disturbance caused by the collision with the crown, made it impossible to estimate closely the amount to be expected from such a levy. Moreover, the continental congress had settled the question as to the manner in which their own debts were to be met by making an emission of continental currency on the twenty-second of June. If the thought had been entertained in Massachusetts of relying upon taxation and loans for supplies for the treasury the obligation to support these bills would have compelled the colony or state to accept a currency medium and to abandon all hopes of maintaining a specie basis.

It would be a hopeless task to undertake a detailed analysis of the vast mass of material bearing upon the course taken by the general assembly in connection with the emission and retirement of these bills of public credit, or to attempt to account for the action of the various committees and public officers in their loyal efforts to sustain the credit of the continental congress. Mr. Goodell, with wonderful patience and industry, has collated in the notes to the chapters in the province laws devoted to the legislation of this period, copious extracts from the journals of congress; from the journals of the house; and from the council records; reports of committees from the archives; and explanatory matter from newspapers,-in short, just what is required to comprehend the motives which prompted action from day to day. These notes separately published would make a good-sized volume. To them one can turn for an explanation of the legislation, if the preambles of the acts do not furnish a satisfactory clue.

In 1775,1 there were two emissions by the general assembly of bills of public credit of "the colony," £100,000 August twenty-third, £75,000 December twenty-second, each set being in sixteen denominations, the first running from 1s. to 40s., the second from 8d. to 48s. The bills were

1 Acts and Resolves Prov. Mass. Bay, Vol. V., pp. 416 and 442.

to be received in all payments without discount or abatement. This practically should have made them a legal tender, but if doubts existed on the subject, they were cured in April, 1776,1 by a section in the "Act to prevent the forging and altering bills of public credit, and for preventing the depreciation thereof and for making the bills of credit of the United Colonies and of this government a legal tender." The penalties for forging and altering and for receiving for a less sum than expressed in the bill, covered the emissions of the other colonies as well, but only the bills of the United Colonies and of this government were made a legal tender. By resolve of the provincial congress, already quoted, the bills of the other colonies had been made a legal tender. This resolve had been ratified by the present government. The legislation above referred to evidently was intended to discriminate against the legal tender function of the bills of other colonies, but it did not in words repeal the legislation which seemed by its terms to convey the same power to them. This was, however, specifically accomplished May sixth, 1777,2 when it was enacted that after July first next ensuing, no other bills than those of the United States and of this government should be a legal tender and the resolve of the Provincial Congress, making other bills a tender, was specifically repealed.

June twenty-first, 1776, a third emission of "Colony" bills was made. £100,000 were "printed" in twenty-four denominations, running from threepence to forty-eight shillings. The form was new and stated that the bearer was entitled to receive by a certain date the designated sum in "lawful money." The bills were to be retired in 1778 and 1779, and they were given the legal tender function. Bills of the United Colonies and of this government were the only bills which could be received by collectors

1 Acts and Resolves Prov. Mass. Bay, Vol. V., p. 472. 2 Ibid., p. 640. 3 Ibid., p. 547.

of taxes in payment for the tax pledged as a fund for the retirement of these bills.

After the Declaration of Independence the word "State" was substituted in the bills for "Colony." Funds were prescribed in each act, providing for the emission of bills, and both the legal tender clause and the discrimination against bills of other colonies in the description of bills to be received in the taxes laid for funds were also as a rule, repeated.

All the bills were made payable in lawful money. The emissions in 1776 were, £50,004, September 16th;1 £50,004, October 29th; £20,034 December 6th; all to be retired in 1781; and £75,000, December 7th to be retired in 1784. The word "dollars" appears in this last series, for the first time, upon the bills of public credit. This was the last emission of bills of public credit of upwards of six shillings in denominational value. Nearly two years after this, October thirteenth, 1778,5 an emission was made of small bills for the purpose of replacing by exchange the tattered fractional currency then in circulation. Twenty-eight thousand pounds small bills, of twelve denominations running from twopence to four shillings sixpence, were ordered to be struck off from the plates of the last previous emission. These were by their terms to be retired in 1784. Eight thousand only were emitted, when the assembly became impatient and on the twentysixth of January, 1779, ordered the remaining £20,000 to be printed. A new form was used for this £20,000. The bills ran in twelve denominations, from one shilling to five shillings sixpence and were by their terms to be retired in 1782.

The reason for the stoppage of the emissions was to be found in the proceedings of the general assemblies of the New England States and of the continental congress. December twenty-fifth, 1776,7 a committee appointed by

'Acts and Resolves Prov. Mass. Bay, Vol. V., p. 559. 2 Ibid., p. 589. 3 Ibid., p. 606. Ibid., p. 610. Ibid., p. 906. 4 Ibid., p. 921. 7 Ibid., p. 669.

the assembly met, in conference in Providence, similar committees sent by New Hampshire, Connecticut and Rhode Island.

The Massachusetts committee was originally appointed to discuss what could be done to support the credit of the paper currencies in circulation and to control further emissions. The committee was afterward empowered to consider the subject of regulating embargoes and the price of goods. The "Act to prevent Monopoly and Oppression" passed January twenty-fifth, 1777,' embodies their report on the second part of their duties. So far as bills of public credit were concerned, they recommended2 that the several states should desist from further emissions, should retire the bills already emitted, and should in future rely upon taxes and borrowings for terms not exceeding three years with interest not exceeding five per cent. In case of extreme emergency, the state was to reserve the right to emit bills bearing four per cent. interest, redeemable in three years or sooner. February fifteenth, congress by resolve disapproved of the interest-bearing bills, but otherwise commended the proposed action of the New England states. A new conference of committees from the same states to consider the same subjects was held at Springfield, July 30th, at which New York was also represented. This conference reported that the quantity of bills in circulation was excessive; that the bills of the several states and of the United States tended mutually to depreciate each other, and recommended that the several states should draw in their bills of public credit, except those of denominations below one dollar, and prohibit their further circulation after a fixed date. This proposition being submitted to the general court of Massachusetts, it was found that there was then outstanding £470,042 in bills of public credit not bearing interest, of which £30,962

3

1 Acts and Resolves Prov. Mass. Bay, Vol. V., p. 583. Amended May 10. Ibid., p. 642. Repealed October 13th. Ibid., p. 733. 2 Ibid., p. 813. Ibid., p. 814. 4 Ibid., p. 815.

On the

12s. 8d. were for sums less than one dollar. thirteenth of October,' an act was passed, calling in all the Massachusetts bills of credit not on interest, those emitted for small change excepted, and providing for the emission of £400,000 in interest-bearing notes of ten pounds and upwards, payable in 1781 and 1782, for purposes of exchange. Possessors were to have until January first, 1778, to effect the exchange, but after December first, it was made illegal to pass any bill of any of the states, in any payment whatsoever, except the interest-bearing notes of this state. After the first of December, continental bills and Massachusetts interest-bearing notes were alone to constitute the currency of the state. The passage of this act produced a whirlwind of excitement and the assembly was overwhelmed with remonstrances from the towns. An address to the inhabitants of the state was prepared and after adoption by the representatives, a printed copy was sent to the selectmen of each town. This address, although rather lengthy, was an able discussion of the situation and pointed out in a convincing manner the futility of the objections which were interposed against this legislation.

3

November twenty-second, congress approved the example of Massachusetts and recommended the other states to pursue the same course.

When this act was passed there were in circulation. £439,079 12s. 8d. in non-interest-bearing bills, in denominations above the sum of one dollar. June ninth, 1779, a committee reported that under the provisions of the

1 Acts and Resolves Prov. Mass. Bay, Vol. V., p. 734.

2 The time for exchanging these bills was repeatedly extended, the last period fixed being August, 1779.

One of the arguments against the transaction was, that it would be better to arrange for raising the money by a series of tax acts, rather than to burden the country with interest. To meet this proposition, towns having the ability to raise the required sum by taxation were authorized to do so. The sum raised could be converted into a Treasurer's note, which the town could hold, and thus avoid the burden of interest money. Acts and Resolves Prov. Mass. Bay, Vol. V., p.

760.