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19876 BOOK
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REMARKS
ON THE
EARLY PAPER CURRENCY
OP
MASSACHUSETTS.
Read before the American Antiquarian Society, April 25, 1866,
BY NATHANIEL
PAZ
INE.
CAMBRIDGE:
PRESS OF JOHN WILSON AND SONS.
1866.
No. 33
1987 6
Fifty Copies on Large Paper.
VLOSINNIN
UNIVERSITY OF
EARLY PAPER CURRENCY.
Ir has occurred to the writer, that a somewhat ex-
tended report, even though it be crude and imperfect,
upon the small collection of early paper-money of
Massachusetts now in possession of the Antiquarian
Society, and, in connection with that, upon the his
tory of Massachusetts paper-currency might not be
uninteresting to the members of this Society. The
paper-money of to-day is the cause of much legisla-
tion, of wide-spread controversies of numerous dis-
sertations upon the safety and probable value of
government paper-currency; as, a hundred and fifty
years ago, there were similar discussions and exami-
nations of the system of an issue of paper-money.
The difficulty found in tracing the history of the
early páper-currency suggests to us the advisableness
of this Society gathering into its collections all that
would assist the future antiquary in the study of
the financial history of our times.
4
In order to understand fully the influences which
led our forefathers finally to resort to the expedient
of paper-money, we must know how they practically
understood the term "currency;" and a short review
upon currency in general may not be out of place.
Currency is defined by Webster as "that which is
in circulation, or is given and taken as having value,
or as representing property." This definition, in its
broadest sense, admits of a great variety in the arti-
cles which may be used in trade or barter as a valua-
ble consideration. At the present day, however, cur-
rency or money is almost universally confined to the
metals, gold and silver, or something which is based
upon them; although we now have, in this country, a
currency which is not directly based upon those met-
als, but more upon the confidence we have in the
strength and stability of the government, and the im-
mense productive interests of the country, as displayed
in the industry of our people.
Gold and silver, have for many ages been recog-
nized, by the general consent of the business world,
as the standards of value. They constitute the money
of all commercial nations, and are considered as the
standards by which we measure the value of all other
articles.
The earliest recorded mention of a metallic cur-
rency is in the account of a purchase and sale of
land, in the twenty-third chapter of Genesis. Abra-
ham bought a piece of land of Ephron, that he
5
might bury his wife therein, the price of which was
four hundred shekels of silver. "And Abraham
hearkened unto Ephron; and Abraham weighed to
Ephron the silver, which was named in the audience
of the sons of Heth, four hundred shekels of silver,
current money with the merchant." This was not
coined money, like the Jewish or Israelitish shekel
of later days, but lumps or pieces of silver, cut into
different sizes, to weigh a certain quantity, as shekels,
talents, or drachms.*
The Jews also used for money certain articles of
jewelry, which were called jewel-money. This con-
sisted of personal ornaments of specified weight,
which were used in payments. The jewels men-
tioned as given by Abraham's servant to Rebekah
are examples. "The man took a golden ear-ring of
half a shekel in weight, and two bracelets for her
hands, of ten shekels, weighed gold."
The precise date of the invention or origin of
coined money, like many other useful inventions
of man, is lost in obscurity; and it has been ascribed
to different ages and countries. Herodotus ascribes
the first issue of gold coin to the Lydians; the first
silver coins are said to have been coined in the eighth
century by the Greeks of the island of Egina;
others ascribe to the Asiatics the first issue of coined
* The coined shekel, a fac-simile of which is in the cabinet of the Anti-
quarian Society, has, on its obverse, the sacred cup of manna, and on the
reverse the rod of Aaron.
6
money. The strongest testimony would seem to give
the Greeks the honor of the invention. The Jews
are said to have practised the art about the year 144,
B.C., long after the use of positive coins in other
countries.
Various are the materials which were used as cur-
rency, by different nations, in past ages. The Cartha-
ginians had money somewhat of the nature of bank
bills, but made of leather: this material was also used
as currency by Frederic II. at the siege of Milan;
and by John of France while paying for his ransom
to Edward III. In the thirteenth century, money
was found in use, in some parts of Asia, made of the
middle bark of the mulberry-tree, cut in round pieces,
and stamped with some mark or design. The pen-
alty of counterfeiting this money was death.
The Gauls used for money gold and iron rings of
a certain weight. This kind of currency was also in
use among the Egyptians, as seen in their sculpture
and painting, where figures are shown weighing it
out, and others writing down the amounts. This
money passed by weight, and not by count. Ring-
money was also used in England and Scotland till it
was superseded by the coinage of the Roman Empire.
The Roman coin circulated in Britain till about
A.D. 414. The Saxons, succeeding the Romans in
England, introduced their own coins; and, during the
reign of Baldred, which ended A. D. 823, the first
silver penny was coined in England.
7
The aborigines of this country also originated and
used coins of various substances. Our knowledge of
their money is gained from the exhumations of the
mounds of the Mississippi Valley, in which have been
found shell, jasper, agate, pearl, mica, native gold,
silver, and copper, made into the shape or form of
money, mostly rude, but many showing signs of great
skill. Money, apparently made from human bones
and the bones of animals, has also been found in the
mounds. The shell-money, found in the tumuli, is
made principally from the shells of the genus Unio,
and from small, spiral, fresh-water shells. It is a
question which may well be enlarged upon and inves-
tigated by some of our associates interested in the
history of the mounds of the South-west, whether
these specimens alluded to were really used as a cir-
culating medium, or as ornaments, among the earlier
Indian tribes. That they were so used by the later
tribes, we know from the history of the colonists.
Shell-money or wampum, also called bead-money, was
for many years used as currency among the colonists
of New England and the Indians; and, as late as
1704, it is said to have been circulated in Massachu-
setts for small change. Wampum was made by the
Indians from oyster and clam-shells, also from the
shell of the periwinkle: holes were bored in small
pieces of the shell, and strung upon sinews as we
string beads. The dark beads, less than an inch in
length, and bored longitudinally, were of the highest
8
value, and highly esteemed by the Indians, more so
than the English gold or silver.*
The
William Wood, in his volume entitled "New Eng-
land's Prospect," first published in 1634 (a reprint of
which has lately been issued by the Prince Society),
says, in speaking of the Narranganset Indians:
"Theſe men are the moſt curious minters of their
Wampompeage and Mowhakes, which they forme
out of the inmoft wreaths of Periwinkle-fhells.
Northerne, Eafterne, and Wefterne Indians fetch all
their Coyne from theſe Southerne Mint-Maſters."
From the inferior tools used by the Indians in its
manufacture, the currency was quite rude. In the
New York Colony, however, the Dutch residents
made some improvement in the appearance of the
strings of beads. They used white and blue beads,
made from the muscle or sea-conch, and displayed
more taste in the arrangement. A string one
fathom long was called worth four guilders, or
about one dollar and sixty-six cents of our cur-
rency.
Mr. Hickcox, in his late publication on the paper-
currency of New York, says that "Wampum was in-
troduced into New England by Isaac De Razier, in
1627, and passed at the rate of five shillings per
fathom." And Bronson, in his account of Connecti-
cut currency, says that "the different colonial gov-
* Appendix A.
9
ernments recognized the shell currency, so called, in
their dealings with the Indians, and adopted it, to a
certain extent, among themselves.
From time to
time, as the supply varied, they endeavored to fix
its exchangeable value."
""
The colonists were obliged to adopt still other
means of exchange, and, having no mints or banks,
drew from such resources as they had. Thus among
the commodities we find corn, meaning all kinds of
grain, greatly used as currency, and live stock also
received by the colonial treasury as "country pay
for taxes. Wool, beaver skins, codfish, and many
other articles of every-day use, were allowed to pass
current; musket-balls also at a farthing each, but no
man was obliged to take more than twelvepence of
them at one time. From the early records of the
Massachusetts Colony, we find that these commodi-
ties were used in the payment of debts, and also rec-
ognized by the court as a proper penalty or fine to be
administered by them.
It was a custom, when a surveyor ran the lines of
a lot of land, to pay him with a peck of corn; and
we find that "Sir Richard Saltonstall is fined four
bushells of malte for his absence from Court."
This great variety of circulating medium, much of
it in inconvenient form, and cargoes from the mother
country, constantly draining the colony of the little
specie it had, caused a great depression in trade.
Land and commodities fell to one-half, and even to
2
10
one-quarter, their first value. Merchants would take
only money; and so it happened that men could not
pay their debts, though considered as well off, and
possessed of much property. Laws were enacted
endeavoring to fix the value of various articles of cur-
rency, and the value of wampum was greatly en-
hanced. But the great scarcity of hard money caused
embarrassment in every species of exchange; all con-
fidence was destroyed. This state of things continued
for a long time, and made much trouble. Governor
Winthrop relates an incident of this period: "A
master, being forced to sell a pair of his oxen to pay
his servant his wages, told his servant he could keep
him no longer, not knowing how to pay him next
year. The servant answered him, he could serve him
for more of his cattle. But what shall I do (saith the
master) when all my cattle are gone? The servant
replied, you shall then serve me, and so you may have
your cattle again."
""*
Of the currency at this and earlier periods of the
history of the Colonists, there are full and interesting
particulars in Felt's "Historical Account of Massa-
chusetts Currency."
1646. It is here, at this distressed point in
the history of the Massachusetts Colonists, that we
find the first intimation of paper-money in this coun-
try, the special subject of this report.† Of such bills
*Winthrop, vol. i. p. 220.
† Appendix B.
11
*
we can at this time learn nothing definite, either in
regard to their form or value: without doubt, how-
ever, they were issued by individuals, either merchants
or traders. That there probably were such bills, we
have some evidence; for, in 1646, there was an
enactment that any person, forging notes of hand, or
other paper relative to property, "shall stand in the
pilory three seuerall lecture days and render double
damages to the party wronged, and disabled to give
any evidence or verdict to any Courte or Magis-
trate." From this it would seem that such notes
had been issued, and that forgery must be forbidden
to protect the pecuniary interests of the people.
Felt, in alluding to the formation of the mint, in 1652,
says, that, "not satisfied with this means of obtaining
an increased medium of circulation for the purposes
of traffic, serious thoughts are entertained of resort-
ing to paper money, in addition to what had been
already issued by individuals."
'
In the Appendix to Hull's Diary in the third vol-
ume of this Society's publications is an extract from
an address prepared by the colonists to be presented
to King Charles, in 1684, containing this passage,
referring to the period of the formation of the mint,
in 1652 "And as for the minting and stamping
pieces of silver to pass amongst ourselves for xiid.,
vid., iiid., we were necessiated thereunto, having no
* Colony Laws, p. 155.
12
staple commodity in our country to pay debts or buy
necessaries but fish and corn, which was so cumber-
some and troublesome as could not be borne; and
therefore for some yeares paper bills passed in pay-
ment of debts, which are very subject to be lost, rent,
or counterfeited, and other inconveniences." Also in
a report accepted by the Legislature is the following:
"What hath bin thought of by any for raiseing a
Banke or engaging in generall trade or relating to
monies in regard to the badnesse of it, or highnesse
or lownesse of it, with very many other matters tend-
ing to the promoting and well regulating of trades
will by this means be ripened, and things reduced to a
more comfortable state, than wee now find.”* These
bills or notes were probably not issued in large
amounts, but as a convenience in the way of trade,
and may perhaps be termed traders-notes, and were
very likely received by the government in the pay-
ment of taxes, where the parties issuing them were
known to be reliable.
1650.—In 1650, the colonists, finding that specie
still continued very scarce by reason of the vigilance
with which the English authorities prevented its ex-
portation hither, and because the European merchants
drew the little coin there was from the country, and
the trade of the province increasing, especially with the
West Indies, by which means large amounts of bul-
* Massachusetts Archives.
13
lion were brought in, they began to consider the ex-
pediency of establishing a mint.
1652. As is well known, this was done in 1652,
without authority from the home government; but no
notice was taken of it by Cromwell or Parliament, nor
was there, till some twenty years after, during the
reign of Charles II., when a commission from Eng-
land ordered the coinage to be stopped. But this
order was not complied with, and it was not till
1685 that the coinage of the Massachusetts mint
was suppressed.*
1675.-In 1675, after King Philip's war, specie
was so scarce, and the want of it so pressing, that
a mode approaching somewhat to a paper-currency
was introduced. The Legislature enact, that, "for the
prevention of the charge and trouble of transportation
of the rates to be leveyed, to the Treasurer of the
Country, as also a matter of convenience, therein ap-
pearing, It is ordered that bills for wages, horses,
provisions, &c., being regularly passed to the sayd
Treasurer, the Treasurer vpon the desire of persons
concerned, shall repasse bills to the Constables of
such Townes, where sums are due vpon the aforesaid
accounts." +
1686. - There is evidence, also, that in 1686 a
bank was formed by a gentleman of Boston, with
* The New-England shilling and sixpence, and what is known as the pine-
tree money, were coined at this mint.
† Massachusetts Records.
14
several others, some from England, who were author-
ized to commence the issuing of bills, on the security
of real and personal estate, in some respects similar
to the Land Bank of twenty-eight years later; but we
have so little record of its history, that no detailed or
definite account of it can be given. From the Massa-
chusetts Archives we find that authority was given to
certain persons to start a bank and issue bills, in these
words: "And having perused and considered a pro-
posall, made to us by John Blackwell of Boston Esqr,
on behalf of himself and divers others, his partici-
pants, as well in England as in this Countrey," liberty
is granted for the Directors, or "conservatives" of the
bank, to commence the issuing of bills, on real and
personal security, and on merchandise. The writer
of a pamphlet, entitled "A Letter from one in
Boston To his Friend in the Country in answer to
a Letter directed to John Burril Esqre 1714," says,
"Our Fathers about Twenty-eight years ago, entered
into a Partnership to circulate their Notes founded on
Land Security, stamped on Paper, as our Province
Bills, which gave no offence to the Government then,
and that at a time, when the Prerogative of the Crown
was extended further than ever has been since." From
these statements it would seem that bills were issued
in Massachusetts in 1686.
1690. In 1690, however, the first public bills of
credit were issued that were known in the American
Colonies; and then began the reign of paper-money
15
in this country, a reign not yet ended, as the finan-
cial records of the day so unpleasantly prove to us.
These bills were issued just after the return of the
troops from the disastrous expedition to Canada, un-
dertaken by Massachusetts, in connection with New
York and Connecticut.
Hutchinson says: "The government were utterly
unprepared for the return of the forces. They seem
to have presumed, not only upon success, but upon
the enemy's treasure to bear the charge of the expe-
dition." The soldiers became clamorous for their pay,
and were nearly at the point of mutiny: some means
must be adopted for paying them, and the govern-
ment decided to issue paper-money. The General
Court made a tax equal to the demand, and issued
bills of credit with which they paid the public debt,
and promised to receive the bills in discharge of the
tax. A committee was empowered to make an im-
mediate issue of seven thousand pounds, in bills from
five shillings to five pounds. The whole amount
of this emission, with the re-emissions up to 1702,
amounted to about one hundred and ten thousand
pounds, or five hundred and fifty thousand dollars;
a small amount certainly, when compared with the
circulation of the Massachusetts banks at the pre-
sent time, which is, as appears by the late report
of the Bank Commissioners, over fifty-two million
dollars.
Bills of this issue are now extremely rare: we have
16
been able to hear of but two specimens, now in exist-
ence, which seem to be genuine. A notice of one
of these we find in a late volume of the "Proceed-
ings of the Massachusetts Historical Society." This
bill was exhibited at a meeting of that Society, by its
honored President, who alludes to its rarity, and says,
"It is written with a pen, not engraved; and the seal
of the Province is very inartistically drawn. One
might almost suppose it to have been a mere draught
of the design for the notes, rather than one of the
notes themselves. But it is indented and signed and
countersigned. The signatures are evidently original;
and the bill is numbered 4980 on the face, and No.
62 on the back.”
The Historical Society had a fac-simile of this bill
prepared for their published volume, and we copy the
reading of it therefrom:
"No. (4980) 5 s
"THIS Indented bill of Five shillings due from the Massachusets
Colony to the Possesor shall be in Value equal to money & shall
be accordingly accepted by the Treasurer & receivers subordinate
to him in all publick payments and for any Stock at any time in
the Treasury Boston in New-England December the 10th 1690:
By order of y° General Court.
[Seal.]
Come over & help us.
SIGILVM: GVB: & SOC8
DE: MATTACHVSETS:
BAY IN: NOV: ANGL:"
JOHN PHILLIPS
ADAM WINTHROP Comt°* *
PENN TOWNSEND
* Appendix C.
17
""
In Drake's "History and Antiquities of Boston,'
we find a description of another bill of this issue,
which differs from the preceding in not having the
same signers, and being dated Feb. 3, 1690, instead
of Dec. 10, 1690.* It would seem, that the date
given by Mr. Drake, as on the bill described by him,
must be incorrect, from the fact that the expedition
to Canada, the failure of which caused the issue of
these bills, did not leave Boston till August, 1690,
six months after the apparent issue of the bill de-
scribed by him. This seeming discrepancy, however,
is to be explained by the fact, that, in legal documents
of that time, the year did not legally end till March
25, the closing of the legislative year; so that this bill,
although dated Feb. 3, 1690, was in fact issued in
February, 1691. Drake says of these bills, they were
struck from an engraved plate, upon pieces of paper
nearly square, about five and three-fourths inches
from top to bottom, and about five inches wide; the
colony seal in the left-hand corner.
It would seem
strange, that so large an issue as seven thousand
pounds, in bills of from five shillings to five pounds,
should have been written by hand; the manual labor
necessary to have prepared them must have been very
great, besides the time it must have taken; and the
unavoidable difference in the looks of the bills, when
*The signers, as given by Drake, were Elisha Hutchinson, John Wally,
and Tim. Thornton.
3
18
prepared by different persons, as they would neces-
sarily have to be, would be strong evidence that some
other method was pursued. Drake speaks of the bill,
which he describes, as being before him, and says it
is from an engraved plate. It is almost impossible
to decide which is the correct statement, without a
careful examination of the bills. The number of
these bills that were collected by the treasurer, and
burned, would naturally cause them to be exceedingly
rare; only such being saved as might have been acci-
dentally laid aside till after the time of redemption
had passed, or perhaps kept as a curiosity by some
zealous antiquary. Hutchinson speaks of seeing, in
1749, a five-shilling bill, of the issue of 1690, in a
manner which would indicate that even then they
were not often seen. The bill exhibited to the His-
torical Society, however, bears such evident marks
of being genuine, that we are led to suppose it was
one of the first issued, and, in the anxiety of the gov-
ernment to pay off the troops at once, the bills were
written, and not engraved. The art of engraving
also was not practised to any extent in this country
at that time, and it would have been difficult to have
got the plates engraved in England in time to meet
the exigency of the occasion. It is well known, that,
in later years, plates for bills of credit were made in
England.
These bills of 1690 were secured in a measure by
19
a tax, and were receivable for treasury dues, but were
not then "in value equal to money," as stated on their
face; for they would not buy goods at money rates
or prices. Many of the soldiers lost heavily on them,
and could not get more than twelve or fourteen shil-
lings a pound for them. As the time for payment of
taxes came near, they increased in value; and in 1692
it was ordered by the Court, "that all bills of publik
creditt, issued forth by order of ye Generall Court of
ye late Colony of ye Massachusetts Bay, shall pass cur-
rent within this Province in all payments equivalent
to money, and in all publick payments at 5 per cent.
advance. And for encouragement to such persons as
are possessors of said Bills, to lend them for y° service
of yº publick, it is further enacted that they shall be
secured by yº publick Taxes and other Revenues, and
shall be reimburst in money within twelve months.” *
After this, owing to the five per cent bonus, they
became worth more than hard money when the time
for the payment of the taxes arrived, and for twenty
years or more they did not depreciate much below
silver. This first emission of legal-tender bills in this
country was finally drawn in, without any bad influ-
ence upon the whole currency. It was a short time
previous to the passage of this Act that Sir William
Phipps was said to have come forward, and exchanged
* Appendix D.
20
his own coin for a large amount of this paper-cur-
rency at par, in order, if possible, to restore confidence
to the public.
1691. In 1691, it was ordered that the bills out
and to be emitted shall not exceed forty thousand
pounds. Of this sum ten thousand pounds was
drawn in and burnt in October, 1691. In the follow-
ing years no more new emissions but remissions of the
remainder, and, only for the charges of government,
called in by rates or taxes within the year: the last
re-emission of these bills was nine thousand pounds,
in 1701. Bills of this period continued at the rate
of six shillings a heavy piece of eight, and were
called Old-Charter bills, because they were issued
before the second Charter of William and Mary.
1702. In 1702, the first year of Queen Anne's
reign, there was another emission of ten thousand
pounds; and, during the war of Queen Anne, the gov-
ernment issued bills annually, to be cancelled by the
taxes of the same and the following year, until 1704.*
A rare pamphlet upon the subject of paper-money,
says of the issue of these bills, "Which not being
very considerable, and the bills having a preference
in the Treasury to silver, kept up their credit until
about the year 1711, when such large sums were
issued that silver began to be hoarded by some, and
* Appendix E.
21
J
exported by others in large quantities, and the bills
became the only means and instrument by which
private trade and dealing were regulated and man-
aged. And to confine the currency of the bills, and
effectually to banish silver and gold, the Massachu-
setts Province, in the year 1712, made their bills a
tender in the discharge of all debts, unless there ap-
peared a special agreement or contract otherwise.” *
1704.- In 1704, as well as in times past, the Col-
onists were much troubled by the counterfeiting of
the bills of credit; and the General Court, from time
to time, enacted laws in relation to it. We find the
following enactment, in the records of the Court for
this year:
"Some ill disposed and wicked Persons, designing
the hurt of this Province, and of Her Majesties good
Subjects within the same and for base lucre and gain
to themselves, have forged and uttered several Coun-
terfeit Bills, in imitation of the Twenty Shilling Bills
of Credit on this Province, thereby Imposing a Vile
Cheat and Cousenage on some less discerning and
unwary Persons," it was enacted that such persons
upon being convicted were to be punished, "in such
manner as is by law provided against Forgery, and
be branded in the right cheek with a hot Iron with
the Letter F." They were also to pay double dam-
*"A Brief Account of the Rise, Progress, and Present State of the
Paper Currency of New England." Boston, 1749.
22
ages to the person known to be defrauded by such
false bills. Some such enactment might not be out
of place at the present day, defrauded and imposed
upon as the public now are by the counterfeiting of
the paper-currency.
In 1714, counterfeiting had increased to such an
extent, that it was enacted by the Court, "that every
person convicted of falsifying, Forging, or Counter-
feiting any of the Bills of Credit on this Province,
should be deemed and adjudged a Felon, and suffer
the pains of Death as in case of Felony; any Law,
Usage or Custom to the Contrary notwithstanding."
It also became necessary to make similar regula-
tions to those imposed by the Treasury Department
at the present day in relation to the torn and defaced.
currency in circulation. The treasurer of the Col-
ony was not allowed to receive any torn bills, unless
the possessor made oath that they were torn or de-
faced while in his hands.
1713. Among the bills of credit in the posses-
sion of the Society, we find one which appears to
have been authorized by the General Court, in Octo-
ber, 1713; but we have not been able to find any
record of the enactment in the volumes of the Co-
lonial Laws in our library. This bill is signed by
A. Winthrop, A. Davenport, Wm. Payne, and Saml.
Checkley. From the dates on the margin, it must
have been printed from a plate prepared for re-emis-

N°
EIGHTEEN PENCE (24
THIS BILL OF ONE SHILLING
and Six pence Indentd, due from the Province
of the Mallachvfets Pay in New England to y Pollellor
thereof fhall be in Valve equal to Money And fhall be accor-
dingly accepted by the Treafurer and Receivers fubordinate
to him in all Publick payments: and for any Stock at
any time in the Treafury. Bolton October the
fourteenth 1713 By Order of the Great and
General Court or Affembly.
LIOS
NOHIC
OVI
MAL
Y
PENSE
Winthrop
Davenport
ym
you Payne
Band Chockley
2721
tee
Com
1723.
17 25
1727
1761
Specimen of a Massachusetts Bill issued under the Act of 1713. Photographed from an
original bill in possession of the American Antiquarian Society.
23
sion, it being customary to engrave upon the plate
the year of each re-emission. On this bill are nine
dates, besides the date of 1713 in the body of it: the
last date is 1731, at which time this bill was probably
issued.*
1
1714. In 1714, there was a cry of great scarcity
of money, and the public mind was harassed to
devise some remedy for the evils under which the
Colony was laboring. Of course there was a great
diversity of opinion: some were in favor of abolish-
ing paper entirely, and having specie only as a circu-
lating medium; others wanted a private bank based
on real estate; and a third party approved a system
of loaning by the Province to the people, on interest.
Controversies arose on these opinions, and spread
their influence through towns and families. Pamph-
lets and letters (several of which are in our library †)
were published by one party, reflecting upon the
judgment and motives of another, who advocated a
different plan. The whole colony was agitated to dis-
cover some remedy for the difficulties that the trading
community labored under. The first party, which
was for depending upon specie entirely and abolish-
ing paper, and of which Mr. Hutchinson was one,
was very small. The second, from a project pub-
* Appendix F.
† See list of books and pamphlets in Appendix.
24
lished in 1684, in London, had taken up the scheme
of a private bank, based upon real estate to a suffi-
cient amount, as security. The London scheme not
being generally known, a Boston merchant received
the authorship of it. This scheme by its opponents
was stigmatized in various pamphlets as "South Sea
Buble," "Pandora's Box," and as an infringement of
the royal prerogative, and covering a design for abso-
lute power. But in a "Vindication" published in
1714, the writer says, the gentlemen interested, "after
several meetings, agreed upon a Land Security as a
Fund for Bills and Notes to be Circulated, and min-
utes were then drawn up, for the Regulating and
carrying on that Affair, but all with an intire depend-
ance upon the Government for their Favour and
Countenance in promoting it, and furnishing them
with all necessary Powers as might enable them to
carry it on with safety to themselves, and the Pos--
sessors of their Bills or Notes." Some members of
the Government apparently approved of the plan, so
they proceeded "to mutually covenant, consent, and
agree as follows:
"1. That the subscriptions shall be taken to a value not ex-
ceeding £300,000, and that every subscriber shall settle and
make over a Real Estate, to the value of his Respective Sub-
scription, to the Trustees of the Partnership or Bank, to be and
remain as a Fund or Security for such Bills as shall be Emitted
therefrom; which Emission shall not exceed the Subscription,
and will make good all deficiencies that shall arise from any
Neglect Default. or Mismanagement of any of the Officers or
Members of this Partnership or Bank.
25
"2. That no Person shall Subscribe above Four Thousand
Pounds, nor under Two Hundred and Fifty Pounds; and each
Subscriber shall take out and keep for two years at least, one
quarter part of his Subscription, and not exceed one half part
by virtue of his first Mortgage, paying interest therefor, acord-
ing to the Rules of this Partnership.
"3. That we will from time to time, and at all times for ever
hereafter give Credit to the Bills Emitted from this Fund or
Bank, equal to what is given to the Bills of Credit on the Province
of the Massacusetts Bay, and to accept the said Bills in all Pay-
ments, (Specialties and Obligations for any other Specie ex-
cepted) upon Forfeiture of Fifty Pounds for each refusal, until
the Refuser has forfeited his whole Security and Profits; and
every such Person having so forfeited, shall no longer be ac-
counted a Member of this Partnership, but be deemed ipso facto
dismist, and Lose his Interest therein."
Another section authorized the emitting of bills of
credit upon good security, at certain rates and values,
"On Wooden Houses without Farms, not exceeding
the Value of the Lands belonging to them." Also on
brick houses, "on Gold not exceeding Five Pounds
Ten Shillings per Ounce;" and on silver, iron, and
other imperishable articles, at fixed rates, according
to the market.
Section 19 provided that, "when there shall be
Emitted and Continued at Interest One Hundred and
Fifty Thousand Pounds," certain sums should be given
out of the net profits, "to the use of an Hospital or
Charity School, for the Support and Education of
the poor Children in the Town of Boston," also to
Harvard College for specified purposes, &c., &c.*
* Appendix G.
4
26
t
They chose as their motto, "Crescit Eundo." The
form of their bills was to be as follows:
"This Indented Bill of Credit, obliges us, and every of us,
and all, and every of our Partners of the Bank of Credit of
Boston in New England, to accept the same in lieu of Twenty
Shillings, in all Payments, according to our Articles of Agree-
ment;
and that it shall be so accepted by our Receiver or
Treasurer, for the Redemption of any Pawn or Mortgage in
the said Bank.
"Boston, November First, One Thousand Seven Hundred and
Fourteen."
The voice of the people was loud and vehement
for more money; and the government, fearing the
success of the "Land Bank," as it was called, issued
an order, which the projectors construed as an en-
couragement to proceed and perfect their scheme and
subscriptions, for the inspection of the Council. But,
while they were thus promoting their interests, the
party for a public bank prevailed, and gained a loan
of fifty thousand pounds in bills of credit, which were
put into the hands of trustees, and lent for five years
to any of the inhabitants, at five per cent interest.*
This effectually defeated the "Land-Bank" project for
the time being, but it was not fully conquered. They
did not, however, as far as can be ascertained, ever
issue any of their bills: for, of course, after the estab-
lishment of the public bank, they could not get the
sanction of government; and so, necessarily, complied
with the order of the Court, and never emitted any
* Appendix H.
1
27
bills, or presented their scheme. Attorney-General
Dudley had strenuously opposed this scheme for a
"Land Bank," thereby receiving great opposition
from those interested in its success; and he prepared a
pamphlet on the subject, which was published anony-
mously.* This called out the "Vindication" before
alluded to.
From this time (1714) onward, the country was for
many years divided on the question of a public or pri-
vate bank. The mercantile part of the community
were still discontented with the inadequacy of the gov-
ernment loan; and a petition from some eighty Bos-
ton gentlemen was sent in for a more extended issue,
or larger medium of trade. After Governor Dudley's
removal, in 1715, and Mr. Shute's arrival, the latter
advised, in his first speech, that an attempt should
be made to revive the low state of trade. The House
took this as an intimation that he would sanction
another Treasury loan. Accordingly, December 4,
1716, another loan of a hundred thousand pounds
was issued, which was secured by mortgaged estates,
of double the value of the sum borrowed, for ten
years, at five per cent annually. The profits were
to pay expenses of the government, and bills were
to be returned and burnt at the expiration of the
time fixed. The result of this emission was to
depreciate the currency still more.
Some of this
* Objections to the Bank of Credit lately projected at Boston, &c.
28
loan was still outstanding in 1739. A writer of
the times, in a "Word of Comfort,"* says in answer
to the question, "How shall we keep up the value
of our bills of public credit?" "Gentlemen! you
must do by your Bills, as all Wise Men do by their
Wives; make the best of them. It is an acknow-
ledged Theorem, that there is no doing without
Wives. The Lonesome and sower Philosopher would
frankly confess, that Women, were necessary Evils:
For without their Assistance the whole Humane
Race must vanish. The great skill is to cultivate
the necessity and make it a Happiness; for that
end, Wise Men Love their Wives; and what ill-
conveniences they find in them they bury; and what
Virtues they are inrich❜t with they Admire and Mag-
nifie. And thus you must do by your Bills for there
is no doing without them; if you Divorce or Dis-
seize your selves of them you are undone.”
1721. — In 1721, the Colony of Massachusetts Bay
emitted fifty thousand pounds more of bills of credit;
and from that time the charges made by the Indian
war required large emissions, and silver rose, till, in
1726, emissions were no larger than the cancellings.
1722. This flood of paper-money seemed to di-
minish the amount of small coin, as well as large, in
the Colony; and, to supply this deficiency, in 1722
*"A Word of Comfort to a Melancholy Country, or the Bank of Credit
erected in the Massachusetts Bay &c."
„
ž Ě ě ž ž ž ž žŁEŁ

1 d.
Mallachusetts.
X X X X X X X X **?
June. 1722

Ө
2 d.
TD Pence.
Province of
the Massachu
Tetts. June 1722.
Fac-simile of the One and Two-penny Bills issued by the Colcny of Massachusetts
Bay, in 1722, from the originals on parchment in the possession of the American
Antiquarian Society.
29
five hundred pounds' worth of small bills, or, as we
now call it, fractional currency, were ordered. Among
the earliest specimens of paper-money in the posses-
sion of this Society are two bills of this issue: they
are of the denomination of one and two pennies, and
are exceedingly rare. We have been able, after
much inquiry of collectors and others, to hear of but
one other genuine bill of this issue, which is said to be
in the possession of a gentleman of Salem. The bills
were printed on parchment, and each denomination
was different in form; the one-penny being round, the
two-penny nearly square, and the three-penny piece
sexangular. As has been stated, this emission was
for only five hundred pounds; consequently the issue
was soon drawn in, or so badly torn and disfigured as
to become, like some of the currency of the present
day, wholly unrecognizable as money. The act issu-
ing these bills was as follows:-
“An Act for Emitting Five Hundred Pounds in fmall Bills of
ſeveral Denominations, to be exchanged for larger Bills by the
Province Treaſurer.
"Whereas great Inconveniences and Difficulties have ariſen to
the Affairs of Trade of this Province for want of fmall money
for change:
"For remedy whereof Be it enacted by His Excellency the
Governour, Council and Reprefentatives in General Court af-
fembled, and by the Authority of the Same, That there be forth-
with Imprinted on Parchment the fum of Five Hundred Pound in
Pennies, Two Pences and Three Pences of the following Figure.
and Infcriptions: viz. Forty Thouſand and One Pennies, to be
Round, Twenty Thouſand Two Pences, Four Square, Thirteen
Thouſand Three Hundred and Thirty, three pences fex-angular.
30

1 d.

One Penny
Massachusetts
June, 1722
→
2 d
TWO Pence
Province of
the Massachu=
setts, June, 1722

1
~ 3D
THREE
PENCE
Province of the
Massachusetts Bay
June 1722
"And that the Committee already appointed by the Court for
that purpoſe are hereby Directed and Impowered to take Effectual
Care for the making and Imprinting faid Bills; and that the faid
bills be delivered to the Treaſurer of the Province by him to be
exchanged for other Bills of this Province, to such perfons as
come for the fame; but not lefs than Twenty Shillings at any one
time; and that the Bills be accepted by the Treaſurer and Re-
ceivers fubordinate to him in all Publick Payments, as other the
Bills of this Province are, and that Five Hundred Pounds in Bills
Exchanged by the Treaſurer for thefe Bills, fhall be burnt to
afhes by a Committee to be appointed for that purpose."
1728. In March, 1728, the paper-money of Mas-
sachusetts in circulation amounted to three hundred
and fourteen thousand pounds, in addition to the bills
of Rhode Island, Connecticut, and New Hampshire,
31
then in circulation in the colony.
Large amounts
of the currency from these colonies was in circula-
tion in Massachusetts, and strong efforts were made
by the Boston merchants to prevent its circulation.
Silver went up from nineteen shillings to twenty-
seven shillings the ounce, and continued about the
same rate for several years.
1730. In 1730, when the pecuniary state of the
Province was in this condition, Jonathan Belcher suc-
ceeded to the chief magistracy. Of him, the Court of
St. James had great hope that he would be able to
subdue the refractory spirit of Massachusetts, and
make a speedy close to the issuing of paper-money:
so he came with authority to effect this in ten years.
The injunctions of His Majesty restricted the issues of
Treasury notes to be limited to cancelling government
charges, and not more than thirty thousand pounds to
be in circulation at the same time.
1733.. In 1733, the merchants and others of Bos-
ton, finding the Treasury curtailed, attempted to
supply the deficiency, by engaging in a project for
issuing paper to the value of one hundred and ten
thousand pounds. These bills were to be redeemable
in two years, with silver at the common rate of Pro-
vince paper, which was, at this time, nineteen shil-
lings an ounce. These merchants' notes circulated,
and were even considered better than the Province
Bills, owing to the provision making them redeem-
able in silver.
32
It is not our purpose, nor would it be possible
within the limits of this Report, to speak in detail
of all the emissions of bills by the Massachusetts
Colony, but only to allude as briefly as possible to
such issues as we may have specimens of in our col-
lection, and to any important epoch in the history of
the paper-money of the Colony.
1737. In the collection of this Society is a poor
and very imperfect specimen of a bill of three shil-
lings, issued in 1737. It is one of the emission of
eighteen thousand pounds, authorized by the Gen-
eral Court to be recalled in one year; and a sinking
fund was made for this amount, the people being
allowed to pay their taxes in hemp and flax, at
certain rates, or in hard or paper money, as they
desired. In the same year, nine thousand pounds
were issued, redeemable in five years, and these bills
were called new tenor; the others, old tenor. This
last issue was not receivable in payment of the duties
of "Impost and Tunnage of shipping;" they being
payable in hard money, as in the present day. In
many particulars, the legal-tender notes of this day
are not unlike these bills of credit of a hundred and
twenty-nine years ago: our greenbacks, although a
legal tender, are not receivable for duties on import-
ations.
In July of 1737, an act was passed by the General
Court, authorizing the issue of two thousand six hun-
dred and twenty-five pounds in small bills of several

Four
Pence
ONE PENNY
Due from the Province of the
MASSACHUSETTS-BAY,
in Silver Money at Six Shillings
and Eight Pence per Ounce,
according to Law. 1737.
Four
Pence
Due from the Province of the
Maffachuſetts-Bay,
in Silver Money at Six Shillings
and Eight Pence per Ounce,
according to LAW. 1737-
TWO PENCE?
Due from the Province of the
Maffachusetts-Bay,
in Silver Money at Six Shillings
and Eight Pence per Ounce,
according to LAW
1737-
GFIVE
FIVE PENCE
Due fromthe Province of the
Maffachusetts-Bay,
inSilver Money at Six Shilling
and Eight Pence per Ounce
according to LAW. 1737
Three Pence
Due from the Province of the
MASSACHUSETTS-BAY,
inSilver Money at 6s.and Sd.
Der Oz according to Law.
1757
る
​6
PENCE
6
PENCE
SIX
Due from the Province of the
Ballachusetts-Bay.
in Silver Money at 6s. and Sd.
per Ounce, according to Law. 1737
the Trea
Specimen of the small bills issued by Massachusetts in 1737. Photographed from book of Colonial Laws.
33
denominations, to be exchanged for larger bills by the
Province Treasury. These bills were to be of the
denomination of one penny, twopence, threepence,
fourpence, fivepence, and sixpence. In the publica-
tion of the acts of the General Court for 1737 are
illustrations representing the form of these small bills.
There are probably none of them in existence now. *
1739. — In 1739, there was a general dread of the
drawing-in of all the paper-money, without any substi-
tute for it; for it was known that most of the coin had
been driven out of the country by the bad management
of the currency. Thomas Hutchinson, at that time a
prominent member of the General Court, then laid
a scheme before the government for borrowing from
England, upon interest, a sum in silver equal to all
the bills then extant, of which there were two hun-
dred and ten thousand pounds in circulation, forty
thousand pounds on loan, and the remainder to be
brought into the Treasury in 1742; therewith to re-
deem them from the possessors, and thus furnish a
currency for the country: the silver was to be paid at
distant periods. But his scheme was rejected, and
private persons resolved to interpose, as royal instruc-
tions were no bar to the proceedings of private indi-
viduals; so far had the colony, in spirit, established its
independence. Thus it was that the Land-Bank, or
Manufactory Scheme of 1714, came to be revived, and
produced such great and lasting mischief. The pro-
* Appendix I.
5
34
?
jector of that bank now put himself at the head of
seven or eight hundred persons, says Hutchinson
(Felt says three hundred and ninety-five), “some, men
of mark and good estate, but generally of small
means; and some were insolvent." This company
were to lend one hundred and fifty thousand pounds,
lawful money, on land security, and payable in twenty
years by merchandise or produce.
The Directors and a Treasurer were chosen by the
Company, and each partner was to pay three
per cent
of the sum taken out, and five per cent of the principal;
and he who did not pay bills might pay in produce
and manufactures at the rate determined from time to
time by the Directors. The fate of the project was
thought to depend upon its reception by the General
Court; therefore they wanted the Representatives well
disposed. The needy part of the Province favored
the scheme, and they were most numerous: so it
appeared that the majority of Representatives for the
year 1740 were subscribers, or favorers of the scheme;
and the popular branch of the General Court for that
year has since been called the "Land-Bank House."
Men of property and the principal merchants violent-
ly opposed this scheme, and would not receive its
bills; but large numbers of the shopkeepers took
them. Another scheme to lessen the temptation to
take Land-Bank bills was that of Edward Hutchin-
son and one hundred and six partners, for one hun-
dred and twenty thousand pounds to be redeemed in
35
1
fifteen years, with silver at twenty shillings per ounce,
and gold pro rata; much like the scheme of 1733.
The bills were called "merchants' notes; " and this
scheme was promoted to put down the other, though
it also was considered inexpedient, but, being on a
specie basis, was less objectionable than the Land or
Manufactory Bank. Governor Belcher was greatly
opposed to the Land Bank, and exerted himself to the
utmost to defeat this fraudulent enterprise, but was
wholly unable to do it; the majority of the inhabitants
of the Province being in favor of it. At length, appli-
cation was made to Parliament for an act to suppress
it, which was very readily obtained: so the Company
was dissolved, but the act gave the possessors of the
bills a right of action against any Director for the sum
expressed, with interest. The Company were amazed,
but met for some action to endeavor to redeem their
notes. Many of the bills had not been issued for the
value expressed, and many possessors had acquired
them for half their value; so justice could not be done
to all. For the Company it was considered a just
judgment for their unwarrantable proceedings. It
was thus that many wealthy families were reduced to
poverty, and but few escaped unharmed. If Parlia-
ment had not interposed, there would have been great
confusion in the Province in this matter, and govern-
mental authority would have been in the Land-Bank
Company. The Legislature put the concerns of the
bank into the hands of commissioners to be brought
36
to a close; but nearly thirty years elapsed before that
was fully accomplished, and many of the commission-
ers did not live to complete the service.
It was of this bank that Samuel Adams, Esq.,
father of the patriot, was a Director; and after his
death, in 1747, his estate, then in the possession of
his son, was advertised by the sheriff of Suffolk
County to be sold at auction to pay a claim against the
Land Bank.* The future Governor did not, however,
give up the property; having, as Hutchinson says,
threatened the officer if he undertook to make the
sale, and also intimidated any person who was desi-
rous of purchasing. There is evidence, however, that
means were taken by the friends of Mr. Adams to
pay the claim, and that a subscription was started for
that purpose, signed by John Hancock, James Pitts,
Joseph Warren, and others, by which the sum of one
thousand pounds, and over, was raised to pay the
claim, so that no threats were necessary on the part
of Mr. Adams to enable him to retain his property. †
From "The Life and Public Services of Samuel
Adams," by William V. Wells, we take the following
in relation to the Land Bank: "Memorials of their
transactions, found in the public records, show that
the bank was in successful operation in October and
November, 1741, -when Samuel Adams, Esq., and
others of the Directors, appear as the grantors of a
* Appendix J.
† Ilistorical and Genealogical Register.

A
Matthew A. Stickney
JH BUFFORD'S LITH, 190 WASHINGTON ST.BOSTON.
37
certain parcel of land, for the sum of forty pounds, to
Eliphlet Pond, yeoman; and, subsequently, Messrs.
Robert Auchmuty, Samuel Adams, and others ac-
knowledge the receipt of twenty pounds, in bills
called Manufactory Bills,' from one Kingman, which
releases him from the mortgage to that amount on his
estate, and the interest, two pound nine shillings and
threepence, paid."
Mr. M. W. Stickney, of Salem, has in his posses-
sion one of these mortgage-deeds, given by John
Spofford, of Rowley, on his farm, for the sum of one
hundred pounds in "Bills of Credit called Manufac-
tory Bills;" also the release of the Directors of the
Company, signed by George Leonard, Samuel Adams,
Thomas Cheever, John Choate, and Robert Hale,
bearing date April 22, 1742. These records of the
Land-Bank Company give us some idea of the nature
of their operations.
When Governor Belcher, in endeavoring to sup-
press the Land Bank, issued a proclamation that
all commissioned officers who had encouraged this
scheme should be dismissed from office, Samuel
Adams (senior) and John Choate sent a communication
to the Governor, stating that, as holding a commission
under his Excellency was inconsistent with prosecut-
ing the manufactory scheme, they do now, " with
your Excellency's leave, resign these trusts." Robert
Hale, of Beverly, another of the Directors, also re-
signed his commission; and William Stoddard and
38
William Watts, of Boston, had their commissions as
justices nullified by the General Court, for favoring
such an association. Among the letters of those who
fell under the Governor's displeasure was one from
Henry Lee, of Worcester, in which he declares him-
self an approver of the manufactory scheme, and
says, "I am determined to do what I can to encour-
age it, and think the privilege of an Englishman is
my sufficient warrant. To sacrifice my post for the
service of my country is infinitely more honorable
than to keep it on such base conditions."*
Here we
have an early spark of the revolutionary spirit.
1740. — In 1740, another sum of one hundred and
twenty thousand pounds was emitted on a silver basis,
to overwhelm the Land Bank. The sponsors for this
amount were eminent, wealthy merchants.
The bills of the Land Bank were to be paid in
twenty years in goods at an arbitrary price.
It would have been a light burden to the inhabi-
tants to have paid the charges upon every year, and
the debt for that year besides; but, instead, the gov-
ernment let year after year pass with light taxes,
and heavily burdened more distant years. Thus,
1741, the last year, came to have a heavy weight of
debt upon it; and, though it was far short of what
had been paid the four or five preceding years, it was
* Henry Lee was one of the early settlers of Worcester, Mass., to whom
were assigned thirty acres of land; and who complied with the order of the
Court, to erect a house thereon.
39
deemed an insupportable burden.
It was thought
that the government order for calling in the bills that
year would be openly violated in some way; any such
explosion or rebellion was prevented, by Governor
Belcher being superseded before the period arrived.
Governor Belcher was misrepresented, by those
who favored the Land Bank, to the Royal Council;
and he was dismissed from his office.
1741.- William Shirley was in July, 1741, ap-
pointed his successor to take up his work. He did
not insist on withdrawing the Province notes as soon
as his predecessor did, but wished a committee of
the court to meet at Milton to examine the state of
the Land Bank. They found that about forty-nine
thousand pounds of its notes had been struck off and
endorsed; the Treasurer had issued the amount of
thirty-five thousand pounds; and the Directors were
using four thousand pounds in trade. After this the
transactions of the Company were greatly restricted.*
1742.- The Equity Bill was enacted in January,
1742, which required "that, after the first of Feb-
ruary next, all coined silver of sterling alloy shall
pass as lawful, at 6s. 8d. the ounce, troy weight; and
other money in the same proportion." It provided
that debts contracted within five years should be pay-
able in bills of credit at the above rate or proportion,
unless by special agreement otherwise; and, if they
depreciated, allowance to be made accordingly. In
* Appendix K.
40
March of the same year, a committee for settling the
affairs of the Land Bank issued a call to its stock-
holders to settle the demands upon them; and, in
April, the Governor published an Act of Parliament,
which laid an interdict on all stock companies with-
out charters. This led to a resolve, that, "whereas it
is expedient and necessary for the peace and quiet of
His Majesty's subjects in this Province, that all the
notes of the silver and manufactory schemes should
be drawn in and consumed, as soon as may be." A
committee was appointed to investigate and report to
that end. This committee report, that the "Silver-
Scheme" association had emitted one hundred and
twenty thousand pounds in notes, of which sixty-nine
thousand three hundred and sixty-one pounds, twelve
shillings, and sixpence, had been recalled, leaving still
in circulation fifty thousand six hundred and thirty-
eight pounds, seven shillings, and sixpence.
While the public mind was so much occupied with
these banking institutions, the last issue of Province
bills did not help the community so much as was
desired. These notes, being payable in specie, were
hoarded up, and others for produce and manufactures
put forward; so that at last there were not enough of
the Province notes to pay the taxes, and the currency
of the adjoining colonies became the common one.
Large amounts of bills from the colonies of Rhode
Island and Connecticut were in circulation, so that
the Massachusetts Colony was flooded with paper-

THE BANK BILL
Two Shillings. (
WE JOINTLYnd SEVERALLY,
for our SMS and partners,
promife
to take this Bill as 100 Shillings, can ful
Silver Money, at Six Shillings, and Eight Pence
Ounce, in all Payments Trade and Business, &
for Stock in our Treasury at any Time, s
to pay the same at that timate on Demand, to
N James Eveleth or Order, in the Produce
Manufactures enumerated in our Scheme; as
recorded in the County of Essex's Records, for Value
Dated at Ipfwich, the First Day of may
1741
2
3 T
Specimen of a Manufactory Bank Bill of 1741. Photographed from an
original bill in possession of American Antiquarian Society.
41
•
money. A law against receiving the bills of adjacent
colonies, unless they were redeemable in specie, was
passed in 1739; but at this time, 1744, they were still
received by many of the traders, and another bill was
passed to prevent their circulation.
1745. In 1745, the pressure on the Treasury was
so great, that the government adopted the doubtful
plan of a lottery, and tried to raise seven thousand
five hundred pounds in this way, to meet the demands
of the French war. One of the conditions of this
concern was, "that whoever adventures thirty shil-
lings in it may pay this sum, one-fifth in the new
tenor, or in old-tenor bills at four for one; and the
other four-fifths, in the same paper, or in any of New
England, not prohibited."
1748. In January, 1748, Mr. Kilby, our agent in
London, wrote, that then there were many schemes
before Parliament for having the colonial notes re-
deemed or recalled; and the Governor in his speech
earnestly recommended to the Assembly, that they find
some other way to supply the Treasury than by mak-
ing new emissions of paper-money. In accordance
with this advice, Thomas Hutchinson proposed, that
the public notes be redeemed by the specie to be
received from the Royal Exchequer, for the charges
incurred in the capture of Louisburg. This proposi-
tion was coldly received at first; but, finally, gladly
accepted, for the General Court were wearied by the
Treasury-system of loans.
6
42
The other New-England colonies were consulted on
the subject of redeeming the paper-currency; but
they did not favor having a hard currency: the weight
of depreciation in their notes had not fallen so heavi
ly upon them as upon the Massachusetts Colony.
Massachusetts persevered in her plan, however, and
made a law for the redemption of all Province bills,
requiring them to be exchanged at the Treasury
before March 31, 1750, at certain rates which the law
proceeds to fix; and a penalty was affixed for taking
paper bills of the other colonies. Such a law was
frequently renewed as a preventive until the Revolu-
tion.
1749. In September, 1749, the "Evening Post,"
of Boston, announces the arrival of the specie paid
by the Crown, in care of Mr. Bollan, our agent in
London. This money consisted of six hundred and
fifty-three thousand ounces of silver, and ten tons of
copper: and there is good reason to believe it was the
largest amount of specie ever in Massachusetts before,
at one time; thus it received the name of the "hard-
money colony.”*
1750.—In January, 1750, it was proposed, that
three thousand pounds of small bills should be
printed of one penny, twopence, threepence, four-
pence halfpenny, sixpence, ninepence, and eighteen-
pence, to prevent farthings and coined silver and gold
*Felt's Mass. Currency.
43
from passing at a proportionally higher rate than a
milled dollar at six shillings. This was accepted.
1751.-In June, 1751, the Commissioners, ap-
pointed to redeem the public notes with specie, closed
their labors, having redeemed £1,792,236, at the
rate of one in specie to ten in paper. This was
nearly all that was out, though, for years, parcels
of them were found in old desks, the bottoms of
leather chairs, and other private places, and brought
in with a petition that they might be redeemed. The
large number of these bills redeemed explains the
great rarity of the colonial paper-money at the pres-
ent day, and the reason we have so few specimens
in our collection. A medium of exchange was still
wanted, and Mr. Phips consented to issue Treasury
notes, for money borrowed for the Province on inter-
est; and, though it was not legal tender, it passed in
special agreements, and was emitted till the Revolu-
tion, when it was renewed under a different adminis-
tration.
1759. In 1759, the Land-Bank question again
came before the Legislature; and it was stated, that,
nothwithstanding several laws had been passed to
close it up, yet the affairs were still unsettled. Sev-
eral of the partners had died, others had left the
Province; and their bills were still out and unre-
deemed to the amount of nearly one thousand pounds.
It was then voted, that the Commissioners, to pay
their claims, assess three thousand pounds on any of
44
the responsible partners, and, if they decline to pay
the claims with interest in thirty days, to issue execu-
tions against them.
1760. In 1760, the stockholders of the Land
Bank petitioned for authority to start a lottery, to
raise funds to meet the demands against them; and,
there being much sympathy with them, the request
was granted. Among the signers of this petition were
Samuel Adams, William Stoddard, and Robert Auch-
muty. This scheme was not very successful: only
about six hundred pounds, out of the three thousand
pounds wanted, was raised by it. Felt states, that
66
one great means of prolonging the settlement of
this association's affairs was the loss of most of their
records, with those of the Legislature, in 1747."
1767. In 1767, the unfortunate Land-Bank ques-
tion again made its appearance in the Legislature, and
the Commissioners reported on their efforts to close
up its affairs. What the final action on the matter
was, we are unable to state, as the records of the
General Court on the subject do not definitely record
it. Probably the last claims - which in 1768, for
principal and interest, amounted to about fifteen hun-
dred pounds - were settled in some way by the
Directors or their heirs. As will be seen by the
statements already made, this scheme occasioned a
bitter strife in politics, caused much legislation and
prosecution, and was a source of great anxiety and
loss to all connected, or directly concerned in it.

AMERICA
SOIT
QVI
MAL
INOHO
FORENS
SHILLING PENC
45
It is to be regretted that this Society have no speci-
mens of the Land-Bank bills, and that there are
probably but a few now in existence. It is to be
hoped, however, that some antiquary who possesses
them may see this statement, and be pleased to
furnish our collection with a specimen of the bills
issued by this company.
1772.—In 1772, paper-money of New York, New
Jersey, and Nova Scotia, besides that of the other
New-England colonies, was still in circulation in
Massachusetts; and stringent laws were made to pre-
vent its passing.
1774. — In 1774, the differences between Parlia-
ment and this colony had risen to so high a pitch as
to indicate a speedy appeal to arms; but the finances
were in an unusually good condition. Governor
Hutchinson notices this fact, and says, "There never
has been a time since the first settlement of the Coun-
try, when the Treasury has been in so good a state as
it now is."
1775. In May, 1775, when the condition of
affairs was still more exciting, and hostilities had
already commenced between the colonies and the ad-
herents to the crown, it was ordered by the Commit-
tee of Safety appointed by the Provincial Congress,
in consideration of the friendship displayed by our
brethren of the colonies of Connecticut and Rhode
Island in this time of public distress, in which all are
so deeply interested, that their paper-currencies, which
46
1
of late have been interdicted, be paid and received in
the same proportion to silver as the same are paid
and received within their respective colonies. And
now began another issue of paper-money by Massa-
chusetts, nearly like that issued years before, and also
occasioned by war. Though this issue was under a
very different authority, the expression of the bills
was retained, lest the Royal Government might possi-
bly withdraw from its purposes of compulsion.
An issue of bills, called soldiers' notes, was made
at this time, not to exceed twenty-six thousand
pounds, in various denominations from six to twenty
shillings, which were made a legal tender, and were
to be received for all payments due the Treasury. *
The Revolutionary authorities became aware that
it would be necessary to raise large sums of money;
and that, as there was a great uncertainty as to the
result of the contest, the people would be backward
in subscribing to a loan. Accordingly, the Provincial
Congress made a stirring appeal to the people to
come forward, and take up the loan, and thus sustain
them in their efforts to maintain their rights. They
say in their address to the people, "If you should fur-
nish the money that is now needed, you will perform
a meritorious service for your country, and prove
yourselves sincerely attached to its interests; but, if
an undue caution should prevent your doing this
* For description of the soldiers' notes, see Felt's "Mass. Currency."
47
essential service to the colony, the total loss both of
your liberties and that very property
by retaining it, affect to serve —
happy consequences.
19
which you,
may be the un-
The amount called for was one hundred thousand
pounds, which was promptly taken up by our patri-
otic ancestors; and, although at great pecuniary loss
to individuals, was of incalculable benefit to the coun-
try. Eighty-six years later, their descendants in
'Massachusetts proved their patriotism by a similar
response to a call for money, to aid the Government
in preserving the union of the country, which had
come down to them through so much trial and tribu-
lation.
1775. It was in June, 1775, that the first Conti-
nental paper-currency was issued, according to resolu-
tions of the Continental Congress, passed May 10th
of the same year. In July, Massachusetts made the
first issue of the noted "Sword-in-hand money," so
called from the figure of an American on the back of
each bill, with a drawn sword in his right hand.* We
find in the collection of the Society several of these
bills of different denominations and dates; but many
of them are torn and disfigured.†
1776. We have also specimens of the issues of
1776 and 1778, those of the latter year having a pine
* Appendix L.
† These bills were engraved by Paul Revere, an ingenious artist, and a
worthy patriot.
48
tree engraved upon the back. In 1779, besides the
tree on the back, there was an engraving of the rising
sun on the face of the bill: of these, we have several
good specimens.*
1780. — In 1780, under Congressional instructions,
Massachusetts issued bills payable in six years, with
interest at the rate of five per cent per annum.
These bills had upon the back the guarantee of the
United States to insure the payment of principal and
interest. Of these bills, there are several fine speci-
mens owned by the society: they are signed by R.
Cranch and T. Dawes.†
The period of the redemption of this issue was put
off so far, that the people had little confidence in it;
and it rapidly depreciated to sixty for one of specie.
There was also great dissatisfaction in the army
against it, and recruits from Massachusetts could not
be obtained, except by the promise of payment in
hard money. In May, 1781, the Continental cur-
rency had depreciated to five hundred for one of hard
money. The following extract from "Rivington's
Gazette" of May 12, 1781, shows how low the esti-
mate of paper-money was at this time: "The Con-
gress is finally bankrupt. Last Saturday, a large body
of the inhabitants, with paper-dollars in their hats by
way of cockades, paraded the streets of Philadelphia,
* John Gill, one of the publishers of the "Boston Evening Gazette,”
printed the Massachusetts bills of 1776.
† Appendix L.
49
carrying colors flying, with a dog tarred; and, instead
of the usual appendage and ornament of feathers, his
back was covered with the Congress paper-dollars.
This example of disaffection, immediately under the
eyes of the rulers of the revolted Provinces in solemn
session at the State-house assembled, was directly fol-
lowed by the jailor, who refused accepting the bills
in purchase of a glass of rum; and afterwards by
the traders of the city, who shut up their shops, de-
clining to sell any more goods but for gold or silver.
It was declared also by the popular voice, that, if the
opposition to Great Britain was not in future carried
on by solid money instead of paper bills, all further
resistance to the mother-country was in vain, and
must be given up. "* Although these statements of
Rivington, who was a strong tory, are to be taken
with some degree of doubt as to their entire truth, still
it is an indication of the feeling of many of the people
in regard to the Continental currency.
It is not proposed in this paper to speak in detail
of the Revolutionary issues of paper-money by the
United States or Massachusetts, as the currency issued
by the authority of Congress and by the States, at
this period, became so connected and interwoven
with each other, that to give a true history of one
would require an examination into the whole system
of the finances. This would be too lengthy a subject
* Diary of the Revolution.
7
50
for the limits of this Report; but, owing to the larger
number of bills of this time being in existence, more
attention has been drawn to them, and their history is
more generally known.
We conclude these remarks with a brief allusion
to the beginning of the present system of banks,
authorized by the General Government, or by the
States.
The first Bank of Discount and Deposit, of which
we have record, was established in Venice, in the
year 1171; and was founded in time of war, when
the Republic fell short of funds, and had to adopt
some expedient to sustain itself: although not at first
issuing bills, in the course of time a method approxi-
mating to it was adopted. The Great Council de-
cided upon raising a forced loan; and every citizen
was obliged to contribute the one-hundredth part of
his possessions, upon interest at the rate of five per
cent. This bank, or chamber of loans, as it might
perhaps more correctly be called, was originated for
the purpose of managing this public debt.*
1781. Six hundred and ten years after the for-
mation of the bank at Venice, in the year 1781, and
also in time of war, the first bank in the United
States, authorized by Congress, was founded at Phila-
delphia, and called the Bank of North America.
This bank was started with a capital of four hun-
* "Bankers' Magazine," 1857.
1
51
dred thousand dollars, and is in existence at the pre-
sent day, as a national bank, with a capital of one
million dollars.*
1784.The second bank chartered in the country
was the Massachusetts Bank of Boston, in the year
1784; and now, after the expiration of eighty-two
years, it still exists and ranks among the soundest
institutions of our country. Its first president was
James Bowdoin; and, since its formation to the pre-
sent time, it has had but nine presidents and nine
cashiers. †
From that time to this, there has been a steady in-
crease in the number of banks in the State, as well as
in the whole country; and, as a natural consequence,
there has been a corresponding increase in our paper-
currency. We now have, in the State of Massachu-
setts alone, over two hundred banks, representing
nearly eighty millions of capital, all but one of
which are authorized by the General Government.
The total number of national banks in the United
States, March 17, 1866, was sixteen hundred and
forty-three, with a capital of $412,693,236, and a
circulation of $260,824,903. To this large amount
of paper-money in circulation may be added about five
hundred millions more, issued by the United States
4
* Appendix M.
†The Report of the Bank Commissioners of Massachusetts, for 1865,
gives an interesting account of the system of banking adopted by that State;
also some notice of the early paper-currency.
A
52
and by the several State banks, making the sum of
nearly seven hundred and sixty millions of dollars of
paper-money now in circulation in the United States.
Again war has thrown its dark shadow over our
country, and again the Government have been obliged
to resort to the expedient of our forefathers in issuing
large amounts of paper-money, so that at this time the
epithet of the paper-money country may be fittingly
applied to the United States. This large issue of
a paper-currency produces many of the same effects
as in earlier years; prices of all commodities increase
rapidly; the bills depreciate in value; and the spirit
of speculation seems to have taken possession of our
people. This depreciation of the currency, although
very great at times during the past four years, has
not been the occasion of so much general anxiety and
depression as in the days of the Revolution; for the
majority of our citizens have had full confidence in
the strength of the Government, and in the ultimate
redemption of its bills. In these remarks, it is of
course understood, that we do not refer to the paper-
currency of the South during the late rebellion; for,
as is well known, their paper-money has become
like so much waste paper, valuable only as material
for the paper-mill.
Finally, let us bear in mind the importance of pre-
serving all matter that may serve to illustrate in any
way the finances of our times; so that the future
53
antiquary will find abundant material to aid him in
explaining to his day and generation the true con-
dition of this epoch, as shown in the history of our
currency and finances. It is the special province of
this Society to care for and preserve the written his-
tory of to-day: let us not be backward in our duty,
but lend a willing heart and a helping hand to add
our mite to the fulfilment of so commendable an
object.
C
54
APPENDIX.
A.
ROGER WILLIAMS in his account of wampum, says of its use
among the New-England Indians: "Their own is of two forts,
one white, which they make of the ftem or ſtock of the periwinkle,
when all the ſhell is broken off; and of this fort, fix of their ſmall
beads, which they make with holes to ftring their bracelets, are
current with the Engliſh for a penny. The fecond is black, in-
clining to blue, which is made of the ſhell of a fiſh, which fome
Engliſh call hens - poquahock; and of this fort, three make an
Engliſh penny.
One fathom of this their ftringed money is worth
five fhillings."
B.
The first issue of paper money is probably rightfully attributed
to the Chinese. Doolittle, in his "Social Life of the Chinese,”
says it was used by them in the ninth, and down to the fifteenth,
century, when the issue of it was stopped: at the present time,
however, it is again in use in China.
What was called card-money was adopted by the French in
Canada, in 1687, redeemable in bills on France. This was at the
time of an expedition by the French to subdue the Senecas. Prob-
ably this issue was not known of, by the English colonists of Mas-
sachusetts Bay, at the time they made their first issue of paper
money, in 1690.
C.
The signers of the Bill of Credit, issued in 1690, as given on the
bill exhibited at the meeting of the Historical Society, were John
55
1
Phillips, Adam Winthrop, and Penn Townsend. On the bill de-
scribed by Mr. Drake, the signers were Elisha Hutchinson, John
Walley, and Tim. Thornton.
م کی موجود میں نے
Colonel John Phillips, of Charlestown, was Judge of Admiralty,
Treasurer of the Province, and Representative from 1683 to 1686.
In 1689, he was one of the Council of Safety; and, in 1691, one
of the first Council under the new charter, which office he held
until 1716. He was wounded in a fight with the Indians, at
Casco Bay, in 1697. He died March, .1725, aged ninety-four.
Adam Winthrop, of Boston, was a man of prominence in the
Massachusetts Colony, and was undoubtedly a grandson of Gov-
ernor Winthrop. He was born in 1647, and graduated at Harvard
College in 1668, a Representative in 1689-92, and, being a mem-
ber of Mather's church, was named by the king, by advice of
Mather, one of the Governor's Council under the new charter;
which office he held from 1692 to his death. He was known as
Hon. Adam Winthrop in his day, and was grandfather of Profes-
sor John Winthrop, the eminent Professor of Mathematics and
Natural Philosophy in Harvard College from 1738 to 1779. He
died in August, 1700.*
Penn Townsend was also a man of note in Boston, and held
many prominent offices; was Speaker, Judge of the Court of Com-
mon Pleas, and was also a colonel of the militia. He died in
1727, aged seventy-five.
Elisha Hutchinson, of Boston, was grandfather of Governor
Thomas Hutchinson. He was a Representative in 1680-3, and a
councillor or assistant magistrate from 1684 till his death. In
1707, he was a colonel in the Port-Royal Expedition. He was
also one of the first Council under the charter of William and
Mary, in 1692. He died Dec. 10, 1717, aged seventy-seven.
John Walley was a Judge of the Superior Court of Massachu-
setts, and a member of the Council. He died in 1712, aged sixty-
eight. In 1690, the year these bills were issued, he accompanied
the expedition against Canada, being in command of the land-
forces. The failure of this expedition caused the issuing of the
bills of credit, which he afterwards, as a member of the General
Court, was called upon to sign. His "Journal of the Campaign
* The information in relation to Adam Winthrop is obtained from his descend-
ant, Hon. R. C. Winthrop.
56
in Canada" may be found in Hutchinson's "History of Massa-
chusetts."
Timothy Thornton was a merchant of Boston, a Representative
to the General Court in 1690, '93, '94, selectman of Boston in
1693, and one of the assessors in 1694. He appears to have been
a man of some note in the town of Boston; but we have not
been able to find any connected notice of him. We are indebted
to Drake's "History of Boston" for many facts in regard to the
signers of these bills. In Lossing's "Pictorial Field-Book of
the Revolution" is a fac-simile of one of the bills of 1690, which
has the same date and the same signers as that described by
Drake. From the appearance of this fac-simile, we should judge it
to have been taken from an engraved bill; as the seal, as well as
other parts of the bill, seem to have been more carefully finished
than in the written bill described in this Report.
D.
In 1692, an Act was passed by the "Great and General Court or
Assembly of their Majesties' Province of the Massachusetts Bay,"
entitled “An Act, For Making the Former Bills of Credit to Pafs
Current, in Future Payments, &c."
"Whereas, Their Majefties Affairs within this Province do re-
quire a ſpeedy advance for the Defence of the Province, and the
profecution of the War, againſt their French and Indian enemies,
and there being no Stock at prefent in the Treafury to ſupply
the fame or to defray other the neceffary charges for ſupport of the
Government, Be it therefore ordained and enacted that all Bills
of Publick Creditt iffued forth by order of the Generall Court of the
late Colony of Maffachuſetts Bay, fhall pafs current within this
Province in all payments equivalent to money, and in all publick
payments at 5 per cent. advance. And for encouragement to ſuch
perfons as are poffeffors of faid Bills, to lend them for the fervice
of the publick, it is further enacted that they fhall be fecured by
the publick Taxes and other Revenues, and fhall be reimburſt in
money within twelve moneths."
E.
May 27, 1702, an," Act for Making and Emitting of Bills of
Publick Credit," was passed, as follows: "Forafmuch as by rea-
57
ſon of the extream Scarcity of Money, and the want of other
medium of Commerce, the Trade of this Province is greatly
obſtructed, and the affairs of the Government very much hindered;
The payment of the Publick Debts and Taxes Retarded, and in
great meaſure rendered Impracticable, to the Difcouragement of
Souldiers and Seamen neceffarily Employed in her Majefty's Ser-
vice, in the defenfe of Her Majeftys Subjects and Interefts with
the Province in this time of War."
For remedy whereof, it was enacted, "That there be forthwith
imprinted a certain number of bills of credit on this Province in
fuitable Sums from Two Shillings to Five Pounds which in the
whole fhall amount to the Sum of Ten Thoufand Pounds &
no more; which bills fhall be Indented and Stamped with fuch
ftamps as the Governour and Council fhall project and direct; And
be Signed by a Committee to be Nominated and Appointed by this
Court, they or any three of them; and of the Tenor following,
That is to fay
No. (
>
S
20
"This Indented Bill of Twenty Shillings due from the Province
of Maffachuſetts-Bay in New-England, to the Poffeffor thereof,
fhall be in value equal to Money: And fhall be accordingly ac-
cepted by the Treaſurer and Receivers Subordinate to him, in all
Publick Payments, and for any Stock at any time in the Treaſury.
Boſton November the Twenty Firft, Anno 1702. By order of the
Great and General Court or Affembly.
"J. R.
"E. H. Committee."*
"N. B
E.
The bill of 1713 reads as follows:
No.
EIGHTEEN PENCE.
(2419)
This Bill of one Shilling and Sixpence Indented, due from the
* From Massachusetts Colonial Laws.
8
58
Province of the Maffachuſetts Bay in New England to y° Poffef-
for thereof ſhall be in value equal to money: And ſhall be accord-
ingly accepted by the Treaſurer and Receivers fubordinate to*
him in all Publick payments: and for any Stock at any time in
the Treaſury, Boſton October the fourteenth 1713 By Order of
the Great and General Court or Affembly.
[Seal.]
A WINTHROP
A DAVENPORT
ㄢ​ˋ
W PAYNE
SAM CHECKLEY
1714
1718
1719
1721
1722
Comtee
1723
1725
1727
1731
G.
The Land Bank Company of 1714, in their project for starting
the Company, proposed to give, out of their net profits, to several
charitable objects: "Four Hundred Pounds per Annum to the Uſe
of an Hoſpital or Charity School, for the Support and Education of
the poor Children in the Town of Boſton, &c. Provided the
Inhabitants and Freeholders of the Town of Boſton, do, at or
before their General Meeting in March, One Thouſand Seven
Hundred and Fifteen, order the Treaſurer to accept the faid Bank
Bills in payment of Town Taxes and Affeffment." Also, "Two
Hundred Pounds per Annum to be paid to the Treaſurer of Har-
vard College in Cambridge, for the Ufes following, Viz. Twenty
Pounds per Annum for a Mathematical Proffeffor Refiding there
&c.
Forty Pounds per Annum for the Encouragement
of three Graduates Refiding there, until they take their Maſters
Degree, &c,
One Hundred Pounds per Annum for the
ſupport of fix Minifters Sons to be equally divided among them &c.
Forty Pounds per Annum to a Proffeffor of Phyfick and
Anatomy, Refiding there provided he Read a Lecture once a
month, on that fubject." Provision was also made to give
"Twenty Pounds per Annum towards the further Support of a
Publick Grammar School in each County, &c &c.”*
These various benevolent propositions were undoubtedly made
to induce the public to be more willing to subscribe to the project,
* "A Projection For Erecting a Bank of Credit in Boston, New England, Founded
on Land Security. 1714."
59
rather than from any particular design to assist these educational
enterprises that this was the opinion of many at the time, the
• pamphlets published in objection to the project testify.
H.
The Trustees appointed under the act of May, 1714, were
Andrew Belcher, one of the Council, and a Representative (he
died in 1717); Addington Davenport, Clerk of the Court, and
Judge of the Supreme Court; Thomas Hutchinson, a member of
the Council, father of Governor Thomas Hutchinson; John
White, a prominent citizen of Boston; and Edward Hutchinson,
brother of Thomas, a Judge of Probate, &c.
I.
From the Massachusetts General Court Records, of 1737, we
take the following act authorizing the issuing of small bills:-
“An Act for making Two Thouſand fix Hundred and twenty-
five Pounds in fmall Bills of. feveral Denominations to be Ex-
changed for larger Bills by the Province Treaſurer.
PREAMBLE.
Whereas, great Inconveniences and Difficulties have
arifen to the Affairs and Trade of this Province for
want of ſmall money or change;
Be it Enacted by His Excellency the Eovernouer, Council and Kepre-
sentatives in General Court assembled, and the Authority of the
same,
That the Committee already appointed by this Court for the
making of Bills of Credit of the new Tenor, be and hereby are di-
rected to take effectual care, that there be forthwith made and
imprinted on good paper, to the Amount of Two Thousand six
Hundred and twenty-five Pounds in Pennys, Two Pences, Three
Pences, Four Pences, Five Pences and Six Pences, of Each De-
nomination Thirty Thouſand Bills of the following Figures and
Inscriptions."
Here follows an engraving, showing the different denominations
and forms of each.
"Which Bills, when ready, faid Committee are to deliver to the
Treaſurer of the Province, by him to be exchanged for other Bills
60
A
of the Province to fuch Perfons as come for the fame, but not lefs
than Twenty Shillings at one time; and that the faid Bills ſhall
paſs in all Payments as other the Bills of this Province of the New
Tenor do according to Law, and that the Bills received by the
Treaſurer in Lieu of the aforefaid small Bills, shall be burnt to
Aſhes, by a Committee of this Court appointed for that purpoſe."
There was also a provision, in the enactment, against counter-
feiting or forging these bills.
J.
In August, 1758, the following notice by the Sheriff of Suffolk
County was printed in the "Boston News Letter:
""
"To be fold at public Auction, at the Exchange Tavern in Bos-
ton, To morrow at noon. The Dwelling House, Malt-Houſe, and
other buildings, with the Garden and land adjoining, and the
Wharf, Dock and Flats, before the fame, being part of the Eftate
of the late Samuel Adams, Esq., deceaſed, and is scituate near
Bull-Wharf, at the lower end of Summer Street, in Boſton afore-
faid, the faid Eftate being taken by Warrant or execution under
the hand and feal of the Hon. Commiffioners for the more ſpeedy
finiſhing the Land Bank or Manufactory Scheme. The Plan of
the ground and the terms of payment may be known by enquir-
ing of
"STEPHEN GREENLEAF.”
In answer to this advertisement, there appeared the following
letter in the "News Letter" of Aug. 16, which shows the extent
of Mr. Adams's threats:
" SIR,
"To STEPHEN GREENLEAF, Esq.
“I observe your Advertiſement for the fale of the Eſtate of Sam-
uel Adams, Esq., Director of the Land Bank Company. Your pre-
deceffor Col. Pollard had the fame affair in hand five years before
his death; but with all his known firmneſs of mind, he never
brought the matter to any conclufion; and his Precept, I am told,
is not returned to this Day. The reafon was he, as well as my-
felf, was adviſed by gentlemen of the law, that his proceeding was
illegal and unwarrantable; and therefore he very prudently de-
clined entering fo far into this affair as to fubject his own Eſtate
61
to danger.
How far your determination may lead you, you know
better than I. I would only beg leave, with freedom to affure
you, that I am adviſed and determined to profecute to the law any
perſon whomſoever who ſhall treſpaſs upon that Eftate; and re-
main
"BOSTON Aug. 16 1758."
"Your humble servant
"SAMUEL ADAMS.
That this letter probably had some weight with the sheriff would
appear from the fact that the sale was adjourned from time to time.
In the "News Letter" of September, 1758, we find the following
notice in regard to the sale:
"The fale of Mr. Adams' Eftate, which was adjourned to Fri-
day, the 22d of September, is further adjourned, to Friday, the
29th inst: Attendance will be given THAT DAY at the Royal
Exchange Tavern, from XII to I o'clock by
"S GREENLEAF.”
It is probable that the subscription to aid Mr. Adams in paying
the claim caused the final postponement of the sale.
K.
In the collection of the Antiquarian Society is a specimen of a
Manufactory Company bill, dated in 1741, but without signers.
This bill was undoubtedly engraved in England, as it is much finer
than any engraved in this country at that period. That this bill
was probably issued by some company similar to the Land Bank
Company there can be but little doubt; but, after inquiry of several
who were supposed to be conversant with the history of Essex
County, where this bill seems to have originated, we have been
able to learn nothing definite in regard to it. It reads as fol-
lows:
THE BANK BILL. TWO SHILLINGS. We jointly and feverally, for our
felves and partners, promiſe to take this Bill as Two Shillings, lawful Silver
Money, at Six Shillings, and Eight Pence p' Ounce, in all Payments Trade
and Bufiness, & for Stock in our Treaſury at any Time, & to pay the fame at
that Eſtimate on Demand, to Mr James Eveleth or Order, in the Produce or
Manufactures enumerated in our scheme; as recorded in the County of
Essex's Records, for Value reca Dated at Ipſwich, the First Day of May,
1741
28
2$
62
L.
The Massachusetts Bills of Credit issued in 1775, and known as
the "sword-in-hand" money, read as follows:
Colony of the
Maffachuſetts Bay Decm 7. 1775.
The Poffeffor of this Bill fhall be paid, by the Treaſurer of this Colony
Three Shillings & four-pence Lawfull money, by the 7 Day of Decmr 1781,
which Bill ſhall be received for the aforefaid fum in all payments at the
Treasury, and in all other payments by order of the General Assembly
[Seal.]
Committee {J WHEELER.
The Massachusetts revolutionary issue, under authority of the
Continental Congress, was in the following form:
ONE DOLLAR
No. 14,277
STATE OF MASSACHUSETTS
One Dollar
The Poffeffor of this Bill ſhall be paid one Spaniſhed milled Dollar by
the Thirty-firſt Day of December, One Thouſand Seven Hundred and
Eighty-Six, with Intereft, at the rate of Five per Centum per Annum, by
the State of Maffachuſetts Bay, according to an Act of the Legiſlature
of the faid State, of the Fifth Day of May, 1780.
THOS DAWES
R CRANCHI
•
Interest. s.
• ·
d. q·
Annually 0 3 2
Monthly. 0 0 11
•
On the reverse,
United States
ONE DOLLAR.
Seal with motto, Depressa Resurget.
Printed by HALL and SELLERS
The United States enfure the Payment of the within Bill, and will draw
Bills of Exchange for the Intereft annually, if demanded, according to a
Refolution of CONGRESS, of the 18th of March, 1780
Peter Boyer
*s26S PluՈ ԿԼ
The first emission of paper money by the Continental Congress
was in June, 1775: at that time it was enacted, "That a fum not
exceeding two millions of Spaniſh milled dollars be emitted by
the Congreſs in bills of credit for the defence of America." New
emissions were from time to time authorized by Congress, until, in
1780, the sum of two hundred millions of dollars had been issued,
none of which had been redeemed.
The large amount of paper money in circulation caused a great
63
depreciation in its value; and it is said, that, in 1780, it took seven
hundred dollars to buy a pair of shoes: a handkerchief cost one
hundred dollars, and a skein of silk ten dollars.
The following table, showing the depreciation of the Continental
money, is taken from "The Historical Magazine," vol.♪iv.: *
"Value of $1000 Continental Dollars in Specie on the First Day of every
month, agreeable to late Reſolutions of Congreſs.”
DATE.
Conti- Value in
nental Ilard
Bills. Dollars.
DATE.
Conti- Value in
nental Hard
Bills.
Dollars.
1777. September... $1,000 $1,000
1777. October
•
1777.
November
1779. January
1,000 911 1779. February
1,000 828 1779. March
$1,000 $134
1,000 115
1,000 110
1777.
December
•
1,000
754 1779. April.
•
1,000 90
1778. January
•
1,000 685
1779. May
1,000 82
1778. February
1778. March
1778. April.
1,000 623
1779. June
• •
1,000 74
•
•
1,000 571
1779. July
1,000 67
1,000 497 1779. August
1,000
61
1778. May
1778. June
•
1,000 434 1779.
September.
1,000 55
•
•
1,000 378
1779.
October
1,000 49
1778. July
1778. August.
1778. September .
1778. October
1778. November
•
•
1,000 330 1779. November
1,000 287 1779. December
1,000 250 1780. January
1,000 215 1780. February
1,000 183 1780. March
•
1,000
43
•
1,000
38
•
1,000
34
•
1,000
30
1,000
26
1778. December
• •
1,000 157 1780. April.
1,000 25
In February, 1781, $7,500 of Continental money was worth but $100 in
specie; and, during the year, it became worthless.
M.
J. J. DIXWELL, Esq., President of the Massachussetts Bank, has
kindly furnished a list of the Presidents and Cashiers of that bank
from its organization to the present time.
James Bowdoin
William Phillips
Jonathan Mason
Samuel Eliot
William Phillips, Jr.
William Parsons
Jonathan Phillips
•
William Parsons, Jr.
John L. Gardner, pro tem.
John J. Dixwell
•
PRESIDENTS.
•
Chosen March 22, 1784.
January 5, 1786.
January 2,1797.
June 18, 1798.
January 5, 1804.
June 25, 1827.
October 31, 1836.
May 27, 1840.
January 22, 1847.
February 25, 1847.
* In quoting this table, the value expressed in tenths of a dollar is omitted.
64
Samuel Osgood
Peter Roe Dalton
John Lowell
James Thwing ·
Joseph Head
Charles P. Phelps
Samuel Payson
James Dodd
•
Henry K. Frothingham .
CASHIERS.
Chosen May 20, 1784.
January 31, 1785.
March 15, 1792.
June 10, 1793.
November 24, 1814.
January 3, 1816.
September 29, 1817.
November 24, 1836.
May 28, 1863.
James Dodd was connected with the bank, in various capacities, fifty-four
years consecutively.
List of Books and Pamphlets, in the Library of the American Anti-
quarian Society, at Worcester, which refer to the Colonial or Con-
tinental Paper-Currency of the United States.
Objections to the Bank of Credit Lately projected at Boston, Being a
Letter upon that Occasion to John Burril Esq; Speaker to the House
of Representatives for the Province of Massachusetts Bay in New
England.
Boston: 1714
Boston: 1714
Letter from one in Boston to his Friend in the Country, In answer to
a Letter directed to John Burril Esq Speaker to the House of Rep-
resentatives, for the Province of Massachusetts Bay in New Eng-
land.
A Vindication of the Bank of Credit, Projected in Boston from the
Aspersions of Paul Dudley Esq in a Letter directed by him to John
Burril Esq, Late Speaker &c
Boston: 1714
A Vindication of the Remarks of One in the Country upon the dis-
tressed State of Boston, from some Exceptions made against 'Em in
a Letter to Mr Colman
A Project for the Emission of an Hundred Thousand Pounds of Prov-
ince Bills, in such a manner as to keep their credit up Equal to Sil-·
ver, and to bring an Hundred Thousand Pounds of Silver Money
into the Country in a few years
Some Proposals to benefit the Province
1720
Boston: 1720
Boston: 1720
A word of Comfort to a Melancholy Country, or the Bank of Credit
erected in Massachusetts Bay, Fairly Defended by a Discovery of
the Great Benefit, accruing by it to the Whole Province &c, Boston: 1721
The Melancholy State of the Province considered in a Letter From a
Gentleman in Boston, to his Friend in the Country
A Letter to a Member of the Honorable House of Representatives on
the Present State of the Bills of Credit.
Boston: 1736
Boston: 1736
65
Observations on the Scheme for 60,0001 in Bills of a New Tenour
Boston: 1738
A Discourse concerning the currencies of the British Plantations in
America, Especially with regard to their Paper money, more particu-
larly in relation to the Province of the Massachusetts Bay in New
England
Postcript to a Discourse concerning the Currencies of the British
Plantations in America.
Boston: 1740
An Inquiry into the Nature and Uses of Money more especially of the
bills of Publick Credit, Old Tenor &c
1740
Boston: 1740
Boston: 1740
A Letter Relating to a Medium of Trade in the Province of the Mas-
sachusetts Bay Printed at the New Printing Office, opposite to the
South East Corner of the Town House
A Letter to
Merchant in London, concerning a late Combination
in the Province of Mass.-Bay. in N.E., to impose or force a Pri-
vate Currency called Land Bank Money. Printed for the Publick
Good
A Letter to the Merchant in London to whom is directed a Printed Letter
relating to the Manufactory Undertaking, dated New England Bos-
ton Feb'y 21 1741 Printed for the Publick Good.
A Letter from a Country Gentleman at Boston to his Friends in the
Country
1741
Boston: 1740
A Brief Account of the Rise, Progress and Present State of the Paper
Currency of New England &c
Boston: 1749
Boston: N. D.
An Essay concerning Silver and Paper Currency more especially with
regard to the British Colonies in New England
Consideration on Lowering the Value of Gold coins within the Prov-
ince of the Massachusetts-Bay
Boston: 1761
Observations on the Nature and use of Paper Credit and the peculiar
advantages to be derived from it, in North America &c.
Phila: 1781
Phila: 785
Considerations on the Bank of North America,
Letter addressed to the Legislators of the several States, composing
the Federal Union recommending an uniform Continental Cur-
rency. &c,
New York: 1796
Path to Riches. An Inquiry into the Origin and Use of Money, and
into the Principles of Stocks and Banks, To which are subjoined
some Thoughts respecting a Bank for the Commonwealth. James
Sullivan
Boston: 1792
An Historical Account of Massachusetts Currency. J. B. Felt.
Boston: 1839
Historical Sketch of Continental-Paper Money. S. Breck. Phila. N. D.
Notes on Ante-Revolutionary Currency and Politics, communicated to
the New-England Historical and Genealogical Register. By A. H.
Ward.
July, 1860
An Historical Sketch of the Paper-Money issued by Pennsylvania.
H. Phillips, Jr.
Phila. 1862
A History of the Bills of Credit or Paper-Money issued by New York,
from 1709 to 1789. J. H. Hickcox.
Albany: 1866
9
66
}
Historical Account of Connecticut-Currency, Continental-Money, and
the Finances of the Revolution. By Henry Bronson. (Published
in vol. i., papers of the New-Haven Colony Historical Society.)
Historical Sketches of American Paper-Currency. 2 vols. H. Phil-
lips, Jr.
1865
Roxbury: 1866
Paper-Money in the Collection of the American Antiquarian Society.
The whole number of bills, issued previous to 1789, in the collection is 286;
of which 47 were issued before 1775; viz., by Massachusetts, 7; by New
Hampshire, 1; Rhode Island, 3; Maryland, 17; Virginia, 1; Pennsylvania,
16; Georgia, 2.
Of those issued by the States from 1775 to 1789, there are 155 specimens,
divided as follows: Massachusetts, 58; Vermont, 3; Connecticut, 26; New-
Hampshire, 5; Rhode Island, 19; Pennsylvania, 15; Delaware, 2; Virginia,
12; New York, 5; New Jersey, 4; Maryland, 5; Georgia, 1.
Of those issued by the Continental Congress, there are eighty-four speci-
mens, mostly in good order.

$
1
}

wils
332.5 P16
UNIVERSITY OF MINNESOTA
Paine, Nathaniel.
Remarks on the early paper currency of M
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