Resumption in Massachusetts

RESUMPTION IN MASSACHUSETTS. Parliament voted to ransom Louisbourg from the colonies. The sum coming" to Massachusetts was ^138,649 sterling, which at eleven for one, the ruling exchange, would nearly cancel the paper. Hutchinson proposed that they should ask Parliament to ship to them their share of the payment in silver dollars and copper coins, and that these should be used to cancel the paper as far as they would go, the rest to be called in by tax. After considerable opposition this course wras adopted. The silver was sent over and exchanged. Prices were adjusted to this new treasure, and the silver remained in circulation when it no longer had a meaner rival. The "shock" which was apprehended did not occur. The only shock was to Rhode Island and New Hampshire, who found their trade transferred to the " silver colony," and their paper suddenly and heavily depreciated. The West India trade of Massachusetts had been largely done through Newport. It was now transferred to Salem and Boston, In 1752 a Newport merchant, Joseph HISTORY OF AMERICAN CURRENCY. 35 Whipple, who was deputy governor at the time, failed. Failures "had been almost unknown in Newport," and Mr. Whipple was constrained to resign his office.

The apprehensions of loss and danger from the change in Massachusetts led to some demonstrations of riot, but the change took place so quietly and easily that these fears were not realized and the tumult subsided. Trade had been immediately before (1749-50) at the lowest ebb. Ship-building and fisheries had declined, and people were moving away. Trade now revived steadily and rapidly, and we hear no more of "scarcity of money" until the next violation of the laws of circulation. The following table shows the depreciation of Massachusetts paper: EX. ON LON-SILVER PER OZ. IN DON. THE CURRENCY. S. d. 1702 133 6 10J 1706 135 7 1713 X5o 8 1716 175 9 3 1717 225 12 1722 270 14 36 HISTORY OF AMERICAN CURRENCY. EX. ON LON-SILVER PER OZ. IN LON. THE CURRENCY. s. d. y )f28 340 18 173° 38° 2O 1737 500 26 174i 55o 28 1749 1,100 60 The following table shows the depreciation of the paper of the several colonies : 1740 1748 New England 525 1,100 New York.; 160 190 Pennsylvania 160 180 and 190 Maryland 200 200 North Carolina 1,400 1,000 South Carolina 800 750 Virginia 120 and 125 Douglas, though bitterly opposed to paper money, opposed violently the plan of Hutchinson. His own history shows that he was irascible and impracticable. He thought the measure too sudden, and wanted to use the English payment by drawing bills of exchange on long time and selling them for the bills of credit. If a contraction had been practicable it ought certainly to HISTORY OF AMERICAN CURRENCY. 37 have been gradual and careful, but this was out of the question with a currency sunk to ^T of its denomination, and a bankruptcy could not be too sharply and definitely accomplished when resolved upon.