BOOK II.

To preserve the bills from depreciation, the Assembly levied four pence on the pound, for the calling in of six 1719. thousand pounds of bills which had been emitted in June, 1711. Two pence on the pound was levied in May, and the other half in October. As preparations for the defence of the country against the Indians, and the necessity of sending men to keep garrison on the frontiers, had incrcased the expenses of the colony, it was enacted, at the Oct. 1722. session in October, 1722, That four thousand pounds in bills of credit should be emitted. In consequence of this, the Assembly ordered two thousand pounds to be issued in May 1725. May, for the discharge of the public debt. In May, 1725, the other two thousand pounds were issued. Funds were

May 1729.

provided at the same time, for the redemption of the bills. As many of the outstanding bills had been in circulation a number of years, and were either torn or defaced, a new emission of four thousand pounds was granted, in October 1723, for the purpose of calling the old bills into the treasury and burning them.

In May 1729, six thousand pounds more were emitted for the same purpose. Sometimes new emissions were ordered for the purpose of exchanging them for the same amount of a former emission. For the saving of expense, new emissions were sometimes impressed with the same plates which had been used in former ones. This was the case, when torn and defaced bills were replaced. The Assembly also, at several times, when large sums had been brought into the treasury, by taxes, gave orders for the reissuing of these sums in part, or in whole. In this economical manner, did the legislature conduct the affair of their bills of credit. Small sums were emitted from time to time, and others of equal amount were called in and put out of circulation. The amount in circulation was nearly the same, or if it exceeded, it was not beyond the increase of the people, and of the business and trade of the colony. There was therefore no considerable depreciation of the bills Oct. 1733. in circulation. In 1733, the colony and its trade were considerably increased and it was conceived that a greater number ing of bills of bills might be put into circulation without injuring their of credit. credit. The legislature therefore ordered twenty thousand

Emission

pounds to be emitted. By act of the Assembly, the bills were to be redeemed at the rate of twenty shillings to every ounce of silver, Troy weight. It was enacted by the Assembly, That a considerable part of the bills should be loaned, at six per cent, and for double the amount of the bills in land security and that each county in the colony, should have such a proportion of it as was equal to their

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respective lists. It was designed that all the people might Book II. have an equal benefit by the bills.

Until about the year 1735, the colony had been so hap- Provision py, that no attempts had appeared to have been made for against counterfeit the counterfeiting of its currency. But about this time bills, Oct there arose a set of villains, who counterfeited the five 1736. pounds, the forty, and the ten shillings bills. Numbers of these bills appeared to be circulating, in various parts of the colony. The legislature, to prevent the mischief which the circulation of counterfeit bills might effect, enacted, That twenty-five thousand pounds should be immediately emitted, with a different stamp, and exchanged for the old bills which had been counterfeited.

credit,

War having been proclaimed against Spain in October The war 1739, and letters having been received from his majesty, with Spain 'occasions requiring the assistance of the colony, in an expedition a new against the Spanish West Indies, the Assembly, in their emission session in May, passed a resolve to the following effect: of bills of That whereas the expenses of this government were likely May 1740; to be very great, by reason of the expedition directed by his majesty against the Spanish West Indies, and those necessary preparations for the defence of our borders, sea coasts and navigation, and as the medium of exchange is exceedingly scarce, bearing but a small proportion to the demand which there is for it, therefore be it enacted, That thirty thousand pounds, in suitable bills, shall be emitted. On the face of the bill it was said, By a law of the colony of Connecticut, this shall pass current within the same, for twenty shillings in value, equal to silver, at eight shillings per ounce, Troy weight sterling, in all payments and at the treasury. The Assembly enacted, That eight thousand pounds of this emission, should be issued for the payment of the public debt; and that the remaining twen ty two thousand pounds should be loaned to freeholders and inhabitants of the colony. It was also enacted, That the eight thousand pounds should be redeemed in five years, by five equal payments, annually, until the whole should be redeemed.

As the government had engaged to provide transports for the troops to be raised in the colony, and to victual them, until they should arrive in the West Indies, it was resolved, at a special Assembly, that fifteen thousand July 8thpounds more should be emitted in bills of credit: That five thousand pounds should be retained in the treasury for the redemption of old outstanding bills which had been torn and defaced, and that the other ten thousand pounds should be issued by the treasurer. At the same time a

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1740.

1740.

Book II. tax of ten thousand pounds was levied on the grand list of the colony, for the payment of the whole within ten years. About this time letters were received from the Lords commissioners of trade and plantations, requiring an account of the tenor and amount of the bills emitted, by the Assembly; and its opinion on the best mode of sinking them. Their Lordships also faulted them, for making the emission of thirty thousand pounds a lawful tender, as, in their opinion, it was contrary to the act of the sixth of Special Queen Anne, ascertaining the rates of foreign coins in Assembly the several plantations. The answer of the legislature to Nov. 26th, their Lordships' letters, will evince that before the emissions occasioned by the war with Spain, the colony had but a small amount of bills in circulation. They represent that the bills outstanding, which had been issued to defray the expenses of the government, were nearly or quite sunk, by the taxes of the years 1738 and 1739: That of the bills loaned before the commencement of the war with Spain, three thousand pounds had been drawn in for interest in the year 1740, and that the whole would be discharged by the year 1742: That the emission of four thousand pounds Old Tenor, and of eight thousand pounds in bills of the New Tenor, in May last, and ten thousand pounds in July following, was for the sole purpose of enabling them to comply with his majesty's instructions respecting the expedition against the Spanish West Indies, and for the necessary defence of the colony. They affirmed that without these emissions it was impossible for them to have answered his majesty's expectations, or to have provided for the common defence. With respect to the twenty two thousand pounds in New Tenor, which had been loaned, they represented, that it had been emitted and loaned to supply the want of a medium of exchange, and that one half of it would be paid in within four, and the other within eight years: That the bills which would be discharged in the year 1742, and the twenty two thousand pounds, were the only bills ever loaned by the colony. With reference to the act of May, for the emission of thirty thousand pounds, in bills of the New Tenor, they answered, that the clause making it obligatory on all persons to receive said bills, in all payments, was added with an honest intent, to prevent their depreciation. They 'pleaded further, that they had been encouraged to do it. from the example of the neighboring government of NewYork, and from the information which they had received of its good effect. in preventing the discount of their bills of credit.

In relation to the inconsistency of that act wit the act of Book II. Queen Anne, they pleaded, That they had not the least apprehension of it, and that they had never received the 1740. least insinuation of his majesty's pleasure, nor of that of Nov. 26th. the house of commons on that subject: And that, on the first intimation of his majesty's pleasure, they had repealed that clause in the act which made the bills a lawful tender. They concluded by observing, That by the laws which were there transmitted, and by the returns they made, their Lordships would be certified of the tenor and amount of the bills which had been emitted: and that they persuaded themselves, that their Lordships, in view of the whole matter, would not be of the opinion, that they had made large and frequent emissions of paper currency, as had been represented: That the sums they had emitted, reduced to sterling, or compared with the emissions of some of the other colonies, would appear but small. The legislature gave their Lordships assurance, that special attention should be given to his majesty's intentions, and to the opinion of the house of commons.

From these statements, it appears that there had been no redundancy of a circulating medium in the colony, and consequently that there had been little or no depreciation of the bills of credit before the Spanish war in 1740. It appears that then as small a number of bills was emitted as would comport with his majesty's requisitions, and a proper defence of the colony. From this time the number of bills in circulation was constantly diminishing. In two years the first bills loaned were all paid into the treasury. The twenty two thousand pounds, was in four years to be one half reduced. The times for calling in a considerable amount of the outstanding bills had expired, and they had been sunk by the provisions made for that purpose by the year 1744, when the French war commenced. During 1744. this term of about four years, there was not a single emission. At this period, therefore, the bills of credit must have been rather in a state of appreciation than of discount. The credit of the bills appears to have been well supported until after the commencement of the war with France and the expedition against St. Louisburg.

Oct. 1715.

CHAPTER IV.

The colony in fear of losing their Charter. Measures adopted to prevent it. Mr. Winthrop complains of the Colony, In an Appeal to his Majesty in Council in a case between him and Thomas Lynchmere, Esq. he obtained a sentence, in which a certain law of the colony, entitled an Act for the settlement of intestate estates, was rendered null and void. The colony declare, that they will not surrender their charter, and pray for the continuance of the act relative

to intestate estates.

Book II. ALTHOUGH the colony had been able to maintain their charter privileges against the intrigues of Dudley, Cornbury and other enemies, in 1712, and 1713, yet the danger was not yet past. There were strong parties in England, and some in the colonies, who were unfriendly to the charter governments, especially to those of NewEngland. They were considered as too independent of the crown and government of England. A bill was therefore brought into parliament for a repeal of the charters which had been given to the colonies. Mr. Dummer, the agent for the colony, in a letter to the Governor, dated August 1715, had given information of the measures which the ministry were pursuing, and had sent over a copy of the bill which was pending in the parliament relative to the charter governments. No sooner were the Assembly convened in October, than a committee was appointed to examine all papers and documents relative to that affair, and to make report what were the best measures for the legislature to adopt for the preservation of their charter. The arguments in vindication of their charter rights, and the instructions to former agents relative to them were so complete, that nothing new on that subject could be added. The committee therefore, after a full examination of the letters and instructions which had been sent to former agents, at different times, and especially on the 27th of October 1712, reported, That those were the best instructions which could be given in this case: and that those instructions and documents were sufficient to support all the articles in the case of the colony, a report of which had been printed by their agent. They gave it as their opinion, that those articles being substantiated, they might hope that Connecticut would be kept out of the bill. They further gave it as their opinion that it would be advisable