Early New York Paper Currency. 



53 



restrictions of the legal tender, as that could not be done 

 without the interposition of parliament. 



The only currency that had up to this date been made 

 a legal tender in the province of ^ew York, consisted of 

 Lyon dollars, and the paper bills of credit. 1 The former 

 at this date (1768) were rarely seen, and the currency of 

 the bills already issued would expire, as above stated, in 

 the fall of 1768, after which time therefore there would 

 be no legal tender. To relieve this serious difficulty, the 

 general assembly passed an act making gold and silver 

 coin a legal tender, fixing no value other than that for 

 which they passed current in the common course of busi- 

 ness ; but as this would conflict with an act passed in the 

 6th of Anne, in regard to the value of different species of 

 money, the governor refused his assent. Debtors became 

 exposed to the malice of their creditors, and a clamor 

 soon arose which induced the assembly, notwithstanding 

 the recent act of parliament, to pass a law emitting apper 

 money to the amount of .£120,000. It was similar to the 

 preceding, except in one or two particulars. First, it was 

 not to take effect until after the 1st of Nov., 1769, which 

 would afford an opportunity to submit it for royal approval. 

 Secondly, the interest of five per cent was to be paid 

 on the whole capital for the first four years, and in the 

 fifth year one tenth part of the capital to be sunk, and 

 continued in the same proportion every succeeding year. 

 To this act, on the petition of the assembly and council, 

 the governor gave his assent; first, because the money 

 could not be disposed of without the concurrence of the 

 governor and council, and secondly, because it had the 

 effect of establishing a revenue for a number of years, 

 an approach to a luxury which had not been recently en- 

 joyed, and it was thought best not to despise it. The royal 

 approbation was, on the same grounds, strongly urged in 



1 The bills of the neighboring colonies were never made a legal tender 

 in New York. 



