38 



Early New York Paper Currency. 



approval could be known. In order that none of the gov- 

 ernor's aims should be thwarted, his friends in the council 

 induced the house to appoint a committee to meet them 

 and prepare an address requesting him on account of 

 urgent necessity to pass the bill. It was immediately 

 prepared, and on the next day presented and passed, but 

 not without opposition. 



The bills issued by this act, were to be current for 

 twenty-two years, and to be canceled by a duty on tonnage 

 of goods, and a tax on slaves. 



Trade had for some time been on the decline. Merchants 

 having the means, chose rather to make loans at eight per 

 cent, which was considered an excessive rate, than to en- 

 gage in commerce. Besides, imports were considerably 

 taxed, being charged with almost the whole support of 

 government. 



The merchants suggested a tax on lands, but the mem- 

 bers from the country being in the majority, prevented 

 the adoption of such a plan. There was a disposition to 

 increase the currency by a new emission of paper money, 

 but the great poverty of the province and its inability to 

 bear farther taxation was given as the excuse. The oppo- 

 sition was made in reality by the moneyed interest, for 

 it was generally understood that it was postponed to cre- 

 ate a loan at a lower rate of interest than money com- 

 manded. 1 



The spring session of 1737 found the province involved 

 largely in debt which had arisen from an insufficiency of 

 former revenues. Amounts were due the late governor, 

 the chief justices and other officers, for salaries, to the 

 amount of about <£9,000. The lieut. governor, who was 

 then acting, urged the immediate attention of the house 

 to the matter, intimating that unless aid was provided, 

 the people would have an opportunity of electing new 



1 The present legal rate of interest (7 per cent) was established by law 

 in 1738. It was proposed in the assembly, to make it 6 percent, but the 

 council altered it to 7. 



