Page:History of Fiat Money and Currency Inflation in New England from 1620 to 1789.djvu/13

 to exist. The bills of credit remained at home at a discount. About the year 1720, a contemporary writer shows us the status of affairs after the bills of credit were issued by the government.

"As to silver and gold we never had much of it in the country; but we can very well remember, that before we had paper money, there was a sufficiency of it current in the country, and as the bills of credit came in and multiplied, the silver ceased and was gone."

Testimony of this nature, confirming the degeneracy of the financial policy which robbed the community of its specie, may be found in abundance in the numerous writings of the essayists of the first half of the eighteenth century.

The efforts of the crown and the representatives of England in the province failed to check the declining credit of Massachusetts. In 1720 the 5 per cent advance added to previous issues to maintain the bills at par was dropped. The premium failed in its purpose. The old custom was revived by the government of making a partial currency of produce. This lasted until 1723. In 1721 there was another emission of £50,000 of bills by Massachusetts. The charges of the government were very much increased at this time by the Indian war. Silver rose until 1726, when the emissions became equal to the cancelings. The act of 1727 regulated the price of silver for obligations previously contracted. It fixed the value at 8s. for 1710, 1711; at 8s. 6d., 1712, 1713; at 9s. for 1714, 1715; at 10s. for 1716, 1717; at 11s. for 1718; at 12s. for 1719, 1720; at 13s. for 1721; at 14s. for 1722; at 15s. for 1723; at 17s. for 1724–27. This value set upon silver was measured by the paper money in circulation. In reality the silver had not appreciated in value, but the bills had depreciated. It was