26 



Early New York Paper Currency, 



rates to be leveyed, to the treasurer of the county, as also 

 matter of convenience therein appearing, it is ordered 

 that bills for wages, horses, provisions, &c, being regu- 

 larly passed to the sayd treasurer, the Treasurer upon the 

 desire of persons concerned shall repass bills to the consta- 

 bles of such townes, where sums are due upon the aforesaid 

 accounts." 1 



In 1686, during the presidential government of New 

 England, permission was granted to John Blackwell of 

 Boston, and others, residents of England as well as of this 

 country, to commence the issuing of bank-bills "on the 

 security of real and personal estate and imperishable 

 merchandize." How far and how long the operations of 

 this corporation were carried on, is not precisely known. 



It was in 1690 that the first issue of paper money was 

 made by an American colony. New England and New 

 York undertook to drive the French from Canada. The 

 expedition failing, the soldiers returned sooner than was 

 expected, and were clamorous for their pay, and being 

 unwilling to await the time necessary to raise a revenue 

 by a direct tax, the authorities of Massachusetts resolved 

 in the emergency to issue a paper currency, and thereupon 

 directed a committee to prepare immediately bills to the 

 amount of <£7,000. 2 Many precautions were made in or- 

 der to preserve their value, but depreciation speedily fol- 

 lowed their issue. The government received them at par 

 in payment of taxes, and added five per cent to the princi- 

 pal, so that they soon became objects of speculation. 



The next colony which issued paper money was Caro- 

 lina, the necessity for which grew out of an expedition 

 against St. Augustine in 1702. Bills of credit to the 

 amount of £6,000 were issued, to be canceled in three 

 years, by a duty laid upon liquors, skins and furs. In 



1 Massachusetts Records. 



2 According to Hutchinson these bills were issued in notes from 2s. to 

 £10. Mr. Felt says from 5s. to £5. 



