Frank Fenwick McLeod

“ The miserable chimera of inflation, which began early in the century, developed in 1750 into a huge hydra which, through the intermittent stages, robbed the people of 90 per cent of the face value of the provincial output current at the time of redemption, besides arresting commerce and retarding the industrial interests of the community. Specie, which occasionally came into the province through the channels of commerce with Spain and the West Indies, was regularly transmitted to London. ”

“ In his message to the legislature he recommended to that body, "not to suffer an emission of any sort of notes or bills for the future, but such as will instantly and at all times honestly and truly command the value expressed in them." The masterly manner in which Governor Belcher reviewed the financial situation, pointed out the fallacies of inflation and exhorted the legislature to "apply a speedy remedy" will ever be a subject of praiseworthy comment. He seemed to grasp the needs of our degenerate currency system quite as well as his colleague Hutchinson. ”

“ Despite the efforts of the legislature to debase the currency, the precious coin found its way to foreign lands. The interests of trade and commerce, which had received an impetus for a time, very soon had to pay the cost of this novel experiment in finance. [13] It was the beginning of a mischief which proved an almost constant source of annoyance to the government and people, and which was increased as new enactments of the legislature and private banks sought to relieve the pinching wants of a people with a scanty and bedraggled medium of exchange. ”

“ This private experiment at inflating the currency cost the people considerable money and virtually compelled the provincial authorities to issue more bills of credit to replace the exchange retired by the New London Society. Private schemes to enlarge the currency proved futile. The little matter of redemption was fixed for a time twelve years in the future when the price of silver was just twice as much as at the time of issue. Practically speaking, had the society continued business it might have redeemed its bills at 50 per cent on the face value—the result of an inflation of the currency. ”

“ Danger and toil have always attended the explorers in finance, and they always will. Nevertheless the path is the way of civilization. The greater the development of civilized life, the larger will be the values in paper and credit."
The pathway to our present monetary standard is lined with the wrecks of different forms of currency, country pay, debased coinage of the Boston mint, credit bills of the Colony of Massachusetts, fiat money of the Province of Massachusetts Bay, legalized fiat money, inflated currency, land bank bills, silver notes, treasury notes, continental currency. ”

“ This observation made by a leading citizen of the time when fiat money was forced upon the people with no provision for redemption in specie, illustrates a condition which, in the very nature of things, must ever exist when an unknown quantity is offered in exchange for a fixed value. ”

“ Nathaniel Paine, in a paper read before the American Antiquarian Society of Worcester, [8] finds evidence of the existence of paper currency in Massachusetts as early as 1646. These paper bills were very probably issued by individuals of first rate credit, merchants or traders. Of their form and worth we know nothing, other than that they "passed in payment of debts." This note currency—a credit paper currency payable doubtless on demand—aided the colonists in settling local balances until the establishment of the Massachusetts mint at Boston in 1652. ”

“ The populace clamored for more currency. It mattered little to them whether the coin or paper money with the escutcheon of the government stamped thereon asked for was real value or some percentage of a unit of value. The coinage at the mint did not meet every demand. "Country pay" still continued to settle the accounts of the rural districts. In 1687 the public demand on Hingham was partly paid in milk pails. [14] For a long time the government received in payment of taxes whatever the colonist had to offer. [15] A discount from the usual rates was made to those who paid in coin. ”

“ The Boston financiers of the seventeenth century intended to make a coin which should be good bullion, but which should be, as the English pound sterling was forced by law to be, a coin that would stay in the country. ”

“ Peter Faneuil wrote his English correspondent in 1736:
"You will see by these Acc'st. how dear build'g is: it is much cheaper to buy Vessells in the river of Thames than to have them built here for the Present." ”

“ Boston. Printed in the Year, 1721, 16mo. pp. (2930) 58. ↑ Cited by Felt in "Massachusetts Currency." ↑ "Distressed State of the Town of Boston Considered"—Boston News Letter. ↑ "A Countryman's Answer to the Letter" (i. e., "Distressed State of the Town of Boston") . ↑ Massachusetts Provincial Records. ↑ Acts of Massachusetts. ↑ Rhode Island Colonial Records, Vol. v, p. 9. ↑ In Weeden's "Economic and Social History of New England," there is much valuable comparative matter on finance and currency. ”