YALE UNIVERSITY
LIBRARY

Gift of
Edith and Maude Wetmore
in memory of their father
George Peabody Wetmore
B.A. 1867

RHODE ISLAND

Historical Tracts.

KO. 8.

PBOVIDENCE
SIDKBY S. BIDEK.
1880.

Copyright by
SIDNEY S. BIDEK.
IS79.
X. &

PELSTBD BY PKOVIDENCE PKESS COMPANY.

SOME ACCOUNT

BILLS OF CRE!)IT OR PAPER MONEY

EHODE ISLAI^D
FKOM THE
First Issue in 1710, to the Final Issue, 1786,
BY
ELISHA R. POTTER
AND
SIDNEY S. RIDER.
WITH TWENTY ILLUSTRATIONS.

PBOVIDENCE
SIDNEY S. KIDER.
18S0.

Copyright by
SIDNEY S. EIDER.
1879.

PREFATORY NOTE

JUDGE ELISHA R. POTTER.

This pamphlet was first published in 1837. The subject of it
was suggested by the troubles in the currency growing out of the
suspension of specie payment. It was subsequently re-printed
entire (with the exception of one note of two lines) by Mr. Henry
Phillips, Jr., in his Historical Sketches of the Paper Currency of
the American Colonies prior to the adoption of the Federal Con
stitution. Mr. Rider, in the present new edition, has enlarged
it very much, carrying out in full many things merely cited, or
referred to, in the original. He has also added from his own in
vestigations and materials, and has illustrated it by facsimiles
of the old paper money in his own possession, of which he has a
greater collection than any one else, and of several of which he
has the only specimens known to be in existence. I take pleasure
in saying that he has thus made the essay of double, or even
more than double, the value of the original publication.
E. R. P.
ICINGSTO^f, R. I., October, 1879.

PUBLISHER'S PREFACE.

The essay which forms the basis of this Tract was written
by Elisha E. Potter, and printed in this city in the year 1837,'
under the title, "A Brief Account of Emissions of Paper Money
made by the Colony of Rhode Island." With the consent of its
author, the publisher has extended tlie narrative by the addition
of some details of minor consequence, yet nevertheless, such as
he conceived would interest the readers of the present day.
Some of these may bo briefly referred to. Among them the peti
tion of James Franklin, suggesting the printing of bills from
stereotypes, instead of copper-plates, and which the Assembly
"voted out." The very quaint petition of the General Treas
urer, Abraham Borden, which so well sets forth his ways of
business and his troubles. This might well have been supple
mented by a petition presented to the Assembly, and a resolution
1. The pamphlet was in octaTO form, containing forty-eight pages, twenty-
six of which were occupied with the Beports of Committees, and the remaining
twenty-two with the narrative proper, and the Table of Emissions and Burn
ings. This pamphlet has become quite scarce, and in such demand that copies,
in auction sales in other cities, have realized the sum of two dollars. It con
tained no illustrations.

VUl HISTORICAL TRACT.
passed by them in 1757, granting a gratuity of one thousand
pounds, old tenor, to Thomas Richardson, the then General
Treasurer, and which the publisher ventures to append in a
note." The petition of Joseph Whipple, for relief from his
debts is also presented. This petition has been frequently re
ferred to in histories, but we believe, never before printed. This
was the first great mercantile failure in Rhode Island. It i#said
to have been announced in Newport by beat of drum. Much de
tail has been given to the bounties offered at various times by the
Colony, with a view to increase certain products, such as flax and
hemp, to encourage the catching of codfish and of whales, and aid
manufactures, as in the case of William Borden, for manufactur
ing duck. Much effort has been m.ade to gather everything that
1. The Petition of Thomas Bichardson, Gen'l Treasurer of the Colony of
Rhode Island, humbly sheweth : —
That he has by close application, and the assistance of five or six expert
hands, delivered out the greatest part of the Silver & Gold lodged in his hands,
to exchange for Crown Point Bills, and as your hon'rs are likely to have a great
deal of Leisure this Sessions, your Petitioner thinks it a very suitable time to
take into consideration what his allowance shall be for so difficult a piece of
Business, and therefore begs leave to lay before your hon'rs some of the cir
cumstances of said affair.
1st. The affair was thought to be of so great consequence that no less person
than his Honour the Govenor was appointed to have the care & charge of
Transporting the Silver & Gold from New- York to Newport, and lodging the
same in the General Treasury, where it hath been safely kept, but to the Great
Haszard of the Lives of himself and Wife, his House being robbed of between
three & four hundred pounds in Plate, Linen, &c. The Thieves not being able
to get at what they principally sought for.
2d. The great Care, Trouble & Besque in counting out the Silver & Gold, and
receiving the Bills & rendering a just Acco*t of the whole.

COLONIAL PAPER CURRENCY. IX
could well illustrate the depreciation of the paper money. With
this view reference is made to the relative values of bills of credit
and sterling, the rate of exchange at sundry times, the value of
silver by the ounce and pennyweight in bills, at various periods,
the prices of the ordinary commodities of the Colony and of
labor, the course of the bounty for the destruction of wolves ;
even the dinners of the Grand Jury have not been neglected. A
chapter on counterfeiters and counterfeiting is given, and another
relating to the law of Parliament of 1750, regarding the issue
of banks, the effect of which appears to have been to prevent
the depreciation of bills issued under it, and to seriously impair
their value as a circulating medium because of their being
hoarded, a circumstance which had not before occurred and
3d. The great Trouble of his House, which began soon after ye money ar
rived from New York, in Peoples constantly coming to enquire when ye same
wou'd be exchanged, and has been greatly Throng'd ever since he began to
exchange, 4th. The charge of keeping Two fires extraordinary with Candles, &c., being
obliged to work nights, as well as Days.
These Reasons, with many others that will be mentioned upon hearing the
petition, your petitioner hopes will be sufficient to prevail on the hon'ble Gen'l
Assembly (according to their accustomed Goodness in such cases) to allow your
petitioner a reasonable Reward for so extraordinary a Business. He humbly
conceives that two pr, Ct. will not be too much, which being granted to him
will cause your Petitioner, as in Duty bound, ever to pray, &c.
The General Assembly then passed the following resolution :
Whereas, Thoioas Richardson, Esq, the Colony's General Treasurer, pre
ferred a petition and represented unto this Assembly, that by close application
and the assistance of five or six expert hands, he hath delivered out the greatest
part of the gold and silver lodged in his office for exchanging of Crown Point

X HISTORICAL TRACT.
was not of long duration. The several Banks have been de-
¦ scribed in separate chapters, and such things as pertain to each
will be found in the proper place. Even at the risk of increas
ing the size of the Tract, the publisher has introduced the
preambles to the laws creating the banks, because he conceives
that no explanation can be so vivid and interesting as that made
by the people themselves ; and moreover by their presentation
quaintness of style and picturesqueness Is given to the narrative.
The value of the Tract has been materially enhanced by the ad
dition of specimens of the bills. These have been obtained
in several ways, partly by impressions from the original cop
per-plates reproduced by lithographic process. Of such are
the bills from 1715 to 1738, the plates of which are owned
by the Rhode Island Historical Society, and were loaned to
the publisher for this purpose. The four pound bill of March,
1750, was reproduced in the same manner, from the original cop
per-plate, in the possession of Henry Baylies, Esq., of Boston,
bills; that in rendering this service to the public he hath been in danger of
losing his life ; his house having been broken open, and he robbed of a consid
erable sum in plate, linen, and other goods, which he imagines was occasioned
by its being publicly known that he had the custody of the money given the
government by the King; that he was at great care, trouble and risk in count
ing out the gold and silver, in receiving the bills and rendering a just account of
the whole ; that the great trouble in his house which began soon after the money
was brought from New York by people's coming constantly to enquire when
the exchanging would begin, has continued ever since ; and Is not at this time
quite over ; and that he was obliged for carrying on the business to keep two
tires, and use many candles more than was customary in his house ; wherefore
he, the said Thomas Bichardson, prayed to be allowed a reasonable reward for
these, his extriiordinary services. This was granted as stated above.

COLONIAL, PAPEK CURRENCY. XI
and kindly loaned for this purpose. The specimens of the banks
of 1740, 1743, 1750, and of the bills of 1776, are facsimiles, done .
by the heliotype process, by consent of their owners, and to
whom acknowledgment has been made in the course of the
narrative. The fractional bill of 1776, the confiscated estates'
bill of 1780, and the bill of 1786, are printed by ordinary letter
press, the stereotypes used in printing the originals having been
recently discovered and loaned for this purpose. These ster
eotypes consist of the top, side pieces, and the seals, all else
is of the common stock of the printer. The only other speci
men is that of the bill of 1780, of which the publisher had a
sufllcient number of new un-issued specimens to present one in
each Tract. So far as he now knows, he has thus been able to
present a specimen of all the different styles of paper money
issued in Rhode Island, with but two exceptions. The Crown
Point bills of 1755, and the Lawful Money bills of 1756, he
has been unable to obtain. The former of these was the last
printed from copper-plates. The law provided that "the large
plates last used by the Colony " should be used for this issue, and
that the words " Crown Point " should be printed on the back.
It is possible that the plate of 1750, as given in the Tract, may
represent it. The Lawful Money bill of 1756 was to be printed
" wholly with types," and was the first produced in this manner,
a method which had been suggested by James Franklin in 1728.
Whatever pleasure the publisher has derived from his success in
obtaining so many specimens, is tempered by the absence of these
two. Thus the money itself is given, and with it, the reasons
for its issue in the language of the men who made it. The
publisher knows no better way of presenting its history. The-

XU HISTORICAL TRACT.
change of the motto. In Te Domine Speramus, referred to on page
44, is not quite correct as there presented. The original style
re-appears on the issue of 1743, and so far as he now knows, it
was not afterwards varied. Thus, In Te Domine Speravi appeared
only on the issues of 1738 and 1740.
Wherever original documents or laws have been reproduced,
the strictest attention has been given to preserve the spelling as
it is in the original; thus, " admiting," page 60; " encreasing,"
page 45; " expence," page 208; "Nicklis," page 78; " Benge-
men," page 78, and many others, are chargeable to the errors
of the original writers, and not to the present printers. So also
iu the use of capital letters in the laws, as in the case of the one
reproduced on page 45. These were used because they were so in
the original publication. They are not in accord with the present
usage. The publisher regrets the size to which the Tract has attained,
as he also does its price, which has, however, been rendered
necessary on account of the expense of its production.
Besides those gentlemen to whom he is indebted, and to whom
acknowledgment has elsewhere been given, his thanks are due
to E. M. Barton, Esq., Assistant Librarian of the Worcester
Antiquarian Society, to Alexander Farnum, Esq., Gen. Horatio
Rogers, and to the Hon. J. M. Addeman, Secretary of State, for
assistance given, and for friendly counsel.
Providence, R. I., December, 1879.

COLONIAL CURRENCY

BEFOBE THE

INTRODUCTION OF PAPER MONEY.

The English settlers in New England found in
circulation among the Indians, as their money, small
rectangular pieces of shells, some black, or bluish-
black, and others white ; each with a hole bored
through the center, that they might be strung to
gether, and counted, as they sometimes were, by
lineal measure, as by the fathom, at other times they
were sewed upon belts or garments as ornaments. i
1. Captain Church describes the belts of King Philip, which he obtained
from Annawon, at the time of the capture of the latter, thus : " Then open
ing his pack, he pulled out Philip's belt, curiously wrought with wampum,
being nine inches broad, wrought with black and white wampum in various
figures and flowers and pictures of many birds and beasts. This, when hanged
upon Captain Church's shoulders, reached his ancles, and another belt of wam
pum, he presented him with, wrought after the former manner, which Philip
was wont to put upon his head. It had two flags on the back part, which hung
down on his back; and another small belt, with a star upon the end of it,
which be used to hang on his breast. They were all edged with red hair, which
Annawou said they got In the Mohog's (Mohawk) country." — Church's His
tory of Philip's War, Drake's Ed., 1827, p. Ul.

HISTORICAL TRACT.

This Indian money was made entirely from shells of
two kinds ; the black or blue from the shell known
to-day as the quahaug, or round clam shell, known
to the Indians by the name of Poq<iahock. Eoger
Williams, in his observations upon this word, says :
"This, the English call Hens, a little thick shell
fish, which the Indians wade deepe and dive for
and after they have eaten the meat there (in those
which are good) they breake out of the shell about
halfe an inch of a blacke part of it, of which they
make their Suckaflhock, or black money, which is
to them pretious."! Their white money was made
from the shell known to us as the Periwinkle,
but which they knew under the name of Meteaii-
hock. In his account of this word Williams says :
"Of this they make their Wampum or white
money, of halfe the value of their Suckauhock or
blacke money." The stem or stock only of the
periwinkle was used. This currency was of course
made chiefly by the Indians living upon the coast,
and any who chose to do so, made it. This they
used in purchasing furs of all kinds and such other
things as they needed, like corn and venison, from
1. Williams's Key to the Indian Language, ed. 1827, p. 104.

COLONIAL PAPER CURRENCY. 3
the Indians living in the interior of the country.
These furs were in their turn purchased by the
English and by them sent to England. Wampum
was, therefore, current as money among both the
English and the Indians. The Colony of Massachu
setts, in 1643, made it a legal tender for any sum not
exceeding forty shillings, the black at four pieces
and the white at eight pieces to the penny.
" The Indians prize not English gold,
Nor English, Indians shell :
Each in his place shall passe for ought
What ere men buy or sell."
Even this singular currency was counterfeited, and
in 1647 the Colony of Khode Island in their first
code of laws ordered, "that if the Indians shall offer
to put away upon exchange or barter their false peagi
for good, and warrant it so to be and it is found
otherwise, it shall be confiscated to the public
treasury. "2
Two years later the same Colony fixed the rate at
1. The English called all peag, or stringed Indian money, wampum, which
was properly only the white sort.
2. Proceedings of the First General Assembly of the Incorporation of
Providence Plantations, and the Code of Laws adopted by that Assembly in
1647. 8 TO., Providence, 1847, p. 17.

4 HISTORICAL TRACT.
which black peag should be received, at four pieces
a penny, as in Massachusetts. A fathom of this
stringed money was worth at the time Mr. Wil
liams wrote his key to the Indian language, in 1643,
five shillings. It had been worth much more, some
times even ten shillings. This great decline was owing
to the fall in the value of beaver skins in England, a re
sult of the laws of trade which the Indians were entire
ly unable to understand. In 1658 the value of all
peag was fixed in Rhode Island at eight pieces the
penny, but at the same time the white peag was re
ceived in payment of taxes at six pieces the penny.
Four years later, in May, 1662, its value had fallen
so low that it was not received in payment of fees
or taxes, and it thenceforth ceased to be current.
At this period there was in circulation in the colo
nies some gold and silver coins ; these were princi
pally of Spanish or Portuguese coinage, the expor
tation of English coins being prohibited by law. A
mint was erected at Boston in 1652, at which were
coined silver pieces of the denominations of six and
twelve pence. These coins were less in value than
the English coins of the same denomination by two

COLONIAL PAPER CURRENCY. 5
pence in the shilling. These are known as the New
England coins. Following them came what is now
known as Pine Tree Money. ^ The circulation of
other coins than these, and English coin, was pro
hibited by law in the Colony of Massachusetts, as
was likewise the exportation of them. Nevertheless
at the period when Douglass wrote his Historical
Summary, nearly all, not only of this, but of every
1. The first coins strictly North American, were the New England coinage
of the Massachusetts Mintj in 1652. First came the New England coins of one
shilling and of a sixpence, bearing on their faces the simple legends, N. E.
XII., andN. E, VI. This was as rude an attempt at coinage as that of the
lonians or the MUetians of old time, but it answered all the purposes of a
young nation for a little while. It appears, howerer,~that so long ago as 1652,
there were among our Puritan forefathers some who would clip the edges of a
coin before it passed out of their hands, and these coins were eminently con
venient for the dishonest uses of such individuals, hence the New England
coins were soon suppressed and the coins known by the general term Pine Tree
coinage took their place. The New England coins are now very scarce, and
most highly prized by collectors. They have been very successfully counter
feited. The Pine Tree coinage was coined in large quantities — iu shillings,
sixpences, threepences and twopences. Of these there were several dies. The
trees were according to the fancy of the artist. We have one known as the
Shrub or Scrub Oak shilling, and others as before named. They differ also in
size and in weight. This coinage was continued for thirty-three or thirty-four
years, the date 1652 being never changed on the coins. The twopenny piece
was not issued till 1662, and always afterwards bore that date. This writer
gives the value, as curiosities, of these New England coins, at from twenty to
twenty-five dollars each, and of specimens of the Pine Tree money at from
four to five dollars each. — Prime's Coins, New York, 1S61. pp. 62, 63.

b HISTORICAL TRACT.
other kind of coin, had been driven from the Colony
of Massachusetts by the bills of credit with which
the land was then flooded.' After the Revolution
of 1688 England was for many years engaged in
almost continual war with France, and as France
was then, and until 1763, in possession of Canada,
the colonies soon became engaged in the cause of
the mother country and expeditions against Canada
as a matter of course followed. The first of these
expeditions occurred in 1690, and the first emis
sion of bills by the Colony of Massachusetts was
to pay her returning soldiers from this expedition. 2
It declined almost immediately to fourteen shillings
to the pound sterling, and was soon called in.
From this time onward the Colony continued to
issue such sums as were required for the public
treasury, with occasionally a larger sum, termed a
bank, which was to be loaned to the people. The
1. Douglass's Historical Summary, London, 17S5, vol. 1, pp. 133-1.
2. Komantic expeditions have been the bane of our northern colonies, by
incurring a paper public credit made a currency and legal tender. The ill con
certed and worse executed expedition anno 1690 against Canada introduced
this vicious currency. The very, very, very rash, bufrTery, very, very fortunate
expedition against Cape Breton, or Louisburg, I hope may terminate public
paper currency.— -Douglass's Historical Summary, London, 1755, vol. 1, p. all.

COLONIAL PAPER CURRENCY. 7
relative value of these bills compared with sterling,
fluctuated very much. Attempts to fix the relative
value by law was made from time to time by the
Legislature. Thus in 1711 the value was fixed at
140 to 100, but in 1748 it had declined to 1,000 to
100.^ As the Colony of Massachusetts was the first
to issue bills, so she went far beyond all the other
colonies in the amount of her issues.'^
The first emission^ of bills of credit by the Colony
of Rhode Island was for the amount of five thousand
pounds, in the year 1710, in the month of May ; one
thousand pounds more followed in October, and
another thousand pounds in November of the same
year. These bills were of the following denomina
tions : Two shillings, two shillings and sixpence,
five shillings, twenty shillings, forty shillings, three
pounds, and five pounds.^ They were receivable for
all Colony dues, and were to pass current equal to
1. Douglass's Historical Summary, London, 17S5, vol. 1, p. 311.
2. Douglass's Historical Summary, Loudon, 1755, vol. 2, p. 13.
3. Billsof credit were first emitted by the Colony of New York in 1709; by the
Colony of Virginia in 1755; by the Colony of Khode Island In 1710; by the
Colony of New Jersey in 1709; by the Colony of Pennsylvania in 1723; and by
the Colony of Massachusetts in 1690.
1. Acts and Laws of His Majesty's Colony of Rhode Island and Providence
Plantations in America. Newport, 1730, p. 60.

8 HISTORICAL TRACT.
coin in all payments whatsoever, " specialities " only
excepted, for five years, " if the General Assembly
then see cause to call them in." They were to have
the Anchor and Hope affixed in the scutcheon, with
such other impressions as should be thought needful by
the committee. Their form as fixed by the law was
as follows :

'T^ HIS Indented Bill of Due from the
Colony of Rhode-Ifland, and Providence-
Plantations, in New England, to the Pojfeffor
thereof pall be in equal value to Money, and
pall be accordingly accepted by the Treasurer
and Receivers, fubordinate to him in all publick
Payments, and for any Stock at any time in the
Treafury. Newport, Auguft i6th. 1710.
By Order of the General Affembly^ for the
Colony above-said.

The reasons assigned iu the preamble to the laws
for these emissions were : First, " Whereas this Col
ony has Received Orders from Her Sacred Majesty

COLONIAL PAPER CURRENCY. 9
Queen Anne for an Expedition to be Prosecuted
with speed against the French and Indian Enemies,
which by reason of the great Scarcity and Want of
Silver Money this Colony without some extraordi
nary means be used for the effecting the same would
be Unable to perform ; For Remedy whereof, and the
speedy procuring and equipping out all things nec
essary for the same" — and Second, "Forasmuch
as the Bills of Credit already Emitted by this Colony
are not sufficient to satisfy the Debts Created by
this Colony in the late Expedition undertaken
against Annapolis Royal in pursuance to Her Ma
jesty's Command, whereby many Persons are very
great Suflferers and several like to be Ruined
thereby, and there not being sufficient Silver in the
Colony to answer the same," be it therefore enacted,
etc. No specimen of these bills is known to be in
existence unless the specimens of the next issue
given in this tract were from the old plate, where
fore we have been thus particular in describing
them. They were doubtless very coarsely engraved
and very easilj' imitated, and as soon after their
issue, as October of the same year, the General As-

10 HISTORICAL TRACT.
sembly found it necessary to make a law punishing
counterfeiting. The following year, 1711, the Colony issued six
thousand three hundred pounds, which ended the
issues until 1715, when the Colony issued its first
bank.

THE FIRST BANK.
1715.

This bank consisted of forty thousand pounds, of
which thirty thousand pounds were issued in July,
and ten thousand pounds additional in October. ^
An important distinction is here to be noticed
between bills emitted for the supply of the treas
ury, which emissions were generally in small sums
as occasion required, and a bank, which was an
emission generally of a large sum, not for the
exigencies of government but to be loaned out at
interest to the people on mortgage security for a
term of years. The preamble to the act of 1715
gives the reasons for the emission : " Whereas it
hath pleased God to suffer the French and Indians,
our late Enemies, to maintain a long, bloody, and
1. Acts and Lows of His Majesty's Colony in Rhode Island and Provi-
^UQ^ Plantations. Newport, 1730, pp. 78-83.

HISTORICAL TRACT.
)ensive War against His Majesty's Subjects in
se parts of the Northern America ; in which
amity of War, this Colony hath been no small
irer, a great part thereof lying exposed to the
iults and Depredations of the Enemy both by Sea
1 Land, which to defend this. His Majesty's Colony
;h from time to time for this many Years past been
t to great Charge and Expence, which, together
th the extraordinary additional Charge that ac
ted by Her late Majesty's Commands to assist in
adry expeditions for the Reducing of Port Royal
i Canada, the defraying the Charge whei'eof
3ved so great a Burthen that it hath Reduced the
)ney of the Colony and other Mediums of Exchange
to a very low Ebb that thereby Trade is sensibly
cayed, the Farmers thereby Discouraged, Hus-
[idmen and others Reduced to great Want and all
•ts of Business Languishing, few having where-
th to pay their Arrears and many not where-
:hal to sustain their daily wants by reason the
ver and Gold in the first place necessary to defray
1 Incident and Occasional Charges hath been ex
isted ; those few Bills of publick Credit put forth

COLONIAL* PAPER CURRENCY. 13
by this Government falling short of discharging this
Colony's Arrears, hath left us little or no Medium of
exchange ; and whereas the annual, necessary and
unavoidable Charge of the Colony makes a consid
erable account and that His Majesty's Fort, called Fort
Anne, is gone much to Decay and almost every thing
therein out of Repair and that all sorts of Ammunition
and Stores are wanting, to furnish the same for De
fence ; especially at a time when War seems to threaten
us. And also His Majesty's Goal in the Metropolis of
this Government is calling for speedy and considera
ble Repairs and Enlargements and many other pub
lick Emergencies which cannot be omitted. Requir
ing considerable Sums of Money which to effect
their is no possibility in View saving that of
Emitting Publick Bills of Credit of this His Majes
ty's Colony, to accomplish the ends aforesaid and to
Reduce the Arrears thereof unto a Ballance, always
depending on our Dread Sovereign's Countenance and
Toleration therein unto whose Royal Commands this
Colony as in Duty Bound will at all times readily
submit." Since there are four specimens of the bills
of this bank presented in this Tract, taken from an
2

14 HISTORICAL TRACT.
original plate, one of which is still in existence,! it
will not be necessary to enter into a full description
of them. Very slight verbal differences exist be
tween the form as prescribed in the law of 1710 and
the bill as presented in the issue of 1715. They
were all indented bills. The object of such bills was
to assist the treasurer in detecting counterfeits. The
ornamental head band of the bill was irregularly cut
with shears, the upper portion bearing the number,
and the denomination of the bill was retained in the
Treasurer's office, while the lower portion went into
circulation. When it came back, it must fit its
counterpart, or it was declared counterfeit. The use
of the term indented is best shown in one of the
illustrations following. The ornamented headband of
this bill has been irregularly separated, and the whole
bill again presented by lithographic process, thus
showing the use and meaning of the term indented, so
far as it is used in this case. This indented money was
1. The printing of this issue of 1715 was done by Samuel Vernon, of New
port, and for it he received £200. The Trustees appointed to negotiate the
loans were Colonel John Wanton, Major Nathaniel Coddington, Major James
Brown, Mr. Robert Gardner, Captain Beiy'amin Ellery and Job Almy. The
business was mainly done at Major Brown's house, and for the use of the Ma
jor's house, room, fyer, table, chist, etc., the Colony paid £13 9» 4rf, precisely.

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o nuXtiigir aW Oi'.x pcn.ce ewe- n'om

.q's a,ruL olx. pcn.ce dU/£~ p-om Ute (ooLo-ruu o
txkoaxi. JsLana. cuna rroi>ia&-iu:€ r^Lajnixiilom^ vn^Neroi
ilrujuiMid lo Lne rohajsor tn^r-eof cj/iall oe in
V clUx& jLLcrvLai to rloiijSM ana. oknll oe aa:oramQ
Uj OLCxje'ptea bu (Ae Ir'^^uuror cmA sx.ectijoems' o^i^^^
2juaoroU7i (tioi/) hi/in. irn all jruotLck. vouuraenis.
y:3r6r cm/u zytoa\ ai Ojnm Urru-iAX tfieMJc^cuixrijc^^
oA/onrport lAhoaA'SslciMd Simi imJtjth^
'13\i OrcLr of ike jeaieToI AjserrJmj

>I715

 II2_L

COLONIAL PAPER CURRENCY. 15
issued from these plates at sundry times from 1715
until 1737, the various years being cut on the plate
as required. In 1738 a new plate was engraved and
six specimens from it are incorporated iu this tract.
It was not indented money, the issue of which ceased
with the year 1737. It should be further remarked
that the act of July, 17 15, does not prescribe a form,
thereby leaving us to presume that the form iu the
act of 1710 was to be followed. The following de
nominations were ordered : One shilling, two shil
lings and sixpence, three shillings, four shillings and
sixpence, five shillings, ten shillings, twenty shillings,
forty shillings, three pounds and five pounds, being
in the whole thirty thousand pounds, " which Bills
shall not be Pasted, Covered, or Lin'd on the back
side on any pretence whatsoever."^ This being a
bank, the bills were to be loaned to the inhabitants
of the Colony at five per cent, interest for a period
of ten years, upon real estate mortgage security of
double the value of the loan. The annual payment
of interest was not provided for in the mortgages,
1. Acts and Laws of His Majesty's Colony of Rhode Island and Providence
Plantations, in America. Newport, 1730, p. 81.

16 HISTORICAL TRACT.
but was secured by bonds, by which means the gov
ernment was defrauded of a large portion of the in
terest. The original record of the loans of the first
and second banks is still in existence, although some
what mutilated, being little else than a few loose
sheets sewed together without binding. It presents
the names of the borrowers in each town, and the
amount taken by each person. The amount assigned
to each town was the same in both banks. Provi
dence was assigned £6,500, Newport £11,511, Ports
mouth £5,993, Warwick £2,363, Kings Townei
£7,080, Westerly £2,249, Greenwich £1,201, Jamesi
Towne £1,883, New Shoreham £1,212.
1. In the spelling and division of these words the original record has been
followed.

eace

^fuALnkl ^i[l£ ^mlfof^emt due /^
tfu [dolciu/ or Synoax)QlrLaivGi ajid. XrcruLxic..^. _-,
Jui(ddtu7jT.s in &mn/Q rwiaiaoi io the Jjofs cjsor.
uwr^ 1^ QjnjLiL ue i\i VaLat caaoXto QfLoiwui
clbid QphjilL be acjoorCLLnalij accepted fju ificzi
Jr-easurer and ^\jec&iAj&rs oiwvrdunale tot
nini uiaJlJiioiLjcAzPannrijeriisy^Jcir (hnu^tock
at oBu itme i\\ lae^lre(uuru(Wmrp(nf ^y^^kocm
QJsUind QJlliv ik^fil til i7it;^^\Oioe'^
betxardi muemiJoujn

THE SECOND BANK.
1721.

No further issues were made by the Colony until
1721. In May of that year another bank was is
sued to loan to the inhabitants. It consisted of
forty thousand pounds. The reasons assigned for
the issue are found in the preamble : " Forasmuch
as the Silver and Gold formerly passing in this
Colony is altogether exhausted and the Bills of
Credit Emitted by this Colony are not a sufficient
Medium of Exchange whereby the Commerce and
Trade of this Government is exceedingly Obstructed
and the Affairs thereof very much hindred ; And
also Fort Ann calls for very speedy and great
Reparations, which is impossible to be done, for
want of a Medium, without the Raising and Emit
ting such a Sum as aforesaid. "'
1. Acts and Laws of His Majesty's Colony of Rhode Island and Providence
Plantations in America. Newport, 1730, p. 115.

18 HISTORICAL TRACT.
The act provides that hemp or flax might be
received by the treasurer in payment of interest
on this loan, thus encouraging the growth thereof,
and explaining the use of the term stock in the bills,
which doubtless meant such like commodities as
came into the possession of the treasurer in pay
ments of dues to the Colony. In 1718, "forasmuch
as the three pound bills of credit on this Colony,
emitted in the years 1710-11 aforesaid, have been
counterfeited, whereby great damages happened to
several persons, which may discourage the currency
of said bills if not prevented," they were called in.
This also happened with the forty shilling and five
pound bills of 1715 and 1721, in imitation where
of some " wicked persons have engraved a plate and
altered some forged bills stamped therefrom, ^ the
consequence whereof may prove very injurious to
1. Occasionally large emissions of bills of credit were made for the uses of
the general treasury between the emissions of the banks. Such a case was
that of 1726, on which occasion £46,631 were issued. This was under the law
calling in and exchanging these five pound and forty shilling counterfeits.
John Coddington, of Newport, printed or had the printing executed, and for it
he received two hundred and seven pounds. Robert Gardner, of Newport, was
appointed one of the six signers of the bills of the former bank. He also
signed this issue, for which service he received fifty pounds, and nine pounds
additional for the use of his house and fire at the signing of the same.

COLONIAL PAPER CURRENCY. 19
the currency of said bills." In consequence of the
habit of tearing the bills and passing them in halves
and quarters the General Assembly found it neces
sary to prohibit such mutilations.
In December, 1724, the General Assembly passed
an act calling in the bank of 1715 within three
years, or in 1728. In the latter year they repealed
the former act, calling in the bank, and extending
the time ten years, one-tenth annually, without in
terest, from the time of the passing of the act. Ten
distinct bonds were to be given for the amount of
the respective mortgages. A specimen of these
bonds, but of a later date, is presented below. i The
[1.] Colony of BTiode- Island, Sec.
1/" NO W all Mem by these Presents, That I Joseph Angel of
Providence in the County of Providence ; yeoman, am holden and
firmly bound unto John Wanton, William Coddington, George Gould.
ing, Daniel Updike, JfiJileel Brenton, and John Gardner, all of New
port, Gent. Trustees for the Colony aforesaid, in the full and just Sum
of ten Pounds in good and passable Bills of Publick Credit, to be paid
to the aforesaid Trustees, or to such Persons as shall by the General
Assembly of said Colony, be from Time to Time appointed in their
Stead. For the Payment whereof well and truly to be made, I bind
my self, my Heirs, Executors and Administrators, firmly by these
Presents. Sealed with my Seal. Dated the nineteenth Day of feb-
ruary in the sixth Year of his Majesty's Reign. Annoq ; Domini, 1732-3.
rnHE CONDITION of this Obligation is such. That if the above
bounden Joseph Angel his Heirs, Executors or Administrators, shall and

20 HISTORICAL TRACT.
depreciation of these bills, which began very soon
after the .first emission, must have been increased by
the extension of the time of their redemption.
do well and truly pay, or cause to be paid, unto the above named Trustees, or
to such Persons as shall be appointed in their Stead as aforesaid, to and for the
Use of said Colony, the full Sum of five Founds in good and passable Bills of
Publick Credit of said Colony, on or before- the tenth Day of nouember which
will be in the Year of our Lord, One Thousand Seven Hundred and Thirty-
Seuen and that without Fraud or further Delay, then this Obligation shall be
null and void, and said Sum shall discharge one Tenth Part of the Mortgage
whereby said Colony hath Security for the same Money; but upon Failure,
shall be in full Force and Virtue."
Signed, Sealed and Delivered, i ["memorandum , the words John Gardner was"]
in the Presence of ) \_ enterliened before signeing and sealeing, J
EicHAKD Waterman, Juh'k,
Nekiah Waterman. JOSEPH ANGEL.

Iw JncUnLedlkMi/LL (T^(Jlyree Q) huliihQs iDvue^
m the (rpUTfyu 6t(J\moajslMji\a6u3r^
umlaiiorhi vn llemjOn/ji^TiaSio^y^^mcfr uwrt
(DrmlllDcun. HjcjjAie^jVuuloJKoTiey umAflmi
be (lajsrajunaiAi oJxeApkM(nj{heQ>r^su/r&r oaicLj,
[j\^eLwLis SuLomiruii to rwm. im. all U'^vhiick.
UvjumzTds anam amj otocA. alcumilAm£ in\-i
ikeQreaswru I iemxjport ^uLu ike
Grdie/r sffike S&ne/ral

jorn

THE THIRD BANK.
1728.

The preamble to this act of 1728 seems like all
the others, to be of sufficient interest for its repro
duction : " Whereas an Act of the General Assem
bly, of this Colony, made the 29th Day of Decem
ber, 1724, in addition to two Acts made and passed
in said Colony, in the Year 1715, Orders and Directs
the Forty Thousand Pounds, being the first Bank
emitted in this Government, to be called in out of
the Hands of those Persons entrusted therewith,
and let out again to other persons not having before
had Money upon Loan in manner as in and by said
Act is expressed ; Which afftiir having been duly
weighed and maturely considered, and it appearing
that the ends and purposes for which said Bank was
first emitted was fulfilled and accomplished, and
that, therefore, it is most Consonant to Justice, and

22 HISTORICAL TRACT.
most agreeable to the Honour and Integrity of the
Government not to keep out said Bank longer than
Necessity required, or to the Prejudice of said Cur
rency. It being also in like manner considered that
the persons who took said -Money upon Loan have
been very punctual and exact in the Payment of the
Interest thereof, for the carrying on those wise ends
and purposes for which the same was emitted, and
that sundry of them by paying Interest, as aforesaid,
have been so exhausted in their Stock, that for the
Government to exact the Payment iu of said Bank
in compleat Sums at one time, as the same was
emitted, would inevitably tend to the Ruin and De
struction of many Families, good Subjects of the
King ; And the General Assembly aforesaid having a
due Regard to the aforesaid Inhabitants of the Gov
ernment, involved, as aforesaid, as well as to the
publick Fund of the Colony ; and judging it an In
fringement upon the Libertys and Priviledges of the
English Subjects to inrich the one at the immediate
Ruin of the other. Do Order and direct The calling
in, and sinking said old Forty Thousand Pound Bank
(of 1715), and the emission of Forty Thousand

COLONIAL PAPER CURRENCY. 23
pounds of New Money."' Further reasons are con
tained within the law and are here given : " Where
as, the General Assembly of this Colony, at their
last Sessions, passed a Vote for the sinking and
dissolving the first Forty Thousand Pound Bank,
(1715), emitted by this Government, which this
General Assembly have formed into an Act, and
regulated for the effecting thereof: And at this junc
ture there being so great a scarcity and want of a
proper Medium of exchange, that not only Trade
and Commerce, which are the Nerves and Power of
the Government, begins in a sensible manner to De
cline, Stagnate and Decay, but the publick Affairs of
this Colony, of the greatest Importance, and those
things whereon depend our Peace and Safety for
want of a proper and sufficient Medium of exchange,
cannot be put in proper Older and Regulation ;
Fort Anns requiring a considerable Sum for the fin-
1. Acts and Laws of His Majesty's Colony of Rhode Island and Providence
Plantations inAmerica. Newport, 1730, p. 152.
2. Fort Anne was a fortification built on Goat Island, in Newport Harbor,
during thf years 1701-7. It was capable of mounting twelve or thirteen cannon.
After the death of Queen Anne it was known as Fort George, and very much
enlarged and strengthened.

24 historical tract.
ishing thereof, and Ammunition Stores and other
things necessary are much wanted, especially at this
juncture, when the Peace of Europe hath been so
long disturbed by an obstinate and powerful Enemy
which must be expected to affect us in these remote
Parts of the World except God shall please to crown
his present Majesty's wise endeavours with success,
and that such a Medium of Exchange may run
through this Government at this present time (which
portends difficulty and trouble) and that the Inhabi
tants of this Government may subsist & preserve in
some measure, their former Station and Commerce
and that those things' already begun for the Defence
of our selves and the Neighbouring Governments may
be carried on speedily and fully perfected, so that we
who live in the Face & Front of the Continent of
New England may be above the fear of any Attack
from our Enemies and in a Capacity to live peacea
bly and undistrusted."^
1. Acts and Laws of His Majesty's Colony of Rhode Island and Providence
Plantations in America. Newport, 1730, p. 154.
2. The means here devised and designed as a protection to the trade and
commerce of the Colony, were the very means by which it was utterly lost and
driven from the Colony forever. Only twenty years thereafter, in 1748, Rhode
Island being unable to follow the lead of Massachusetts, and place her
finances upon a specie basis, lost all her foreign trade.

COLONIAL PAPER CURRENCY. 25
By this act another bank was issued, the third, to
the amount of forty thousand pounds. Others fol
lowed in 1731 and in 1733, the latter of a hundred
thousand pounds.
3

THE FOURTH BANK.
1731.

To the emission of 1731 there was considerable
opposition throughout the Colony, but especially
from Newport. A memorial from the merchants of
that town was presented to the General Assembly,
complaining of the ruinous effects of the paper
money on property and on trade. The Governor,
Joseph Jenckes, dissented from the passage of the
act and endeavored to establish his right to a nega
tive (or veto) but did not succeed.' After the pas-
1. Governor Jenckes was opposed to the paper money system, and the day
after the Assembly rose, he entered his dissent upon the records under the act
creating the new loan. This caused great dissatisfaction. Party spirit ran
high. The opponents of paper currency applied to the Secretary for copies of
the act, to which the Governor appended the requisite certificate of that offi
cer's official character and affixed the Colony seal thereto, as usual in such
cases. This was seized upon by the opposition to misrepresent Jenckes as
having endangered the existence of the charter by affixing the seal to a com
plaint against the government. Deputy Governor Wanton convened the

COLONIAL PAPER CURRENCY. 27
sage of the act, the memorialists obtained certified
copies of the memorials and of other documents for
the purpose of transmitting them to the home gov
ernment, whereupon the Deputy Governor, John
Wanton, convened the General Assembly at New
port, on the third of August, the Governor having
refused to do so. A stormy session followed, with
the result of completely overthrowing the hard
money party. The General Assembly took away
the certified copies from the memorialists and for
bade the use of the Colony seal for any such pur
pose. Petitions and memorials were immediately
sent to the home government by the merchants of
Newport, by the Governor's Council, and by the
General Assembly, but the Governor addressed him
self directly to the King, George the Second. The
state of the case appears to have been, that on the
fourteenth of June, 1731, the General Assembly
passed an act emitting sixty thousand pounds. The
Assembly, the Governor refusing to do so. They declared the entry null
and censured the Governor. — Arnold's Hist. K. I., vol. 2, p. 104.
Whereupon both parties appealed to the home government with the result as
given iu the text. Governor Jenckes lost his position and William Wanton
was elected Governor.

28 HISTORICAL TRACT.
session continued for ten days, or until the twenty-
fourth of June, on which day it adjourned. On the
following day the Governor delivered to the Secre
tary the act on which he had written : " His Honor
the Governor dissents from the said vote." The
General Assembly declared this veto null and void,
first, because they were not apprised of it during
the session. Second, the legislative authority could
not act except when duly convened, much less could
a single member encumber any act by dissenting or
protesting after the rising of the court. Other and
minor reasons were given. The Governor, in the
letter to the King,^ asked, first, whether any act
passed by the General Assembly of this Colony may
be judged valid, the Governor having entered his
dissent from it at the time it was voted. Second,
whether or not the Governor of this Colony may,
with safety, disallow or refuse setting the Colony
seal to copies taken out of the Secretary's office and
attested by him iu order to be sent to Your Majesty.
Third, whether it be the Governor's duty to examine
all such copies before he orders the Colony seal to
1. Rhode Island Colonial Records, vol. 1, p. 458.

COLONIAL PAPER CURRENCY. 29
be set thereto, the secretary which attests them
being an officer under oath. The reply to these
questions by the home government, were : First, that
though by the charter, the presence of the Governor,
or in his absence the Deputy Governor, is necessary
to the legal holding of a General Assembly, yet
when he is there he is a part of the Assembly and
included by the majority, and consequently that acts
passed bj"" the majority of such assembly are valid in
law, notwithstanding the Governor's entering his
dissent at the time of the passing thereof; in this
charter no negative voice is given to the Governor,
nor any power reserved to the crown, of approving
or disapproving the laws to be made by this Colony.
Second, that it was the duty of the Governor to
affix the Colony seal to such papers as were certified
by the Secretary, the examination and attestation of
the latter being sufficient without the personal exami
nation of the Governor. Third, that the Crown
hath no discretionary power of repealing laws made
in this province, no provision (in the charter) being
made for that purpose, provided the laws were not
repugnant to the laws of England, and regard being

30 HISTORICAL TRACT.
had to the nature and constitution of the place and
of the people, they were binding.'
The home government had at various times en
deavored, but with little success, to restrain the
emission of bills of credit by the colonies. To this
end a proclamation had been issued by Queen Anne
on the eighteenth of June, 1704, and an act passed
in 1706-7, the sixth year of her reign, whereby the
value of coin in the colonies was attempted to be fixed.
Further, in 1720, on the nineteenth of May, an order
in council was made, forbidding any emissions to be
made by the colonies without first having obtained
the royal assent. These oljstructions were, however,
of no avail, even if they were ever earnestly intended,
the flood was continued and men were ruined.
The result of this great disturbance was the com
plete triumph of the paper money party, led by the
leading members of the Wanton family. The elec
tion of 1733 made William Wanton, Governor, who,
dying in office, was succeeded by John Wanton the
following year, he being Deputy Governor. Gideon
Wanton was made General Treasurer. The Govern-
1. Rhode Island Colonial Records, vol. 4, p. 461.

COLONIAL PAPER CURRENCY. 31
or, the Deputy Governor, and the assistants, (or
Governor's Council,) formed the Supreme Court.
Thus it will be seen that the paper money party had
obtained control of the legislative, the judicial and
the executive departments of the government of the
Colony, and were practically sustained by the home
government. In considering the political questions which arose
from the issue of 1731, the reasons assigned for the
issue have been overlooked. The preamble to the
law declares that' " Forasmuch as it is conceived
that a Premium or Bounty for the Encouragement of
the Hempen Manufactury and of the Whale and Cod
Fishery would be of great Advantage and Benefit to
Great Britain our Mother Country, and at the same
time relieve the Government under its present Diffi
culties and Distresses by giving Trade and all other
Business a different Turn so that by Industry and
Labour the Government may not only be Serviceable
to his Majesty in raising Hemp and furnishing the
Navy with Naval Stores, &c., but be able to call
in and sink the Bills of Publick Credit formerly
1. Acts and Laws of His Majesty's Colony in Rhode Island and Providence
Plantations in New England in America. Newport, 1716, p. 158.

32 HISTORICAL TRACT.
emitted according to the several Acts for that Pur
pose, and carry on their Affairs publick and private,
for the future, without the present Difficulty and
Trouble." Whereupon the General Assembly de
clared that for every pound of good water-rotted,
well manufactured hemp, raised in the Colony, nine
pence should be paid, out of the interest received on
this loan ; and in the like manner four pence per pound
for well manufactured flax, raised in the Colony and
hatchelled ; and in like manner there shall be paid a
bounty of five shillings for every barrel of whale
oil, one penny for every pound of whalebone, and
five shillings for every quintal of good merchantable
codfish which shall be catched in anj' vessel owned
in the Colony and sailing out of some port thereof
by fishermen residing therein. This bounty was to
continue for a period of ten years.'
These large emissions of paper money had now
come to be opposed by the merchants and business
1. The effect of these bounties on the production of these articles is shown
by the amount of the bounties paid by the Colony : In 1733, £131 12s 8d; in
17.31, £758 18s id; in 1735, £910 10s 8d; in 17.36, £1,014 18s Sd; in 1737, £1,500;
in 1738, £1,781 4s ed; in 1739, £1,627 lis lid; in 1740, £1,462 16s lOd; in 1741,
£983 19s id; in 1742, £1,766 5s 7d; in 1743, 1,554 183 lid. These sums were paid
in cash as bounties on hemp, flax, fish, whalebone and whale oil.

COLONIAL PAPER CURRENCY. 33
men,i and by the more intelligent portion of the
community. Their advocates were the multitude
who were indebted and distressed in pecuniary af
fairs, and who thus expected to obtain for themselves
some measure of relief. It was an easy way of pay
ing old debts. Members of the General Assembly
were often inclined to favor the projects, not only
from the desire of popularity, but the less honorable
motive of pecuniary interest. Pretences were never
wanting, as the preambles which have been presented
show : The Colony was in debt ; Fort Anne was
continually out of repair ; Her Majesty's gaol in
the metropolis of the Colony was sadly out of order.
When specie had been driven away by the increase
of paper money, the scarcity of silver was a fresh
excuse for further issue. Or the issue was made for
the great advantage and benefit to Great Britain, our
mother country, in that it would be serviceable to
1. The names of the following prominent men were appended to the memo
rial to the home government, in opposition to the issue of money of August,
1731: Nathaniel Kay, Peter Bours, Edw. C. Searegrass, Jona. Tillinghast,
William Almy, John Lawrence, Nathaniel Newdigate, John Brown, Jr., Abra
ham Redwood, Simon Pease, Philip Tillinghast, Jr., John Tillinghast, John
Freebody, Benjamin Norton, Christopher Almy, Job Almy, Daniel Ayrault,
William Ellery.— Rhode Island Colonial Records, vol. 1, p. 457.

34 HISTORICAL TRACT.
His Majesty in supplying his navy with naval stores.
His Majesty having expressly ordered that no issues
should be made without first having attained the as
sent of the home government. But each new issue
only involved the people as a whole in greater diffi
culties. Those who were involved in debt, borrowed
of the Colony, on mortgage, a sufficient sum to pay
their debts, as the bills were in many cases made a
legal tender. When the time came for the repay
ment to the Colony a sufficient amount of the same
bills could be procured at a very great depreciation,
and moreover, the government was in very many
cases defrauded of the interest. To remedy this
latter evil a law was enacted in 1738, wherein it is
stated that at the loaning of banks no other than
personal security was taken for the interest on them.
" And it oftentimes happened that those who did hire
of the Colony and mortgaged their lands, did sell
and convey the lands so mortgaged to other persons
who have heretofore taken up those mortgages, and
in their own name pledged the same for the Princi
pal, but as to the interest no provision being yet
made, and the Persons receiving the Money from

COLONIAL PAPER CURRENCY. 35
the Colony removing out of it, thereby the interest
hath been entirely lost."i
The bills of each Colony generally passed current
in the neighboring colonies, the same as their own
bills, the rate of depreciation being affected to a
considerable degree by the amount issued by the ad
joining colonies. The rate in Massachusetts was
probably about the same as in Rhode Island. There
was at first a combination made iu Massachusetts to
refuse to receive the Rhode Island bills of 1733, but
it was not long adhered to.^ Large emissions were
1. Acts and Laws of His Majesty's Colony of Rhode Island. Newport,
1745, p. 206.
2. Ten years later than this, in 1743, the General Court of Massachusetts
Bay enacted a law practically declaring that, whereas the bills of this and
the neighboring governments are, and have been, the principal mediums of
trade and commerce in this Province, and some of those governments, more
especially that of Rhode Island, have frequently made extravagant emissions
of their bills, which, by as frequent experience have been found a great means
of depreciating all the bills of public credit current among us, whereby great
injustice hath been introduced, and should the same practice be continued, it
would be greatly injurious to the inhabitants of this Province and ruinous to
many. It was, thereupon, declared that any person who shall *• utter, offer to
put off, take or receive any Bill of Credit issued by the Colony of Rhode
Island since 1742, shall forfeit Three pounds, and be ever after disabled from
bearing any office of Honour or profit. Any officer of this government who
passed or received the bills shall forfeit Ten Pounds and lose his office, and
be declared ineligible for office. Inn Holders were to forfeit Three pounds and

36 HISTORICAL TRACT.
made by Massachusetts during this same year and
the rate of depreciation very much increased. Sil
ver, which had been worth eight shillings the ounce,
now rose to twenty shillings the ounce. i
It is proper to observe that although the Colony
took mortgages for the bills loaned, these mortgages
were not the least security to the bill holders. The
bills were mere promises from the Colony to pay a
certain amount to the bearer, who had nothing but
the good faith of the Government to depend upon.
Thus they differed essentially from the bills of the
banks, subsequently created by the State of Rhode
lose their licenses. Mortgages and Bonds which should be paid in part in the
pernicious currency, were declared fraudulent and void in law. A witness who
either received or payed any of the bills, and who should first inform against
and prosecute the other party, should be indemnified from the penalty and re
ceive half the forfeiture. Merchants and Shopkeepers forfeited ten pounds for
every offence. The act was to continue in force two years." — Acts and Laws
of the Colony of Massachusetts Bay. Folio. Boston, 1743, p. 09.
This appears to be only another illustration of the old fable of the wolf and
the Iamb. Douglass estimates the bills of credit, outstanding in 1748, of the
Colony of Massachusetts at £2,166,712; of the Colony of Connecticut at
£281,000; of the Colony of Rhode Island at £550,000; of the Colony of New
Hampshire at £450,000. By the table of emissions and burnings, appended to
this Tract, it appears that the Colony of Rhode Island had emitted at that
time, 1748, £658,000, and had called in and burnt £200,000, thus showing that the
estimate by Douglass was within the fact.
1. Arnold's History of Rhode Island, vol. 2, p. 105.

COLONIAL PAPER CURRENCY. 37
Island, for the payment of which all the property of
the corporation, and in many cases the private prop
erty of all the stockholders of the corporation is
pledged. 1 Furthermore, the present bills of the
National banks are secured by bonds of the United
States government, deposited with the proper de
partment of government before the issue of the bills,
and in sufficient amount for their certain redemption,
thus rendering them as secure as any circulating
medium well can be.
Frequent attempts were made by the General As
sembly to establish a rate of depreciation at which
the bills should pass current, but the rates, so fixed,
were seldom as high as the actual rate existing. In
Massachusetts, an endeavor, by some of the Council,
to establish the legal rate as high as it actually was
at the time among the business poi'tion of the people,
1. John Adams defined American paper money to be nothing but bills of
credit, by which the public, the community, promises to pay the possessor a
certain sum in a certain limited time. In a country where there is no coin, or
not enough in circulation, these bills may be emitted to a certain amount, and
they will pass at par, but as soon as the quantity exceeds the value of the ordi
nary business of the people, it will depreciate and continue to fall in its value
in proportion to the augmentation of the quantity. — Works, vol. 7, p. 296.
i

38 HISTOKICAL TKACT.
subjected the movers to a great deal of odium and
to loss of position in the government.
These numerous issues must have added immense
ly to the clerical labors of the Treasurer. A petition^
1. "The Petition and Bequest of me the subscriber is that you would con
sider how greatly the Generall Treasurer's fees is Reduced and ye business,
nothing abated but rather encrcased in that there is near three times as many
Bonds in the last bank as there was in the first and many people that have
taken of it are very backward about paying their interest that I am obliged to
sue a great number which is Vexatious to them and Troublesome to me and as
the money is grown older so it is more torn in pieces which makes more work
for changing of it. Had it been your pleasure to allowed me my sallery after
the custom ye former treasurers have all a long had theirs which hade a great
deal of equallity in it, for then if they did much or little their pay was propor
tionable, 1 had not troubled you with these loines but in as much as it is not
60 I hope you will bear with me, for altho 150 pounds may seem a great sum to
some of you yet it Dont amount to a trademans that lives in this town that is
at no Charge or Kesque when I believe you are sensible I am at both for as the
affairs of the Government Requires attendance continually and people from all
parts of the Country comes to the Treasury to get their money changed besides
a great number belonging to this colony that pays their Interest and Draws
money out so without making myself the Greatest Nigard on earth I must in
course give away some considerable part of my sallery and besides that I have
been at a great charge in making a place strong and convenient in my house and
purchasing an iron chest with sundry other things necessary for the security of
the Colony's money and Bonds and as to the Resque I believe you will allow it
to be Great in Changing so many thousand old torn Raged Bills that is Brought
in yearly, that hardly any man can count twice alike, a small instance whereof
you had february last by that money the Grand Committee Brought into the
Assembly so 1 hope you will consider the primases and make some addition to
my stated sallery for the time past which was the first year after the Rate of

COLONIAL PAPER CURRENCY. 39
sent by him to the Assembly, iii 1728, sets forth his
ways of doing business and his troubles, for which
reason it is here appended.
100 pounds per annum and the last year 150 pounds, as for the time to come I
shall att present J[)e silent not Knowing what that may bring with it, and also
not Doubting hat as I found faithfuU in that Trust committed to me but that
hereafter you will make a Reasonable additiou also if it should prove other
wise I can assure you I shall be but poorly of with Respect to my Sallery."
AliK. Bebden.
June 17th, 1730.
Abraham Borden, as the name is now written, was General Treasurer from
1730 to 1733, when Gideon Wanton was elected in his place.

THE FIFTH BANK.
1733.

The fifth bank consisted of the emission of one
hundred and four thousand pounds. The reasons
for its issue, as given in the preamble, ^ are :
" Whereas Fort George lately built by this Colony
for its Defence being now in a weak and defenceless
Condition by not having sufficient Cannon and Am
munition suitable for such a Fort, and for Want
thereof said Fort is rendered entirely useless, and
would rather prove injurious to this Government
than a Benefit and the Inhabitants of this Colony.
His Majesty's good Subjects might be in Danger of
being destroyed in Case of an Invasion by an hostile
Enemy, so that the Intent of this Colony in building
the said Fort would thereby be defeated if not
1. Acts and Laws of His Majesty's Colony in Rhode Island and Providence
Plantations in America. Newport, 1745, p. 172.

COLONIAL PAPER CURRENCY. 41
speedily supplied with Cannon and Ammunition
necessary therefor, and there not being Money in
the General Treasury sufficient for the Accomplish
ment of the same,
" And Whereas the Scituation of this Government
is very commodious for Promoting the Whale and
Cod Fishery, and that afl Encouragement of the
same would be very Advantageous to the Inhabitants
of this Colony, as well as of great Service and
Benefit to Great Britain our Mother Country. Aud
Forasmuch as it is conceived that the Carrying on
the Whale and Cod Fishery can be effected with con
siderable less Trouble and Charge to the Persons
concerned and trading therein, in case a Peer was
built or Harbour made at Block Island, which is
judged would be very convenient being so near the
Fishing Ground for all Vessels to resort to, usiilg
the Fishing Trade in order to the Making and Cur
ing their Fish." All which being duly considered
the Assembly concluded to issue another large
amount of their irredeemable paper. The interest
was to be used in the enterprise as specified, the bank
being loaned out on land security at five per cent..

42 HISTORICAL TRACT.
as usual, the amount to each person not to exceed
three hundred pounds. The odd four thousand
pounds was for cannon and ammunition for Fort
George. 1 In urging the reasons for this large issue,
the requirements of this fort appear to be the first
and principal necessity, after which this appropria
tion appears ridiculously small. The law expressly
provides that as soon as the hundred thousand
pounds are printed and signed, they must be loaned
to the people, without waiting for the finishing of
the four thousand pounds, which was actually to be
used in providing the guns and powder for the fort.
The interest of the bank for one year was appro
priated for the construction of the pier at Block
Island, and Gov. William Wanton, Benjamin Ellery,
Col. William Coddington, Mr. Joseph Whipple, Col.
Joseph Stanton, Capt. John Potter, Capt. William
Wanton, Jr., and Mr. George Goulding, were ap
pointed a committee to construct it.
1. This fort was a regular stone and mortar structure, built on the site of
the old Tort Anne, which had formed the pretext for the emission of so many
bills. It was a much larger and stronger work than the former one, — it was
rather the old Fort Anne, enlarged, strengthened and renamed, than a new
structure.

THE SIXTH BANK.
1738.

In the month of August, 1738, another bank, the
sixth, was issued. For the bills of this bank a
new set of platesi was engraved. The denomination
of each bill was printed upon the back of it. Six
denominations of this issue are presented with this
Tract, taken from the original plate. The bills are
1, But three of the original copper plates from which this money was printed
are now known to be in existence, and it is from these that the specimens
fl'om 1715 to 1738 are taken. There is no record of the engraver or designer of
the earlier ones. The plates were ordered to be lodged in the hands of the
Governor, (1728,) and there to remain until the person appointed to make the
money called for them, and as soon as the money was printed the plates were to
be returned to the Governor. In this connection may properly follow an inter
esting petition from James Franklin, to the General Assembly, relating to the
method of printing the bills. The idea of Mr. Franklin was, to print the bills
on a letter press, instead of a copper plate press, and by means of designs cast
from an engraved model, precisely as now we electrotype a wood cut. His
proposition was voted out, — he was a hundred years in advance of his time.
The notes of the Bank of England are to this day printed precisely as Mr.

44 HISTORICAL TRACT.
smaller in size and more comely in appearance than
the former issue. We note also a difference in the
legend. On all former issues it had been :
In Te Domine Speramus.
In Thee O Lord we trust.
Ou this issue the legend was changed in form, as
follows : In Te Domine Speravi.
In Thee O Lord have I trusted.
The former style re-appears on the issue of 178(),
the last and most memorable of all the banks.
Franklin proposed to do in the Rhode Island Colony in 1728. This petition is
from the archives of the State, and we believe has never before been printed :
To the Hon'ble Joseph Jencks Esq. Governour, The Hon'ble the Deputy Gov-
ernour, and the Hon'ble Council and Deputies of his Majesties Colony of
Rhode Island and Providence Plantations, in New England, in General Court
Assembled The Humble Petition of James
Franklin of New-port, printer.
Sheweth That the many Inconveniencys which Arise to his Majesties good
Subjects in New England, from their Bills of Publick Credit being so often
Counterfeited, have put many upon projecting Various Methods to prevent
them, but hitherto to no purpose.
Your Petitioner therefore humbly begs leave to Acquaint Your Honours with
the Reasons why our Bills of Credit, as they are now printed upon Copper
Plates cannot be secured from being Counterfeited, and likewise Propose a
Method of Printing them whereby all possible Attempt of that Nature may be
for ever prevented.

^_ ^Seaven vSfiilling's '^'^'*^5|7
I>^ zrence. </ue /ro/trtj/LC Go/o/i(/\
iff Rfiodc-L'lana^^ ^ f^^^r^je/joA
r/udl ue emux/ io^^o/ve^ and .r/iaJ/
^iw'tic p.<.iurru:nt,r and/of aru/
3tock at ajw time w. (he Irealury
III ,5VeI^ar/ Uii^":' t/ie: i^: /-/;. k Mc/ JfJ
^mOrt/cr cs/t/ic C/cnci'aLA/j^etntt(/J^(^^

^Skven

ILLINGS,
%x ff^ervce

COLONIAL PAPER CURRENCY. 45
The reasons assigned for the issue of this bank
appear in the preamble to the act in the following
words : " Whereas the several Emissions of the
Bills of Publick Credit issued by this Government
have entirely answered those Ends for which they
were emitted, and have tended greatly to the Inter
est and Advantage of the publick, by encreasing and
promoting Trade and encouraging all Kinds of
The first reason is That a Bill Printed upon a Copper Plate is so much like
the Stroke of a Pen, and the Ink lying but upon the Surface of the Paper not
having so deep an Impression as by the comon Way of Printing Bills of
small Denominations have by our comon writeing Ink been made larger, and
even whole Bills been wrote out so as to Pass many Hands without a Discovery.
Another Reason is. That iu a, new Counterfeit Plate a false Stroke being
made, may be easily mended by Hammering the Plate smooth in the false place
only, and going over it again with ye Engraver.
A third is, that more Ink being laid upon a Copper Plate for one Bill than
another, makes not only an Inequality in the Colour, of the Bills printed from
the same Plate some being very pale and others very Dark, but in the Dark
Ones the Letters appear fuller, than in the pale, and the Fxtream park or
Flourishes of every Letter come off on the Paper, to the full extent of the
Strokes of the Engraver on the Plate, when in the Pale Bills, the Extream Park
of many Letters do not Appear at all, which-makes a Manifest Diflference in
their Shape ; insomuch That Persons unacquainted with Printing, and not know
ing the reason of this Diiference, very often Mistake the true Bills for false, and
the false for true ; as it now'happens with the Ten Shilling Bills of the Province of
the Massachusetts Bay; there being a Counterfeit Plate of that Denomination.
The Letter (e) in the Word Province being most taken Notice of, the true Bills
are taken for false, because the Flourish at the Bottom of the (e) does not Ap-

46 HISTORICAL TRACT.
Business. And whereas the Times of Payment of
the first Bank emitted (1715) is almost expired, and
also near one Half of the second (1721) ; There is
an absolute Necessity of an Addition to the present
Medium of Exchange in order to supply those
Banks ; otherwise Trade and all other Business must
inevitably Decay and consequently the Publick
would thereby greatly ' suffer. And whereas the
pear at all in the Pale Bills, and in the Dark it comes off full and plain as your
Honours may Perceive by the Comparison of those true Bills. By this means,
there being a Manifest Difference in the true Bills, tho' taken from the same
Plate, a small difference in the false from the true, is not much taken Notice of.
On the Contrary, the Bills printed after the same manner with the Specimen
herewith presented, have so different an Appearance from the Strokes, of a Pen,
and the Impression sunk so deep into the Paper, that either to scratch out one
Word to put in another, or to Write a whole Bill without a Discovery, will be
altogether impossiljle.
Neither can this Method of Printing the Bills be Counterfeited by a Copper
Plate, there being so much difference between Copper Plate Printing and com
on Printing that even if it were possible, as it is not, to give every Letter and
Figure the exact Shape, yet the whole Appearance of the Bill would be so
vastly different, that a Careless Observer might Perceive it at first Sight.
And as for the reason above given, a false Stroke on a Copper Plate may be
easily mended, so on the Contrary, in the Engraving on the Mettal proper for
comon Printing, the Ground, or that part of the Cut, which leaves the Paper
White, being Cut away, there is ng raised substance left in the Mettal but that
which makes the Strokes of the Letter or Figure ; which makes it impossible to
mend the least Mistake, where it is Necessary that any Part of a Letter, &c
should be drawn out longer, or made fuller — and besides in this way of En-

N

yJl'Ky^ i^/fcc c/ae/ro/?! tAc Golont/ of\
^y^Aoi/cySs/a/u/ 3^^^ f/ie ^ofj-c/j<rr
^//u// ar cy^/jS'A'^o Sf "Coney ^yrAcr/Z^Or^i
•/icecyj^cd Ay y^ ^'cc/y^//^c^ in ccic\
^ity^a/>Ae yoay/yzcn/^ ^y^crr ani/(^^
^<fyfcjc4 a/ a///y /<r/nc f/i ly-'C^cafurif^]
^ Al^oyoo/^r (7c^y:y22i/7^-s^yOraer'^-iy:
^^oA/Ae General Afsembh':

i73Sr^1

Sr'

s.

um and

COLONIAL PAPER CURRENCY. 47
Colony House in Newport is so much out^of Repair,
that the same without great Cost and Charge cannot
be refitted ; and as the same at present is very com
modious for the Courts to meet in to transact the
publick Afiairs of this Government, it is judged
necessary that a new Colony House should be built ;
and there being not Money in the Treasury suflScient
for that Purpose. Aud whereas there is a Necessity
graving the Mistakes would be so Numerous, that by Beginning the whole
again on a new Piece of Mettal, still new Mistakes would be made, insomuch
That Your Petitioner Supposes, speaking Moderately, it would take one Man
not less than an Age to Produce a passable Counterfeit Bill ; but to Produce one
exactly Agreeing in all its parts with a true one Engraven and printed in the
manner Proposed, cannot possibly be done;
Your Honours will perceive, in the Specimens herewith presented, a line of
Flowers at the Top and Bottom of the Bill : Your Petitioner Proposes, that
Flowers of an irregular Ground be cast, to be placed after the same manner,
and likewise some Particular sorts of Letters; and that the Ground Punches,
those for such Flowers and Letters, the Matrices, and such Flowers and Letters
themselves, be delivered into the Hands of the Government; And your Peti
tioner (if your Honours shall think fit to employ him in this piece of Service to
the Country) be underOath, not to cast any more of such Flowers & Letters
than what are for the Governments Use, nor suffer any to be cast or Used in
any other work ; By this means the Bills will be forever Secured from being
Counterfeited; For the Nature of Letter Founding is such. That a Man having
cut and cast such Flowers and Letters, cannot himselfe by any means do it
again, without a Manifest Difference, which will be Obvious to every ones Eye
at the first Vision.
The Cutting the Indents and Escutcheons, casting the Flowers and Letters,

48 HISTORICAL TRACT.
of building a Light House at Beaver Tail, which
will be of singular Service for Vessels coming into
the Harbour in the Night Season, and prevent great
Damage which is occasioned for Want thereof. And
whereas the Payment of the Interest of the Bank
made in the Year 1731 was appropriated for the Use
of the Fishery and Hemp Manufactures ; and the
same being near expired, and considering the In
crease of those Manufactures by such an EncQurage-
mcnt, it is judged necessary to make some further
Provision for the same. All which being duly Con
sidered, the law was enacted." ^
Neither the form of the bill, nor the denomina-
as well as Printing the Publick Bills of Credit in the Method above Proposed,
may be Performed by Your Petitioner, without the Assistance of any other
Person, and much Cheaper than they can be Printed only on the Copper Plates
already Engraved. Your Petitioner therefore humbly Prays he may have the
Honour of Serving this Hon'ble Court, and his Majesties good Subjects of this
Colony in this Affair. And your Petitioner as in Duty bound
Newport, May 2. shall ever Pray &c.
1728. JAMES FRANKLIN.
[Endorsed on the back.]
Its the opinion of this house, that this Petition be Voted out. Pr Ordr
J. Lyndoji, Clerk.
1. Acts and Laws of His Majesty's Colony of Rhode Island and Providence
Plantations. Newport, 1745, p. 211.

COLONIAL PAPER CURRENCY. 49
tions to be made, were prescribed by the act. The
rate of interest was fixed at five per cent., and the
mortgages to be given were to secure both the prin
cipal and interest. The sums to be loaned to each
person were to be not less than twenty-five pounds,
nor more than three hundred pounds, the security
to be on real estate, and William Claggett i was to
be employed to impress the bills. By a report
made by a committee of the General Assembly,
which is reproduced in the appendix to this Tract,
it appears that there had been issued for the supply
of the treasury down to October, 1739, upwards of
one hundred and fourteen thousand pounds, and in
addition to that sum, three thousand pounds to loan
1. William Claggett is chiefly known to the people of this generation as the
maker of fine, old-fashioned long clocks, now so highly prized. He was born
about 1696, and died October 18, 1749, at Newport. He was admitted a freeman
in this Colony in 1726. His shop, and probably his residence, stood in New
port, on the site of the present city ball. He was a prominent member of the
Second Baptist Church, of that town, and out of this connection grew the book
written by him, entitled " A Looking-Glass for Elder Clarke and Elder Wight-
man and the Church under their Care," 1721. His son Thomas succeeded him
in the clock-making business, and was himself succeeded by his brother-in-law,
James Wady. For the most of these particulars, the publisher is indebted to
Dr. Henry E. Turner, of Newport, a careful and pains-taking antiquary.
5

50 HISTORICAL TRACT.
to William Borden.' It further appears by this re
port, that of this sum there had been called in and
burnt, upwards of one hundred and five thousand,
seven hundred and four pounds, leaving only about
eleven thousand, two hundred and ninety-six pounds
iu circulation. But it must be recollected that this
was in addition to the outstanding bills of the several
banks that had been issued. The gross amount of
those banks was at that time three hundred and
1. William Borden, of Newport, petitSKied the General Assembly, in Au
gust, 3722, for a bounty for making duck. His petition was granted, amount-
ingto twenty shillings for each bolt, for five years. At the October session, of
the same year, the time was extended five years longer, or in all, ten years.
In May, 1725, Mr. Borden asked for further assistance, and received a loan of
five hundred pounds. (Rhode Island Colonial Records, vol. 4, p. 407.) In
June, 1728, Mr. Borden feeling the necessity for further assistance, sent in
another petition, stating his inability to carry on the business without further
help, and praying for it, that the trade might not be lost. The General Assem
bly voted to print for hiiA three thousand pounds, he to be at the cost of print
ing, to have the use of the money without interest, for ten years, and to produce
one hundred and fifty bolts of duck per annum. (Rhode Island Colonial Rec
ords, vol 4, p. 455;) In June, 1731, Mr. Borden again appeared, aud asked for
further help. The General Assembly extended his first loan for ten years
longer, without interest, and allowed him to reduce the quantity required by
the former resolution of one hundred and fifty bolts, to fifty bolts. The result
of these bounties on the production was this : In 1724, eighty-nine bolts ; in
1725, one hundred and sixty-five bolts ; in 1726, two hundred and two bolts ; in
1727, fifty bolts. The amount produced in other years does not appear. A bolt
was thirty-five yards.

COLONIAL PAPER CURRENCY. 51
eighty-four thousand pounds, what amount had been
repaid by the borrowers we have no means of accu
rately determining, but it was probably not large.
If the population! of the Colony was, at that time,
twenty thousand, the public debt would be about
fifteen pounds per capita.
1. The population of the Colony was, in 1708 ... 7,181 ; in 1730 . . . 17,935 ; in
1748... 32,773; in 1755 ... 40,414 ; in 1774 ... 59,707; in 1782 ... 52,347.

THE SEVENTH BANK.
1740.

In September, 1740, another bank, the seventh,
was emitted. It was in amount twenty thousand
pounds. The occasion of its issue is best recited in
the preamble to the act : " Whereas the Colonyi
labours under great Charge and Expence by encour
aging, enlisting and fitting out two Companies of
Soldiers according to His Majesty's Instructions for
the present Expedition against the Spaniards, and
have at their own Cost built and fitted out a private
Vessel of War^ of good Force to cruize on the Coast
1. Acts and Laws of His Majesty's Colony in Rhode Island and Providence
Plantations in Ne* England in America. Newport, 1745, p. 226.
2. This vessel was the Colony Sloop Tartar, whereof Col. John Cranston
was made Captain, for her first cruise. She became under his command famous
in the annals of Rhode Island. She was of one hundred and fifteen tons burthen,
was ordered to be built in February, and finished in June, at a cost to the
Colony for the vessel and outfitting of £8,679. She went upon her first cruise,
and made her first capture, in July. She mounted twelve carriage guns and
twelve swivels, and was sufficiently capacious for a hundred men to engage in

COLONIAL PAPER CURRENCY. 53
of New England, for the guarding and securing of
Shipping and Trade, and now in time of -War are
under a Necessity for the Preservation of themselves
and other Parts of New England to which they are a
Barrier to put themselves in a proper Posture of De
fence and for the Security of His Majesty's Subjects
and Territories here, to furnish themselves with War
like Stores ; For the Efi'ectiug of which and defray
ing the constant Charge attending, the Inhabitants of
ttiis Colony above any other Part of New England
a proper and sufficient Medium of Exchange is of
absolute Necessity." These bills difiered from all for
mer issues, in that the former had merely expressed so
many pounds, shillings, or pence, at which they were
to pass current, while in this issue the General As
sembly further attempted to fix their value in gold
or silver coin. Their value, as determined by the
law, was to be nine shillings per ounce of sterling
alloy (silver), or six pounds, thirteen shillings, and
four pence, per ounce of coined gold. This was the
beginning of what was known as new tenor bills.
battle on her decks. She served at the seige of Louisburg, under command of
Capt. Fones, and was, indeed, in almost constant service until 1748, when, with
all her equipments she was ordered sold by auction.

54 HISTORICAL TRACT.
Occasionally a quantity was printed from the old
plates, which was known as old tenor. These terras
continued to be used until about the j'ear 1758,
subsequent to which time all bills were called law
ful money bills. The form of the bills were as
follows :
This Bill of due from the Colony
of Rhode Island &c to the Possessor
thereof shall be in value equal to oz.
dwt. gr. in silver Troy weight of
Sterling Alloy or Gold Coin at the Rate
of £6 13s. id. per ounce or to such a
sum, in any medium of exchange as
shall be passing in the Government as
will be equal to so much Silver or
Gold ; and shall be accordingly ac
cepted by the Treasurer of said Colony
and the Receiver thereof in all Pay
ments by order of the General Assem
bly. Newport, September 16, 1740. i
Instructions having been received by the General
1. Acts and Laws of His Majesty's Colony in Rhode Island and Providence
Plantations in New England in America. Newport, 1745, p. 227.

COLONIAL PAPER CURRENCY.

55

Assembly from the Lords Justices of England to
observe the act of the sixth of Anne, which was an
act for ascertaining the rate of foreign coins in Her
Majesty's Plantations in America, amended the act
they had passed the preceding September. The bills
were to be loaned, and the borrowers, when the time
came, were to make payment in the same bills, or in
silver, at six shillings and nine pence per ounce, or
in gold, at five pounds per ounce. This value was
expressed on the face of the bills. Some difficulty
was experienced in arranging the comparative value
of old tenor and new tenor. i It became necessary
for the General Assembly to settle the matter, which

1. The measure of silver by the ounce, indicates well the depreciation of the
paper money :
In the year 1710 (First Issue) one ounce of silver equalled Eight shillings in bills.

1715, First Bank
1721, Second Bank
1728, Third Bank
1731, Fourth Bank
1733, Fifth Bank
1738, Sixth Bank
1740, Seventh Bank

Twelve .
Sixteen Eighteen Twenty-two
Twenty-fiveTwenty-seven Twenty-seven

These quotations are from the letter of Gov. Richard Ward to the English
Board of Trade, January 9, 1740. It appears in full among the documents at
the close of this Tract, and also in Rhode Island Colonial Records, vol. 5, p. 8.

56 HISTORICAL TRACT.
was done by an act declaring six shillings and nine
pence, new tenor, equivalent to twenty-seven shil
lings old tenor, or as one is to four. Great diffi
culty was experienced in collecting the various banks
as they became due, on several occasions the Gen
eral Assembly was obliged to order the mortgages
and bonds to be put in suit. In the year 1741 there
were five hundred and thirty-nine such suits in the
six towns of Providence county, viz. : Providence,
Warwick, Greenwich, Smithfield, Scituate, and
Glocester. In the following year, 1742, there
were one thousand and forty more such suits insti
tuted in the same towns, but the aggregate sum of
these latter suits was only about £3,880.

THE EIGHTH BANK.
1743-4.

The emission of the eighth bank was ordered in
February, 1743-4. Its amount was forty thousand
pounds, new tenor. The reasons for its emission
are, as usual, recited iu the preamble : " Whereas^
the Colony hath been at great Expence and Charge
in putting themselves in a posture of Defence in the
present war with Spain, which still subsists, and
continually encreases the Publick Demands on the
Government, and a war with France being greatly
to be feared at this juncture ; at which time consid
ering the Scituation of this Colony, and its exposed
State and Condition more than common care ought
to be taken to secure the same from the Depreda
tions of so formidable Foreign enemies ; and at this
juncture also the Four Banks emitted by this Colo-
1. Acts and Laws of His Majesty's Colony in Rhode Island and Providence
Plantations in New England in America. Newport, 1745, p. 271.

58 HISTORICAL TRACT.
ny in the years 1715, 1721, 1728, aud 1731 being
sunk and annually sinking, which so lessens the for
mer medium of exchange in this growing Colonyi
that the inhabitants are put to insuperable difficul
ties for want of a due and proper medium of ex
change and to whom therefore. High Publick Rates
and Taxes under these Circumstances would be
ruinous and it appearing not possible upon due con
sideration that the publick affiiirs and concerns of
the Government can be put into such a state and
condition for the Security and Preservation thereof,
against all future Danger as is consistent with the
Rules of Prudence and precaution in this Time of
difficulty without considerable emission of Bills of
Publick Credit." Whereupon they proceeded to
print forty thousand pounds, and to loan the same to
the people at four per cent, per annum, interest.
1. It is clear that the poorest and most ignorant class of people were the
great movers in these almost unlimited issues of money. There are many peti
tions still existing iu the State archives bearing the signatures of such men.
These petitions for the issue of a bank were usually written by some educated
person, and then circulated in the various towns for signatures. These signa
tures generally indicate an illiterate people. There is a marked exception to
this rule in the case of the issue of the bank of 1733. There is a petition for
this bank signed by perhaps a dozen men, but among them appears Joseph
Wanton, George Wanton, and William Wanton, Jr.

COLONIAL PAPER CURRENCY. 59
These bills were to be of the same form as the for
mer new tenor issue, but they were to be printed
from newly engraved plates, which the committee
were to procure aud to cause to be engraved " in the
best manner they can." They were to be printed
upon the back, and to contain such devices as the
committee thought needful to protect them from
being counterfeited. A heliotype facrsimile is here
presented of one of them, bj' the kind permission of
Mr. Daniel Berkeley Updike, in whose possession it
is. It bears, among others, the signature of Daniel
Updike, an honored ancestor, and the namesake of
its present owner. The following were the denomi
nations issued : Fourpence, sixpence, one shilling,
two shillings and sixpence, five shillings, ten shil
lings, one pound, and two pounds. The style of
work as compared with the former issues is far su
perior. In September, 1744, the General Assembly
passed an act assessing a tax of ten thousand pounds,
old tenor, upon the inhabitants, assigning as a rea
son the necessity of putting the Colony in a condi
tion of defence for the war.
The issue of such large amounts of paper money

60 HISTORICAL TRACT.
resulted in cheapening the elective franchise to such
an extent that the General Assembly, ever jealous
of extending this privilege, passed a law in 1746'
raising the qualification of voters from two hundred
pounds to four hundred pounds. The preamble to
the law best explains the reasons for the law :
" Whereas the manner of admiting Freemen in this
Colony is so lax and their qualifications as to their es
tates so very low that many Persons are adraited who
are possessd with little or no property ; and it being
greatly to be feared that bribery and corruption hath
(by the encouragement of evil minded persons and
by reason of such necessitous persons being admited
freemen) spread itself in this government to the
great scandal thereof, so that the election of publick
Officers hath been greatly influenced thereby."
As the law already made had been found altogether
inefi'ectual to prevent these evils, the property
qualification was raised, and severe measures were
adopted against offenders — a single fraudulent vote,
proved, made the office of Governor vacant. An
1. Acts and Laws of His M^esty's Colony in Rhode Island and Providence
Plantations in New England in America. Nevrport, 1762, p. 12.

COLONIAL PAPER CURRKNCY. 61
accused person who refused "to purge himself by
his oath or solemn affirmation " was adjudged guilty
and sentenced accordingly.
There are many ways in which the depreciation of
these bills. may be illustrated, but one way which we
have not seen used in works relating to financial mat
ters, is by the wolf bounty, which has suggested
itself in looking up the old history.
Like most new countries, the Colony, during the
early years of its settlement, was infested with these
pests, and a bounty of five pounds was given for
killing one. This bounty was reduced from time
to time until 1696, when it had reached as low
a point as ten shillings, but the wolves were on the
increase, and it was found necessary, in 1703, to in
crease the bounty to one pound. Under this stimu
lus the slaughter increased from a single animal
in 1703, to fifty animals during the five years follow
ing that year. In 1710 the first paper money was
issued, and silver money was at a premium. The
killing of wolves again fell off, and they came to be
a pest again. The bounty in 1715 was increased to
thirty shillings, and produced six animals. The
6

62 HISTORICAL TRACT.
paper money had lost one-third of its value, people
would not for that sum hunt wolves, so that in 1717
it became necessary to give a bounty of five pounds,
which in that year produced fifteen animals. As the
purchasingpowerof the bills became less aud less, the
people hunted less and less, and the wolves had the run
of the woods until 1732,when the bounty was increased
to ten pounds. Even this nominally large sum, which
barely equalled the amount given thirty years before,
was ineffective, and in 1739 the bounty was increased
to the still larger sum of thirty pounds. Under this
stimulus the animals were finally exterminated, but
this in not less than a century from the settlement.
Other items of curious interest, illustrative of the
times, can be gathered from the old parchment
bound colonial cash book, from which many of
these details were drawn. The old book itself was
in constant use for more than a hundred years, the
first entry bearing date October 11, 1710, and the
last one May 6, 1812. From it we learn that Cap
tain Sheffield received for compensation, of his com
pany, at the proclaiming of Anne, Queen of England,
in 1702, £3 5s. In 1714 Anne died. The Cap-

COLONIAL PAPER CURRKNCY. 63
tain had risen to be a Major, and for proclaiming
George the First to be King of England, received
£9 15s. It is only fair to mention an addi
tional item of expense in the case of the Queen :
"For a barrel of syder purchased of James Carder at
ye proclaiming of ye Queene for nine shillings." If
any such extravagance was indulged in, in the case
of the King, it was wisely covered in the single sum.
It was the custom of the sheriff to provide dinners
at the meeting of the grand jury. In 1702, for this
object the Colony incurred the expense of fifteen
shillings. Beef was worth a penny and a half a
pound, and wood, with which to cook it, five- shil
lings and sixpence a cord. In 1715 this same grand
jury dinner had reached the sum of £2 5s, but
this was but a mere lunch as compared with 1723, ¦
when something like respectability was attained in
the sum of £13 13s.
In 1749, the Duke of Bedford, by order of the
King, applied to Govern.or Greene for "an account
of the tenor and amount of all the bills of credit
which have been created and issued in the several
British colonies and plantations in America, as well
those under proprietors and charters as under His

64 HISTORICAL TRACT.
Majesty's immediate commission and government
that shall be then (May 30, 1749) outstanding; dis
tinguishing the amount of the same in each Colony
or plantation, the respective times when such bills,
so outstanding were issued, with the amount of the
said bills in money of Great Britain, both at the times
when such bills were issued, and at the time of prepar
ing the said account, and also the times fixed for the
calling in, sinking, and discharging such bills and
the funds appropriated for that purpose. "i This re
quest being laid by the Governor before the. General
Assembly, a committee was appointed to prepare the
statement required. Their report appears later in
this Tract. We present here a summary of it : —
Outstanding of Bank of 1728, £8,000 Equal to Sterling, £727 Ss &d.

1731, 12,000
1733, 40,000
1738, 90,000
1740, 80,000
1743, 100,000

1,090 18s Zd.
3,627 5s 6d.
8,181 16s id.
7,272 14s 6d.
14,545 9s Id.

£390,000 Equal to Sterling, £35.445 9« 2d.
Bills issued to supply the
Treasury, mostly in 1746-7. £110,444 Equal to Sterling, £1,040 7s Sd.

Nomuial Amount. £500,444 " £36,485 16s 7d.
1. Rhode Island Colonial Records, vol. 5, p. 278.

COLONIAL PAPER CURRENCY. 65
The last two items of the outstanding, are put in
old tenor, to correspond with the preceding items.
The committee consisted of Peter Bours, Stephen
Hopkins, Daniel Jenckes, and Captain Robert
Haszard. This report, no doubt,* gave the most favorable view
of the case. The bills were probably estimated at
their legislative values, and the committee seem to
have considered as outstanding only those shares of
payments which had not fallen due at the time the
report was made, whereas of those portions or pay
ments which had become due, very large amounts
remained unpaid, and were with difficulty collected.
The recent expedition undertaken by the colonies,
which resulted iu the capture of Louisburg, had re
quired very large expenditures by the colonies,
which were met by the emission of bills of credit.
In 1747, Parliament resolved to reimburse the colo
nies for their outlay, and appropriated eight hundred
thousand pounds sterling for the purpose. ^ The
proportion of this money coming to the Colony of
Rhode Island, would enable her to redeem about
1. Douglass's Historical Summary, London, )"55, vol. 1, p. 528.

66 HISTORICAL TRACT.
sixty thousand pounds of her bills. Other sums,
awarded by the home government, and for which
bills of exchange were drawn on Richard Partridge,
agent for the Colony, in London, would enable the
Colony to redeem in all, perhaps seventy-five thou
sand pouuds, but as the amount of bills then out
standing amounted to five hundred and fifty thousand
pouuds, even these sums were far too small to permit
her to redeem her issues and to place her financial
affairs upon a specie basis. The amount falling to
the Colony of Massachusetts, was very much larger
in proportion to her issues, and she was enabled,
with the assistance of a heavy tax, to call in all her
bills. This she wisely resolved to do. Immediately
following these measures the bills of other colonies
were prohibited from passing there. The amount of
bills of credit issued by the Colony of Massachusetts,
and outsts^ndiug, at the time of her reimbursement
by the British Government, was £2,466,712.1 She
was awarded by the Home Government £183,649
sterling. With this money the Colony proceeded at
once to redeem £1, 7 9 2, 23 6^ of her bills, at the rate
1. Douglass's Historical Summary, London, 1755, vol. 1, p. 528.
2. Felt's Mass. Currency, p. 131.

COLONIAL PAPER CURRENCY. 67
of one to ten, or as we reckoned in the war of the
recent rebellion, gold was 1,000. This redemption was
followed with a tax sufficient to absorb all remain
ing bills, then was enacted a law prohibiting the
currency of the bills of other colonies within her
borders. Her population was at this time 220,000,
the tax £712,000,' making the amount per capita,
about £3 5s. The amount of bills of credit issued
by the Colony of Rhode Island, and outstanding at
the time of her reimbursement by the British Gov
ernment, was £550,000. She should have received
£16,467,2 whereas she actually received at that time
£7,800 sterling, with which the committee redeemed
£88,725. This would leave outstanding £461,275,
a large proportion of which had been in circulation
in Massachusetts. The population of the Colony was
33,275 ; a tax sufficient to have absorbed the re
mainder would have amounted to nearly £14 per
capita. It will thus be seen that however much the
Colony of Rhode Island might desire, she was in no
condition to follow the course accepted by the Colo-
1. Douglass's Historical Summary, London, 1755, vol. 2, p. 509.
2. Arnold's History of Rhode Island, vol. 2, p. 171.

68 HISTORICAL TRACT.
m
ny of Massachusetts, but she did what slie could in
the right direction.
Many persons considered the change from paper
to specie too sudden, and the operation of the law
was indeed postponed several times, but no shock
came to Massachusetts, it fell rather upon Rhode
Island. A severe commercial revulsion followed, by
reason of the loss to Rhode Island of her trade with
the West Indies, in which she had been engaged,
exporting her products aud importing such as the
West Indies produced and the neighboring colonies
required. The measures taken in Massachusetts,
produced, as might have been expected, a great
effect upon the value of the bills of credit of Rhode
Island. They depreciated to nearly one-half thuir
former value, disturbing all commercial relatious
throughout the Colony. Soon following came the
failure of the Honorable Joseph Whipple, then
Deputy-Governor, and an eminent merchant, resid
ing at Newport. He was the son of Joseph Whip
ple, who had been very largely engaged in commerce,
and acquired a large property. He was intimately
connected with the government of the Colony. His

COLONIAL PAPER CURRENCY. 69
name appears to be honorably associated with many
enterprises. Mr. Whipple, Jr., was married to
Miss Sarah Redwood, a daughter of Abraham Red
wood, March 1, 1721. He served in the General
Assembly, and in various other positions, until he
became Deputy Governor, in 1743, and again in
1746, and still again in 1751. On the event of his
failure, he resigned his office, and petitioned the
General Assembly for relief, which was granted to
him.^ From this blow he never recovered. He be-
1. The Petition of Mr. Whipple for relief has never been printed. His was
the first large mercantile failure in the Colony, and his petition is sufficiently in
teresting to be presented :
Rhode Island &c. To The Hon'ble the General Assembly of His Majesty's
Colony of Rhode Island &c now convened in Newport :
The Petition of Joseph Whipple of Newport
in the County, of Newport Esqr humbly
Sheweth
That a few yeArs past my hon'd Father died possessed of a^very large estate
consisting of lands and movables which bath since fallen into the hands of
your petitioner, but so heavily charged with debts that the amount of them
even to this day remains a secret. Your petitioner who believing himself until
very lately to be owner of a very Plentiful & large Fortune adventured too
much into mercantile risques in hopes of increasing the same, but providential
ly, lost many thousands of pounds that way, believing at that time he hazarded
nothing but his own, and now finding that those losses together with s'd estates
being so greatly loaded with debts before he came into it, that he is altogether
rendered incapable of paying the whole, but is intirely willing with the utmost

70 HISTORICAL TRACT.
came intemperate, and was drowned from the Point
bridge, while returning from the theatre ou the
Point, in 1761,
In the j-^ear 1748, the amount of bills burnt, by
order of the General Assemby, reached the large
amount of £88,725, a sum nearly as large as the
sincerity & truth to resign up all for the use of his creditors, so that they may
receive all that can be rationally expected or that men of common Humanity
can require and therefore humbly prays that under the solemn engagement of
an oath he may be pertaitted according to the direction in a bill preferred to
your Honours and this morning voted to be continued to the next session, to
deliver up all his estate both real and personal of every nature and kind what
ever even under penalty of suffering in the most ignominious manner the pains
of death, should he in the least degree knowingly violate said oath and that the
s'd estate be wholly assigned and appropriated in all respects as directed in said
bill and that the Judges and Commissioners therein referred to be wholly di
rected and governed by the same, and as this affair is of the utmost conse
quence & requires a speedy determination. Your petitioner further prays that
your Honours will be pleased immediately to take the premises into considera
tion, and your petitioner shall ever pray &c. JOS. WHIPPLE.
August 23 1753 JPo the House of Mag'sts Gen't : Resolved that this petition
be Granted Voted & pas't pr order * J. Lyndon, Clk.
In the House of Mag'sts Aug't 23, 1753. Read and concurred with.
Tho. Ward, Secry.
Arnold, in his Hist, of R.I., vol. 2, p. 186, makes thefoUowing mention of this
petition : ** The terms of his petition are truly pathetic, such as, under the cir
cumstances, and in an age when failures were almost unknown, an honest and
honorable man in his position might well employ." Mr. Whipple and his father
bad held offices of trust under the colonial government for many years, and in
many ways, but from this date their names disappear from the records.

COLONIAL PAPER CURRENCY. 71
aggregate amount burnt in the preceding thirty-four
years. The first burning of the bills appears to have
taken place in 1714, and the entire amount from that
time, and including 1747, amounts to £105,714.
Some of these bills were, of course, the tenth mon
ies of the banks, but probably a much larger amouut
consisted of torn and ragged bills, for the exchang
ing of which, several large emissions had been made.
An incident which occurred about this time, in con
nection with the tenth money, so well illustrates the
methods of the times, that we incorporate it into our
narrative : In October, 1748, Joseph Turpin sent
his petition to the General Assembly, representing
that he "casually fell into the water," on the 21st of
the preceding May, on which occasipn he had in his
possession a quantity of bills of credit, which he
thereby lost, and for which he prayed to be reim
bursed. The Assembly voted him eighty-eight
pounds, to be paid to him by Benjamin Nichols, the
Colonial Treasurer, out of the tenth monies paid into
the treasury to be burnt, and upon the production of
Mr. Turpin's receipt for the same, the Treasurer to
have credit for " said sum the same as if burnt."

THE NINTH BANK.
1750.

The law creating this emission was enacted in March,
1750. The reasons are assigned in the preamble :
" Whereas it is conceived, that giving a proper encour
agement for the raising of Flax and Wool and manufac
turing the same into cloth will greatly conduce to
promote Frugality and industry, and as a conse
quence whereof it may justly be expected that the
vacant Lands within the Colony now unimproved
and lying waste, occasioned in some measure by the
late long and tedious war, may be greatly improved
to the advantage and interest of His Majesty's sub
jects, the inhabitants of this Colony, and they under
such bitter circumstances be therefore inabled in case
of another war, not only to defend and protect
themselves, but also greatly to distress and annoy

ditefonli/Co/cvM/of.^AoSe^^ ,%/dAd^ka'fl l^e e<^ualtj^
I'Tv'^o Ounces ifTenPeniy\^;
111 i l''J>^^L^im^iiMi^ec\-7cd I A

t^^A\ tne^ccufuhyW)y Order oH
i\A \ |L^ ifs&nimy l/r^d^m
iliiyiilirs/\ , -\\ ' m^y ^ ^

U

/;?;i '

COLONIAL PAPER CURRENCY. 73
His Majesty's enemies in these parts. And Where
as the carrying on the Whale and Cod Fishery with
in this Colony will not only much promote and in
crease the trade aud commerce thereof, but amongst
other things may be very beneficial to merchants and
others trading to Great Britain, by furnishing them
with proper remittances for the payment of such
goods and merchandizes as the inhabitants of this
Colony may from time to time stand in need of
from thence. It is therefore conceived that a proper
premium or bounty may be necessary as an encour
agement for the purpose aforesaid.
" And whereas the Colony hath been at great and
expensive costs and charge in putting themselves in
a posture of defence in the late war and that the
Treasury is thereby near exhausted, and no fund
therein sufficient or adequate to answer such good,
useful and beneficial ends and purposes as are de
signed and intended by this act. It is apprehended
therefore that there is a necessity of making and
emitting the sum of Tweuty-Five Thousand Pouuds
in Bills of publick credit of the Tenor and Form
hereafter expressed.

74 HISTORICAL TKACT.
" And whereas it hath been found by sad experi
ence that one great and principal cause of the de
preciation of the Bills of Publick Credit already
emitted hath been owing to the indiscreet and illegal
practices of sundry persons giving and offering from
time to time for gold and silver, and Bills of Ex
change for sterling money, greater and larger sums
and proportions of the Bills of Publick Credit of
this Colony than was provided for, stated aud al
lowed, for such silver and gold at the respective
times the several emissions were made ; and which
not only sunk in value such bills of Publick Credit
to the injury and oppression of many poor widows,
orphans and others, but thereby the gold and silver
hath been drawn and carried out of this Colony to
the great discouragement and prejudice of Trade and
Commerce and which practices are still carrying on ;
It is therefore conceived of the highest importance
that such evil practices for the future be restrained."'
All which, being duly considered, the General
1. Acts and Laws of His Majesty's Colony in Rhode Island and Providence
Plantations in New England in America. From Anno, 1745, to Anno, 1752.
Folio, p. 83. Newport, 1752.

COLONIAL PAPER CURRENCY. 75
Assembly ordered the specified amount made and
issued. The bills were to be of the following form :
By a Law of the Colony of Rhode
Island &c made and passed the third
Monday of March A. D. 1750. This
Bill of due to the Possessor
thereof from the Colony, shall pass
current and be equivalent to the re
spective proportions of silver and gold
as are regulated and stated in said Act
and shall be accordingly accepted by
the Treasurer of said Colony and the
Receiver thereof, in all payments.
Providence, March the 18th, 1750. i

lata to &tfmUtftit m^ iill.
New' plates were ordered to be engraved, as no
former ones were of the prescribed form. The fol
lowing denominations were ordered : Threepence,
sixpence, one shilling, two shillings and sixpence,
1. This is the form presented by the law, but no specimen is now known to
be in existence. Possibly it was not issued.

76 HISTORICAL TRACT.
three shillings and ninepence, seven shillings and
sixpence, fifteen shillings, and twenty-five shillings.
Several of these denominations had never before
been made.
The General Assembly then proceeded to make a
rate in which this money should be held. It was as
follows: £137 10s = £275 new tenor = £1,100
old tenor = £100 sterling, and upon any person
"either by themselves, or by the procurement of
others, wittingly or willingly, directly or indirectly,
shall, after the 10th day of May, 1750, contract for,
settle, account, allow, receive, take or pay, at any
greater or higher rate for any silver, gold, or Bills
of Exchange, than at which the same is hereby reg
ulated, settled and allowed," shall be fined fifty
pounds for such offence.
The bounties provided were for every pound of
well-cured and clean-dressed flax, a penny and a
half should be given, and for every piece of linen,
twenty yards long and one yard wide, one-third of
its appraised value by the respective justices, should
be given the maker, who should also receive back
the linen, but cut in two pieces in the 'middle.

cAic prmx Me Colony o/f.anodc =&.
U<J^a/fldifAad lye e/Tiia/ Ao ^— ^Wil
.One Ouncc&FivePennv\v;S
5^3 ' A~Tt^^
oj' coin iid JiIverof[ftcjdinqQ/{l/<JifA '

COLONIAL . PAPER CURRENCY. 77
And for every pound of wool raised in this Colony
aud manufactured into broadcloth, duroy, serge, or
camblet, sixpence should be given. If the same
were manufactured into flannel, threepence should
be given. The broadcloth was to be thirty yards in
length, and three-quarters of a yard wide. The
other pieces, as named, were to be twenty-four
yards long and all were to be cut in two pieces in
the middle before returning.
For every barrel of whale oil, four shillings were
given, and for every pound of whalebone, one shil
ling. For every quintal of good, merchantable cod
fish, two shillings and sixpence.
The following year, in June, 1751, the General
Assembly having discovered that the bounties given
by this law for all manufactured wool into cloth,
might, if carried into execution, " draw the displeas
ure of Great Britain upon the Colony, since it would
interfere with her most favorite manufacture, aud as
the givyig a bounty ou flax and the whale and cod-
fishery, i having been already tried iu this Colony,
1. The law of 1731, issuing the Fourth Bank, provided bounties for hemp,
flax, whale oil, whalebone, and codfish. The effect of these bounties is shown

78 HISTORICAL TRACT. •
and have not been found beneficial," repealed all of
them. It was further provided that sixty-four shillings in
old tenor bills should be equal to one ounce of coined
silver or sterling alloy, instead of fifty-four, as the
former law prescribed. Furthermore, the form of
the bill was changed, and that which precedes this
article was substituted. The denominations were
also changed, aud instead of being expressed in
pounds, shillings and pence, as usual, they were ex
pressed in weights of silver, thus : A bill equal to
five ounces ; one equal to two ounces and ten penny
weights ; one ounce and five pennyweights ; twelve
pennyweights and twelve grains ; six pennyweights
in a note, on page 32, ante. Some further information concerning the year
1733, has presented itself since the note was written. The Colony paid a tax on
19,013 pouuds of fiax. The largest grower was Jonathan Sprague, of Provi
dence, but of that part of the town which subsequently became Smithfield.
The record says he presented " seventeen bills all sowed together wtt l,2iQX
pounds & put on file." Stephen Hopkins was second, with 915).^ pounds. He
came from Scituate. Of manufactured hemp, the Colony paid for 1,589 pounds.
The largest growers were Nicklis Shelding, (sic,) 401 pounds ; Pai;don Tilling
hast, 4.30 pounds, and Bengemen Greene, (sic,) 300 pounds. Stephen Hopkins
came in with 104 pounds. Of codfish, there were 144 quintals, of which Nicho
las Power was the largest catcher, having 58K quintals. There was no whale
oil nor whalebone.

COLONIAL PAPER CURRENCY. 79
and six grains ; two pennyweights and twelve grains ;
one pennyweight and thirteen grains, and one of
fifteen grains. And upon the back of each bill,
its value in old tenor, thus : On the denomination
of two ounces and ten pennyweights, "This bill is
equal to sixteen pounds old tenor." This is the de
nomination of which a heliotype is presented here
with, i The eight pounds upon its face is its value
(or desired value) in new tenor. There were other
changes in this law, but they were of minor conse
quence as compared with'those mentioned. 2
Still further illustrations of the depreciation of
this paper money at sundry times may be shown by
the following facts : By an act of Massachusetts, in
1748, a Spanish piece of eight was fixed at six shil
lings. It was W9rth at that time, in sterling, four
shillings and sixpence. Iu 1750, exchange on Lon
don was, in Massachusetts, eleven and a half to one ;
this was in April. In September, the same year, it
was nine and a half to one. In this same April,
Massachusetts and Rhode Island bills were at par
1. For the loan of the original, the publisher is indebted to Col. Thomas
Lincoln Casey, U. S. Army, Washington, D. C.
2. Acts and L.aws, ed. of 1752, p. 100.

80 HISTORICAL TKACT.
with each other, but in the September specified,
the Rhode Island bills had fallen twenty per cent.
below the Massachusetts bills. A Spanish piece of
eight sold in Massachusetts for forty-five shillings,
but in Rhode Island, fifty-six shillings were de
manded for it, both iu old tenor. In 1752, the
General Assembly of Rhode Island declared the
value of a Spanish milled dollar to be equal to fifty-
six shillings, old tenor, of their bills; this had been
the intent of the act of 1751. In 1764, one dollar
= four shillings and sixpence, sterling, =six shillings,
lawful money. New England currency, six shillings
to a dollar, dates from this period. In 1769, six
shillings, lawful money, was reckoned equal to eight
pounds, old tenor, in payment of a tax which had
been levied. On and after January 1, 1771, old
tenor ceased to be current in the Colony, but were
ordered into the treasurj' to be exchanged for treas
ury notes at the rate last mentioned.

HOW THE ISSUE OF BANKS
¦WAS
STOPPED BY'' THE ENGLISH GOVERNMENT.
1750.

The ninth bank was the last issued by the Colony
of Rhode Island. The tenth was issued by the
State of Rhode Island, after the Revolution.
Scarcely was the money of the ninth bank loaned
before the people were again clamoring at the doors
of the General Assembly for another bank. The
ninth was issued in March. In August, numberless
petitions had been presented, and action was taken
upon them in that month. The House of Represen
tatives, then called the House of Deputies, passed
the following resolutioni : " Resolved that the sum
of Fifty Thousand Pounds in Bills of Publick Credit
new Tenor, be emitted by this Colony, to be let out
1. Journal of the House of Deputies, August 24, 1750.

82 HISTORICAL TRACT.
upon Loan & that John Walton Esqr, Capt. Jno.
Andrews, Job Randal Esqr, Jos. Nichols Esqr and
Mr. Matthew Robinson or the Major Part of them
be a Com*^^ to prepare a Bill & present it to this
Assembly as soon as conviently may be." The As
sembly adjourned, to meet on the 24th of September
following. On that day a sufficient number of
Deputies appeared, to adjourn, but there not being
an Upper House the Assembly was discontinued.
These are the words of the records. The committee
appointed as above, drafted the law required, and it
still remains in the office of the Secretary of State,
in the condition in which they left it, no further ac
tion being taken upon it. For these reasons, no
sooner had the August session of the Assembly ex
pired, than a petition to the King^ was prepared and
signed by seventy -two citizens of the Colony, many
of whom were among those now best known to us.
This petition, after setting forth the evils under
which the Colony was laboring, says: "That the
landholders of this Colony having generally mort
gaged their farms or plantations as a security for the
1. Rhode Island Colonial Records, vol, 5, p. 311.

COLONIAL PAPER CURRENCY. 83
Bills of Credit they have taken upon Loan have
founil it their interest to multiply such Bills that
they may depreciate and lessen in value ; and which
they have recourse to, as a legal expedient of wip
ing away their debts without labour, whereby the
laudable spirit of industry is greatly extinguished
and Your Majesty's subjects greatly discouraged for
want of Produce and Remittances.
" Sensible of the misfortune and hardships we
labour under we do therefore most humbly pray
Your Majesty, that the Legislature or Authority of
this Government may be prevented and effectually
restrained from making or remitting any more Bills
of Public Credit upon Loan without Your Majesty's
Royal Permission ; and be commanded to stop and
recal this intended Emission of August last^ from
circulating or being offered or taken in Payment of
Debts or from passing any Acts whereby any extant
- Bills of Public Credit vaiiy be either debased in
1. The petition, as given in the E. I. Col. Eec, vol. 5, p. 311, bears date
" Newport on Rhode Island, 4th September, 1750." No such date, however,
appears upon the pamphlet from which these facts are gathered, yet that date
is doubtless correct.

84 HISTORICAL TRACT.
value or postponed in their period of being drawn
in," etc.
The following resolutions were passed by the
House of Commons, March 12, 1750-1 :
"Resolved, That the value of silver in the Colony
of Rhode Island hath between the years 1742 and
1749 varied from 285 or thereabouts (the value iu
1742) to 605 per oz. or thereabouts (the value in
1749) aud that in 1742 the Exchange between
England and Rhode Island was from £500 to £550
Rhode Island Currency for £100 sterling, and in the
year 1749 the Exchange was from £1,050 to £1,100
Rhode Island Currency for £100 Sterling in England.
" Resolved, That in the four Governments of New
England, viz., the Massachusetts Bay, New Hamp
shire, Rhode Island and Connecticut, the Bills of
Credit issued in one Government have a promiscuous
Currency in the other three Governments ; and ex
perience has shewn it to be impracticable to prevent
the Introduction of Bills of Credit issued in one
Government into the other three without an Act of
the Parliament of Great Britain.
" Resolved, That the great Rise in the Value of

COLONIAL PAPER CURKE>;CY. 85
Silver and in the Exchange, occasioned by the re
peated Emissions of Paper Bills of Credit particu
larly in Khode Island hath been the means of de
frauding the Creditors in all the four Governments
of great Part of their Property aud by introducing
Confusion into Dealings, hath proved a great Dis
couragement to the Trade of these Kingdoms.
"Resolved, That notwithstanding repeated No
tices of the Sense of this House, the said Colony of
Rhode Island on the third of August last' passed a
Vote for emitting of £50,000 in Bills of public
Credit, of a new Tenor, equal to £400,000 Curren
cy, to be let out upon Loan, in Contempt and Defi
ance of the Authority of His Majesty and this House,
contrary to the RejDiesentations and Remonstrances
of many of their own Inhabitants, to the further
Depreciation of their Currency and the Defrauding
of the Creditors of all the four Colonies.
"Resolved, That in order to remedy the growing
Inconveniences of Paper Currency the Bills of
Credit in His Majesty's Colonies or Plantations of
1. The General Assembly met on the third Monday in August, and the reso
lution to issue the bank, passed only the Lower House, or House of Deputies.
8

86 HISTORICAL TRACT.
Rhode Island and Providence Plantations, Connec
ticut, the Massachusetts Bay, and New Hampshire
in America be regulated and restrained.
" Ordered, That a Bill be brought in pursuant to
the said Resolutions, and that Sir^William Calvert,
Mr. Bayntun, Mr. Beckford, and Mr. Alderman
Baker do prepare aud bring in the same."
The bill called for in these resolutions was pre
pared and presented to Parliament. It was entitled :
"A Bill to regulate and restrain Paper Bills of
Credit in His Majesty's Colonies or Plantations of
Rhode Island and Providence Plantations, Connecti
cut, the Massachusetts Bay and New Hampshire in
America, and to prevent the same being legal tenders
in payments of Money."
It prohibited absolutely, the issue of bills of
credit by the colonial government, of any kind or
denomination whatever, subsequently to September
29, 1751. It also prohibited the passing of any law
postponing the time of payment of bills already is
sued and ordered the bills to be called in at maturity
of the loans.
It provided that with the consent of His Majesty's

COLONIAL PAPER CURRENCY. 87
government, sums might be issued for the current
expenses of the Colony, provided reasonable provis
ion for their calling in was made, and within two
years. It further provided that in case of sudden extra
ordinary emergencies, as in war, or an invasion by
the Indians or other enemies, the colonial govern
ment, with the consent of the home government,
could issue such sums as were required, "due care
being taken to ascertain the real value of all such
principal sum or sums for which the same shall be so
made, created, and issued as aforesaid, and so as
care be likewise taken in the said act or acts to es
tablish and provide an ample and sufficient fund for
the calling in, discharging and sinking within short
and reasonable time," to-wit, five years, such sums
so issued. It further declared Ihat no bills of credit,
either issued or to be issued, should be a legal ten
der for the payment of debts from and after the
date above given. If any governor gave his con
sent to laws contrary to the provisions of this act,
he lost his office and was disqualified from holding
office, thus making it obligatory under the pain of

88 HISTORICAL TRACT.
disfranchisement upon the governor to exercise a
power, which the same government only twenty
years previously maintained that he did not possess. i
These documents reached the Colony in the spring
of 1751, and were laid before the Assembly at their
June session. They created profound sensation.
Two committees were at once created, one to inves
tigate the signers, " who call themselves inhabitants-
of this Colony," and the other to disprove the alle
gations contained in the petition. The reports of
these committees can both be seen in the Colonial
Records. 2
The General Assembly at the same session, June,
1751, directed the secretary to cause to be printedi*
the Petition, the Resolutions of the House of Com
mons, and the bill presented to Parliament in con
sequence thereof, and which subsequently became a
law.* The proposed bank of fifty thousand pounds
was never issued, nor were there any more sums
1. Reply to Gov. Jenckes, ante, p. 29; also R. I. Col. Rec, vol. 4, p. 461.
2. Rhode Island Colonial Records, vol. 5, pp. 330, 334.
3. Rhode Island Colonial Records, vol. 5, p. 331.
4. English Statutes, ch. 53, 24 yr. George 2nd, 1751.

COLONIAL PAPER CURRENCY. 89
issued as loans or banks while Rhode Island re
mained a dependency of the British crown.
Large sums were afterwards issued, as in the case
of the Crown Point money, but they were issued
under the provisions of the act of Parliament of
1751, and were soon called in. As a matter of fact,
the Crown Point money was the only large issue
• subsequent to the law and before the Revolution.'
1. Singularly enough, while these sheets were passing through the press,
the pamphlet from which many of the facts in this section of our Tract were
taken, was discovered and presented to the publisher by the Hon. John H.
Stiness, Associate Justice of the Supreme Court. It is a folio of six pages,
one of the two hundred copies ordered in the resolution above referred to. So
far as now known it is the only complete copy in existence.

COUNTERFEITING THE BILLS AND THE
PUNISHMENT THEREFOR.

Very early in the history of the bills of credit,"
the crime of counterfeiting them appears to have
existed; punishments were prescribed in 1710. The
offender was to " suffer the pains of having his ears
cropped, to be whipped or fined at discretion and
imprisoned as the nature of the offence requires, and
to pay double damage to the persons defrauded.". In
case the offender had no estate, he should be set at
work, or sold for any term of years which the dis
cretion of the judges considered satisfactory.
In 1743 the law was somewhat changed. The
offender was to have both ears cropped, each cheek
branded with the letter R., to be pilloried, to pay
double damage to the defrauded, and to forfeit all
his estate, the same to be sold by the General Treas
urer within two mouths after conviction. Offenders

COLONIAL PAPER CURRENCY. 91
who had no estate were either set to work or sold
out of the Colony for a term of years, at the discre
tion of the judges. The bills of the ninth bank were to
bear the inscription, "Death to Counterfeit." The
law under which the issue was made prescribed that
the offender should suffer the pains of death. This
was in 1750. At a later period, in 1755, the whole
.law a2;ainst counterfeiting was re-written and re-en-
acted, without however much change in the penalties
inflicted Its preamble being of interest, here fol
lows' : " Whereas notwithstanding all the Laws
which have been heretofore made by the Colony to
prevent the counterfeiting and altering Bills of Pub
lick Credit and against uttering the same knowing
them to be counterfeited or altered, it often happens
that the same are counterfeited, altered, and know
ingly uttered ; and forasmuch as daring and aban
doned Villains, have not hitherto been sufficiently de
terred from counterfeiting such Bills, but have con
tinued in such wicked practice, and greatly imposed
upon and Cheated many honest people thereby which
1. Acts and Laws of the English Colony of Rhode Island and Providence
Plantations in New England in America. Newport, 1767, p. 33.

92 HISTORICAL TKACT.
makes it necessary for the Good of Society that
some more severe and exemplary punishment should
be inflicted ou those who are the first agents and In
struments in so growing an evil," whereupon the
penalties before enumerated were practically re-en
acted. Notwithstanding these severe penalties the offence
was of frequent occurrence. In October, 1770,
Kings County Jail was broken open in the night by
a number of people in disguise, and several pris
oners, one of whom was under sentence of hanging,
were released, and made their escape on horses,
which their friends had provided for them. Most of
these prisoners were in confinement for counter
feiting. By far the most famous case of counterfeiting was
that of Edward and Silas Greenmau. It is this case
which is referred to by Douglass,' wherein he
charges that one of the legislature, a signer of the
bills, was convicted of signing counterfeit bills.*
1. Douglass's Historical Summary, London, 1755, vol. 2, p. 87.
2. Edward Greenman was a member of the House of Representatives in
1709-10. The first bank was issued in the latter year, but neither the records
nor the law exhibit his name as either a signer of the hills or a trustee far the

COLONIAL PAPER CURRENCY. 93
The case is also alluded to in the report of 1739.
The offence occurred in 1718. A fine of six hun
dred pounds was imposed, and paid, and a further
sum of fifteen hundred pounds deposited with the
treasurer with which to take up the counterfeits,
which in this case, since the parties had property,
were worth twice as much as the genuine bills.
After the lapse of some ten years, the Greenmans
petitioned to have the balance in the hands of the
treasurer and not used, nor then likely to be used,
returned. This was done, and the extraordinary
certificate below, given to one of the offenders.'
loaning of the same. Silas does not ever appear to have been a member of the
General Assembly, nor does Edward, with the exception of the year men
tioned. Edward was the first borrower of the loan of 1715, in his town. These
facts do not appear to quite sustain the statement of Douglass.
1. We the Subscribers well knowing Mr. Silas Greenman of Stonington late
of this Colony Do upon our certain knowledge Declare that the said Silas
Greenman was from his youth up, till his leaving this Government, save in that
one case of counterfeiting of Bills always Deemed and accounted a man of
sobriety and of Just and honest principles and as such behaved himself amongst
us, and is still in good repute for Honesty & Justice in his Dealings.
Witness our hands this 19th day of February, 1727-8.
Wm. Wanton, Wm. Coddington, Beiy. Ellery,
Arnold Collins, George Goulding, Rich'd Ward,
Daniel Updike, Henry Tew, Simon Pease,
Wm. Dyre, Sam'I Vernon, Jam's Brown,
John Coddington.

FROM THE NINTH BANK, 1750, TO THE
TENTH BANK, 1786.

In 1755 came the expedition against Crown Point,
and in obedience to His Majesty's royal will and
pleasure, for it the Colony of Rhode Island fur
nished, in proportion to her population, a large
quota. The expense for this force bore heavily upon
the already crippled Colony, and apparently no
other way existed of meeting the emergency than
by the issue of bills of credit. This was accordingly
done. Two hundred and forty thousand pounds,
known as Crown Point money, were issued between
March and December of that year. A tax of eighty
thousand pouuds was assessed in October of the
same year, to redeem the Crown Point money, and
within two years it was all redeemed in obedience to
the act of Parliament, one dollar in specie being

COLONIAL PAPER CURRENCY. 95
paid by the treasurer for every four pounds old
tenor. A portion however was exchanged for treas
ury notes. The rate of interest was as usual, five
per cent.
In 1756 came what was known as lawful money.
The first emission of these bills was made in Febru
ary, and comprised eight thousand .jiounds, to be
equal in value to the lawful money of the Province
of Massachusetts Bay and of the Colony of Con
necticut, the General Assembly not having at that
time and not until June, 1763, declared what should
be lawful money in the Colony of Rhode Island.
These bills were printed from movable types, aud
not from engraved plates, as had been the case pre
viously. They were of the following form :
The possessor of this bill shall be paid
by the treasurer of the Colony of
Rhode Island Lawful money at
the rate of six shillings and eight
pence for one ounce of'silver, within
two years from the date hereof. By
Order of Assembly the 27th of Febru
ary 1756.

96 HISTORICAL TRACT.
The denominations were sixpence, ninepence, one
shilling, two shillings, three shillings, five shillings,
ten shillings, twenty shillings and twenty-five shil
lings. The General Assembly also declared that all
moneys received from England, to reimburse the
Colony for its outlay in the Crown Point expedition,
should be applied to the redemption of the Crown
Point money. In August, 1756, there were re
ceived six chests of silver and one chest of gold,
amounting to upwards of six thousand six hundred
aud eighty-five pouuds sterling, which sum was so
applied. Iii 1761, there were received four thou
sand five hundred pounds sterling, which was also
applied to the same purpose.
In August, 1759, upon the settling up of the
paper money or grand committee office, the bonds
which had been sued and the writs returned non est
inventus, amounted to £41,869; unsatisfied judg
ments on bonds, £8,400, and about £35,000 in
bonds were lodged in the hands of sundry individ
uals for collection.
In August, 1762, by a report of a committee of

COLONIAL PAPER CURRENCY. 97
the General Assembly, there appears to be outstand
ing of old tenor bills, upwards of £93,688 ; of
Crown Point, old tenor, upwards of £2,322 ; and of
lawful money, upwards of £66,404. These sums
however do not include any of the banks, of which
there had been nine issued.
From time to time acts were passed, calling in
bills of the different emissions and giving to the
holders of them treasury notes, when no other
means were at hand. These notes usually depreci
ated to about the same extent that the bills had
done. In September, 1764, old tenor bills were
ordered to be received in payment of a tax, at the
rate of twenty-three and one-third for one of lawful
money. There being no law declaring what was lawful
money in the Colony of Rhode Island, the General
Assembly proceeded, in June, 1763, to remedy the
difficulty. The preamble to the law sets forth the
reasons for it' : " Whereas notwithstanding an act
of Parliament made in the Sixth Year of her late
1. Acts and Laws of the English Colony of Rhode Island and Providence
Plantations in N«w England in America. Newport, 1767, p. 165.
9

98 HISTORICAL TKACT.
Majesty Queen Anne, entitled An Act for ascer
taining the rate of foreign Coins iu Her Majesty's
Plantations in America there is no Act of this Colony
declaring what is or shall be lawful mone}-^ of this
Colony ; for want whereof as a standard in Con
tracts and Dealings much uncertainty aud Confusion
have been occasioned ; and whereas also great Quan
tities of Paper Bills of Credit by virtue of acts of
Assembly have been from time to time created and
issued on loan and otherwise which by the respec
tive Acts for creating and issuing the same must soon
be called in, discharged and sunk ; and whereas the
said paper bills of credit have been considered as a
medium of trade and a measure in dealings, in lieu
of money whereby obligations and securities have
been made and given and debts contracted in said
bills, which, from a scarcity of those Bills that must
unavoidably happen near the expiration of the sev
eral terms for which they were issued cannot be dis
charged and paid in the Bills themselves ; and as
great contests and disputes may arise between Cred
itors and Debtors what shall be a true equivalent in
Lawful Money for such debts contracted in Paper

COLONIAL PAPER CURRENCY. 99
Bills," it is the province of the Assembly to de
cide. It therefore makes gold and silver coin, the
only lawful money in the Colony, aud that all se
curities and contracts, all book accounts, were to, be
in lawful money unless otherwise specified, and it
further declared the value iu lawful money of such
coins as had usually found their way into the
Colony.' Any person detected in taking or paying any of
these coins at other than their value as fixed by
this law, were subjected to a penalty of six pounds.
For the assistance of the courts in ascertaining the
value of old tenor bills, in cases before them, the
1. Value of coins in the Colony of Rhode Island, in 1764, as fixed by the
General Assembly : £ s. d. £ s. d.
An English crown, 6 8 A two and a half moidore piece, 4 10 0
An English half crown, 3 4 A two pistole piece, 2 4 0
An English shilling, 1 4 A moidore or 27s sterling, 1 16 0
An English sixpence, 8 A guinea or 21s sterling, 18 0
A Spanish milled dollar, 6 0 A half Johannes or 18s sterling, 1 40
A half dollar, 3 0 A pistole, 12 0
A quarter dollar, 1 6 A half moidore, 18 0
A five moidore piece, 9 0 0 A quarter Johannes, 12 0
A double Johannes, 4 16 0 Three English farthings, 1
A single Johannes, 2 8 0 An ounce of coined gold, 6 14
A doubloon or four pistole piece, 4 80

100

HISTORICAL TRACT.

value of such bills in Spanish milled dollars, al
various periods, was declared by the following table.'
There was much opposition to the passage of the
act and protests against it were laid before the As
sembly. During the period from 1750 to 1774, both years
inclusive, the Colony issued £337,569, and during
the same period called in and burnt £811,871. The
bills, when gold and silver were not in the treasury,
were redeemed by treasury notes.
The large issues of this period were those of 1755,
for the Crown Point expedition, amounting to £240,-
000, and those of 1758, 1759 and 1760, amounting
to £57,000. These latter sums were for the French
war. The battle on the Plains of Abraham occurred

1. Table fixing the value of old tenor bills at different periods, for the use of
the courts, made by the General Assembly, June, 1763 :
£ s. d. £ s. d.
1751,2160=oneSpani8hmilleddollar. 1758,6 0 0= one Spanish milled dollar.

1762,3 0 0

1759, 6 0 0

1753,3 10 0 "

" 1760, 6 0 0 '

1754,3 15 0

" 1761, 6 10 0 '

1755,4 5 0

" 1702, 7 00 '

1766,5 5 0

" 1763, 7 0 0 '

1757,5 15 0 "

COLONIAL PAPER CURRENCY. 101
in 1759. This money was for equipment and pay
ment of the Rhode Island soldiers who fought therein.
No other large sums were issued until 1775, during
which year sixty thousand pounds were issued, to
place the Colony in such military condition as would
enable her " to march to the assistance of her sister
colonies if invaded or attacked." Fort George, which
had in former years been the pretext for the issue of
so many bills of credit, was dismantled, and " forty
cannon and large amounts of powder and balls taken
to a place of safety."'
The first two issues of 1775 were of precisely the
same tenor and issued under the same provisions of
law. They were to be redeemed, one-half in two
years and one-half in five years. The interest was
at two and a half per cent. The denominations
were sixpence and ninepence, aud one, two, three,
four, five, ten, twenty, thirty and forty shillings.
It will be noticed that the law provided for the
redemption of one-half of these bills in two years,
but in the bill itself this provision was omitted. The
1. Arnold's Hist. R. 1., vol. 2, p. 343.

102 HISTORICAL TRACT.
style q,nd motto were the same as the lawful money
bills before emitted, and the form as follows :
The possessor of this bill shall be paid
by the treasurer of the colony of Rhode
Island lawful money, at the rate
of six shillings and nine pence for one
ounce of silver, within five years from
the date hereof, with interest at two
and an half per cent, per annum until
paid. By Order of Assembly.
Providence, the 3d day of May, 17 75.'
The third emission of 1775 bore no interest and
was redeemable in five years. The form was differ
ent from the two former issues ; it was as follows :
The possessor of this bill shall be paid
by the general treasurer of the Colony
of Rhode Island lawful money
within five years from the date hereof.
By Order of the General Assembly.
Providence, the 6th day
of November, A. D., 1775.2
1. R. I. Col. Rec, vol. 7, p. 321.
2.. R. I. Col. Rec, vol. 7, p. 390.

COLONIAL PAPER CURRENCY. 103
The bills were printed from movable type, bj'
John Carter. The obverse bears four engraved por
tions, one each upon the right aud left, one across
the top, and the seal and motto. These were proba
bly made for the purpose, but the other ornaments,
which seem to have been prolifically used, appear to
have been of the general stock of the printing office,
and to have drawn pretty heavily upon its resources.
Different ornaments were used upon different bills of
the same date.
In January, 1776, the General Assembly ordered
It may be interesting to some to know the numbers issued of these de
nominations. Of tlie first and second emissions of 1775, there were issued of
each denomination as follows :

Sixpence,

16,000

Five shillings.

8,000

Ninepence,

16,000

Ten shillings.

8,000

One shilling,

20i000

Twenty shillings.

8,000

Two shillings,

12,000

Thirty shillings.

8,000

Three shillings.

8,000

Forty shillings.

4,000

Four shillings.

8,000

Of the third issue there were no four shilling bills. Of the other denominations
there were issued of
Sixpence, 20,000 Five shillings, 6,000
Ninepence, 16,000 Ten shillings, 5,000
One shilling, 20,000 Twenty shillings, 4,000
Two shiUings, - 12,000 Thirty shillings, 3,000
Three shillings, - 8,000 Forty shillings, 1,500

104 HISTORICAL TRACT.
the forty thousand pounds issued in 1775, which
bore tivo aud a half, per cent, interest, to be brought
in and exchanged for other bills which bore no in
terest, aud this within one month, and at the same
time emitted forty thousand pounds with which to
effect the exchange. The same form was used as
that of the third emission of 1775. Their appear
ance is precisely the same. The denominations were
sixpence and ninepence, and one, two, three, four,
five, ten, twenty, thirty, forty and sixty .shillings.
In March, twenty thousand pounds of similar money
followed. The denominations were the same with
the exception of the sixpence bills ; these were omit
ted. In July, ten thousand pounds more were is
sued ; from this issue the sixpence bills were omitted.
As in the preceding year, Mr. John Carter was to
be employed to print the bills at the price of one
shilling and fourpence for every hundred bills
printed, and Mr. Robert Lawton to superintend the
press. These three issues were all of the emissions
of 1776 in which the value was expressed in pounds,
shillings and pence. The only other issue that year
was the one in September, to the amount of sixty-

COLONIAL PAPER CURRENCY. 105
six thousand six hundred and seventy dollars, and
was the first one in which the term dollars had been
used, as it was also of the term State of Rhode
Island and Providence Plantations.'
The form was as follows :
The possessor of this bill shall be paid
by the general treasurer of the State of
•Rhode Island and Providence Planta
tions dollars within six years
from the date hereof. By order of
Assembly.
Providence, the 5th day of September,
A. D. 1776.
The bills of the denomination of five shillings and
upwards, were signed by three persons ; those of a
less denomination, were signed by two persons.
This had usually been the practice iu former issues.
1. It may be curious to know the number of bills of each denomination of
the year 1776, we therefore append it :
Sixpence, ¦ 6,000 Five shillings, 10,500
Ninepence, 9,600 Ten shillings, - 10,500
One shilling, 9,000 Twenty shillings, .' 10,600
Two shillings. . 8,160 Thirty shillings, - 10,500
Three shillings, - 12,000 Forty shillings, 7,000
Four shillings, 10,500 Sixty shillings. - 5,400

106 HISTORICAL TRACT.
The following were the denominations : One-
sixteenth of a dollar, one-eighth, one-quarter, one-
half, and one, two, three, four, five, six, seven, eight,
ten, twenty and thirty dollars. They were in num
bers as specified below.'
In May, 1777, on account of the scarcity of
small denominations, the people were put to great
inconvenience in making change. To remedy this
trouble the Assembly issued fifteen thousand dollars
in fractional denominations. They were in amounts
and numbers as follows : 8,490 one-third of a dol
lar ; 12,000 one-fourth of a dollar; 15,000 one-
sixth of a dollar; 15,000 one-eighth of a dollar;
15,000 one-ninth of a dollar; 15,000 one-twelfth
of a dollar; 15,000 one-eighteenth of a dollar;
15,000 one twenty-fourth of a dollar; 15,080 one
thirty-sixth of a dollar.
1. E. I. Col. Eec, vol. 7, p. 612.

One-sixteenth of a dollar.

8,000

Five dollars.

600

One-eighth of a dollar.

4,000

Six dollars.

600

One-quarter of a dollar.

4,000

Seven dollars.

600

One-half of a dollar.

4,000

Eight dollars.

600

One dollar.

2,000

Ten dollars,

667

Two dollars.

. 600

Twenty dollars.

- 600

Three dollars - - .

600

Thirty dollars.

700

Four dollars.

600

¦»5^

^'.^

No.

§ Haifa Dollar. §
xxxxxxxxxxxxxx
® » s HE PoffEffor of this
ST® Bill ihall be paid, by the
jg iS jS General-Trealurer of the
State of Rhode-IJland and Provi
dence Plantations,
HALF A
DOLLAR,
within Six Years
from the Date
hereof. By Order
of Aflembly. Pro
vidence, the Fifth
Day of September, A. D. 1776.
\ a Dol. : : X : : \ a Dol.

COLONIAL PAPER CURRENCY. 107
Large sums were borrowed at this period and
treasury notes were given, but no further issue of
bills was made by the State until 1780. In 1779
forty thousand pounds were_ emitted, but this sum
was in treasury notes of ten pounds each. Nearly
the whole amount (saving one- hundred and thirty
pounds) were burnt in March, 1781.
Form of the fractional bills of 1777 :
•State of Rhode Island and Providence
Plantations. No.
May 22, 1777. One sixth of
a Dollar. This Bill entitles the pos
sessor to receive one sixth of a dollar
out of the general treasury of this
state by the 22d of May, 1785, and
shall be secured for that sum in all
payments agreeable to an act of said
State.
The next issue iu order of time was that of June,
1780. Its amount was twenty thousand pounds.
Confiscated estates were pledged for its redemp
tion.' These estates were specified and ordered
1. Rhode Island Colonial Records, vol. 9, p. 83.

108 HISTORICAL TRACT.
to be sold, and payment to be made only in gold,
silver, or bills of this issue, and in no other currency
whatever. The bills were of the form here pre
sented.' The estates pledged for the redemption of these
bills, were the State's farm, on Point Judith, 1,200
acres ; George Rome's estate, in North Kingstown,
500 acres ; Thomas Moffatt's farm, in North Kings
town, 200 acres ; Samuel Boone's estate, in Exeter,
600 acres, and the State's (late Borland's) lands, in
Bristol. The sale of these estates , was put into the
hands of a committee. The first attempts to sell were
1. Quite recently, in clearing one of the basement rooms of the State House,
a small sack was discovered containing a set of counterfeit dies for making
Spanish milled dollars, and also some of the coins which had been struck from
them. The sack also contained several stereotypes. These were found to be
the original stereotypes used in printing the bills of 1776, 1780 and 1786. By
the courtesy of the General Treasurer, the Honorable Samuel Clark, in whose
custody the plates and dies remain, the publisher has selected the least injured
portions of the stereotypes and reproduced, as nearly as now practicable, the
bills from the very cuts from which the money was originally printed. The
thirty shilling bill of 1776, which appears in its proper place, is a heliotype, for
the reason that the cuts were found so badly impaired as to be unfit for use.
Moreover the square cut on the reverse was not found, and furthermore a large
portion of the ornaments on the reverse were taken Irom thje ordinary stock of
the printer and could not now be matched by the printer. The bills thus re
produced are, this confiscated estate bill of 1780, the half dollar of 1776, and
the ninepence bill of 1786.

COLONIAL PAPER CURRENCY. 109
unsuccessful. Notice was given that unless the prop
erties were sold thej' would be let at "public outcry."
They were however finally sold, and a report of the
sale can be found in the proceedings of the General
Assembly.' The denominations of this confiscated estates'
money were sixpence and ninepence, and one, two,
three, four, six, ten, twenty, thirty and forty shil
lings. 2
In July, 1780, the issue of thirty-nine thousand
pounds was ordered by the General Assembly. It
was guaranteed by the United States. The amount
of each bill as expressed on its face, was in dollars,
but the interest, also printed on each bill, was in
pouuds, shillings and pence. The bills were printed
by Hall & Sellers, of Philadelphia, the printers of so
much of the Continental money, to the bills of which
this issue bears a close resemblance.
1. Acts and Resolves of E. I. Gen. Assembly, Feb. 1783, p. 8. The prices
realized we^ e, for the north Borland lot, £4 14», and for the south Borland lot,
£5 10s per acre. For the Moifatt farm, £610. For the Rome farm, £4 10s per
acre. For the Boone farm, £1 8s per acre. For that part of Mr. Rome's estate
lying on the point at Newport, £575.
2. Rhode Island Colonial Records, vol. 9, p. 83.
10

110 HISTORICAL TRACT.
There were eight denominations, expressed in
dollars, viz. : One, two, three, four, five, seven,
eight and twenty, and in each bill is the word
CONFEDERATION, in a water mark, which can be
seen by holding the bill before a strong light. Tho
designs and mottoes merit some attention from their
singularity and wit, as well as from their relation to
the war then in progress. "We attempt a description
of each denomination :
One Dollar. The design is a basket, commonly
known as a bushel basket, placed upon a plant,
either a thistle, or, by the elegance of its leaves,
possibly an acanthus. The basket is pressed down
by a slab placed across it, but the leaves, forced by
nature, are vigorously growing around the basket.
Motto, Depressa resurgit: Crushed it rises again.
Two Dollar. The design is an arm aud hand
holding a flail in the act of threshing grain.
Motto, Tribvlatio ditat: Tribulation enriches.
Three Dollar. The desigu is an eagle and a
crane engaged in mortal combat, the eagle having

mTw:EMT^izy\

ia

si

STATE of Rhodj^-Island and ^
Providence Plantations. ^

No. /SXS 'TWENrr DOLLARSM
THE PoffeiTor of tiir %i& rM Se ^dM
TWENTY Spanifti milled DOLLARS by thep
Thirty-firftDay ofi)^.!f«ii^»-. One Thoufand Seven Hun-^
dred and Eighty-fix, with Intereft in like Money, at tlv'^g
Ratie <if Fi<ve per Centum per Annum, by the State oi Rhode-^^
IJland and Providence Plantations, according to an Aft of^
the Legiflature of the faid State,, of the SecondJDay of^
July, 1780.

^y^t^^^A^^^

T' HE UNITED STATES enf*e the Paj^ ]
nientofthe within Bill, and.will ^raw;
BiHb of Exchange for the Intereft annoaUyj
if demanded, according to a Refolution o»
Congress, of the i8th of iW«rfi, 1780.

^r^m

COLONIAL PAPER CURRENCY. Ill
the apparent advantage, but the crane has pierced
his throat.
Motto, Exitus in dubio est : The result is in doubt.
Four Dollar. A wild boar with jaws widely
extended rushing upon a spear-head.
Motto, Aut mors, aut vita decora: Either death
or honorable life.
Five Dollar. The design is a bleeding hand
grasping a nettle tree or thorn bush.
Motto, /Sustine vel abstine: Hold firmly or let
alone. Seven Dollar. The design is a tempest of
wind and rain beating upon hills and mountains.
Motto, 8erenabit: It will clear up.
Eight Dollar. The desigu is a harp with thir
teen strings.
Motto, Majora minoribus consonant: The greater
harmonize with the less.
Twenty Dollar. The design is a face in the
clouds blowing winds upon an open sea.
Motto, Vi conciiatoe: Aroused by violence.

112 historical tract.
These designs were circular in form and were the
same on the same denominations of the Continental
bills, but iu those printed for Ehode Island, a square
portion in the center of each design was printed in
red ink, thus rendering them very difficult to under
stand, in fact almost impossible without recourse to
their continental relatives, which were not generally
printed with the central portion in red ink.
Let us now return to gather some of the frag
ments of the history covering the same period which
we have just passed over :
In December, 1776, a committee .of the New
England States recommended Rhode Island to emit
no more bills of credit unless absolutely necessary,
but rather to levy taxes or borrow, and to emit bills
bearing four per cent, interest and payable in three
years, provided emissions were unavoidable. This
plan was approved by the General Assembly, and a
loan of forty thousand pounds was made. Notes at
six per cent, interest with two years to rnu were
given. 1 The value was expressed in dollars. In
February, 1777, they made a second loan, to the
1. Rhode Island Colonial Records, toI. 8, p. 76.

colonial paper currency. 113
amount of fifty thousand ]30unds. The notes
given were in dollars, at four per cent, interest,
with five years to run. These notes were made
legal tender. This year they began to levy taxes
again, and the town of Providence, where the
sentiment was largely in favor of taxation, consented
to an increase of its yaluation from one hundred and
twenty-five thousand pounds, made in 1767, to two
hundred and twenty-five thousand pouuds, or in
other words, to nearly double the former valuation.
In December, of this year, 1777, the General As
sembly ordered all bills over one dollar in amount,
which were not ou interest, to be called in and
buVnt. The bills issued by the Continental Con
gress had now become probably the principal circu
lating medium in Khode Island, and here as else
where they had very greatly depreciated.
In June, 1780, the General Assembly raised all
the fees, fines and forfeitures which had been estab
lished in 1774, forty for one, and in November, of
the same year, a scale of depreciation for the bills
of public credit was established. This was done in
obedience to a resolution of Congress " recommend-

114

HISTORICAL TRACT.

ing to the several states to revise their laws enacted
pursuant to a former resolution of Congress, making
Continental bills of credit a tender in discharge of
debts and contracts and to amend the same in such
manner as they shall judge most conducive to justice
in the present state of the currency." The law pro
vided, that all contracts entered into before January,
1777, whether in bills of credit or lawful money,
should be in equal value to the same nominal sum in
silver or gold. After that date, all contracts were
payable in Spanish milled dollars or other money
equivalent thereto, agreeably to a table embodied in
the law. This table expressed the value of a hun
dred such dollars in paper bills, on the first day 'of
each month and in regular and equal degrees until
the first day of the succeeding month. ' It further
1. The first, last, and a few intermediate dates and values are
here given :
January, 1777, 100 Spanish milled dollars = 103 paper dollars.

July, 1777,

it

t it

125

January, 1778,

tt

X (t

325

July, 1778,

^t

i it

425 '

January, 1779,

((

t it
742
July, 1779,
((
t ' it
1,477 '
January, 1780,
ft
I it
2,934
COLONIAL PAPER CURRENCY. 115
provided that all private contracts made before the
first day of May, 1775, and all special contracts
made for silver or gold after that time, should be paid
in gold or silver only. Great care was taken to
adjust the equities between debtors and creditors,
the rights of trustees and guardians, as well as of
widows, infants and orphans, were protected in so
far as it comes within the province of written law to
protect them.i The legal tender acts were repealed.
In May, 1781,^ the Assembly continued the scale
April, 1780, 100 Spanish milled dollars
June, 1780, " " " "
November, 1780, " " " "
April, 1781, " " " "
May, 1781, "
1. The writer of an article on the Legal Tender Laws, published in the
Penn Monthly, (July, 1879,) by Mr. A. S. Bolles, pays a high compliment to
Rhode Island for this law. He says with reference to it : " In most cases, the
situation of both debtor and creditor classes was viewed in the clear light of
justice, and such laws were enacted as displayed »¦ line perception of the
rights and equities of all parties; Rhode Island was among the first states to
act and her legislation is worthy of extended consideration. Her example
was imitated by all the states with more or less variation. Its essential fea
ture, the a^usting of contracts made while the legal tender law was in opera
tion, so as to render to the creditor a fair equivalent for what in the beginning,
was received by the debtdr, is found in the legislation of ail the other states.
2. During the second session of. that month.

= 4,000 ]

paper dollars,

6,900

(£ ((

7,400

.< it

7,900

1( (t

16,000

(( (C

116 HISTORICAL TRACT.
of depreciation formerly made by them as above,
bringing it down to the close of that month.
One dollar of the new Continental emission was
made equal to twelve dollars of the old issue of the
same, and the judges of the Superior Court were
appointed to fix the rate of depreciation from time
to time thereafter, and to publish the same. Acts
were passed iu May, 1778, and in June and Novem
ber, 1782, consolidating the paper money, ordering
all bills and notes to be brought into the treasury,
and new notes given bearing interest ; interest also
being calculated on those brought in from June,
1778, the period when they had been ordered out of
circulation .

No. 1^
Nine Pence.

A!!!

A.*AA

State of Rhode Island, i^c.
® H ®HIS Bill is equal
®T®to NINE PENCE
f> S ® in Lawful Silver Money,
and lha]l be received in all Pay
ments within this
State, agreeable
to an Aft paf-
fed by the Gene
ral Assembly
of faid State, at
theiiiA/(?)i Seflions
holden at the City'
of Newport, A.

D. 1786.
<)d.A.

¥¦

\t\V-ytTi^'t''

1

THE TENTH BANK.
1786.

We have now reached the last issue of paper
mone;f by the State of Rhode Island, the memorable
bank of 1786. It was after a severe political con
test, in which the paper money party had obtained
the control of the General Assembly, that the emis
sion was made. The Assembly declares that "from a
variety of causes, political and mercantile, the cur
rency of this State, now in circulation, was become
altogether insufficient in point of quantity for the
purposes of trade and commerce and for paying the
just debts of the inhabitants." The bank consisted of
one hundred thousand pounds, to be loaned out in the
usual manner at four per cent, for seven years, and
then one-seventh payable annually, but no interest
was to be paid after the expiration of the first seven

118 HISTORICAL TRACT.
years'. The bills were legal tender, excepting for
debts due charitable corporations. The law pre
scribes that the bills shall be of convenient denomi
nation, none to be less than sixpence, and none
greater than three pounds. Two gentlemen, Messrs.
William Borden and Thomas Freebody, were ap
pointed to superintend the press during the printing
of the bills. Three signatures were necessary for
the bills of twenty shillings and upwards, while two
signatures would answer for all bills of less denomi
nation. The list of denominations is not given in
the law, but from the private collection in posses
sion of the publisher, the denominations appear to
have been sixpence, ninepence, and one and two
shillings, two shillings and sixpence, three, five, six,
ten, twenty, thirty and forty shillings, and three
pounds. The law directed that these bills should
pass iu all kinds of business, and in payments of
former contracts, at par with specie. The law not
only created a bank of issue of m juey, but at the
same time acted as a general liquidation law. If a
creditor refused to receive the bills in payment of
1. Acts and Resolves of R. I. Gen. Assembly, May, 1786, p. 13.

COLONIAL PAPER CURRENCY. 119
his claim, the debtor made immediate application to
a justice of either the Superior Court or the Court
of Common Pleas, who issued a citation to the
creditor to appear at his dwelling house in ten days
from the service of the citation, and receive his
money as prescribed by the law, and which the
debtor claimed he owed him, and which he had
placed in the hands of the judge. The judge then
issued a certificate to the debtor, setting forth the
facts as to the lodgment of the money, and in case
the creditor failed or refused to call for the money
within the specified time, advertised the facts in the
newspapers for three weeks. The debtor was there
upon discharged from his debt, his certificate being
a sufficient plea iu bar to any action in the courts
for the recovery of the money so lodged. During
the month following, another act was passed
subjecting such as should refuse to receive the bills
issued upon the terms specified to a penalty of a
hundred pounds. This law was soon after changed,
the penalties were lessened in amount, but more
odious features were introduced into it. Upon com
plaint to either judge, such judge was to convene

120 HISTORICAL TRACT.
a Special court comprising three or more members,
which should be convened within three days ; this
tribunal tried the case without a jury, and upou
the judgment of a majority the defendant must
stand or fall ; if against him the judgment must
be forthwith complied with or he must go to prison,
and from this judgment there was no appeal. i
Under such legislation we may not wonder that
mercantile transactions among men ceased, and that
creditors took every means to elude their debtors
by reason of the very rapid and great depreciation
of paper money. Amusing instances are related of
creditors leaping from rear windows of their houses
or hiding themselves in their attics. (Things in this
respect are lamentably changed now.) To overcome
the difficulty of a man's finding his creditor, the
Assembly provided, as before related, that if a debtor
should deposit a sufficient amount of paper money
with any one of the judges, it was a legal tender,
and should liquidate his debt. Many debtors took
advantage of this state of things, and large amounts
of the old bills are still in existence in the office
1. These laws are all reprinted in the appendix of the case, Trevett vs. Wee-
den. 4to. Providence, 1787. pp. 54-60.

COLONIAL PAPER CURRENCY. 121
of the General Treasurer in the original packages
in which they were deposited, with the name of
the hapless creditor inscribed thereon. One, a
member of St. John's Episcopal Church of this
city, was excommunicated by that church for the
act, the church declaring itself upon such matters
in the following vigorous language : " The fulfilling
of agreements voluntarily entered into, with hon
esty and good faith, is enjoined by the clearest
principles of reason and the express commands
of OUT most holy religion. The obligations arising
from these laws are superior to aud not releasable
by any municipal statute or institution whatever."
The Ehode Island Society of the Cincinnati also
expelled one of its members for a similar cause.
Eesistance to these measures, beginning in the
larger towns, soon spread through the great mass of
the people. A case soon arose and was made a test
of the law. John Trevett purchased of John
Weeden, in Newport, a piece of meat, tendering
in payment therefor the paper money, which
Weeden declined to receive. Complaint was there-
II

122 HISTORICAL TRACT.
upon made to the Hon. Paul Mumford, "Chief Jus
tice of the Superior Court at his chamber, who
caused a Special Court to be convened, but as the
information was given during the term of the [Su
perior] Court, it was referred into the term for con
sideration and final determination." Weeden was
arrested and immediately tried for the offence, ho
was excessively poor, having within a month been
supported at the expense of the town ; but the
ablest counsel the State afforded was provided. His
defence was conducted by the Hon. Henry Marchant
and General James M. Varnum, names of no small
repute in those days. The last named gentleman
argued the case ; his grounds were three in number :
First. The act had expired, for the law read,
" that the legal mode of carrying the afore-recited
act into execution shall be in force, fully and com
pletely, for every purpose therein mentioned
and contained, until all offences against [the
same]i which have been committed and com
plained of, and which may be committed
1. Case Trevett vs. Weeden. 4to. Providence, 1787. p. 60 — the words,
** the same," appear in the law as here cited, but were omitted in the report of
the trial, hence the reason for thei]:iappearance in brackets.

COLONIAL PAPER CURRENCY. 123
and complained of, uiitil the expiration of ten days
after the rising of this Assembly." That is, the
Jegal mode shall be in force until the expiration
of the ten days, consequently upon the expiration of
that period no legal mode existed.
Second. The act created special trials not con
trolled by the Superior Court. The law of 1729,
which created this court, declares that its jurisdic
tion shall extend over the whole Colony for the
regular hearing and trying of all pleas, real, per
sonal and mixed, and all pleas of the crown ; that
it should possess the same power aud authority in'
all matters and things in the Colony, as the Court
of Common Pleas, King's Bench or Exchequer
possessed in England. " That this power had never
been diminished ; it commands, prohibits and re
strains all inferior jurisdictions. Had the cogni
zance of informations been confined to the Court of
Sessions only, the evil might have been remedied
without appeal, by a writ of certiorari or otherwise,
but by an unheard of arrangement in the special
jurisdictions, the judges of this [Superior] Court
are precisely upon a level with those of the Sessions.

124 HISTORICAL TRACT.
Their jurisdiction is concurrent, cumulative and
equal, consequently there would not be a propriety
in applying to this court iu their supreme judicial
capacity to correct the errors and restrain the
excesses that might arise from oppressive determi
nation. By these first decisions as a Special Court,
a legal prejudice would naturally be formed which
might totally obstruct the avenues to justice. Mak
ing every possible concession, the Supreme Judi
ciary Court could only correct the errors of its own
judges, determining in the Special Court."
* Third. That these special courts were not au
thorized nor empowered by the act to empanel a
jury to try the facts charged in the information,
and were therefore unconstitutional and void. In
support of this proposition. General Varnum
traced the history of trials by juries from the earli
est times — rehearsed the rights conferred by King
John, in Magna Charta and the various grants
subsequently made confirmative thereof. The
clause in the Charter of Charles II. relating to
these matters is as follows : " That all and every
the subjects of us, our heirs and successors, which

COLONIAL PAPER CURRENCY. 125
are already planted and settled within said Colony
of Providence Plantations, which shall hereafter go
to inhabit within the said Colony, and all and every
of their children, which have been born there or on
the sea going thither, or returning from thence,
shall have and enjoy all liberties and immunities of
free and natural subjects within any of the dominion's
of us, our heirs or successors, to all intents, con
structions and purposes whatsoever as if they and
every of them were born within the realm of
England." Mr. Varnum proceeded to exhibit how
frequently the General Assembly had reasserted
aud confirmed these privileges, ntimerous instances
of which had occurred since 1663. The decision
of the Court was that they had no jurisdiction in the
case — so fell the law. For this decision the judges
were summoned before the General Assembly. The
language of the resolution appears so extraordinary
that we reproduce it :
" Whereas, It appears that the Honorable the
Justices of the Superior Court of Judicature * * *
have by a judgment of the said Court, declared
and adjudged an act of the Supreme Legislature

126 HISTORICAL TRACT.
of this State to be unconstitutional and so abso
lutely void, and whereas it is suggested that the
aforesaid judgment is unprecedented in this State,
and may tend to abolish the legislative authority
thereof, it is therefore
" Voted and Eesolved, That all the Justices of
said Court be forthwith cited * * * to give immedi
ate attendance on this Assembly to assign the
reasons and grounds of the aforesaid judgment."
Three judges attended at once as directed, and
placed their defence in the hands of David Howell,
the youngest of their number. He declared that
for the reasons of their judgments upon any
question judicially before them, they were account
able only to God and their own consciences ; and
he then proceeded to show the Assembly that
they had " assumed a fact in their summons which
was not justified or warranted by the records. The
plea of the defendant in a matter of mere surplusage
mentions the act of the General Assembly, as ' un
constitutional and so void,' but the judgment of the
Court is, 'that the information is not cognizable
before them,' hence it appears that the plea hath

colonial paper CURRENCY. 127
been mistaken for the judgment. Whatever might
have been the opinion of the judges, they spoke by
their records, which admitted of no addition or
diminution." In a speech of six hours, he then
demonstrated to the General Assembly how
their law was unconstitutional and therefore
had not the force of law and could not
be executed. Judge Howell's argument, however
satisfactory it may be to us, was entirely unsatisfac
tory to the members of the General Assembly, who
immediately voted that no sufficient reason had been
given for the judgment, and a motion was at once
made dismissing the judges from their offices. This
motion was seconded, and immediately thereat a
memorial was presented, addressed "To his Excel
lency the Governor, aud his Honor The Speaker of
the lower House of Assembly, to be communicated
to both Houses." This memorial was signed by
three of the judges, Joseph Hazard, Thomas
Tillinghast and David Howell. It is an
admirable document, written in a dignified and
courteous style, concise and clear in its statements,
and without passion ; resisting to the utmost the en-

128 historical tract.
croachments of the General Assembly, and asserting
in a manly way the rights of the judges, strongly de
nying the power of the legislature to call upon
them for the jaarticular reasons of their judgment in
that or any other case, and declining to reverse the
same, claiming their right as freemen to be heard
before a proper legal tribunal and given an opportu
nity to answer to specific and certain charges, utter
ly protesting against the right of the Assembly to
deprive them by a summary vote of their right to
exercise the functions of their office, and this " upon
a mere suggestion of a mere error of judgment."
The memorial being delivered, the judges in
formed the Assembly that they had directed counsel
to enforce its contents, and requested a hearing ;
thereupon its author addressed the House, urging
first, that if the judges are to be tried, they may
first know their offence, that charges be specified,
time given them for defence, and that they may be
heard before a legally constituted tribunal. He
further reminded them, that by their Declaration
of Rights, "no man, of what estate and condition
soever, shall be put out of his lands and tenements.

COLONIAL PAPER CURRENCY. 129
nor taken, nor imprisoned, nor disinherited, nor
banished, nor any ways destroyed, nor molested,
without being for it brought to answer by due
course of law."i He further reminded the Assembly
that " if they would preserve in the minds of the
citizens, an attachment to their measures and a ven
eration for their laws, they certainly will not violate
the laws themselves." These arguments so clear and
convincing, seem to have turned the current of opin
ion in the Assembly. Several of the ablest mem
bers spoke favorably of the judges, and it was finally
voted " that as the judges are not charged with any
criminality in rendering the judgment upon the in
formation, Trevett vs. Weeden, they are therefore
discharged from any further attendance upon this
Assembly on that account." 2
1. This clause forms Chapter 29 ot Magna Charta. (See English Liberties,
Prov., 1774, p. 21) . It is also, although not expressed in precisely the same terms,
in the Proceedings of the First General Assembly in 1647, (reprint of 1847, p.
18,) but in its exact form as here given, it can be found in the various Digests
of Rhode Island Laws, viz. : Digest of 1730, p. 4; Digest of 1744, p. 3; Digest
of 1767, p, 226.
2. At the election of State officers the following year, the only member of
the com-t re-elected, was the Chief Justice, the Hon. Paul Mumford, he having
carefully abstained from talcing part in the decision, the four_ other judges
gave the judgment and were not continued in office.

130 HISTORICAL TRACT.
In September, 1789, the bills of this emission
having fallen very low, the law making them a legal
tender was repealed. In February, 1793, the burn
ing of them commenced, and continued from time to
time until in May, 1803, during which time £96,646
were destroyed.
The scale of depreciation of this emission was
fixed by the General Assembly from July 1st, 1786,
to July 1st, 1789 :
July, 1786, six shillings in specie, equals 9 in bills.
October, 1786, " " " " 18
January, 1787, " " " " 24
April, 1787, " " " " 34
April, 1788, " " " " 38
July, 1788, " " " " 45
January, 1789, " " " " 60
July, 1789, " " " " 90
At this latter rate these bills have been receivable
in payment of taxes as late as 1819.
A part of the present state debt can be traced
back to the treasury notes, which were given at
many different times to take up portions of the cir
culating paper. In accordance with the laws at

COLONIAL PAPER CURRENCY. 131
various times, a debtor could deposit with the clerks
of the courts the amounts in which they were in
debted to others, who either could not be found, or
when found would not receive the bills, and this de
posit so made discharged the debt. Probably a con
siderable sura of this money so deposited might still
be found among the old files of these courts.
A table of emissions and burnings has been added,
to which suudry notes are attached. It has been
found quite impossible to attain qpmplete accuracy
in this table, as the reports of the committees who
burnt the money did not always distinguish between
the nominal value of the bills and their value in old
tenor. The figures are intended to express the
nominal value, or that which is expressed upon the
face of the bills.
Here we rest our history ; for some other details
the readers must be referred to the papers which
follow. These we have preserved in their original
form rather than to further encumber the narrative
concerning these matters. A recent writer says :
" Rhode Island was the most unfortunate of all the
colonies in her currency legislation. She kept peag

132

HISTORICAL TRACT.

longer than any of the others, and plunged into
paper issues more recklessly than any. The loan
bank system she tested to the bitter end."

TABLES

EMISSIOl^S A'NB BUEI^II^GS

BILLS OF OEEDIT,

HISTORICAL NOTES.

12

TABLE OF EMISSIONS AND BURNINGS

BILLS OF CREDIT, WITH HISTORICAL NOTES.

DATE.
1689, May,
1690,1698, 1702,
1710, May,
" October,
" November,
1711, June,
" November,
1714, June,
1715, July,
" October,
1710.1717, June,
1718, June,
*' September,

EMITTED. BURNT.

£5,000 1,000
1,000 6,000 300
30,000
10,000

£1,102

300

1,722 540 874

NOTES.
War with France until 1697.
Massachusetts first emitted bills of credit.
Samuel Cranston, governor of R. I.
War with France until March, 1713.
On account of French and Indian war.
For Annapolis Royal Expedition.

Massachusetts issued a banic of £90,000.
First bank, to be loaned at five per cent.
for ten years. May, 1728, time of pay.
ment extended.
Massachusetts issued a bank of £100,000.
War began with Spain.

Note. — In this table pounds only are given, the fractions being omitted.

136

HISTORICAL TRACT.

DATE.

EMITTED.

BURNT.

1719, June,

1,151

1720, June,

858

1721, May,

40,000

"

.Tune,

255
1722,
June,
451
"
August,
235
1723,
February,
2,000
"
June,
642
1724,
June,
907
1725,
June,
869
1726,
June,
46,634
594
1727,
June,
14,991
1728,
May,
40,000
"
May,
3,000
"
June,
2,000
10,573
"
June,
3,000
1729,
June,
4,536
1730,
June,
3,608
"
October,
1,000
1731,
June,
60,000
"
June,
4,198
1732,
Jiine,
2,.381
1733,
June,
3,946
"
July,
100,000
1733,
July,
4,000
1734,
. October,
2,067
1735,
August,
1,015
1736,
June,
3,515
Second bank, issued on account of scarci
ty of specie. Loaned for five years at five
per cent. May, 1728, time extended.
Massachusetts issued a bank of £50,000.
Joseph Jencks, governor of R. I. Massa
chusetts issued a bank of £00,000.
Third bank. Decay of trade and com
merce the pretext.
Fourth bank.
2,.38l William Wanton, governor of R. I.
Fifth bank. Massachusetts made large
emissions this year.
John Wanton, governor of R. I.
COLONIAL PAI'ER CURRENCY.

137

D

ATE.

EMITTED.

BURNT.

1737,

June,

30,000

4,042

1738,

May, June,August,

10,000
100,000

26,269

1739,

(or before,)

2,007

14

August,

14,077
1740, September, 20,000
" September, 10,000
1741, May, 8,000
" October, 8,000
1742, 1741-2, February,
1743-4, February, 40,000 new tenor.
1744, March, 10,000
1745, May, 15,000
" September, 20,000
1746, June, 45,000
1746-7, February, 60,000
1747-8, February, 30,000
1748,1749,
NOTES.
An emission to exchange torn bills.
Sixth Bank.
See report of committee.
About £11,296 in circulation of bills
emitted.to supply treasury.
Seventh bank. New tenor. The new
bills to be equal one to four of the old.
Expedition against the Spaniards.
Richard Ward, governor of R. I.
War again.
£24,000 ordered to be emitted to ex
change bills of 1740 called in.
William Greene, governor of R. I.
Eighth bank. Loaned for ten years at
four per cent.
Equal to 3,750 new tenor. Massa
chusetts issued large sums.
Equal to 5,000 new tenor.
Equal to 11,250 new tenor. Expedition
to Canada.
Equal to 15,000 new tenor. Gideon
Wanton, governor of R. I.
Peace.
William Greene, governor of R. I.
By committee's report £135,335 were in
circulation of bills emitted for supply of
the treasury. Of this amount, £24,891
was actually in the treasury.
138

HISTORICAL TRACT.

DATE.
1750, March,

EMITTED. 25,000

1751, June,
1753, Feb. and Oct.,
1754, February,
1755, March,
" June,
" August,
" September,
" December,
1756, February,

24,280 45,885 1,647
60,000 old tenor.
40,000 " "
20,000 " "
60,000 " "
60,000 " '•
8,000 13,792

"

November,

18,430

1757

March,

177,008

"

June,

11,400

1768

February,

11,693
"
May,
10,000
II
September,
6,695
II
October,
10,909
1759,
February,
12,000
II
"
4,000
"
June,
4,000
7,022
1760,
February,
16,000
"
March,
11,000
1761,
February,
1,072
"
May,
48
1762,
February,
5,000
Aug. and Sept. 6,000 18,208
NOTES.
Ninth bank. In report of 1764, the bills
of 1760 are said to be then equal £20 to
£6 sterling.
Old tenor.
I Stephen Hopkins, governor of R. I.
~ The Crownpoint Bills were all sunk
a within two years from their date.
c War declared with France. Hos
tilities had begun in the Colonies the
year before. Lawful money from this
time forward.
William Greene, governor of R. I.
Stephen Hopkins, governor of R. I.
These bills bore five per cent, interest.
Bearing five per cent interest.
Battle on the Plains of Abraham.
War with Spain.
COLONIAL PAPER CURRENCY.

139

DATE. EMITTED.
1762, March, 2,000

" May, 2,000
*' August,
" September, 4,000
1763, August,

" October,
1765, February,
1766, February,
1767, February,
1768, Feburary,
1769, February,
" October,
1770, May,
" October,
1772, October,
1773, May,
1775, May,

" June,
" August,
" October,
1776, January,
" March,
•¦ July,

660
2,000

20,000

20,000
40,000 20,000 .
10,000

10,606
87,059

48,787

NOTES.
Havana taken, August, 1762. Com
mittee estimated there were circulating.
Old tenor, £93,687; Crownpoint, Old
tenor, £2,321; Lawful Money Bills
£66,403.
Samuel Ward, governor of R. I.
Old tenor.
Stephen Hopkins, governor of R. I.
Peace with France and Spain. Canada
acquired.
Samuel Ward, governor of R. I.
Stephen Hopkins, governor of R. I.
Josias Lyndon, governor of R. I.
Joseph Wanton, governor of R. I.

September, $60,670
December,

426
80,083 4,661
75,566 4,070
57,174 11,000
40,317 810
44,694 9,660 To bear 2yi per cent interest. Nicholas
Cooke, governor of R. I.
8,902 Old tenor.
9,362 Without interest.

First using of the term dollars.
£40,000 hired on 6 per cent, notes.

140

HISTORICAL TRACT.

DATE. EMITTED. BURNT.
1777, February,

" May, »16,000=f4,500
1778, October, £73,193
1779, March,
" June, £40,000
1780, June, 20,000
" July, 39,000
1781, March, 38,000

1783,

October,

6,000

1785,

October,

11,479

1780,

May,

100,000

1786,

1789, 1791,
1795,
1800,1800,
1801,
NOTES.
£50,000 hired on 4 per cent notes. About
£7,000 of these notes burnt, March,
1781, in addition to the amount given
that month.
Emitted in treas'y notes, payable in 1785.
Of bills 1775 and 1776. William Greene,
governor of R. I.
Council of war issued a quantity, of
which £ 10,920 were burnt in March, 1781.
Issued in treasury notes of £10 each, of
which £39,870 was burnt in March, 1781.
To bear 5 per cent interest, payable in
1781. Made a tender — confiscated es
tates pledged for their redemption.
On the credit of the United States at 5
per cent, interest.
$871,668 old continental bills burnt=
£61,470, 65. This had been exchanged
for new bills.
Tenth bank. John Collins, gov. of R. I.
Case of Trevett vs. Weeden. For re
fusing to take the bills of 1786 in pay
ment for merchandize.
Arthur Fenner, governor of R. I.
Providence Bank chartered.
Bank of Rhode Island, Newport, char'd.
Washington Bank, Westerly, chartered.
Bank of Bristol chartered.
Exchange Bank, Providence, chartered.
LETTER FROM RICHARD WARD,

GOVERNOR OF THE COLONY OF RHODE ISLND,

TO THE LORDS AND COMMISSIONERS OF TRADE FOR THE
FOREIGN PLANTATIONS,

CONCERNING THE

EMISSIONS OF PAPER MONEY BY THE COLONY.

LETTER OF GOV. RICHARD WARD.

Newport, January, the 9th, 1740.
To THE Right Honorable the Lords and Commissionbks
OF Trade for the Foreign Plantations:
May it please your Lordships : We have received
your Lordships's letter of the 20th of May, with the
votes of the Honorable House of Commons, of the
25th of April last, respecting the emission of paper
money in the plantations, and now transmit your
Lordships an account of the several emissions made
by this Colony ; but before we enter on that busi
ness, we humbly ask leave to premise to your Lord
ships, that it is now but an hundred years since the
English came into this Colony, then a hideous wil
derness, and inhabited by Indians only ; of whom
the land was purchased from time to time, as oppor
tunity and circumstances would permit.

144 HISTORICAL TRACT.
And as the first settlers were not of the wealthiest
sort, nor overstocked with servants, the greatest
part of their money was unavoidably swallowed up
in procuring provision, clothing aud utensils for hus
bandry aud labor, to subdue and cultivate the soil ;
whence it came to pass, that although there be
several commodious harbors within this Colony, and
a part of the Atlantic ocean makes our southern
boundary, yet little or no navigation was carried on
till about the beginning of the present century ; ne
cessity engaging the inhabitants to employ the whole
of their time and care — some to bring to, and ma
nure the land, others to follow such trades and occu
pations as they were most capable of, for the support
of themselves and those who depended on them.
Indeed, they had a small matter of money, but that
was chiefly the remains of what they and their
fathers had brought into the country.
In the year 1710, we had orders from Her
Majesty, the late Queen Ann, to raise and equip a
number of soldiers, to assist in an expedition de
signed against the French and Indian enemies, which
we cheerfully performed, but could not effect, with-

COLONIAL PAPER CURRENCY. 145
out striking off a quantity of paper money, to sup
ply the want of silver and gold (then exceeding
scarce). Seven thousand pounds in bills, were
therefore emitted, and put into the treasury, for dis
charging the debts that the government had con
tracted, by raising and equipping those soldiers.
These bills amounted to about £4,593 15s, and
passed equal to silver at eight shillings per ounce,
and were to remain outstanding for the space of five
years. Anno 1711, the war continuing, and the govern
ment too plainly seeing the aforesaid £7,000 were
not sufficient to answer the bonds for which they
were emitted, added £6,300 to the former emission,
which likewise passed equal to silver at eight shil
lings per ounce, and amounted to about £4,134 7s 6c?.
We have already observed to your Lordships, that
husbandry and mechanical arts were the only employ
of the inhabitants of this Colony, till about the be
ginning of the present century ; in consequence of
which, a small medium of exchange was sufficient
till other emergencies required a larger. The Colo
ny had been obliged to assist in sundry expeditions,
13

146 HISTORICAL TRACT.
for reducing Port Royal and Canada ; and were un
der an inevitable necessity of frequently taking the
merchants' vessels and fitting them out at the public
charge, to defend us against the insults aud depre
dations threatened by the enemy, who were almost
every year, during the last war, hovering about our
coast ; by which means, the government was greatly
involved, and much in debt, notwithstanding the
aforesaid emissions.
The fort, likewise, which we had built at our own
expense, was very much out of repair, and destitute
of stores and ammunition. And there being also a
necessity of a public jail iu Newport, the metropolis
of the Colony, we were compelled to make an emis
sion of £40,000 in bills of credit. Anno, 1715,
which was issued on loan, at five per cent., to the
inhabitants, for ten years, upon land security, taken
to double the value of the money hired by each par
ticular person; the interest thereof, was applied,
part to sink the two former banks, part to pay off
the public debts, part to defray the expenses of re
pairing the fort and furnishing it with stores and the
other part to the building and support of the jail,

COLONIAL PAPER CURRENCY. 147
and to defray the other incidental charges of the
government. Silver was worth twelve shillings per ounce at the
time of making these last bills, and their whole
amount was about £17,500.
1721. As the little trade of our Colony (which
was almost stagnated in the long war with France ) ,
had begun to revive upon the peace iriade at Utrecht,
the merchants found themselves in a capacity of
rendering it more extensive, through the assistance
of that medium they were furnished with, by the
emission of paper bills. Anno 1715, they accord
ingly built more vessels, and generously advanced
into a much larger trade,' and everything among us
seemed to be in flourishing circumstances.
But the merchants of Boston, annually receiving
vast quantities of goods from Great Britain, and not
having a sufficiency of the product of this country
to make proper remittances home, bought up all the
gold and silver they could lay their hands upon, in
this and the neighboring governments, in order to
pay their debts in England. This rendered those
commodities very scarce, and our bills having ob-

148 HISTORICAL TRACT.
tained a currency amongst our neighbors in the ad
jacent governments, became scarce likewise.
Our trade was nevertheless still increasing, and
the fort wanted a further repair ; all which obliged
us to emit another £40,000, A. D. 1721, which was
let out upon loan, at five per cent., on land security
(as the bills in 1715 had been), for the term of five
years. And that the industrious might have a suit
able encouragement, the treasurer was ordered to
receive the interest thereof in good merchantable
hemp and flax, from such persons as should tender
it, at such prices as should from time to time be set
by the General Assembly ; which interest hath been
appropriated to the use of the public. Silver was
worth about sixteen shillings per ounce at the time
of making those bills ; and their whole amount was
about £13,125.
The time fixed for paying in the £40,000 of 1715,
being come, the government were made sensible
that many people who had taken those bills, having
laid out the greatest part thereof in building houses,
and otherwise improving their estates, were not in a
capacity of paying the same in one entire sum as

COLONIAL PAPER CURRENCY. 149
they had received it ; and considering they had all
along punctually paid their interest, to prevent the
utter ruin and destruction of many industrious fami
lies, continued that bank, out upon interest, for
three years further, viz. : until the year 1728, at
which time, the same was ordered to be sunk by ten
annual payments of one-tenth part of the whole,
which hath been done accordingly.
The surprising growth of our commerce, occa
sioned in a great measure by the merchants' being
supplied with a medium of exchange, from the emis
sions of paper bills in 1715 and 1721, invited people
of all sorts and conditions to come from all parts
and settle among us. This made our Colony popu
lous, furnished us with mechanics of every kind, and
helped us to make a further progress in trade and
navigation, which required a larger medium than we
had. Therefore, Anno 1728, seeing that the merchants
of Boston still persisted in buying up the silver and
gold, that £4,000 of the bills then extant, were to
be sunk annually, and that the fort was so far gone
to decay, that to build a new one more regular.

150 HISTORICAL TRACT.
strous and larger, was conceived to be most advan-
tageous and beneficial, the General Assembly emitted
£40,000 more, in bills of public credit, which was
hired out upon the same loan, for thirteen years,
upon the like good security, with the bills formerly
emitted ; the interest whereof, hath been appropri
ated to the building of a new fort and other public
uses. Silver was at eighteen shillings per ounce at
the striking off of these bills, and their total amount
about £11,666 13s id.
Frequent experiments had convinced several of
our farmers and husbandmen that the soil of the
Colony was very suitable for the production of
hemp ; but it being a new undertaking, they peti
tioned the General Assembly that proper encourage
ment might be given them to raise a commodity
which would not only be very serviceable to us, but
might in time, prove of advantage to Great Britain
itself. It was also considered that the Provinces of the
Massachusetts Bay and New Hampshire had been
very successful, and served themselves in an emi
nent manner, by the whale aud cod fishery ; and that

COLONIAL PAPER CURRENCY. 151
this Colony was well situated to carry on so valuable
a branch of trade.
The General Assembly thereupon. Anno 1731,
passed an act for the emitting of £60,000 in bills of
public credit, of the same tenor and ou the same es
tablishment with the former banks ; the interest
whereof, to be applied to the following uses : a pre
mium or bounty was granted of ninepence \iev
pound, on all good water-rotted, well manufactured
hemp that should be raised within this Colony ; five
shillings per barrel on whale oil, one penny per
pound on whalebone, and five shillings per quintal
on good merchantable codfish, taken in any vessels
belonging to this Colony. Silver was worth twenty-
two shillings per ounce, when these bills were emit
ted, aud their amount was aboiit'£14,218 3s 7c?.
In the year 1733, the Colony having made some
progress in the fishing business, perceived all their
endeavors that way would certainly prove ineffec
tual, unless a convenient harbor, nearer the fishing
ground, than that of Newport (being the nighest),
were found out. They therefore formed a scheme of
making an harbor on Block Island, fit to receive our

152 HISTORICAL TRACT.
fishing vessels and the coasters of this and the
neighboring governments. At the same time, we
had just finished a very handsome, regular fort of
stone and mortar, and as this fort is much larger
than the former, aud hath a large battery on the west
side more than the other had, a number of cannon,
carriages, &c., were wanting, and could not be ob
tained without money.
On this, therefore, and the aforementioned occa
sion, the General Assembly made another bank of
£104,000 in bills of public credit, part of which was
expended in purchasing cannons, carriages and other
military stores for the fort, and the remainder ex
hibited upon loan in the same manner, and on the
like good security with the former banks ; part of
the interest money- arising thereon appropriated to
build a pier and make the harbor on Block Island,
and the rest of the said interest to the use of the
public. Silver was worth at the emission of those
bills, twenty-five shillings per ounce ; and their total
amount about £21,840.
1738. We emitted $100,000 more, on the like
security with the former banks, the interest to be

COLONIAL PAPER CURRENCY. 153
appropriated to the building of a large brick state
house, for the Colony's use, and to erect a light
house for the benefit of our navigation, and to ren
der it more easy and secure. The cause of this
emission, also, was the want of a sufficient medium
of exchange. For the Colony of Connecticut car
ries on but a small trade, and that chiefly with the
produce of their own soil, as wheat, Indian corn,
peas, beans, onions, beef, pork, and such like com
modities, and therefore stand in need of a very
small medium, which, with a quantity of our bills
passing there, hath rendered it unnecessary for them
to make any large emissions of bills of credit ; and
the Province of the Massachusetts Bay, having their
hands so tied up, that notwithstanding a great num
ber of our bills is circulating among them, the mer
chants of Boston have been forced to emit a round
sum of negotiable notes of hand, to supply the want
of money, and prevent business from stagnation.
Silver was at about twenty-seven shillings per ounce,
when these bills were emitted ; and their amount
about £19,444 8s lOd.
1740. As the King's Most Excellent Majesty had

154 HISTORICAL TRACT.
engaged in a just and necessary war against Spain,
on account of the repeated depredations and unheard
of cruelties by that nation exercised on our fellow-
subjects, the General Assembly, at their session last
winter, calling to mind the great danger we were
constantly exposed to, in the late war with the
French, by.being unprovided with a vessel of war
of our own, and so frequently obliged to take the
vessels of private persons, and equip them in
haste to go out and fight the enemy, as they came to
infest our coast, resolved, and accordingly built,
early the last spring, a fine sloop, of the burthen of
one hundred and fifteen tons, mounted her with
twelve carriage and twelve swivel guns; and fur
nished her with small arms, pistols, cutlasses, &c.,
to defend us against the enemy, should we be at
tacked. In the former part of the current year, we re
ceived His Majesty's royal instructions, directing us
to raise as many able-bodied, effective men in this
Colony as would voluntarily enlist in his service,
on an expedition intended against some of the King
of Spain's territories in the West Indies. In obedi-

COLONIAL PAPER CURRENCY. 155
ence to which, the General Assembly immediately
appointed three captains, and passed an act granting
a bounty of £3, and other encouragement to every
such man that should voluntarily enter into the
aforesaid service. This zeal in the Assembly, ani
mated the common people to such a degree, that
two of the captains had completed their companies,
each consisting of one hundred men, within the
space of two months ; the third had collected above
seventy soldiers, and would have made up his com
pany in due time, had the government been honored
with another of the royal commissions.
These soldiers were billeted out, at the charge of
the public (from the time of their being enlisted,
till they were disbanded, about the 16th of August) ;
and so were the other two companies, till the middle
of September, when they embarked for New York,
in two transports, hired by the Co tony for that pur
pose, having first received blankets and other neces
saries, as a further gratuity from the government ;
all which extraordinary expenses, and the incident
charges of government, greatly augmented by the
war, made it absolutely necessary to emit more bills

156 HISTORICAL TRACT.
of public credit. Upon which, the Assembly have
this year, 1740, passed an act for issuing out £20,-
000 in paper bills, equivalent to silver, stated at six
shillings and ninepence per ounce, to be let out at
four per cent, upon loan (on such land security as
hath been heretofore taken), for ten years, and then
to be sunk by ten equal annual payments. Silver
is now worth twenty-seven shillings per ounce, and
the whole of this bank amounts to about £15,555
lis Id.
Aud now, may it please your Lordships, having
given you an exact account of the several emissions
of our paper bills, their amount, &c., as was re
quired, w^e entreat your Lordships to consider that
this Colony was first purchased, then settled, and
hath been at all times defended by its inhabitants at
their own proper costs and charges, as well against
the Indian natives in former times, as against foreign
enemies of latter years ; and that without ever be
coming chargeable to our mother country, or repin
ing at the expense ; for, although we' were notrich,
yet poverty was a stranger among us, till the year
1710, when we were called upon to appear in the

COLONIAL PAPER CURRENCY. 157
field for the honor and interest of Great Britain.
The vast expense of that and other expeditions, in
the war, reduced us to a low ebb ; yet we manfully
struggled through our difficulties, and upon the res
toration of peace, boldly ventured upon enlarging
our trade, which God Almighty hath crowned with
so great a success, that we follow the same path to
this day.
We have now above one hundred and twenty sail
of vessels belonging to the inhabitants of this Colony,
all constantly employed in trade ; some on the coast
of Africa, others, iu the neighboring colonies, many
in the West Indies, and a few in Europe.
Besides the two hundred soldiers raised for His
Majesty's immediate service, the merchants of the
town of Newport have equipped five privateers, with
crews, amounting in the whole, to near four hundred
men, who are now cruising against the Spaniards.
Our fort is provided with thirty-six cannon, well
mounted, and furnished with a suitable quantity of
military stores ; by which, and our having a privateer
able to fight a hundred men on her deck, and ready
14

158 HISTORICAL TRACT.
upon all emergencies, we are become the barrier
and best security of the New England trade.
These, may it please your Lordships, are matters
of the utmost importance to us ; for navigation is
one main pillar on which this government is sup
ported at present ; and we never should have en
joyed this advantage, had not the government emit
ted bills of credit to supply the merchants with a
medium of exchange, always proportioned to the
increase of their commerce ; without this, we should
have been in a miserable condition, unable to defend
ourselves against an enemy, or to assist our neigh
bors in times of danger.
In short, if this Colony be in any respect happy
and flourishing, it is paper money, and a right ap
plication of it, that hath rendered us so. And that
we are in a flourishing condition, is evident from our
trade, which is greater in proportion to the dimen
sions of our government, than that of any Colony
in His Majesty's American dominions.
Nor have we served ourselves only, by engaging
so deeply in navigation. The neighboring govern
ments have been in a gieat measure, supplied with

COLONIAL PAPER CURRENCY. 159
rum, sugar, molasses and other West India goods
bj' us brought home aud sold to them here. Nay,
Boston, itself, the metropolis of the Massachusetts,
is not a little obliged to us for rum and sugar and
molasses, which they distil into rum, for the use of
their fishermen, &c.
The West Indies have likewise reaped great ad
vantage from our trade, by being supplied with lum
ber of all sorts, suitable for building houses, sugar
works and making casks ; beef, pork, flour and other
provisions, we are daily carrying to them, with
horses to turn their mills, and vessels for their own
use ; and our African trade often furnishes them
with slaves for their plantations. To all this, we
beg leave to add, that the merchants of Great
Britain, have, within these twelve months, or there
abouts, received seven or eight sail of ships from
this Colony, for goods imported here of late, and
sold to the inhabitants.
On the whole, your Lordships will perceive that
the various emissions of bills iu this Colony were
made to answer good and generous intentions ; that
the interest arising on the several banks, together

160 HISTORICAL TRACT.
with part of some of the principal sums, have been
applied to the necessary defence and support of the
Colony, building of piers and harbors, for promot
ing the fishing business, and to encourage the rais
ing and manufacturing of hemp, &c.
And although the sums emitted, are large in
sound, yet, when the whole of what we have out
standing, to wit, £340,000, is reduced to sterling
money, it will not amount to more than £88,074
16s 10|c?, a very small sum to answer for a medium
of exchange, considering the extent of our trade,
the number of inhabitants, and their improvements ;
and that those bills answer the same end, and are
the major part of the currency in the neighboring
governments, and the banks emitted in 1728 and
1731, will begin to be sunk the next year.
Your Lordships will doubtless observe, that paper
bills, have from the time of their being first made,
sunk in value, till of late years, the cause whereof
(which common experience hath taught us), we
humbly take leave to suggest to your Lordships, it is
supposed by many that the frequent emissions of
those bills hath effected their depreciation, But the

COLONIAL PAPER CURRENCY. 161
contrary may be safely averred. For they always
passed, and were received equal to silver, at so
much per ounce, till the merchants of Boston, hav
ing large quantities of goods from Europe, and sup
plying all the governments of New England there
with, could find no way to make sufficient remit
tances, but by buying up all the silver and gold
they could purchase. This put those commodities
on the same level with common merchandize ; and
so they who wanted it most, bid higher and higher,
till gold and silver arrived to the price they now
bear, always taking care to rate their goods in pro
portion to what they last gave for sterling money.
Aud this is the only true way of accounting for that
misfortune ; and what confirms it is, that the Colony
of Connecticut have not, at this time, above £13,000
or £14,000 extant, in bills of credit; and yet it
takes as much of their money to purchase an ounce
of silver, as it does of the Massachusetts, New
Hampshire or ours. Hereto, we beg leave to add,
that within the space of about six or seven years,
several of the merchants of Newport have con
tracted a correspondence in London, procured goods

162 HISTORICAL TRACT.
to be sent to them, and thereby so well supplied our
shop-keepers, that our dependence on Boston hath
been iu some measure taken off. In return for
those goods, our merchants have remitted to their
correspondents, ships of our own building, logwood
fetched from the Bay of Honduras, in our own ves
sels ; bills of exchange purchased of the planters,
in the West Indies, and other commodities, in such
quantities, that for these six years last past, bills
have continued to be equal to silver, at twenty-
seven shillings per ounce.
We are required to give our sentiments with re
gard to the easiest method of sinking the bills of
credit now outstanding. In answer thereto, we can
only assure your Lordships, that after our utmost
efforts to do our money justice and save the inhabi
tants from inevitable ruin, we have not been able to
find out a better way than to sink the several banks
by ten equal annual payments. We have learnt
from experience that this is a safe course, and there
fore pursue it.
To conclude, we are humbly of opinion, that,
considering the good foundation on which our bills

COLONIAL PAPER CURRENCY. 163
have been emitted, and the substantial security
taken (according to the several acts) for paying in
the same, no damage can possibly accrue from those
emissions, which encourages us to hope that your
Lordships aud the honorable inspectors into those
affairs will, from what little has been offered, view
the state of this Colony in a true light,, and find
that we have acted such a part as has rendered this
government strong and secure against our enemies,
without any charge to Great Britain, aud a barrier
to that very Province that is always reviling us for
the loss of their trade, as well as advanced ourselves
to be not the most inconsiderable of His Majesty's
plantations in America.
We are, may it please your Lordships,
Your most obedient and very humble servants,
EICHARD WARD, Governor,
For the company of the Colony of Rhode Island, &c.

PRICES OF MERCHANDIZE IN THE TOWN OF
PROVIDENCE. 1746-1769.

Prices at which certain articles in common use
were sold, in the Town of Providence, Colony of
Rhode Island, during the years 1746-1769, from old
bills and accounts in possession of the publisher :
£ s. d.
1746. Rum, per gallon  13 0
Molasses, per gallon  %  1 3 0
Mutton, per quarter  5 0
Salt, per bushel  14 0
1748. Salt, per bushel  1 16 0
Flour, per barrel  18 1 6
Rum, per gallon  1 0 0
1749. .Silk Handkerchief  2 0 0
1753. Pork, per barrel  34 0 0
1754. Rum, per gallon  18 0
Loaf sugar, per pound  10 0
White pine boards, per foot  3 0 0

166 HISTORICAL TRACT. £
Wool, per pound 
Pair shoes  2
1756. Pair boots  8
1757. Worsted stockings, per pair  6
Tow cloth, per yard  1
Tea, per pound  6
Cloves, per ounce  2
1758. Nails, per pound  .'  1
Thread, per pound  8
Paper, per quire  1
Flannel, per yard  2
Small arm  42
1769. Bushel of corn  2
Bushel of rye  3
Stick of twist 
1760. Butter, per pound 
Beaver hat  40
Pelt hat  5
Coffee, per pound  1
Raisins, per pound  1
Pair of breeches  6
Pair of leather breeches  8
Veal, per pound 
Skein of silk 
1765. Molasses, per gallon-  2
Tallow, per pound 
Candles, per pound 
Salt, per bushel  2

s.

d.

9

10

10

0

0

0

0

0

12

0

10

0

0

0

0

0

0

0

10

0

5

0

0

0

15

0

0

0

18

0

14

0

0

0

0

0

0

0

0

0

0

0

0

0

6

0

12

0

11

0

12

0

16

0

13

4

COLONIAL PAPER CURRENCY. 167

£
1765. Prussian blue paint, per pound  8
Spanish white paint, per pound 
Spanish brown paint, per pound 
Day's work of a painter  8
1766. Diaper, per yard  2
1768. Rice, per cask  Ill
1769. Flour, per barrel  45
Tar, per barrel  16
Grindstone  23

s.

d.

0

0

6

0

10

0

0

0

2

0

15

0

4

9

0

0

6

8

PRICES OF MERCHANDIZE FOR THE STATE
OF RHODE ISLAND, 1779.

In August, 1779, a convention was held at East.
Greenwich, comprising the most eminent men in
the State, to consider the prices at which certain
articles of merchandize should be sold throughout
the State. The following schedule^ was fixed by
them : £ s. d.
West India rum, per gallon  6 15 0
New England Rum, per gallon  5 5 0
Molasses  4 16 o
Coffee, per pound  18 0
Brown sugar, per pound  lis. to 15s.
Bohea tea, per pound  5 17 0
Cotton, per pound  ••••  1 17 0
German steel, per pound  1 17 0
Imported salt, per bushel  13 10 0
1. Providence Gazette, August 14, 1779.

COLONIAL PAPER CURRENCY. 169

£
Home made salt, per bushel  10
Indian corn, per bushel  4
Rye, per bushel  5
Barlej', per bushel  4
Beef, per pound 
Mutton, lamb or veal, per pound 
Butter, per pound 
Cheese, per pound 
Bloomery Iron, per cwt  27
Sheep's wool, per pound 
15

s.

d.

0

0

10

0

10

0

0

0

5

0

4

6

13

0

6

6

0

0

18

0

PRICES FOR LABOR AND MERCHANDIZE IN
THE TOWN OF PROVIDENCE. 1779.

In the month of September, 1779, the freemen
of the Town of Providence assembled and fixed the
prices for sundry kinds of labor in the Town at the
following rates :'
£ • s. d.
Common laborer, at per day  2 8 0
Ship carpenters, at per day  3 18 0
House carpenters, at per day  3 12 0
Blacksmith's work, per pound  10 0
Blacksmith's work, shoeing a horse  4 10 0
Blacksmith's work, steeling and calking a horse all
round.,  6 0 0
Blacksmith's work, for good wood axe  6 0 0
Tanners, for good sole leather, per pound  18 0
Shoemakers, for best customers' shoes  6 6 0
1. Providence Gazette, September 4, 1779.

COLONIAL PAPER CURRENCY. 171

£
Shoemakers, for best boots  25
Leather dressers, for best deer's leather breeches.. . 33
Hatters, for best beaver hats  35
Hatters, for best castor hats  21
Hatters, for best felt hats  4
Tailors, for best broadcloth clothes. .  17
Glaziers, for setting glass and finding putty, per
square — 
Saddlers, for a good man's saddle with bowsing  43
Saddlers, for a good bridle  4
Sailmakers, for working new duck, per bolt  5
Milk, per quart 
Rough tallow, per pound 

s.

d.

*

0

0

0

0

0

0

0

0

0

0

0

4

0

0

0

10

0

8

0

4

0

6

6

UNITED STATES VALUATION OF HOUSES AND
LANDS IN RHODE ISLAND. 1800.

Abstract of the valuation of house«, lands and
slaves, by the United States Commissioners of the
Direct Tax, for the State of Rhode Island, April,
1800:
5,407 Dwelling Houses, first class, at $250 each.
1,193 " " second " " 750 "
408 " " third " " 1,334 "
13 " " fourth " " 4,377 "
2 " " fifth " " f9,000 "
There were 36 dwellings exempted by law,
making the total number of dwellings in the State
7,059. There were 566,767 acres of land, of which 924
acres were exempted, making the average value per
acre of land, $14.50.
There were 168 slaves in the State, 24 were ex
empt under the law ; on the remainder, 144, a tax
was assessed.

REPORTS MADE BY SEVERAL COMMITTEES

RHODE ISLAND GENERAL ASSEMBLY

STATE OR CONDITION

BILLS OF CREDIT OR PAPER MONEY

ISSUED BY THE COLONY.

REPORT OF A COMMITTEE ON THE STATE OF
BILLS OF CREDIT. 1739.

The General Assembly, during its August session,
1739, passed a resolution to the effect that John
Chipman and Peter Bours, Esquires, Messrs. God
frey Malbone, John Spencer, Jun'r, Joseph Whip
ple, William Ellery aud James Martin, be, aud they
are hereby appointed a committee, they, or the
major part of them, to audit the Grand Committee's
accounts, and they, the said committee, or the major
part of them, burn all the money in the Grand
Committee's hands paid in for tenths, in presence of
the Governor aud such of his council as live in New
port, with the Deputies of said town, if they please
to attend the same, and make report to next session
of Assembly. This Committee accordingly made
their report at the following October session.

176 HISTORICAL TRACT.
The Colony of Rhode Island, &c. Dr.
1710, May, An act passed for emitting of £5,000
Oct. " " " " " " 1,000
Nov. " " " " " " 1,000
1711, June " " " " " " 6,000
Nov. " " " " " " 300
1723, Feb. An act passed to emit and put into
the General Treasurer's hands for exchanging torn
bills, £2,000
1726, June. An act passed for emitting to ex
change five pounds and forty shillings bills that
were called in,i £46,634
1728, June. An act passed for emitting and
lending to the Fort, to be re-paid again out of the
interest of the loan money, £2,000
1728, June. An act passed to emit and put into
the General Treasurer's hands for exchanging torn
bills, £3,000
1730, Oct. An act passed to emit and put into
the General Treasurer's hands for exchanging small
bills, £1,000
1. Fractions omitted, which changes the footings as given in this and the
following pages — but the totals are correct as given in the original reports.

COLONIAL PAPER CURRENCY. 177
1733, July. An act passed for emitting to pro
vide guns for the Fort, £4,000
1734, Oct. An act passed for emitting and deliv
ering to the General Treasurer and Town Treasurers,
in proportion, small bills to exchange for larger torn
money to burn, ' £2,000
At the same time made more by the Grand Com
mittee, £67
1737, June. An act passed for emitting to ex
change torn bills, " £30,000
1738, May. An act passed to emit for the same
purpose, £10,000
Total, £114,001
-1728.1 Impressed and lent to William Borden,
without interest, the sura of three thousand pounds,
for ten years, and afterwards continued by Act of
Assembly for five years longer after the expiration
of the first term.
The Colony of Rhode Island, &c. Cr.
1715, Oct. By the three hundred pounds debited
on the other side, being lent to Capt. James Green,
1. See page 50 ante for an account of this transaction.

178 HISTORICAL TRACT.
for a term without interest, aud by that General As
sembly ordered to be burnt, £300
1732. By bills of the first impression, burnt by
order of the several General Assemblies from the
year 1714 to the year 1732, amounting to, by list
thereof number one, ' £11,499
By five pounds and forty shillings bills, exchanged
of them that were called in by the General Assem
bly, in June, 1726, and burnt by order of the
several General Assemblies from the year 1727 to
the year 1732, amounting to, by list thereof number
two, £30,383
1737, Feb. By so much the Grand Committee
delivered to and burnt by the General Assembly,
being old money they received of the several Treas
urers, for the small bills emitted in the year [Oct.]
1734, ^2.067
1739. By bills of all impressions burnt by order
of the several General Assemblies, from the year
1717 to the year 1739, amounting to, by list thereof
number three, £61,455
Total, £105,704

COLONIAL PAPER CURRENCY. 179
Lodged in the General Treasurer's hands, belong
ing to the Colony, one bond from Jona. Sprague, for
defraying charges about the gore.^ Penalty, £3,000
Four bonds from Edward Thurstou, at fifteen
pounds each, for interest money, £60
One bond from Samuel Bissel, for so much lent
him, £200
One bond from Edward Greenman, payable in
1724, for £20
Three bonds from Edward and Silas Greenman,^
for making good, damages [from] counterfeit bills.
LIST NUMBER ONE.
The amount of bills burnt of the old impression
that were emitted on the credit of the Colony :
Times when burnt. Amount. Times when burnt. Amount.
June, 1714, £1,102 September, 1718, 847
June, 1717, 1,718 June, 1719, 1,019
June, 1718, 540 June, 1720, 716
1. The Attlcborough Gore was a territory over which both the Colonies of
Massachusetts and Rhode Island claimed jurisdiction, the inhabitants of which
had repeatedly petitioned to be attached to the latter Colony. The tract, com
prising twenty thousand acres, was finally given to the Colony of Rhode
Island by a Royal Decree in 1746.
2. See page 92 ante.

180 HISTORICAL TRACT.

Times when burnt.

Amount.

Times when burnt.

Amount.

June, 1721,

£149

June, 1727,

£1,385

June, 1722,

277

June, 1728,

995

Aug., 1722,

191

June, 1729,

508

June, 1723,

422

June, 1730,

284

June, 1724,

485

June, 1731,

143

June, 1725,

322 155

Juue, 1732,
Total,

233

June, 1726,

£11,499

LIST NUMBER TWO.
Of the five pounds and forty shillings bills made
for exchange :
Times when burnt. Amount.
June, 1727, - . . . £12,550
June, 1728, _ . _ . 8,024
June, 1729, - . . . 3^077
June, 1730, . . . _ 2,314
June, 1731, - . _ _ 2,822
June, 1732, - _ . . 1,594
Total, £30,383

COLONIAL PAPER CURRENCY. 181
LIST NUMBER THREE.
OF ALL IMPRESSIONS TOGETHER.
Times when burnt. Amount. Times when burnt. Amount.
June, 1717, £4 June, 1728, £1,553
June, 1719, 132 June, 1729, 950
Juue, 1720, 142 June, 1730, 1,009
June, 1721, 105 June, 1731, 1,233
June, 1722, 174 Juue, 1732, 553
Aug., 1722, 43 June, 1733, 3,946
June, 1723, 219 Aug., 1735^ 1,015
June, 1724, 422 June, 1736, 3,515
June, 1725, 547 June, 1737, 4,042
June, 1726, 438 ¦ June, 1738, 26,269
June, 1727, 1,055 Aug., 1739, 14,077
16

REPORT OF A COMMITTEE.
1749.

Report of a Committee of the General Assembly
of Rhode Island, on the amount of bills of credit
issued and then outstanding, made by request of His
Majesty's Government, February, 1749:
Whereas this Assembly} at their session in South
Kingstown, on the last Wednesday of October last,
appointed a Committee to prepare an account
(agreeable to the letter of the Duke of Bedford, one
of His Majesty's principal Secretaries of State, to
the Governor and Company of this Colony), of the
tenor and amount of all the bills of credit which
have been created and issued by this government,
and are now outstanding, &c. — and the major part
of the Committee having assumed that province and

COLONIAL PAPER CURRENCY. 183
perpetrated the business, made report to this As
sembly as followeth :
"The Colony of Rhode Island, in the year .1728,
emitted forty thousand pounds in bills of public
credit, equal then to twelve thousand eight hundred
pounds sterling, to be let on loan on laud security of
double the value, and at five per cent, per annum
interest for thirteen years. The interest was appro
priated to the repairing and furnishing Fort George,
the principal to be sunk by ten equal annual pay
ments, two of which are yet outstanding, equal to
seven hundred and twenty-seven pounds, five shil
lings and sixpence sterling, and the sinking thereof
will be completed in the year 1751.
"And in the year 1731, the Colony emitted sixty
thousand pounds in bills of public credit, equal then
to sixteen thousand eight hundred and forty-one
pouuds, seventeen shillings and fourpence sterling,
to be let out on loan on land security of double the
value at five per cent, per annum interest. for ten
years. The interest was appropriated to encourage
raising hemp, flax, and the catching of fish and
making oil, by proper bounties given by the emit-

184 HISTORICAL TRACT.
ting act. The principal to be sunk by ten equal
payments, two of which are yet outstanding, equal
to one thousand and ninety pounds, eighteen shillings
and threepence sterling, and the sinking of it will be
finished in the year 1751.
"And in the year 1733, the Colony emitted one
hundred thousand pounds in bills of public credit,
equal to twenty-five thousand three hundred and
ninety-six pounds and sixteen shillings sterling, to
be let out on loan on land security of double the
value and at five per cent, per annum interest for
ten years. The interest was to be appropriated to
purchasing of cannon for Fort George and erecting
a pier at Block Island. The principal to be sunk by
ten equal annual payments, four of which are yet
outstanding, equal to three thousand six hundred
and twenty-seven pouitds, five shillings and sixpence
sterling, and the sinking of this sum will be com
pleted in the year 1753.
"Again iu the year 1738, the Colony emitted one
hundred thousand pounds in bills of public credit,
equal then to nineteen thousand seven hundred and
fifty-three pounds, one shilling and fourpence ster-

COLONIAL PAPER CURRENCY. 185
ling, to be let on loan on laud security of double the
value at five per cent, per annum interest for ten
years. The interest was appropriated to the build
ing of a State-House for the Colony and a Light-
House for the benefit of navigation. The principal
to be sunk by ten equal annual payments, nine of
which are yet outstanding, equal now to eight thou
sand one hundred and eighty-one pounds, sixteen
shillings and fourpence sterling, and the sinking of
this sum will be completed in the year 1758.
"Again in the year 1740, the Colony emitted
twenty thousand pounds in bills of a new tenor,
equal to eighty thousand pouuds of their former
bills, and to fifteen thousand eight hundred and two
pounds, eight shillings sterling, to be let out on loan
on land security of double the value on interest for
ten years at four per cent, per annum. The interest
appropriated to building a Guard Sloop for the
Colony and paying the Colony's expenses in the Ex
pedition to the West Indies. The principal to be
sunk by ten equal annual payments, the whole of
which is now outstanding, and is equal to seven
thousand two hundred and seventy-two pounds, four-

186 HISTORICAL TRACT.
teen shillings and sixpence sterling. The sinking of
this sum will be completed in the year 1760.
"And lastly, in the year 1743, the Colony emitted
forty thousand pounds of the new tenor bills, equal
to one hundred and sixty thousand pounds in bills
of the old tenor, and to twenty-eight thousand, four
hundred and forty-four pounds, five shillings and
fourpence sterling, to be let out on loan on laud se
curity of double the value, to pay interest ten years
at four per cent, per annum, which was appropriated
to put the Colony in a posture of defence during the
war. The principal to be paid in ten equal annual
payments, and the whole of this sum is now out
standing and is now- equal to fourteen thousand, five
hundred and forty-five pounds, nine shillings and a
penny sterling, and the sinking of it will be com
pleted in the year 1763.
" At divers times from the year 1710 to the year
1747, the Colony has emitted bills of public credit
for the supply of the Treasury, to the amount of
three hundred and twelve thousand three hundred
pounds, old tenor, and there hath been called in and
burnt at several times, from the year 1728 to 1748,

COLONIAL PAPER CURRENCY. 187
one hundred and seventy-six thousand, nine huudred
and sixty-four pounds (and a fraction) ; and by the
last settlement of the General Treasurer's accounts
it appears that there was then in the Public Treas
ury twenty-four thousand, eight hundred and ninety-
oue pounds. From all which it appears that there
is now outstanding of the bills issued to supply the
treasury, one huudred and ten thousand, four
hundred and forty-four pounds, the whole of which
outstanding sum was issued iu the years 1746 aud
1747, and is equal to ten thousand and forty pounds
sterling. "And the Parliament having granted to this Colo
ny for their services in the Cape Breton Expedition,
six thousand, three hundred and thirty-two pouuds,
twelve shillings and tenpence sterling, and the Colo
ny having paid by order of the Crown the wages of
the oflicers and soldiers raised for the Canada Expe
dition, three thousand pounds sterling, the said two
sums being niue thousand, three hundred and thirty-
two pounds, twelve shillings and tenpence sterling,
are a fund for sinking so much of the Colony's out
standing bills, and the remainder being seven hun-

188 HISTORICAL TRACT.
dred and eight pounds, fourteen shillings and seven-
pence sterling, is to be called in and sunk by a tax
on the inhabitants of this Colon3^
" The reason of the great depreciation observable
iu the bills issued by the Colony, is because the in
habitants of New England constantly consume a
much greater quantity of British manufactures than
their exports are able to pay for, which makes such
a continual demand for gold, silver, and bills of ex
change, to make remittances with, that the mer
chants to procure them are always bidding one upou
another, and thereby daily sink the value of paper
bills with which they purchase them. And it is
plain that where the balance of trade is against any
country, that such part of their medium of exchange
as hath a universal currency will leave them, and
such part of their medium as is confined to that
country will sink in its value in proportion as the
balance against them is to their trade. For what
hath been the case with Rhode Island bills, hath also
been the common fate of all the paper bills issued
by the other Colonies in New England, they having
been all emitted at uear equal value, and have

COLONIAL PAPER CURRENCY. 189
always passed at par one with another, and conse
quently have equally sunk iu their value : and this
will always be the case with infant countries that do
not raise so much as they consume, either to have
no money, or if they have it, it must be worse than
that of their richer neighbors, to compel it to stay
with them."
Which Report being duly considered, this Assem
bly do vote and resolve, and it is hereby voted and
resolved. That his Honor, the Governor, transmit
the substance^ thereof under his hand to Mr. Agent
Partridge, to be by him delivered to his Grace, the
Duke of Bedford, one of his Majesty's principal
Secretaries of State, in answer to his Grace's letter
to this Colony about the bills of public credit
emitted here, &c., and also that a duplicate thereof
be sent to the said Agent for his own use.
And at the same time the Committee aforesaid
presented with their report what follows :
1 . A copy of the summary of this report, which was prepared to be for
warded to England, can be found on page 168 of the Volume of Reports, 1728-
1750, in the archives of the Secretary of State.

190 HISTORICAL TRACT.
The Colony for all Money emitted for supply of the
Treasury. Dr.
1710, May, to cash emitted, - - £5,000
Oct., " .' . . . 1,000
Nov., " '« - - 1,000
1711, June, " " -• - - 6,eOO
Nov., " " - - 300
1726, Juue, " '. - . - 46,000
1728, June, " " - - 2,000
1730, Feb., " » . . . 1,000
1733, July, " " - - 4,000
1737, June, " '« . _ - 30,000
1738, May, " " - - . 10,000
1740, Sept., " <' . . . 10,000
1741, May, " " - - 8,000
Oct., " .< . - . 8,000
1744, March, " " - . 10,000
1745, May, " '« . . . 15,000
Sept., " " - - 20,000
1746, June, " *' _ _ _ 45,000
Feb., " " . - 60,000
1747, Feb., " " . . - 30,000
Total, £312,300

COLONIAL PAPER CURRENCY.

191

For what has been Burnt. Cr.
1727, June. By cash burnt at several times be
fore this date, as appears by a settlement of the

General Treasurer's account,

£12,550

1728, June, By cash burnt thi

s year, 9,019

1729,

a i
3,604
1730,
i i
6,430
1731,
i (
1,376
1732,
( (
2,381
1733,
kt (
3,946
1734,
t (
1,015
1736,
(6 (
3,525
1737,
U (
4,042
1738,
6 i
. 26,269
1739,
i i
14,077
1748,
i a (
88,725
£176,964
Ba
lance c
ue fri
)in the
Colon
7'
£135,335
Total,
£312,300
We, the subscribers, being appointed a Committee
to enquire into the state of the bills of public credit
that have at any time been emitted by the Colony of
192 HISTORICAL TRACT.
Rhode Island, do report that the Colony hath issued
for the supply of the General Treasury, at the times
noted on the debt side of the above account, three
hundred and twelve thousand three liundred
pounds, and that there hath been burnt at the times
noted on the credit side of this account, about one
hundred and seventy-six thousand, nine hundred
and sixty-four pounds, and that there is now circu
lating of bills of credit emitted by the Colony for a
supply of the Treasury, about cue hundred and
thirty-five thousand, three hundred and thirty-five
pounds.
Peter Bours,
Stephen Hopkins,
Daniel Jenckes.
Newport, Feb. 27, 1749.
And this Assembly having taken the said report
iuto consideration, do vote and resolve that the same
be and it is hereby adopted.

REPORT OF COMMITTEE OF 1762.-

Report of a Committee of the Rhode Island Gen
eral Assembly, to examine how much of all sorts of
money hath been emitted on the credit of the Gov
ernment, August, 1762 :
Whereas his Honor the Deputy Governor, Ed
ward Scott and George Hazard, Esq'rs., and Messrs.
Walter Cranston and William Richardson, who were
appointed a Committee to examine how much of all
sorts of money hath been emitted upon the faith and
credit of the Government, presented unto this As
sembly the following state of that account, aiid re
port, to wit :
The Colony of Rhode Island &,c. Dr.
For Bills of Credit emitted to supply the General
Treasury. n

194 HISTORICAL TRACT.
1749-50, Feb. 27. To bills of credit outstanding
the 27th of February, 1749, as by report then made
to the General Assembly, (old tenor), £135,335
CUBDITOR.
1751, Juue. By bills of credit received for bills
of exchange, and burnt as per report made to the
General Assembly, June 18, 1751, £24,280
The Colony of Rhode Island. Cr.
1751, June. By do. part of the rate for thirty-
five thousand pounds old tenor, ordered in October,
1754, and burnt, as per report made to the General
Assembly, dated Feb. 13, 1756, £13,792
By do. part of the rate for seventy thousand
pounds old tenor, ordered in October, 1755, burnt,
as per report made in February, 1758, £3,575
Bills of credit yet outstanding, due from the
Coloiiy iu old tenor bills, £93,687
Total, £135,335
Debtor. Old Tenor.
1755, March 6th. To Crown Point Bills, £60,000
Juue. " " " " 40,000

COLONIAL PAPER CURRENCY. 195
1755, August. To Crown Pont bills, 20,000
September. " " " 60,000
December. " " " 60,000
Total, £240,000
Creditor.
1756, Aug. By Crown Point bills burnt, as per
rej)ort made to the General Assembly, £18,208
1756, November. By ditto, £18,430
1757, March. By Crown Point bills burnt, as per
report made to the General Assembly, £177,006
June. By ditto, per receipt given the late Treas
urer, £11,400
1758, Feb. By ditto, per report made to the
Assembly, £7,717
Sept. By ditto, per receipt given to the late
Treasurer, £2,930
1759, June. « By ditto, per report made to the
Assembly, £1,181
1761, Feb. By ditto, as per Treasurer's account
then audited, £760
May. By ditto, per receipt given to William
Richardson, £42

Total, £237,678

196 HISTORICAL TRACT.
. The Colony of Rhode Island. Dr.
1756, Feb. To lawful money bills, £8,000
Aug. and Sept. To ditto, (the bills dated
in August,) 1756, £6,000
Total, £14,000
Creditor.
1758, Feb. 14. By lawful money burnt, as per
report made to the Assembly, £4,000
Sept. 15. By ditto, emitted in February, 1756,
as per receipt given to the late Treasurer, £3,764
1759, June. By ditto, in full for said money, as
per report made to the Assembly, £235
By ditto, August, lawful money, per ditto, £5,605
1761, Feb. 9. By ditto, per receipt given to the
late Treasurer, £312
May 29. By ditto, per receipt given to William
Richardson, £5

Total, £13,923
Delivered to the present Treasurer, seventy-six
pounds, fifteen shillings, four aud one-half pence,
lawful money, in gold.

COLONIAL PAPER CURRENCY. 197
Debtor.
1758, May 8. To lawful money bills, carrying an
interest of five per cent, per annum, £10,000
October. To ditto, (the bills dated 23d Decem
ber, 1758), £10,909
1759, Feb. 26. To ditto, (the bills dated 15th
March, 1759), £12,000
To ditto, (the bills dated 4th April, 1759), £4,000
Juue. To ditto, £4,000
1760, Feb. 25. To ditto, (the bills dated 10th
March, 1760), £16,000
May. To ditto, £11,000
• 1762, Feb. To ditto, (the bills dated 20th
March, 1762), £5,000
March. To ditto, (the bills dated 10th April,
1762,) £2,000
May 8. To ditto, £2,000
Total, £76,909
Creditor.
1762, May. By bills dated June 23, 1759, burnt,
as per report made to the Assembly, (lawful
money), £3,686

198 HISTORICAL TRACT.
Ditto, dated May 8, 1758, burnt, as per same
report, £6,819
Total, £10,506
We, the subscribers, being appointed by the
General Assembly a Committee, to examine how
much of all sorts of bills hath been emitted upon
the faith and credit of the government, do report :
That of the several emissions preceding the 27th
day of February, 1749, there was outstanding at
that time (as appears by a report then made to the
General Assembly, a copy of which is herewith pre
sented,) the sum of one hundred and thirty-five
thousand, three hundred and thirty-five pounds.
That it appears by a report made to the General
Assembly in June, 1751, there was burnt of bills of
credit received for bills of exchange sold, the sum
of twenty -four thousand, two hundred and eighty
pounds, old tenor.
That in October, 1754, the General Assembly or
dered a rate for thirty-five thousand pounds, old
tenor, ten thousand pounds of which they appropri
ated for Fort George, and the remainder to sinking

COLONIAL PAPER CURRENCY. 199
the Colony's outstanding bills of credit made to
supply the Treasury : but there was only thirteen
thousand, seven hundred and ninety-two pounds ap
plied to the sinking of the said bills. Eleven thou
sand, two hundred and eight pounds, collected by
that rate, was exchanged for Crown Point bills,
which were burnt, as appears by a report made to
the Assembly, in August, 1756.
In October, 1755, the General Assembly passed
an act for a tax of seventy thousand pounds, old
tenor, and ordered that forty thousand pounds
thereof should be appropriated towards sinking the
Colony's outstanding bills of credit, made aud emit
ted to supply the General Treasury for defraying
the charge of the then present expedition ; and the
remaining thirty thousand -pounds towards sinking
the outstanding bills of credit made aud emitted to
supply the Treasury for defraying the charge of for
mer expeditions : but by an act passed in February
following, the whole of that tax or rate was appro
priated towards sinking the bills emitted for carry
ing on the expedition against Crown Point.
In November, 1756, there was burnt in old tenor

200 HISTORICAL TRACT.
bills, collected by the said tax, the sum of fifty-two
thousand, two hundred and seventy-one pounds, of
which there was in Crown Point Money, eighteen
thousand, four hundred and thirty pounds ; the re
mainder of the sum then burnt, amounting to thirty-
three thousand, eight hundred and forty-one pouuds,
fourteen shillings and fivepence, was, by order of
Assembly, taken out of the Grand Committee's
Office, and placed in the General Treasury. How
ever, it appears bj' a report made to the General
Assembly, in February, 1758, that there was burnt,
three thousand, five hundred and seventy-five
pounds, fifteen shillings and elevenpence old tenor,
part of this rate made in 1-755.
The three sums placed on tlie credit side of the
account, amounting to forty-one thousand, six hun
dred and forty-seven pounds, seventeen shillings and
elevenpence, being deducted from the sum outstand
ing, the 27th of February, 1749, there remains
ninety -three thousand, six huudred and eighty-seven
pounds, fifteen shillings and two and one-half pence,
old tenor, which is now outstanding in old, or rather

COLONIAL PAPER CURRENCY. 201
new tenor bills, emitted upon the faith and credit of
the government.
There was emitted at the several times in the year
1755, noted on the debt side of the account, the sum
of two hundred and forty thousand pounds, old tenor,
in bills called Crown Point Money, of which, as
appears by the several reports made to the General
Assembly, held at the times noted on the credit
side, and by receipts given to the late General
Treasurer, Thomas Richardson, Esq., and to his Ex
ecutor, Mr. William Richardson, (copies of which
receipts we herewith present,) there hath been burnt
the sum of two hundred and thirty-seven thousand,
six hundred and seventy-eight pounds, three shil
lings. We think it proper to mention that the
Crown Point Bills first placed in the account as
burnt, were burnt at two several times ; first, seven
thousand pounds, and afterwards, the eleven thous
and, two hundred aud eight pounds, above meur
tioned : and that there was presented to the Gen
eral Assembly, held in September, 1757, a re
port dated May 27, 1757, iu which the Committee
who made that report, say they had received and

202 HISTORICAL TRACT.
burnt eleven thousand, fifty-three pounds, one shil
ling. Crown Point Mouey; but as we believe that
sum was included in the receipt dated Juue 2d,
1757, we have not placed it in the account.
In the year 1756, there was emitted in bills called
Lawful Money, the sum of fourteen thousand
pounds, whereof eight thousand pounds was in bills
dated in February, 1756, and six thousand pounds
in bills, dated in August, 1756. There was burnt
of these lawful money bills, the sum of four thou
sand pounds, as appears by a report made to the
General Assembly, held the 14th of February,
1758, aud the sum of three thousand, seven hun
dred and sixty-four pounds, nineteen shillings and
eightpence, in bills emitted in February, 1756, as
appears by a receipt, a copy of which we herewith
present, given to the before mentioned General
Treasurer : there was also burnt the sum of two
hundred and thirty-five pounds, fourpence. Lawful
Money, emitted in February, 1756, as appears by
a report made to the General Assembly, held in
June, 1759, which the Committee that burnt it say
is in full for said money. It is in full for eight

COLONIAL PAPER CURRENCY. 203
thousand pounds, but through inadvertence the
Committee burnt some of the bills dated in August,
instead of those dated in February — some of the
latter being still extant. By the last mentioned re
port it appears that the Committee had burnt five
thousand, six hundred and five pounds, nineteen
shillings, August, lawful money, and by a receipt
dated February 9th, 1761, given to the aforesaid
late General Treasurer, it appears that the Commit
tee had received of him and burnt, three hundred
and twelve pounds, threepence, August, lawful
money ; and by another receipt dated May 29th,
1761, given to Mr. William Richardson, (a copy of
both which receipts we herewith present,) it appears
they had received of him and burnt, five pounds,
five shillings and sixpence, of said lawful money.
The three sums of monies last mentioned, together
with seventy-six pounds, fifteen shillings, and four
and one-half pence, lawful money iu gold, delivered
by the said William Richardson, to the present Gen
eral Treasurer, Joseph Clarke, Esq., amount to six
thousand pounds, one and one-half pence, and will,
when the said gold is exchanged, compleat the sink-

204 HISTORICAL TRACT.
ing of the whole fourteen thousand pounds above
mentioned. In May, 1758, there was emitted ten thousand
pounds lawful money in bills, carrying an interest of
five per cent, per annum, ajid in pursuance of acts
of Assembly, there have been several emissions
since of the like sort of bills, at the times noted on
the debt side of the account, amounting, with the
aforesaid emission in May, to the sum of seventy-
six thousand, nine hundred and nine pounds, five
shillings and threepence, lawful money ; of which
there hath been burnt, three thousand, six hundred
and eighty-six pounds, ten shillings, in bills, dated
June 23d, 1759, and six , thousand, eight hundred
and nineteen pounds, ten shillings and ninepence in
bills, dated May 8, 1758, both sums exclusive of in
terest on the bills, as appears by a report made to
the General Assembly in May last past. The Gen
eral Treasurer hath informed us that he hath in his
hands the sum of sixty-two pounds, four shillings
and sixpence, in May bills, 1758, and the sum of
one hundred aud one pounds in June bills, 1759,
and gold sufficient to redeem the remainder of the

colonial paper currency. 205
said June bills still outstanding. We submit this
report to the Hon. General Assembly, and are their
most humble servants.
John Gardner,
Edward Scott,
George Hazard,
Walter Cranston,
William Richardson.
Newport, August 13th, 1762.
And the foregoing report being duly considered,
it is voted and resolved, that the same be, aud
hereby is accepted.
From report made August, 1762, it appears there
was then due from the Colony, forty-three thousand,
seven huudred and forty-nine pounds, sixteen shil
lings, old tenor, upon bonds given for old tenor
bills, hired at ten per cent. ; also, five thousand six
ty-one pounds, lawful money, hired at seven per
cent. ; also, seven thousand, one hundred and nine
ty-one and one half dollars. The interest on the
bonds is not included. There was then in the Treas
ury, eight hundred and ninety-six pounds, twelve
18

206 HISTORICAL TRACT.
shillings, lawful money, one thousand, nine hundred
and fifty-three pounds, threepence, New York cur
rency, three hundred and fifty-four pounds, teu
shillings, in gold, four hundred and twenty-four
pounds, eleven shillings and sixpence, in silver-
milled dollars, amounting to one thousand sixty-one
and seven-sixteenths dollars, and one thousand, one
hundred and seventy-three pounds, eighteen shil
lings and ninepence, in New York paper bills. Part
of the last tax had not then been paid in.

REPORT OF COMMITTEE. 1764.

Report of a Committee of the Rhode Island Gen
eral Assembly, on the state of paper bills of credit
since 1749, made, at the October session, 1764 :
Whereas the Committee, appointed to prepare a
state of the paper currency of this Colony, in an
swer to the requisition of the Lords' Commissioners
for Trade and the Plantations, presented unto this
Assembly the following state of the same, to wit :
A state of the paper bills of credit issued since
the year 1749, by the Colony of Rhode Island,
drawn up in obedience to an order of the Lords'
Commissioners of Trade and Plantations, dated at
Whitehall, the 11th of May, 1764.
¦* In the month of March, 1750, there were issued

208 HISTORICAL TRACT.
by said Colony, twenty-five thousand pounds in
bills, equal in value to about eighteen thousand,
seven huudred and fifty pounds sterling. These bills
were let out upon loan for ten years at five per cent.
interest, and then to be paid in at five equal annual
payments, the whole of which sums is near expiring.
These bills having depreciated are now of two-fifths
of the value they were at when emitted. All the
outstanding bills emitted before the year 1750,
called Old Tenor, are drawing near their periods
and will terminate in a short time.
In the year 1755, for paying the expence incurred
by the Colony in carrj'ing ou the Expedition against
Crown Point, there were issued bills equal to thir
teen thousand, five hundred pounds sterling, to cir
culate two years without interest, and then to be
called in aud sunk, which was performed punctually
within the time limited.
In the year 1756, for paying the expences in
curred by the Colony in the second expedition
against Crown Point, there were issued bills equal
iu value to ten thousand, five hundred pounds ster
ling, like those of the last year, to circulate two''

COLONIAL PAPER CURRENCY. 209
years without interest, and then to be called in aud
sunk, which was fully done within the time limited.
The war still continuing, and the Colony being
called upon for larger quotas of men than it had
hitherto raised, perceived that bills must of necessity
be issued for a longer period than two years, other
wise it would be unable to preserve their credit by a
punctual payment at the time promised. Accord-
iugly, in the year 1758, the Colony issued bills,
agreeable, as it supposed, to one of the provisoes
contained in the act of Parliament, passed in the
twenty-fourth year of the reign of his late Majesty,
King George the Second, entituled " An Act to reg
ulate and restrain paper bills of credit in his Majes
ty's Colonies or Plantations, of Rhode Island and
Providence Plantations, Connecticut, the Massachu
setts Bay, and New Hampshire, in America, and to
prevent the same being legal tenders in payment of
money." Which bills were to circulate for five
years, and carry an interest of five per centum per
annum. Twenty thousand, nine huudred and nine
pounds was this year issued, agreeing in value to the
Proclamation of the Tenth of Queen Anne, and to

210 HISTORICAL TRACT.
fifteen thousand, six hundred and eighty-one pounds,
fifteen shillings sterling. These bills were wholly
called in and burnt within the time. But as all the
paper bills that have been emitted by the Colony
since the year 1758, have been in exact conformity
in every respect to those emitted at that time, we
here subjoin a copy of the Act of Assembly by
which part of the said bills were created and issued,
as a specimen of all the emitting acts since that
time. " An Act for emitting, in Bills of credit, a sum
not exceeding ten thousand pounds, lawful money."
Whereas the General Assembly, of this Colony,
at their session in South Kingstown, on Monday,
the 13th of March last, iu obedience to his Majesty's
commands, signified by one of his principal Secre
taries of State, passed "an Act for raising and pay
ing one thousand able-bodied, effective men, for the
ensuing campaign against his Majesty's enemies in
North America." And in order to supply the Gen
eral Treasury for carrying the intentions of the act
aforesaid into execution, the Assembly then directed
the Treasurer to hire as much money as would be

COLONIAL PAPER CURRENCY. 211
needful for that purpose, but the Treasurer having
found it altogether impracticable to hire sufficient
sums of money for the ends aforesaid, and it being
of the utmost necessity and importance that tho
Treasury should be sufficiently supplied on this ex
traordinary occasion :
Therefore, be it enacted by this General Assem
bly, and by the authority of the same it is enacted.
That bills of credit be forthwith impressed from
¦types, and signed by the persons hereinafter named,
to a value not exceeding ten thousand pounds, lawful
money, esteeming silver at and after the rate of six
shillings and ninepence per ounce, and gold at its
proportionate value ; that the said bills shall carry
an interest of five per cent, per annum to the pos
sessor, and shall pass with the interest added to
them, in all payments in which those bills are a law
ful tender. The bills so emitted shall be of the de
nomination of thirty shillings, twenty shillings, ten
shillings, five shillings, two shillings, one shilling,
and of sixpence, aud an equal number of bills shall
be made of each denomination, and the bills shall be
of the following form :

212 HISTORICAL TRACT.
" The possessor of this bill shall be paid by the
Treasurer of the Colony of Rhode Island thirty shil
lings lawful money, at the rate of six shillings aud
ninepence for one ounce of silver, with interest at
five per cent, per annum, within five years from the
date hereof. By order of Assembly, the 8th day of
May, 1758."
And those bills, as soon as made, shall be put into
the General Treasury for the use and purposes above
mentioned, and shall be received from thence for
paying the expenses of the present or any other ex
pedition, at the value aforesaid ; and that one milled
dollar shall, at all times hereafter, be taken iu lieu
of six shillings of those bills ; and the bills so to be
made shall be caused to be printed with such devices
on the backs and borders as shall be thought fit, and
signed and put into the Treasury by Jabez Bowen,
Jeremiah Lippitt, Joshua Babcock, Benjamin Nich
ols, and Joseph Clarke, Esq'rs, or any three of
them. And for the calling in and redeeming the bills to
be emitted in cousequeuce of this act, be it further
enacted. That a rate or rates be assessed on the in-

COLONIAL PAPER CURRENCY. 213
habitants of this Colony in such time that it may be
collected and brought into the Treasury in due sea
son to redeem the whole of the said bills, together
with the interest arising upon the same, within five
years from the day of their dates : and that the
whole of the rate or rates to be made for that pur
pose shall be made in the same bills now ordered to
be emitted, or in silver, at the rate of six shillings
and ninepence for every ounce, or in gold, at a pro
portionable value, or in milled dollars, at the rate
aforesaid : and the gold and silver by those means
drawn iuto the Treasury, shall be immediately ap
plied to redeem the outstanding bills to be by this act
emitted." In the year 1759, for defraying the expence of the
men raised for his Majesty's service in the same year,
the Colony issued twenty thousand pounds in bills
of the same tenor, and of equal value with those
emitted the year before ; aud these bills have been
wholly called in and burnt.
In the year 1760, for the same purpose, the Colony
issued twenty-seven thousand pounds iu bills in the
same manner. These bills are redeemable within

214 HISTORICAL TRACT.
the next year from this time aud provision is already
made for bringing in ten thousand pounds thereof,
including interest, but the Colony is not able to sink
the remainder by the time it ought to be sunk, any
otherwise than by taking up money upon loan for
redeeming the bills.
Lastly, in the year 1762, for the carrying on the
war, the Colony issued thirteen thousand pounds in
bills in the same manner, which will be redeemable
in the year 1767.
. The whole of the bills emitted on this plan have
at all times fully kept their value, their only defect
seeming to be that they carry too high an interest,
which occasions their being hoarded, and thereby
not answering the end of a medium.
By this state it appears that there are now circu
lating in this Colony in bills issued for carrying on
the war, forty thousand pounds, equal to thirty
thousand pounds sterling, about two-thirds of which
sum must be called iu and sunk in a year ; after
which thirteen thousand pounds only of the bills
issued for the expence of the war will be circulating :
these, together with the small remainder of Old

COLONIAL PAPER CURRENCY. 215
Tenor bills that will be outstanding, will come to a
final end in the year 1767.
Besides the bills emitted as aforesaid, this Colony
is largely in debt for money hired of private persons
during the course of the war ; and this debt is the
greater because it has received nothing for its ex
pences incurred in support of the war in the year
1756, which was reimbursed the other Colonies by
Parliament. In a Colony where the constant demand for remit
tances to the mother country makes it impossible for
silver and gold to continue, what will be the medium
and instrument of commerce where paper bills are
at an end, we know not.
This is a true state of the paper bills of credit in
the Colony of Rhode Island, and is humbly submit
ted to your Lordship's consideratiou'by the Governor
and Company thereof.
Rhode Island, Oct. 30, 1764.
And the foregoing state of the paper bills of this
Colony being duly considered, it is voted and re
solved. That the same be and hereby is approved.

16

HISTORICAL TRACT.

and that his Honor, the Governor, be requested to
sign and transmit two copies of the same to the
Lords' Commissioners for Trade and the Plantations,
by the first opportunities. i
1. The preceding Report was prepared by Gov. Stephen Hopkins, Nicholas
Tillinghast, Darius Session, Daniel Jenckes, Esqrs. and Mr. Moses Brown.

INDEX

Adams, John, defines American paper money  37
Almy, Christopher, opposes issue of paper money, 1731  33
Almy, Job, Trustee of First Bank  14
Opposes issue of paper money, 1731  33
Almy, William, opposes issue of paper money, 1731  33
Angell, Joseph, his bond for Loan of 1732-3  19
Ayrault, Daniel, opposes issue of paper mouey, 1731  33
Arnold, Welcome, a signer of the bills of 1770  104
Attleborough Gore, note on the  179
Babcock, Joshua, a signer of the bills of 1758  212
Bank, the term defined as used in this account  11
The First, issued in Rhode Island, 1715  11
Second, 1721  17
Third, 1728  21
Fourth, 1731  2C
Fifth, 1733  40
Sixth, 1738  43
Seventh, 1740  52
Eighth, 1743-4  57
Ninth, 1760  72
Tenth, 1780  117
Banks, how the English Government stopped the issue of.  81
19

218 HISTORICAL TKACT.
Beaver Tail, a light-house built hy appropriations of interest from the
Sixth Bank  ^8
Beef, the value of in 1702  G3
Bills of Credit emitted upon the faith and credit of the Government  108
Hoarded because of their high rate of interest  2H
Issued in observance of the law of Parliament of 1751 did not
depreciate  ¦  214
See " Paper Money."
Bissel, Samuel, money lent to, by the Colony  179
Block Island, interest of Fifth Bank appropriated to build a pier on  41
Harbor for fishermen  151
Bolles, A. S., compliments Rhode Island on the justice of the scale of de
preciation of 1781  ......'  115
Bonds given for loans, a specimen of, 1732  19
Bonds and mortgages unpaid in 1750  90
Boone, Samuel, estate confiscated and pledged for the issue of June, 1780. .108
Borden, Abraham, General Treasurer, 1730, bis petition.  38
Boi'dcn, William, a manufacturer of duck, petitions for assistance from the
Colony  50
Money loaned to, by the Colony  177
A superintendent of the press while printing the Tenth
Bank  1 18
Boston merchants increase the depreciation of bills  147, 149
Bours, Peter, opposes issue of paper money, 1731  33
One of committee to prepare an answer to English Govern
ment, 1749  65
A member of committee of 1739 on paper money  175
A member of coriimittee of 1740 on paper money   192
Bounty on hemp, flax, whale oil, whalebone and codfish, 1733  32
Result of the same,' 1733-1743  32
Given for manufacture of linen  70
Given for manufacture of broadcloth  77
Repealed  77
On wolves at sundry periods  61

COLONIAL PAPER CURRENCY. 219
Bowen, Jabez, a signer of the bills of 1758  212
Bribery in elections, law against  60
Broadcloth, bounty given for manufacture  77
Brown, Christopher, a signer of the bills of 1750  72
Brown, George, a signer of the bills of 1743  57
A signer of the bills of 1750  72
Brown, James, Major, trustee of First Bank  14
Compensation for use of house, fyre, table, chist, &c.
in signing bills of First Bank  J14
Brown, John, Jr., opposes issue of paper money, 1731  33
Brown, Moses, a member of the committee of 17G4 on paper money  21G
Burning of the bills. Tables of.  1.33, 178
Canada Expedition, wages of soldiers paid by Colony by order of English
government  187
Cape Breton Expedition, amount reimbursed by English government  187
Carter, John, printer of bills of 1775  103
Casey,Thomas Lincoln, Col., loans the bill of 1760 in this Tract  79
Chipman, John, a member of committee of 1739 on paper money  175
Claggett, William, a biographical note  49
Printer of the Sixth Bank  49
Clarke, Joseph, General Treasurer  203
A signer of the bills of 1758  212
Coddington, Jolin, printer or contractor for printing bills  18
Coddington, Nathaniel, Major, trustee of First Bank  14
Coddington, WiUiam, signer of Greenman certificate  93
Committee to construct pier at Block Island, 1733  42
Codfish, bounty given on, 1733  32
Production of in 1733  78
Coins of New England, 1652  5
Their value in paper money as fixed by the General Assembly, 1704. . 99
Cole, John, a signer, of bills of 1770  104
Colony House at Newport, built by an appropriation of interest from the
Sixth Bank, (the present State House)  47

220 . HISTORICAL TRACT.
Commerce of the Colony in early days  1^^
Its advantages both to Khode Island and the neighboring colo
nies set forth  ^^^ '
The one main pillar on which the Colony rests  158
Commercial revulsion in Rhode Island, 1750  ^  C8
Comstock, Adam, signer of the bills of 1780  110
Confiscated estates pledged for the redemption of the paper mdney of June,
1780  507
Owners of the estates  108
Sale of the estates, amounts realized  109
Copper-plates for printing the bills to be lodged with the Governor  43
Counterfeiting, law against  10
The punishment therefor  00
Penalty of death prescribed  75
The Greenman case  02
Counterfeit, dies for making Spanish milled dollars found in the State
House, 1879  108
Cranston, John, Col., commander of Colony sloop Tartar  52
Cranston, "Walter, a member of the committee of 1762  193
Creditors use vigorous efforts to elude their debtors  120
Crovni Point expedition, paper money issue  94
Bills, their issue and their destruction  x^ 89, 201
Reasons for issue given in report of 1764  208
Debtor, A, ex-communicated by St. John's Churcli, in Providence, for paying
his debt, in accordance with the law of 1786  121
Expelled from the Society of the Cincinnati for the same cause. . . 121
Depreciation of paper money shown by its value in silver from 1710-1740. . . . 55
Shown by the increase of the property qualifi
cation of voters  60
Illustrated by the wolf bounty, 1700-1740  61
Further illustrations  79
Cause alleged to be premium given by those
needing sterling bills  74

COLONIAL PAPER CURRENCY. 221
Depreciation, efforts to fix the rate  37
The Boston merchants the principal cause  161
Reasons assigned by committee of 1749  188
Of the issue of 1750  208
Stopped on all issues, in obedience to the law of 1751  214
Scale fixed for settlement of contracts, 1781  114
Of the bills of the Tenth Bank, i786  130
Dexter, John, a signer of the bills of 1776  104
Direct tax, valuation of houses and lands in 1800  172
Dollar, first use of the term on Rhode Island paper money  105
Duck, bounty given for the manufacture of.  50
Result of the bounty on the production  50
Dyre, William, sif ner of Greenman certificate  93
Eighth Bank, 1743-4, the reasons given for its issue  57
Elective franchise, property qualification of voters  60
Ellery, Benjamin, Capt., trustee of First Bank  14
Committee to construct pier at Block Island, 17.33. 42
Ellery, William, opposes issue of paper money, 1731  33
Amemberof committee of 1739 on paper money  175
English Government calls on the Colony for an account  63
Order the abolition of the bounty on manufactured
wool and flax  77
Prohibit the further issue of Banks  81
Exchange between England and Rhode Island  84
Fees, fines and forfeitures increased forty for one, 1780  113
Fifth Bank, 1733, the reasons given for its issue  40
Fu'st Bank, 1715, the reasons given for its issue  12
Original record of the borrowers  16
Amounts assigned to the different towns  16
Extension of time of payment  19
Flax received in payment of interest  18
19,013 pounds produced in 1733  78

222 HISTORICAL TRACT.
Flax, bounty given on, 1733  ¦  ^^
Fones, Capt., commands Colony sloop Tartar at the siege of Louisburg  53
Fort Anne calls tor money  13, 17,23
Described  23
Name changed to Fort George  -  42
Fort George, described  42
Provided with thirty -six cannon  157
Fourth Bank, 1731, the reasons given for its issue  31
Fractional bills, issued in 1776  106
Numbers of each denomination  106
Franklin, James, petition in relation to printing the bills from stereotypes
rather than copper-plates  . . 43
Freebody, John, opposes issue of paper money, 1731  33
Freebody, Thomas, a superintendent of the press while printing the Tenth
Bank  118
Freemen, qualification for admitting increased from two hundred to four
hundred pounds  60
French War, issues of paper money to pay the Rhode Island soldiers who
fought therein  100
Gardner, John, Deputy Governor, a member of the committee of 1762  205
Gardner, Robert, signer of bills, his compensation  18
Trustee of First Bank  14
Goulding, George, committee to construct pier on Block Island, 1733  42
Grand Jury Dinners in 1702 and 1722  63
Greene, Benjamin, his production of hemp  78
Green, James, Capt., money loaned to, by the Colony  177
Greenman, Edward and Silas, case of counterfeiting  02
Bond for counterfeitinglodged with Treasurer. 179
Greenman, Silas, a remarkable certificate of good character given to  93
Harris, Caleb, a signer of the bills of 1780  110
Hazard, George, a member of committee of 1762 on paper money  193
Hazard, Joseph, one of the Judges in the case Trevett versus Weeden  127

COLONIAL PAPER CURRENCY. 223
Haszard, Robert, Capt., one of a committee to reply to English Government,
1749  05
Hemp, received in payment of interest  18
Bounty given on, 1733  32
The production of in 1733...  78
Hopkins, Stephen, one of committee to reply to English Government, 1749.. . 65
His bounty received for flax  78
Amember of committee of 1749 on paper money  192
A member of the committee on paper money, 1764  216
Houses and Lands in Rhode Island, the valuation by Commissioners of Di
rect Tax, 1800  ,  172
Howell, David, Hon., his defence of the Superior Court before the General
Assembly on account of their decision in case Trevett versus Weeden.. . 126
Indented bills, the meaning of the term  14
Indian money in New England..  .^  1
Jenckes, Daniel, one of a committee to reply to English Government, 1749. . . 65
A member of committee of 1749 on paper money  192
A member of the committee of 17G4 on paper money  216
Jenckes, Joseph, Gov., opposes issue of the Fourth Bank  26
Judicial power of the General Assembly denied by David Howell, 1786  126
Kay, Nathaniel, opposes issue of paper money, 1731......  -  33
King Philip's belt described  1
Lawful money, the General Assembly declares what shall be  97
Issue of bills of that designation, 1756  95
Further notice of this issue of 1756  54-202
Lawrence, John, opposes issue of paper money, 1731  33
Lawton, Robert, to superintend the press of John Carter while printing the
bills  ....104
Legend, In Te Domine Speramus, changed on issues of 1738 and 1740  xii, 44
Light-house to be built for the benefit of navigation  185

224 HISTORICAL TRACT.
Lippitt, Jeremiah, a signer of the bills of 1758  '. -212
Liquidation, the law issuing the Tenth Bank operates as a liquidation law. . 118
Loan's negotiated iu place of bills issued  107
Louisburg, expenditures of the Colonies in the capture ot\ to be reimbursed
by English Government  65
Malbone, Godfrey, a member of committee of 1739 on paper money  175
Martin, James, a member of committee of 1739 on paper money  175
Marchant, Henry, Hon., counsel for the defence in case Trevett versus
Weeden  122
Massachusetts aud Rhode Island, the financial situation in 1749 compared. . . 67
Massachusetts, first emission of paper money by  6
Law to prevent circulating of Rhode Island bills in the Col
ony of, 1743  35
The redemption of her paper money in 1749  66
Merchandize, prices of sundry articles in Providence, 1746-1769  165
Mint established at Boston, 1652  4
Moffatt, Thomas, estate confiscated and pledged for the issue of June, 17S0. .108
Mortgages, of no security to bill holders  .36
Mortgages and bonds in suit for non-payment  56
Mumford Paul, summons a special court for trial of case Trevett versus
Weeden  122
Only Judge re-elected in the year following decision of case
Trevett versus Weeden  129
New Tenor bills. Seventh Bank, 1740, the first issue of.  53
Newdigate, Nathaniel, opposes issue of paper money, 1731  33
Nichols, Benjamin, Colonial Treasurer, 1748  71
A signer of the bills of 1758  .212
Ninth Bank, 1750, the reasons given for the issue  72
Norton, Benjamin, opposes issue of paper money, 1731  33
Old Tenor bills, what they were  54
"Value at various periods, 1751-1763, in silver (Spanish milled
dollars)  100

COLONIAL PAPER CURRENCY. 225
Old Tenor and New Tenor, the comparative value, arranged by the General
Assembly  65_76
Paper Mone.v, first emission in Colony of Rhode Island  7
The first Rhode Island bills described  8
First emitted in Massachusetts  6
Petitions for the issue of, characterized  68
Law against pasting the backs of bills  15
Summary of reasons for issuing  ,  33
First emissions in various Colonies  7
Scale of depreciation in Massachusetts, 1711  7
Law to prevent cutting into halves and quarters  19
Reports of Committees of the General Assembly  173
Counterfeiting of  18
The single cause of the happiness and prosperity of the Colony.158
Amount in circulation in 1748 in the Colonies of Massachusetts,
Connecticut, Rhode Island and New Hampsliire  36
The redemption of, by Rhode Island in 1749, by the funds sent
from England  66
A bill payable in weight of silver and gold, instead of pounds,
shillings and pence, 1750  72
Petition to Parliament to stop the issue of  82
Summary of the law of England restraining the issue  86
The value of Old Tenor and New Tenor in sterling fixed by
General Assembly, 1750  76
Fractional bills issued  106
Numbers of each denomination issued in 1775  103
Value in Spanish mUled dollars, 1777-1781, fixed by General
Assembly  -  114
The issue of July, 1780, guaranteed by the United States  109
Description of each denomination of issue of 1780  110
Issue of July, 1780, printed by Hall & Sellers  109
Tables of emissions and burnings  133

'226 HISTORICAL TRACT.
Parliament, resolutions relating to paper money in the Colony of Rhode
Island  84
Partridge, Mr., Agent, summary of report of committee of 1749, sent to, in
England  189
Peag, or stringed, Indian money  3
Pease, Simon, signer of G reenman certificate  93
Opposes issue of paper money, 1731  33
Penalty prescribed for paying higher for coins than the General Assembly
ordered, 1704  76, 99
Petition of Deputy Governor Joseph Whipple  . . , . . 69
James Franklin  44
Abraham Borden  38
Mercliants to Parliament  82
to Parliament to stop the issue of paper money  82
Pine tree money described  5
Potter, John, Capt., committee to construct pier on Block Island, 1733  42
Power, Nicholas, the largest catcher of codfish in 1733  78
Premium on silver and gold, penalties prescribed for payments at higher
rate than directed by the General Assembly  76, 99
Prices of merchandize in Providence, 174G-1709  165
for labor and merchandize in the town of Providence, 1770  170
of merchandize' for the State of Rhode Island fixed by a convention,
1779  168
Redwood, Abraham, opposes issue of paper money, 1731  33
Redwood, Sarah, married Joseph Whipple  69
Report of committee of 1739, on paper money  175
1749,  182
1702,  193
1764,  207
Rhode Island, the amount coming to, from the reimbursement for capture of
Louisburg  66
Population of tlie Colony at various periods  51
Richardson, William, a member of committee of 1763 on paper money  193

COLONIAL PAPER CURRENCY. 227
Richardson, William, engaged in settling Colonial accounts....  203
Richardson, Thomas, General Treasurer, petition for additional pay  viii
Rome, George, estate confiscated and pledged for the issue of June, 17S0  108
Scott, Edward, a signer of the bills of 1743  57
A member of committee of 1702 on paper money  193
Searegrass, Edward C, opposes issue of paper money, 1731  33
Second Bank, 1721, the reasons given for its issue  17
Sessions, Darius, a member of the committee of 1704 on papier money  216
Seventh Bank, 1740, the reasons given for its issue  52
Terms of issue changed by order of the English Government . 65
Shearman, Samuel, a signer of the bills of 1760  .-.  72
Sheffield, Nathaniel, Capt., compensation at the proclaiming of Queen Anne
and of George the First  63
Shelding, Nicklis, his production of hemp  78
Signatures required for different denominations  105
Sixth Bank, 1738, the reasons given for its issue  45
Slaves in Rhode Island iu 1800, tax assessed upon  172
Society of the Cincinnati, expels a member for paying his debts in accordance
with the law of 1786  121
Spencer, John, Jr., a member of committee of 1739 on paper money  175
Sprague, J onathan, bond lodged with Treasurer  179
His production of flax the largest in the Colony iu 1733. . 78
Stanton, Joseph, Col., committee to construct pier at Block Island, 17.33. . . . 42
Stereotypes used in printing the bills of 1776-1786 found, and used in repro
ducing biUs in this Tract  ?. . . 108
Stiness, John H., Hon., discovery of a rare paper money Tract  89
Tartar, the Colony sloop, built 1740  52
Her fighting capacity  157
Tax of ten thousand pounds levied 1744  69
Tenth Bank, 1786, the reasons given for its issue  117
Severe laws passed by the General Assembly to sustain it. 119
Third Bank, 172S, the reasons given for its issue  21
Thurston, Edward, bonds lodged with the Treasurer  179

228 HISTORICAL TRACT.
Tillinghast, John, opposes issue of paper money, 1731  33
Tillinghast, Jonathan, opposes issue of paper money, 1731  33
Tillinghast, Nicholas, a member of committee on paper money of 1764  216
Tillinghast, Pardon, his production of hemp  - 78
Tillinghast, Philip,. Jr., opposes issue of paper mouey, 1731  33
Tillinghast, Thomas, one of the judges in case of Trevett versus Weeden... 127
Trevett versus Weeden, a summary of this great case  121
Superior court decides it has no jurisdiction........ 125
Resolution of the General Assembly thereupon  125
Memorial of the judges to the General Assembly... 127
Turner, Henry E., Dr., information relating to William Claggett  49
Turpin, Joseph, p'?;tition for relief, "he casually fell into the water "  71
Updike, Daniel, a signer of the bills of 1743  57
Signer of Greenman certificate  93
Updike, D. Berkeley, loan of bill of 1743 in this Tract  59
"Varnum, James M., Gen., argument in the case Trevett versus Weeden..., 122
Vernon, Samuel, prints the bills of the First Bank  14
Signer of Greenman certificate  93
Veto power of the Governor, under the charter, denied by the British Gov
ernment  28
Governor to be disfranchised if he does not use it.  88
Wampum, or Indian money  2
A legal tender in Massachusetts  3
Counterfeited  3
Its value fixed by law  ,  4
Ceased to be current in Rhode Island  4
Wanton Family, petitions for the issue of a bank. ^  58
Obtain political power by means of the Fourth Bank, 1733. 30
Wanton, Gideon, General Treasurer, 1733  3q
"Wanton, John, Col., trustee of First Bank  14
Dep. Gov., convenes the legislature in opposition to Gov.
Jenckes  26

COLONIAL PAPER CURRENCY. 229
Wanton, William, elected Governor, 1733  27
Signer of Greenman certificate  93
Gov., committee to construct pier on Block Island, 1733. . 42
Wanton, William, Jr., Capt., committee to construct pier on Block Island. 42
Ward, Richard, Gov., letter of, to the English Government, concerning emis
sions of paper money   141
Signer of Greenman certificate  93
Whalebone, bounty given on, 1733  32
Whale oil, bounty given on, 1733  32
Whipple, Joseph, Mr., committee to construct pier at Block Island, 1733  42
A inemher of committee of 1739 on paper money  175
Dep. Gov., failure of  !  68
Petition of, for relief  69
Marries Sarah Redwood  69
Death  70
Williams, Roger, describes the manufacture of wampum  2
Wolf bounty in colonial times illustrates depreciation of paper money  61
Wood for fires, value in 1702   63
Wool, manufactured into cloth, bounties given  77
Bounty repealed by order of British Government  77

THE END.