Early New York Paper Currency. 27 



1705 or 1706 a paper money act was passed in the island of 

 Barbadoes. These three instances are believed to be the 

 only enactments creating bills of credit in the British 

 American colonies prior to the acts passed in Connecticut 

 at the session begun in May, 1709, and in New York, June 

 8th, of the same year. 



III. 



The Paper Money of New York. 

 New Netherland was surrendered to the English in 

 1664, the Duke of York having obtained a grant of the 

 province from King Charles II. The Dutch reconquered 

 the country, but it was eventually restored to the English 

 in 1674, when the Duke obtained a new grant of the 

 colony of New York. The government was composed of 

 the governor and council appointed by the king, and sub- 

 sequently of the assembly chosen by the people. In it was 

 vested the authority to make laws, subject to the approval 

 of the proprietary. The general assembly convened " for 

 the first time in 1682. 



Difficulties in regard to the currency of the province 

 existed at an early date. The coins of Holland, France, 

 Germany, Spain, England and a remnant of the Massachu- 

 setts coinage carried with them each the distinct valua- 

 tions made in their respective countries. As has already 

 been stated, wampum circulated for a long time as the 

 colonial currency, but it gradually disappeared as trade 

 and prosperity increased, when the revenue for the sup- 

 port of government was derived from crown rents, forfeit- 

 ures, taxation, 1 duties, the emission of paper money and 

 lotteries. 



After the first reduction of New Amsterdam, the neces- 

 sary means to defend it against the Dutch and Indians 



1 The first internal tax in New York (New Netherland) was levied in 

 1644, and was for the purpose of meeting the expense incurred by the 

 Indian wars. 



