Page:History of Fiat Money and Currency Inflation in New England from 1620 to 1789.djvu/1

 THE HISTORY OF FIAT MONEY AND CURRENCY INFLATION IN NEW ENGLAND FROM 1620 TO 1789.

The scarcity of money was a vexatious problem with the American colonists from the beginning. The tax-gatherers and tradesmen experienced much trouble and delay in making collections. Importations from England of implements of production were, at the outset, necessarily proportionate to the wealth of the community. Peltry and fish, which were marketed here in abundance, settled balances abroad for a time. But the demands, as in every new country, were in excess of those products available for export, hence there was a deficit in London payable in English bills or specie. The specie of the colony was for the most part absorbed by the tradesmen in the course of business and was promptly shipped to London where the accounts of the Massachusetts merchants were at that time constantly in arrears.

The colonial treasury received very little coin, and the amount lessened every year proportionately to the assessed valuation. Live stock and produce were received by the Massachusetts treasury at an early date. Horses, cattle and