Page:History of Fiat Money and Currency Inflation in New England from 1620 to 1789.djvu/15

 legislative enactment. This private experiment at inflating the currency cost the people considerable money and virtually compelled the provincial authorities to issue more bills of credit to replace the exchange retired by the New London Society. Private schemes to enlarge the currency proved futile. The little matter of redemption was fixed for a time twelve years in the future when the price of silver was just twice as much as at the time of issue. Practically speaking, had the society continued business it might have redeemed its bills at 50 per cent on the face value—the result of an inflation of the currency.

Judge Sewall, of Massachusetts, makes this conscientious memorandum in his diary: "The diminution of the value of the bills of public credit, is the cause of much oppression in the Province." Governor Belcher, of Massachusetts, complains in his messages, 1734, that the bills of the province read "equal to money," yet "16s. worth will not purchase 5s. lawful money." In his message to the legislature he recommended to that body, "not to suffer an emission of any sort of notes or bills for the future, but such as will instantly and at all times honestly and truly command the value expressed in them." The masterly manner in which Governor Belcher reviewed the financial situation, pointed out the fallacies of inflation and exhorted the legislature to "apply a speedy remedy" will ever be a subject of praiseworthy comment. He seemed to grasp the needs of our degenerate currency system quite as well as his colleague Hutchinson. Together they fought a scrupulous battle for sound money.

The bills of a certain private bank and merchants' notes issued in 1733 at Boston added to the depreciation of the province bills. The Land and Manufacturers' Bank was a project which aimed to convert credit based for the most