem to be the only Equivalent, that could be given in Exchange for the middle Tenor Bills by the Time limited for the Poſſeſſors of 'em to make their Demands; and that was given 'em according to the full Valuation of Silver in Bills of the laſt Emiſſion, as it was ſet by the Aſſembly in 1741 at the Time of the Emiſſion of the Bills, and ſince which the Price of Silver had not really riſen, tho' this Payment was in Fact 7 and an half per Cent. leſs in Value than the Houſe of Repreſentatives eſtimated it at, and than the real Price of Gold and Silver then was; But this Affair had ſo long labour'd in the Houſe of Repreſentatives, and it's Succeſs had proved ſo doubtful, that it was thought a Point of Prudence for the Governour to paſs the Order, and not to run the Riſque of loſing all by rejecting it, and committing the Conſideration of the Matter a ſecond Time to the lower Houſe, whoſe Sentiments appear'd upon the tranſacting of this Affair not to be unalterably eſtabliſh'd for making any Allowance to the Poſſeſſors of the Bills.—And indeed when it is conſider'd that the Poſſeſſors had receiv'd theſe Bills at their depreciated Value, and gain'd from the Province a Profit of 33 & a third per Cent. for hoarding 'em up five or ſix Months, or perhaps ſome few of 'em a little longer; and that thoſe Bills of the middle Tenor, which were redeemable at the Treaſury, were ſo blended with the l.17,000 of 'em, which the Government had not ſtipulated to redeem, that none of the Poſſeſſors could be certain which of the two Sorts of Bills his were; and that in ſuch Caſe there was ſome Room for the Aſſembly to have diſputed the Redemption of the l.17,000, which had been once ſunk and re-emitted by Miſtake, and to have inſiſted that the Poſſeſſors (ſince it could not be determin'd which of 'em had the redeemable Bills and which the non-redeemable Ones) ſhould make an Allowance (upon an Average among 'em all) for the l.17,000 non-redeemable Bills, according to the ſeveral Quota's of Bills in each Man's Poſſeſſion; I ſay when theſe Circumſtances of the Bills are conſider'd, and that nevertheleſs the Government ſubmitted to redeem all of 'em in the Manner, they have done, there ſeems to be no great Reaſon for the Poſſeſſors to impeach the juſtice of the Aſſembly in this Particular, or to be diſſatisfy'd with the Terms, which were procur'd and conſented to for 'em. And indeed in the Time of the Tranſaction they appeared to be very well ſatisfy'd with it.

Soon after the Alteration made by the late Act for aſcertaining the Value of Money and Bills of Credit, &c. in Favour of Creditors with Regard to future Debts, the Judges of the Superior Court and two or three of the Inferior Courts took Occaſion from thence to alter their Rules for chancering of Forfeitures upon old Bonds and Mortgages condition'd for the Payment of a Sum certain in Bills on this Province, or for the Payment of a Sum either in thoſe Bills or lawful Money; which gave Riſe to ſome Conteſts between the Houſe of Repreſentatives and the Council, and a general Diſcontent of the Debtors, as well as many others throughout the Province.—Ever ſince the Publication of the Law for preventing the Oppreſſion of Debtors in 1712 'till that Time, all Debts due upon Bonds and Mortgages of the before-mention'd Tenor were underſtood and conſequently intended both by the Creditor and Debtor, at the Time of contracting the ſame, to be payable in Bills of Credit on this Province, according to their nominal Value, whether ſuch Bills ſhould riſe or fall in their real Value, between the Time of contracting the Debts and the Payment of it; and the ſeveral Courts of Judicature had made the ſame Conſtruction of thoſe Bonds and Mortgages, and govern'd themſelves accordingly in entring up Judgments, and awarding Executions for ſuch Debts; and this general Underſtanding of the Rule of Law, and the uninterrupted Practice of the Courts of Judicature had influenc'd and govern'd Men in their Dealings, Contracts, Purchaſes & Diſpoſitions of their Eſtates at their Death during the above-mention'd thirty Years: As to the Creditor, who plac'd out his Money at Intereſt, and conſequently choſe what Kind of Security his Debtor ſhould give him; if he made his Election to have his Debt aſcertain'd and not to ſtand the Chance of the Riſe or Fall of the Bills in their Value, he took his Bond or Mortgage with Condition for the Payment of ſo many Ounces of Silver, or a Sum certain in Sterling Money, or in Proclamation Money only; If on the other Hand he had an Opinion, that the Bills of Credit were more likely to riſe than fall in their Value, he took a Bond or Mortgage with Condition for the Payment of Bills of Credit only, or for the Payment either of lawful Money or of Bills of Credit; and the Debtor (who is oblig'd to give ſuch Security as his Creditor inſiſts upon) under the Sanction of the ſettled Practice of all the Courts of Judicature upon ſuch Securities did not ſcruple to give his Bond or Mortgage condition'd for the Payment of Bills of Credit or of lawful Money, tho' the Money was at the Time of giving the Mortgage double, treble or four Times the Value of the Bills and Sum lent him; and in ſuch Caſe there never had been any Inſtance of more than the nominal Sum of the Bills expreſs'd in the Condition of the Bond or Mortgage, and Intereſt due upon 'em in like Bills being ever paid, or demanded in a Court of Judicature 'till 1742, when the Judges of the Inferior Court for the County of Suffolk, and of the Superiour Court of Judicature alter'd their eſtabliſh'd Rule of chancering ſuch Bonds and Mortgages, and made the ſame Allowance to the Creditor for the depreciating of the Bills in the Caſe of old Debts, as the before-mention'd late Law had provided ſhould be made with Reſpect to future Debts.

Upon this Caſe I would obſerve, Firſt, That ſome of thoſe Creditors, who choſe to take the before-mention'd Security for their Debts, had a View of an exorbitant Gain in it ariſing from the general Perſuaſion, which prevail'd for a long Time, that by the Year 1741 all the old Bills would be drawn in; and that the reſt of the Creditors had at leaſt an Opinion that the Bills could not well fall lower, but were more likely to riſe than fall in their Value; and it ſeems not to be doubted, but that if the Bills had during this Courſe of Time ſometimes riſen as well as fall'n in their Value, and Creditors and Debtors had promiſcuouſly been ſometimes Gainers ſometimes Loſers by the before-mention'd Contracts, every Perſon would have thought it juſt that the Gainers on both Sides ſhould have had the Benefit of their Contracts, ſo that all the Difficulty in the Caſe ariſes from the Loſs's having almoſt perpetually happen'd on one Side.

Secondly, That this Departure of the Courts of Judicature from their ſettled Practice was going contrary to the known Intent of the Parties at the Time of contracting the Debt, which is not only the principal Rule of Equity, as it is ſettled in the Engliſh Courts of Judicature, but likewiſe the general Rule of Juſtice univerſally eſtabliſh'd in all Communities, and governing themſelves by the accidental Event of the Contracts, which was novel and unſafe to be introduced into the Provincial Courts in any Inſtance.

Thirdly, That this new Rule was alſo liable to great Objections on Account of it's being neceſſarily attended with Injuries and Wrongs in the following Caſes, viz.

Many Debtors, who under the Sanction of the late ſettled Rule of Practice upon the Province Law, had accepted the Payment of Debts due to themſelves upon the like Securities in depreciated Bills of Credit, would by having the Rule ſhifted upon 'em be compell'd to pay their own Debts in Bills of an higher Value.

And Perſons who had purchas'd Lands ſubject to old Mortgages before this late Alteration of the Practice of the Provincial Courts, and had only an Allowance made in the Purchaſe Money for thoſe Incumbrances according to the depreciated Value of the Bills, would be compell'd by the Mortgagees to pay for the Redemption of thoſe Lands more than what they were allow'd in the Purchaſe of 'em for the Incumbrances by the Mortgageors.

And for theſe and other Miſchiefs too long to be enumerated here, and which would befall other Perſons in the Community beſides Debtors, if this new Rule of Practice in the Courts of Judicature was to take Place in all Caſes, it was impoſſible for the Legiſlature to provide an adequate Remedy.

Fourthly, That as many of the old Debts would be doubled, ſome trebled, and ſome few augmented almoſt fourfold by this new Rule of the Courts of Judicature, it ſeem'd unavoidable that ſome of the poorer Sort of Families in the Province would be wholly broke up and ruin'd by it; which Conſequences ſo alarm'd the Houſe of Repreſentatives, that upon the Petitions of two of the Debtors they paſs'd a Vote for nullifying theſe Judgments of Court; but they miſcarry'd in Council; And at the Cloſe of the Seſſion in April 1733 a Bill was unanimouſly paſs'd by the Houſe of Repreſentatives, and concurr'd by the Council, and lay'd before the Gonernour for his Conſent, the Purport of which was to declare by Way of Explanation of the ſeveral Acts for preventing the Oppreſſion of Debtors, that the before-mention'd Bonds and Mortgages were not Specialties within the Exception of thoſe Acts, according to the true Intent and Meaning of 'em at the Time of their being paſs'd: But I find by the Governour's Speeches upon this Occaſion, that tho' he was of Opinion that in the Beginning the Creditor had the Rule of Law on their Side, yet he thought the Law had been ſo long otherwiſe underſtood, and practis'd upon by the Courts of Judicature, that the general Error in that Caſe had obtain'd the Force of Law, according to the receiv'd Maxim in the Courts of Law, Communis Error facit Jus: And as he was of Opinion that the Courts of Judicature's departing from their eſtabliſh'd Rule of Conſtruction in this Caſe, and breaking thro' the real Intent of the Parties would be of miſchievous Conſequence to the Community, he join'd with the Aſſembly in recommending it to the Judges of the Superior Court of Judicature to re-conſider at their next Court the Judgments, which they had made up on old Bonds or Mortgages of the beforemention'd Tenor (which were only two in Number) and in their future chancering of old Bonds and Mortgages of that Tenor to obſerve the Intent of the Parties according to their former Rule of Conſtruction; and in the mean Time Execution was ſtay'd in thoſe two Caſes, one of which was of the Value of about l. 100, and the other of about l.3 10ſ. Sterling—And for redreſſing the Creditors upon ſuch Securities, to whom the General Court had given a juſt Expectation by their before-mention'd Act in 1736, that the outſtanding Bills of the old Tenor ſhould be exchang'd at the Treaſury in 1742 for Silver at the Rate of one Ounce of Silver for every twenty Shillings in Bills, whereby they might be induced to let their Bonds and Mortgages lie, depending upon the Bills in which they were payable being finally redeem'd in Silver at the above-mention'd Rate, he recommended it to the Aſſembly as a Point of Juſtice to make good to the Creditors the Aſſurances given 'em in 1736, that the outſtanding Bills ſhould be of the aforeſaid Value in 1742; and this the Governour urg'd upon 'em in his ſecond Speech as what the publick Faith of the Province was pledg'd to thoſe Creditors for the Performance of by the Act in 1736, and other ſubſequent Acts paſs'd in 1737, 1738 and 1740, in all which the Value of the Bills of the old Tenor was ſtated as equal to Silver at twenty Shillings per Ounce both in publick and private Payments; and that the Government was bound to maintain 'em to be of the ſame Value in 1742, at which Time it had ſtipulated by thoſe ſeveral Acts that they ſhould be redeem'd at the aforeſaid Rate, and had actually begun to raiſe a Fund for that Purpoſe; and inſiſted that theſe Aſſurances from the Government amounted to a Warranty to the Poſſeſſor of the Bills, that they ſhould in 1742 be of the Value, at which they had been ſtated by the ſeveral Acts; and I might add to the Governour's Argument, eſpecially as they had been made a Tender in Law by the Act paſs'd in 1731: And his Excellency finally propos'd that the Government ſhould make Good to thoſe Creditors, who had receiv'd no Recompence of any Kind from their Debtors for the depreciating of the Bills, the Difference between the preſent depreciated Value of 'em, and the ſeveral Values, they were of when the reſpective Debts were contracted, not exceeding in ſuch Valuation of the Bills the Rate of twenty Shillings for one Ounce of Silver; and propos'd a Committee to be inſtantly rais'd for the Execution of that Affair.

What Effect this Recommendation from the General Court to the Judges of the Superiour Court of Judicature will have, with reſpect to their Judgments in future Caſes of the ſame Kind, is not certain, ſuch Recommendation not being binding upon 'em; the two Caſes recommended to 'em for their Re-conſideration fail'd of obtaining it for want of being brought properly on before them at the appointed Term; and upon the Debtor's petitioning the General Court to be reliev'd further, the Prayer of it was granted by the Aſſembly but was not conſented to by the Governour; and ſo the Creditor had his Execution upon the firſt Judgment: As to the ſeveral Judgments, which had been made up in the Inferior Courts upon Bonds or Mortgages of the ſame Tenor, and from which there was no Appeal to the Superior Court of Judicature, the Recommendation of the General Court did not reach to thoſe Caſes; and tho' one or two ſubſequent Petitions for Relief in 'em had been preferr'd to the General Court and ſucceeded in the Council and Houſe of Repreſentatives, yet as the Debtors had neglected to appeal and proſecute their Remedy at Law in the Superiour Court, and ſo had acquieſc'd in thoſe Judgments, the Governour refus'd his Aſſent to the Vote of the Aſſembly.

And whatever Influence the Governour's Determination in the Caſe conſider'd as it ſtood between the Creditors and the Government, which I find the Governour preſs'd the Conſideration of afterwards in a Meſſage and Speech to the Aſſembly, may have; or however this Affair may end, it ſeems upon the whole, that the Satisfaction propos'd by his Excellency for the Creditors is more plainly due to 'em from the Government than from the Debtors; is more ſafe and ſalutary for the Publick, and more conſiſtent with the Rule of Juſtice, than to exact it from the Debtors by a new devis'd Rule of Conſtruction by the Courts of Judicature, which is contradictory to the real Intent of the Parties in the before-mention'd Securities, as well as to the former ſettled Rule of the Courts, which had led Debtors in to give ſuch Securities, and which by augmenting the Debts immoderately muſt neceſſarily diſtreſs many Families in the Province, eſpecially of the poor labouring Sort, and alſo work many Injuries and Wrongs contrary to the Maxim of Law, Lex non facit Injuriam: All which Conſiderations ſeem to be of no ſmall Weight in the Scale of Government.

Upon the Inſpection of the State of the Treaſury, which had been laid before the Aſſembly in November 1742 by Order of the Governour, when the Redemption of the middle Tenor Bills was brought under Conſideration, the before-mention'd Arrear of Bills outſtanding beyond their ſtated Periods for want of Executions having been duly iſſued out againſt the deficient Collectors of the Taxes, purſuant to the Province-Law, was fully diſcover'd by the Governour: And upon the laſt burning of Bills in May 1743 it appear'd that 132, 394 l. 18ſ. 2d. of 'em had been drawn in and conſum'd, and that the remaining 258,468 l. 16ſ. 5d. was outſtanding; whereupon the Treaſurer was order'd forthwith to iſſue out Executions againſt the deficient Collectors of the Taxes in general throughout the Province to compel 'em to bring in • he Remainder; whereby the whole 390,863l. 14ſ. 7d. may be expected to be drawn in by May 1744.

This I find is the firſt Inſtance of iſſuing out Executions in general in ſuch Caſe; Executions had been before iſſued in particular Caſes, where Collectors were in Arrear and ſuſpected of Inſolvency; but they had never been iſſued out againſt all the deficient Collectors in general, and merely for the Sake of drawing the Bills into the Treaſury, tho' his Majeſty's two before-mention'd 16th and 18th Inſtructions ſeem very explicit, and to have been expreſly fram'd for that Purpoſe.

The Payment of this large Arrear muſt, it is evident, be as much felt by the People as if it had been a new Tax, and more burthenſome to 'em than if the ſeveral Parts of it had been collected, when they firſt became due; and this happen'd too at a Time, when the Circumſtances and extraordinary Charges of the Government requir'd higher Taxes to be laid upon the ſucceeding Years, than had been uſually rais'd within theſe laſt twenty-five Years; yet the Aſſembly has granted 'em with the utmoſt Unanimity, and the People have cheerfully born 'em; and if the publick Charges ſhould not be increas'd by a French War, as there is no Reaſon to doubt but that the preſent Governour will direct the ſame Method of drawing in the Bills by general Executions againſt all deficient Collectors of Taxes to be purſu'd, and the Aſſembly will continue to raiſe equal Taxes with thoſe, they have granted ſince the Year 1740, whilſt the Exigencies of the Government require it, the current Quantity of the Maſſachuſett Bills will be reduc'd within l.30,000 Sterling by the End of the Year 1746, and not one Bill of that Government will be extant, except what is iſſued for the Service of the current Year to be drawn in the ſame or next ſucceeding Year at fartheſt, by the End of the Year 1753; and in the mean Time the Quantity of Bills current at one and the ſame Time will be annually leſſening, ſo that there is now a fair Proſpect of ſome End of thoſe Grievances, which, inſtead of being diminiſh'd, have increas'd more ſince the Arrival of his Majeſty's two before-mention'd Inſtructions, which the late Governour communicated to the Aſſembly, till the Year 1741, than they ever did within the ſame Compaſs of Time before.

And this is the utmoſt, that can be done by the Maſſachuſetts Government either for Remedying the miſchievous Conſequences of the depreciating of the Bills, under which Creditors had ſuffer'd for theſe laſt thirty Years, and the Community in general had been much hurt, or to prevent the depreciating itſelf, which indeed would be plucking the Evil up by the Roots.—As to the firſt, the putting it into the Power of the Creditor to demand and have of his Debtor a full Allowance for the depreciating of the Bills between the Time of the contracting and Payment of the Debt, which the Act for aſcertaining the Value of Money, &c. has done, is (with reſpect to Debts owing within the Province) an adequate Remedy for the malignant Effects, tho' not all the Inconveniences of the depreciating of the Bills, whenever the Creditor ſhall think fit to take the Benefit of the Act; but to cure the depreciating itſelf intirely is not in the Power of this Government; For tho' I find that the depreciating of the Bills has been generally imputed to immoderate Quantities of 'em having been current at one and the ſame Time, and their long Periods, as the only Cauſes of it, yet I think it is evident that it is primarily owing to this ſingle Circumſtance of the Trade of the Province. viz. That the Quantity of Silver and Gold and Bills of Exchange to be purchaſed within it, and in one or other of which the Ballance of Trade between the Province and Great Britain (which is ever greatly in Favour of the latter) muſt neceſſarily be paid from Time to Time, is not ſufficient to anſwer the Demands for 'em for that Purpoſe, occaſion'd by the Shortneſs of the Province's other Returns to Great-Britain; in which Caſe the Price of Bills of Exchange and of Silver and Gold in Bills of Credit, with which only they are to be purchas'd, like that of all other Commodities, which are much in Demand and very ſcarce at Market, is neceſſarily rais'd by Means of the Buyers outbidding each other; and as ſuch Demands for Silver and Gold and Bills of Exchange for paying the Ballance of Trade due to Great Britain frequently recurs more or leſs in the Province, the Price of 'em will upon every Occaſion riſe in Proportion to thoſe Demands without any fix'd Bounds, or (to ſpeak more properly) the Bills of Credit will more and more depreciate; on the other Hand when the Quantity of Silver and Gold, and Bills of Exchange to be bought at Market is ſufficient to anſwer every Purchaſer's Occaſions, it is Manifeſt that the Price of 'em will continue at a Stand, let the Quantity of the current Bills of Credit be what it will, becauſe the only Reaſon which can be aſſign'd for any general Merchandize or Commodity's advancing in it's Price (except in the Caſe of a Monopoly or ſome unlawful Combination) is the Scarcity of it, which induces the Purchaſers to raiſe the Price of it by outbidding each other, eſpecially if ſome of 'em are under a Neceſſity of buying it at any Rate, which is the Caſe of ſeveral Purchaſers of Gold or Silver or Bills of Exchange in the Povince for Returns to Great Britain: Further, if even the Ballance of Trade againſt the Province ſhould increaſe in any Year, when there happen'd an Increaſe of the Paper Currency, yet if there ſhould alſo happen to be an Increaſe of the Quantity of Silver and Bills of Exchange in the ſame Year ſufficient to pay that Ballance, it's plain that the Price of Silver and Bills of Exchange would not be rais'd that Year even by the joint Increaſe of the Ballance of Trade, and of the Quantity of the Bills of Credit: And on the contrary if the Ballance of Trade ſhould happen to decreaſe in any Year, when there ſhould happen to be a Decreaſe likewiſe of the Paper Currency, yet if there ſhould happen to be a leſs Quantity of Silver and Gold and Bills of Exchange in the ſame Year, than what will ſatisfy that Ballance, it is evident that the Buyers, who are in want of it to make Returns to Great Britain, will outbid each other for 'em, and ſo the Price of Silver and Exchange will neceſſarily riſe that Year; or (to ſpeak more properly) the Bills of Credit will depreciate, notwithſtanding the Decreaſe of the Ballance of Trade and of their own Quantity; ſo that if theſe Obſervations are juſt, it is evident that the Riſe or Fall of the Price of Silver and Gold and Bills of Exchange, in which conſiſts wholly the riſing or depreciating of the Bills of Credit, does not primarily depend upon the Increaſe or Decreaſe of the Quantity of the Paper Currency, but ſingly upon the Proportion, which the Quantity of Silver and Gold and Bills of Exchange to be bought at Market bears to the Demands which there are for 'em, to make Returns to Great Britain; and that the Increaſe or Decreaſe of the Quantity of Bills of Credit can't affect the Price of Silver and Gold and Bills of Exchange any further, than as it checks o • inlarges the Trade of the Province with Great-Britain, from whence ariſe the annual Demands for Silver and Gold and Bills of Exchange to pay off the Ballance, which is ever in favour of the latter.

If indeed an Increaſe of the Bills of Credit ſets in at the ſame Time with an Increaſe of the Ballance of Trade, and a Decreaſe of the Quantity of Silver and Gold, and Bills of Exchange in the Province, the Increaſe of the Paper Currency at ſuch a Conjuncture will contribute exceedingly to raiſe the Price of Silver and depreciate the Bills of Credit: Thus in the Year 1734, when the Act of Parliament for laying the preſent Duty upon the Importation of foreign Melaſſes firſt took Place, which abridg'd the Trade of the Province in one of its moſt conſiderable Branches for a ſhort Time, and there happen'd alſo ſome Failure of its Cod and Whale Fiſhery, both which occaſion'd a great Deficiency in its Returns that Year, and there was the uſual Importation of Engliſh Goods, and no Increaſe of the Silver and Gold generally imported into the Province, and of the Bills of Exchange to be purchas'd there, and about the ſame Time there happen'd a large Increaſe of the Paper Currency by a new Emiſſion of Rhode-Iſland Bills and a Scheme of Notes commonly call'd Merchant's Notes, this Conjunction of Circumſtances caus'd Silver to riſe from twenty Shillings, to twenty ſeven Shillings and ſix Pence per Ounce, and conſequently the Bills of Credit to depreciate above one third Part of their former Value; in which immoderate Fall of 'em the great Increaſe of their Quantity had no ſmall Share as a ſecondary Cauſe; But during the five next ſucceeding Years the Price of Silver and Exchange, and the Value of the Bills kept nearly at a Stand; not becauſe the Quantity of the Paper Currency was diminiſhed; For on the contrary it greatly increas'd within that Time; But as the immoderate depreciating of the Bills had occaſion'd exceſſive Loſſes to the Britiſh Merchants upon their outſtanding Debts in this Province, it very much diſcourag'd and leſſen'd the Importation of Engliſh Goods in the five next ſucceeding Years, and the Province by Degrees ſoon retriev'd it's Melaſſes Trade, and the like Failure of their other Branches of Trade did not happen, ſo that by Means of leſſening the Importation of Goods from England and of the Increaſe of the Quantity of their Returns, the Ballance of Trade in Favour of Great Britain was ſo much diminiſh'd that the Demands for Silver, and Gold, and Bills of Exchange to diſcharge it did not exceed the Quantity, which was to be had of 'em in the Province within thoſe five Years, and ſo their Price kept very near at a Stand, and conſequently the Bills of Credit depreciated very little within that Time.

I ſhall illuſtrate this Obſervation with one Fact more: I find that in the Year 1712 there was current in the Province 179038l. 15ſ. 9d. in Bills of the old Tenor, which then were equivalent to 716153l. 3ſ. 0d. in Bills of the ſame Tenor and Denomination, according to their preſent depreciated Value, which Sum exceeds the Quantity of all the Bills of Credit now current in the Province; and yet the Bills of Credit continu'd at Par with Silver till the Year 1713, and were not in the leaſt depreciated by their immoderate Quantity, tho' l.88,000 of it, which was then equal to l.352,000 was emitted within the Year 1711, and the Bulk of the Remainder was all iſſued in the Compaſs of a few Years before; which ſeems to be a full Demonſtration that the depreciating of the Bills from 40 to 495 per Cent. Advance, (the middle Price of Exchange at this Day) is not primarily owing to the immoderate Quantity of the Emiſſions of the Paper Currency in the ſubſequent Years; tho' I doubt not but it has frequently contributed towards it at ſuch particular Conjunctures, as I have before mention'd.—The true Account of the Matter is this; The Trade of the Province had till this Time been in very flouriſhing Circumſtances; the Maſſachuſetts-Bay formerly ſupply'd not only the reſt of New-England, but the Colonies of New-York, the Jerſeys, Pennſylvania, and other Parts of the Continent, even as far as South-Carolina, with the chief Part of their Engliſh and other European Goods, and carry'd on a very large Cod-Fiſhery at Canſo, and a conſiderable Whale-Fiſhery in it's own Bay, ſupply'd the Engliſh Weſt-Indies wholly with Lumber and live Stock, and Jamaica and Barbadoes with great Part of their Wines from Madeira and the Cape de Verd Iſlands, drove a large Trade to the Bay of Honduras, Surinam, Newfoundland, Holland, the Streights and the Mediterranean; by all which it was furniſh'd with a Variety of Returns to England beſides Silver and Gold and Bills of Exchange in great Abundance; and with theſe Advantages it had a Silver Currency of it's own Coinage; But as it wholly loſt ſome of theſe Branches of Trade, and others in Part, the Cod Fiſhery in particular by the Encroachments of the French upon the Canſo Fiſhery; and the Trade of Newfoundland by their Encroachments on the Britiſh Fiſhery; and their Whale Fiſhery was much decay'd by the Whales being beat off the fiſhing Ground 'till the laſt Year, when they in ſome Meaſure return'd into the Bay; The Ballance of Trade with Great-Britain has by Degrees not only drain'd the Province entirely of it's Gold and Silver Currency, ſo that thoſe Species are become a mere Merchandize, but has of late Years conſtantly exceeded the Quantity of Gold and Silver imported from Time to Time into the Province from the Weſt-Indies, and the Bills of Exchange to be purchas'd within it ſo much, that by raiſing the Price of 'em from Time to Time it has depreciated the Bills of Credit by Degrees to their preſent fall'n Value.

The preceeding Account of the Difference between the nominal Sum and real Value of the Bills of Credit current in this Province in 1712, and the nominal Sum and Value of Bills now current will furniſh us with the following Obſervations. Firſt, That tho' the nominal Sum of the Bills of Credit now current in the Province, computed in Bills of the ſame Tenor and Denomination with thoſe which were current in the Year 1712, vaſtly exceeds the nominal Sum of the Bills then current, yet their real Value or Quantity is much leſs than that of the Bills, which were current in that Year, ſo that the immoderate Emiſſions of Bills ſince that Time, inſtead of increaſing, have much diminiſh'd the Medium of Trade; which is one very remarkable Miſchief of the exceſſive Quantity of 'em. Secondly, That it is impoſſible abſolutely to fix the Value of the Bills of Credit under the preſent Circumſtances of the Trade of this Province, and that the utmoſt, which can be done for the Creditor, is to ſecure to him the Value of his outſtanding Debts againſt the depreciaring of the Bills. Thirdly, That this demonſtrates how unfit Bills of public Credit are to ſerve as a Medium of Trade in New-England, and the great Wiſdom of His MAJESTY's Royal Inſtruction to the Governours of his two Provinces there reſtraining 'em to Emiſſion of Bills for the neceſſary Support of his Government only, and to a limited Sum of 'em even for that Purpoſe. Fourthly, That notwithſtanding his Majeſty's two Provinces of the Maſſachuſetts-Bay and New-Hampſhire are by Virture of his Royal Inſtructions to the reſpective Governours of 'em limited in their Emiſſions of Bills of public Credit, as to the Sums allow'd to be current at one and the ſame Time, and ſuch Sums to be only for the neceſſary Support of his Majeſty's Government within thoſe Provinces, yet as the Bills of public Credit emitted by the two Colonies there will always from the Circumſtances of the Trade between them, and the Province of the Maſſachuſetts-Bay, obtain a general Currency within that Province (notwithſtanding the utmoſt Endeavours of the Maſſachuſetts Government to prevent it) and the two Colonies are at Liberty to emit ſuch Quantities of Bills upon Loan, as are not only ſufficient to ſupply themſelves with a Medium of Trade within their own Government, but alſo with a ſurplus Stock to purchaſe whatever Merchandizes they want from the Province of the Maſſachuſetts-Bay, or to lend any Sums to the Inhabitants of that Province upon perſonal or real Security, the Inhabitants of the four Governments in New-England conſider'd collectively will be at Liberty to ſupply themſelves with what Quantity of Paper Medium they pleaſe, notwithſtanding the Reſtrictions laid on the particular Governments of the two Provinces; for tho' neither the Province of the Maſſachuſetts-Bay nor of New-Hampſhire ſhould be permitted to iſſue out one Bill, yet they would be ſupply'd with whatever Sums they deſired from the Colony of Rhode-Iſland in particular, five Sixths of whoſe Bills, to the amount of at leaſt l.350,000 old Tenor, are already circulating within the Province of the Maſſachuſetts-Bay; and His Majeſty's Inſtructions to his Governours of his two Provinces, tho' the moſt exact Obedience ſhould be paid to 'em, would wholly loſe their intended Effect as to remedying the Miſchiefs ariſing to the Britiſh Merchants in particular from an unlimited Paper Currency in New-England.

And I think, Sir, upon the whole, that were the ſame Regulations of the Paper Currency to be extended to the two Governments of Connecticut and Rhode-Iſland as I have before-mention'd to have been made in this Province; and thoſe two Colonies were to be limited in their Emiſſions of Bills with Reſpect to the Sums allow'd to be current at one and the ſame Time within each of 'em, in which Caſe I ſhall ſuppoſe the whole Sum allow'd among all the four Governments would not exceed the Value of l.60,000 Sterling at the moſt, and thoſe Sums to be reſtrain'd to the neceſſary Support of his Majeſty's Government, and ſecur'd to be drawn in by Funds of Taxes equal to the Sums emitted, in the ſame or next ſucceeding Year at furtheſt, and the Bills of all the four Governments to have the Advantage of being receiv'd at their reſpective Treaſuries at 5 per Cent. Advance, it would go far towards reſtoring a Silver and Gold Currency, (the only proper Medium of Trade) in New-England, would prevent in a great Meaſure, tho' not abſolutely, the depreciating itſelf of the Bills of Credit, and bid fair for curing all their miſchievous Effects.

Since I began this Letter the Governour made a Speech to the Aſſembly on the 9th Inſtant upon the Subject of the Bills of Credit of the Colonies of Rhode-Iſland & Connecticut, ſetting forth the pernicious Effects of 'em with Regard to this Province, which as it ſeems to have had a remarkable Influence upon the Members of the Aſſembly and the People in general, I ſhall here tranſcribe: Viz.

Gentlemen of the Council and Houſe of Repreſentatives.

THE chief Occaſion of my calling you together at this Time is to lay before you, for your Conſideration, the State of the Province with Reſpect to the Bills of Credit on the neighbouring Governments:—Of theſe there may be reckon'd to be now current among us the Sum of l.400,000 computed in Bills of the old Tenor, viz. l.350,000 of it in Bills of the Colony of Rhode-Iſland, and l.50,000 in thoſe of the Colony of Connecticut: Upon this Sum the Inhabitants of this Province have by the general depreciating of the Bills from l.450 to 485per Cent Advance, which ſeems to be the middle Price of the preſent Exchange, loſt within theſe nine Months l.25,000 old Tenor, which the Inbitants of the two Colonies have gain'd (ſome ſmall Deduction for the Bills of this Government, which may be current within the Colonies, only excepted)—And on looking back to the Year 1734, in which the Bills of Credit depreciated a third Part of their whole Value, I find that the Province then loſt upon l.320,000 of the Bills of thoſe two Colonies, which may be computed to have been at that Time current in it, upwards of l.106,000 old Tenor, (ſuch Deduction as I have before-mention'd only excepted)—and whoever would make a minute Calculation of the Loſſes ſuſtain'd by this Province from Time to Time upon the ſeveral Depreciations of the Bills of the two before-mention'd Governments current among us, will, I doubt not, find 'em amount to l.180,000 old Tenor at leaſt: This of it ſelf would be a grievous Loſs to the Community, was it to ſtop here; but as we may very reaſonably expect further large Emiſſions of theſe Bills, and (if we may judge by our preſent Proportion of thoſe already extant, what our Share of their future Emiſſions will be) that five ſixths of the Rhode-Iſland Bills, and more than half of thoſe of Connecticut, or at leaſt ſome other large Proportion of 'em will center in this Province; and that under the preſent Circumſtances of our Trade, and of the Bills of theſe Colonies, the depreciating of the Bills in general will continue to be unavoidable, how inſupportable to this Community muſt it's growing Loſs be?

The Loſs already ſuſtain'd by it's Inhabitants, like other general Loſſes of a Community, may not have been ſufficiently regarded by 'em, eſpecially as the Bills of this Government have depreciated pari paſſu with the Bills of the Colonies, and all of 'em have had a promiſcuous Currency among us, ſo that the Loſs ariſing upon the Bills of the Colonies have not been ſeparated and diſtinguiſh'd from that, which ariſes upon the Bills' in general; but it is evident that every Perſon muſt ſhare in it more or leſs, and the Debtors, who are ſubject by the late Province Law to make an Allowance to their Creditors for the depreciating of the Bills, muſt feel it in a particular Manner.

I have hitherto, Gentlemen, only obſerv'd to you the Loſs ariſing to the Province by the depreciating of the Bills of the two Colonies in our Hands, which muſt be ſuſtain'd, tho' the Bills ſhould be finally redeem'd from the Poſſeſſors: But what juſt Grounds have we to conceive any ſuch Expectations? Or with what are they to be redeem'd? The preſent Emiſſions of the Rhode-Iſland Government may be reckon'd to amount in the whole to about l.440,000, l.70,000 of which appears to be ſufficient for the Medium of their own Trade, and to defray the Charges of their Government: The l.350,000 current in this Province is a ſurplus Stock, with which the Inhabitants of the Colony have purchas'd European Commodities from the Merchants & Traders of this Province: Is there any Proſpect of finding Vent for this immoderate Sum by the Purchaſe of any Merchandizes within their Colony? This can't be expected 'till the whole Trade of this Province ſhall be transferr'd to them; and it may be a Queſtion whether even Part of that would be eaſily accepted by 'em; for it is certainly more eligible for 'em to purchaſe Britiſh Manufactures in Boſton with their Colony Bills, than to remit their own Subſtance for 'em to Great-Britain: I will ſuppoſe, and doubt not but that the Government of Rhode-Iſland will call upon the Borrowers of theſe Bills to diſcharge their Bonds, when their diſtant Periods ſhall arrive; but can we reaſonably depend upon their compelling their own Inhabitants to redeem the Bills outſtanding in this Province with their Houſes, or Lands, or any other Part of their Eſtates? May they not rather aſſiſt 'em with further Emiſſions of Bills to enable 'em to pay off their old Debts to the Rhode-Iſland Government: And will not the Conſequence of that be to augment the Quantity of their Colony Bills, which the Inhabitants of this Province have already current among 'em, in ſo exceſſive a Degree as that the Province muſt at laſt ſink under the Loſs ariſing to it by 'em: The Circulation of the Bills among our ſelves may poſſiby hide the pernicious Effects of 'em to the Province for ſome Time; But can it be reaſonably thought that a Circulation of Bills without any Proſpect of their Redemption by the Government that emitted 'em, and with very little other Value to this Province at the bottom, than what they receive by the Circulation it ſelf in the Province, ſhould not fail in a few Years; and what a Scene of Diſtreſs and Ruin that would produce in the Province I need not tell you.

Theſe, Gentlemen, are Matters, that demand your cloſeſt Attention, and the moſt ſpeedy Redreſs: What will it avail the Province for this Government to take due Care of the Regulation of it's own Bills, if it muſt ſtill be expoſed to be ruin'd by the immoderate Quantities of the Bills of it's Neighbours, emitted for no other viſible Purpoſe, than to be ſunk in this Province; whereby they have it in their Power to become Maſters of whatever Share of our Subſtance and our Trade they ſhall be pleas'd to take in exchange for their Bills.

As to the proper Method for procuring the Redemption of the Bills of theſe two Government already introduced among us, or preventing the Introduction of more of 'em into the Province, I ſhould be glad if I could ſuggeſt to you any Thing, which it may be in the Power of this Government to do further than what they have already done: In 1738 an Act with a conſiderable Penalty in it was paſs'd for preventing the Bills of any of the neighbouring Governments, which had been emitted ſince the firſt Day of May in the ſame Year, or ſhould afterwards be emitted, from being utter'd in this Province, unleſs they were made redeemable by lawful Money upon good Security within ten Years after their firſt Emiſſion, and it ſhould ſo appear by the Tenor and upon the Face of the Bills: But this you are ſenſible, Gentlemen, had not any Effect to check the Currency of 'em among us before September laſt, when a Proclamation was iſſued with the Advice and Conſent of his Majeſty's Council to inforce the Obſervation of it upon all His Majeſty's Subjects within this Province in general, and the civil Officers within it in particular: This I hope may have had it's proper Effect upon the Officers, but doubt much whether it has had any upon others: And in June laſt a Committee was appointed by the General Court on Behalf of this Province to treat with ſuch other Gentlemen, as might be appointed by the three neighbouring Governments on their Parts, in order to project ſome Meaſures for preventing the further depreciating of the Bills of Credit of the reſpective Governments, or otherwiſe to conſider of ſome Method for bringing 'em to a Period in ſuch Manner, as ſhould be juſt and equal, and moſt for the Intereſt of the Inhabitants of theſe Governments: And I am informed by Mr. Secretary that he ſent Letters of Advice concerning this Matter to the ſeveral neighbouring Governments, deſiring their Concurrence in theſe Meaſures, but without having receiv'd any Anſwer from 'em.—If any Thing can be ſtill further done for remedying theſe Miſchiefs by this Government, I ſhall readily concur with you in it.

Gentlemen,

Whatever ſome Perſons may perſwade themſelves, it is certainly an Error to think that any of His Majeſty's Colonies have the Privilege conferr'd upon 'em by Charter to make Money; Coinage is an undoubted Part of the Royal Prerogative, and the Practice of ſtriking Bills of publick Credit to paſs in Lieu of Money ſtands ſolely upon the Royal Indulgence, and is warrantable no further than it is neceſſary for the Support of His Majeſty's Government within the Colony or Province, that uſes it: The Bills of this Government, which have been iſſued within theſe laſt ten Years, ſtand indeed upon a different Foundation from that of the Bills of the two beforemention'd Colonies: They have 〈◊〉 • mitted by formal Acts of the Legiſlature, which have receiv'd the Sanction of His Majeſty's Royal Approbation: And they are no leſs diſtinguiſh'd from thoſe of the two Colonies by their Quality, having been emitted only to defray the neceſſary Expences of Government, and being ſecured to be drawn back into the Treaſury generally at ſuch reaſonable Periods, as the Circumſtances of the People would bear, by ſufficient Funds of Taxes, which is the proper Government Method for raiſing publick Money: The whole Arrear of Bills lately outſtanding beyond their ſtated Periods are now drawing in by Executions iſſued in general againſt all the deficient Conſtables and other Collectors of Taxes throughout the Province, and will be very ſpeedily ſunk: And the ſinking of the Bills of the new Tenor, whoſe Periods are not yet arriv'd, at the Time limited by their Emiſſion Acts, are by a late Proviſion made in the Acts themſelves ſecured from all Danger of being poſtponed: The Government has now ſecured to Creditors the full Value of their outſtanding Debts againſt the future depreciating of it's Bills, and has lately paid the Poſſeſſors a very large Sum in Satisfaction for the past depreciating of 'em.

And I ſhould think, Gentlemen, if it was even poſſible that the ſaving of this Province from the great Loſs which it muſt ſuſtain, unleſs the Redemption of that immoderate Sum in the Bills of the two Colonies already Current in it is procured, and from the further Loſs which it muſt incurr by their future Emiſſions of Bills, unleſs they are limited in 'em, could 〈◊〉 a ſmall Matter in your 〈◊〉 that it would ſtill be a Point of Prudence in you to c •• cert proper Meaſures for vindicating, in Caſe of a Parliamentary Inquiry into the Miſchiefs which I have mention'd to you, the Juſtice of this Government and the Credit of it's Bills from all poſſible 〈◊〉 of thoſe Abuſes, which the other Governments may poſſibly be deem'd to have committed in their Emiſſions; and by a proper Repreſentation of the different Circumſtances of the Bills of this Government from thoſe of the 〈◊〉 Colonies to ſecure 'em from the Danger of being involv'd in the Cenſure and Condemnation, which the Colony Bills may be expos'd to the Danger of—But theſe Meaſures I ſhall leave to your own Determination; and you may depend upon my ready Concurrence with you in any Thing, which ſhall appear to be for the real Intereſt of the Province upon this Occaſion, &c.

The Departure of the Veſſel, by which this will be convey'd to you, will not permit me to delay the cloſing of it, till I can inform you what particular Reſolution the Aſſembly will come into upon this Occaſion: But it is apparent by their Proceedings hitherto, that the Governour's Speech has open'd the Eyes of all the Members to diſcern the pernicious Conſequences of the immoderate Quantity of Bills of Credit in general, and ſeems to have intirely wean'd their Affections from the Connecticut and Rhode-Iſland Bills in particular, to prevent the miſchievous Effects of which they ſeem to be bent upon finding ſome Method out before they riſe; But what the Reſult of their Deliberations will be muſt communicated in my next.

In the mean Time I muſt obſerve, that this ſudden Change of the Sentiments of the Aſſembly in general, ſome few Gentlemen in it only excepted, who were before appriz'd of the ill Conſequences of the Uſe of Bills of Credit further than the neceſſary Charges of his Majeſty's Government requir'd, and the weaning of their Affections ſo far from a Paper Medium of Trade at once, muſt be very much attributed to the 〈◊〉 opening 〈◊〉 Eyes of the Debtors in particular with Reſpect to their 〈◊〉 in the ſeveral Miſchiefs he had pointed out in his Sp ••• h▪ Had he made the ſame Speech to 'em before he had introduced the late Law paſs'd for obliging the Deb ••• to make an Allowance to their Creditors for the depre ••• ing of the Bills and carried it into Execution among 'em, 〈◊〉 may well be queſtioned whether his Excellency could have wro't the ſame Conviction in 'em, or at leaſt have had the ſame Influence upon 'em, whilſt they themſelves were Gainers by the depreciating of the Bills: But as the Tables are now turn'd upon 'em by the late Province Law, the plain unavoidable Conſequence was to engage their moſt hearty Endeavours for fixing the Value of the Bills, and putting an End to the immoderate Quantities of 'em uſually circulating before within the Province, ſo that the preſent Criſis of the Paper Currency within all the four New-England Governments may be as juſtly imputed to the Effect of the before-mention'd Law introduc'd into this Province for ſecuring the Value of outſtanding Debts, as to the Influence which this Repreſentation of the other Miſchiefs enumerated in the Governour's Speech, and which the Members of the Aſſembly had not ſeen before in the ſame ſtrong Light, might have: And had not both together made a very deep Impreſſion indeed upon 'em, they would never have been brought into the ſame unanimous Diſpoſition for redreſſing the Miſchiefs in ſome Way or other, which at preſent appears in 'em.