Page:The Life of George Washington, Volume 1.djvu/317

 INTRODUCTION. 287 CHAPTER VIII. Proceedings of the legislature of Massachusetts.... In- trigues of the French among the Indians.. ..War with the savages. ...Peace. ...Points of controversy with the governor, decided in England against the house. ...Con- tests concerning the governor's salary. ...Adjournment of the assembly to Salem.. ..Contest concerning the salary terminated.. ..Great depreciation of the paper currency ....Scheme for a land bank.. ..Company dissolved by act of parliament.. ..Governor Shirley arrives. ...Review of transactions in New York. 1 HE heavy expenses of Massachusetts, du- iri4. ring the late war, had produced such large emissions of paper money, that gold and silver were entirely banished, and a considerable depreciation had taken* place. Exchange rose greatly above its ordinary rate, a circumstance which, instead of being attributed to the true cause, was ascribed to the bad state of their trade. The colony, having now leisure for its do- mestic concerns, bestowed its attention on this interesting subject. Three parties were formed. The first, a small one, actuated by the principle which always ought to govern, that honesty is the best policy, were in favour of calling in the paper money, and relying on the industry of the people to replace it with a circulating medium of greater stability.