CHAPTER VI. 



THE PROVINCIAL LAND BANK.* 



"In the year 1714," says Governor Hutchinson, in his "His- 

 tory of Massachusetts," a certain "party had projected a private 

 bank; or, rather, had taken up a project published in London in 

 the year 1684; but this not being generally known in America, a 

 merchant of Boston was the reputed father of it. There was noth- 

 ing more in it than Issuing bills of credit, which all the members of 

 the company promised to receive as money, but at no certain value 

 compared with silver and gold; and real estate to a sufficient value 

 were to be bound as a security that the company should perform 

 their engagements. They were soliciting the sanction of the Gen- 

 eral Court, and an act of government to incorporate them. This 

 party generally consisted of persons in difficult or involved circum- 

 stances in trade; or such as were possessed of real estates; but had 

 little or no ready money at command; or men of no substance at all; 

 and we may well enough suppose the party to be very numerous. 

 Some, no doubt, joined them from mistaken principles, and an ap- 

 prehension that it was a scheme beneficial to the public; and some 

 for party's sake and public applause. 



"Three of the representatives from Boston — Mr. Cooke; Mr. 

 Noyes, a gentlemen in great esteem with the inhabitants in gen- 

 eral; and Mr. Payne— were the supporters of the party. Mr. 

 Hutchinson, the other (an attempt to leave him out of the House 

 not succeeding), was sent from the House to the Council, where his 

 opposition would be of less consequence. The governor was no 

 favorer of the scheme; but the lieutenant-governor — a gentleman 

 of no great fortune, and whose stipend from the government was 

 trifling— engaged in the cause with great zeal. 



"A third party, though very opposite to the private bank, yet 

 were no enemies to bills of credit. They were in favor of loan-bills 

 from the government to any of the inhabitants who would mort- 

 gage their estates as a security for the repayment of the bills with 

 interest in a term of years: the interest to be paid annually, and 

 applied to the support of government. This was an easy 

 way of paying public charges; which, no doubt, they won- 

 dered that in so many ages the wisdom of other govern- 

 ments had never discovered. The principal men of the 

 Council were in favor of it; and, it being thought by the first 



*It is worthy of note tli.'il tho prosent-day liistorliins, wlio take such 

 pains to sliow their intirn<alo knowledKn of tlio financJEil plans of remote 

 times, studiously avoid mentioning this one.— Editor. 



