56 



Early New York Paper Currency. 



different colonies, every colony becoming bound to dis- 

 charge its own particular part, and all the colonies to dis- 

 charge the part which any particular colony should be 

 unable to pay. 



The first proposition was disapproved of because the 

 money issued would not have a general credit; the sec- 

 ond was objectionable because default might be made by 

 some of the colonies in sinking the amount assigned to 

 it. The third was conceded to have the advantage of a 

 higher and more general credit than either of the former, 

 and the convention on the recommendation of their com- 

 mittee adopted it, and instructed our delegates in congress 

 accordingly. The plan was not adopted by the continen- 

 tal congress, and the provincial congress resorted to an 

 issue of .£45,000 on the 2d of Sept., 1775, other issues 

 followed increasing the amount to .£300,000. 1 



Concerning the precise objects for which these sums 

 were appropriated it is not necessary to make an account. 

 The country was flooded with the emissions made by the 

 several colonies and by the continental congress, and the 

 evils produced were incalculably great. The country was 

 unable to redeem its currency and the depreciation was 

 ruinous. The whole amount issued in New York from 

 1709 to the last issue in 1786 was not large, and the special 

 and repeated methods of taxation adopted for its ex- 

 tinction were as successfully carried out as the resources 

 of the country would allow. 



In 1781 an act was passed establishing the rate of de- 

 preciation of continental bills of credit, in the settlement 

 of accounts. 2 



After the adoption of our state constitution in 1777, 

 only two laws were passed making bills of credit ; one in 



J May 5, 1776, £55,000; Aug. 30th, 1776, £200,000. In 1799 an act was 

 passed canceling all bills issued by this congress of the denomination of 

 one dollar and under. 



2 See table at the end of this work. 



