USA > Connecticut > A complete history of Connecticut, civil and ecclesiastical, from the emigration of its first planters, from England, in the year 1630, to the year 1764; and to the close of the Indian wars > Part 5
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34 | Part 35 | Part 36 | Part 37 | Part 38 | Part 39 | Part 40 | Part 41 | Part 42 | Part 43 | Part 44 | Part 45 | Part 46 | Part 47 | Part 48 | Part 49 | Part 50 | Part 51 | Part 52 | Part 53 | Part 54 | Part 55 | Part 56
CHAPTER III. /
The importance and benefits of a stable currency. The atten- tion of the legislature to this subject. The manner of the emission of bills of credit ; of the payment of the pub- lic debt, and of provision for the defence of the colony and his majesty's service. Answer to their Lordships' Letters. Depreciation of the currency.
1714.
The im- portance of a stable currency.
A STABLE currency is very essential to the civil and moral interests of all communities. It is the only foundation upon which the principles of commutative jus- tice can be firmly fixed, and the property and rights of a community, be, in any tolerable manner, secured. It is a happy guard on the morals of a people, as it removes nu- merous temptations to injustice, and puts it out of the power of speculators and dishonest men to do that injustice to others, which, in many instances, are practised daily, where the currency is in a state of constant fluctuation. It secures to the public, a greater proportion of time and la- bour, which otherwise would be spent in speculating, drinking, gambling, and in other vices highly injurious to the civil and religious interests of a commonwealth. Are- dundancy of money and a depreciating currency are a. fruitful source of these evils. A depreciating currency is a public fraud, as it is a constant tax on the sober industri- ous part of the community, for which they receive no bene- fit, but suffer much injury. It defrauds all men who live
47
CONNECTICUT.
CHAP. III.
upon salaries, of a part of their just dues. It in various Book II. ways injures the creditor, and is a temptation to every debtor to defraud, by paying the creditor less than his just 1714. dues, and by keeping him out of his money as long as he possibly can. By this means many industrious, honest men, fair traders, and useful members of society are ruined, and their property goes into the hands of speculators and dishonest men, who are of little honor or advantage to the community. It is in a great variety of ways a source of oppression, of publick and private injustice, and highly in- jurious to the morals of a people. Every legislator there- fore, who wishes to maintain public and private justice, and to preserve the morals of the people, will be particu- larly solicitous to have a fixed currency.
Of the importance of this the legislature, at this time, ap- pear to have been deeply apprehensive. They acted with peculiar caution relative to the emission of bills of credit, and the establishment of funds for their seasonable redemp- tion. The Assembly, in October, 1713, had enacted, that 20,000 pounds in bills of credit, should be emitted : but as the war was terminated, and as the debts contracted by it, had been in a considerable degree discharged by the taxes which had been collected ; and as they would be still fur- ther discharged by others which had been levied, it was determined to emit the twenty thousand pounds in parts, and at different periods. At the same time it was deter- mined to be calling in, and burning the old emissions; so that they might prevent a redundancy of bills, and by these means guard against their depreciation. When the legis- lature met, in May, 1714, it was enacted, that the treasur- er should issue two thousand pounds only of the said bills, and a fund was made for their redemption in 1724. In May 1713, the legislature ordered that nine hundred and May 1718. fifty eight pounds should be emitted as another part of the twenty thousand pounds. In the session in October, one thousand and two hundred pounds more were put into cir- culation. These small emissions, which had little exceed- ed the quantity of bills called in, within the same term, had no ill effect upon the currency. The bills which had been emitted, at five per cent, from the year 1709 to the State of present time, had suffered no depreciation. In the scarci- the curren- ty of money, they had facilitated trade, served the conven- cy, Oct. ience of the inhabitants, and been of general utility. The 1718. Act of the Assembly therefore enacted, That the bills of credit of Assembly this colony, should be allowed as a just payment of all respecting debts, except those in which the contract had been made it. for money, or articles particularly specified, until the year 1727.
May 1714,
45
HISTORY OF
CHAP. HI.
BOOK II. 'To preserve the bills from depreciation, the Assembly levied four pence on the pound, for the calling in of six 1719. thousand pounds of bills which had been emitted in June, 1711. Two pence on the pound was levied in May, and the other half in October. As preparations for the de- fence of the country against the Indians, and the necessity of sending men to keep garrison on the frontiers, had in- creased the expenses of the colony, it was enacted, at the Oct. 1722. session in October, 1722, 'That four thousand pounds in bills of credit should be emitted. In consequence of this; the Assembly ordered two thousand pounds to be issued in May 1725. May, for the discharge of the public debt. In May, 1725, the other two thousand pounds were issued. Funds were provided at the same time, for the redemption of the bills; As many of the outstanding bills had been in circulation a number of years, and were either torn or defaced, a new emission of four thousand pounds was granted, in October 1728, for the purpose of calling the old bills into the treasu- ry and burning them.
May 1799.
In May 1729, six thousand pounds more were emitted for the same purpose. Sometimes new emissions were order- ed for the purpose of exchanging them for the same amount of a former emission. For the saving of expense, new emissions were sometimes impressed with the same plates which had been used in former ones. This was the case, when torn and defaced bills were replaced. The Assem- bly also, at several times, when large sums had been brought into the treasury, by taxes, gave orders for the re- issuing of these sums in part, or in whole. In this econom- ical manner, did the legislature conduct the affair of their bills of credit. Small sums were emitted from time to time, and others of equal amount were called in and put out of circulation. The amount in circulation was nearly the same, or if it exceeded, it was not beyond the increase of the people, and of the business and trade of the colony. There was therefore no considerable depreciation of the bills Ort. 1733. incirculation. In 1733, the colony andits trade were consid- Emission and loan- erably increased and it was conceived that a greaternumber ing of bills of bills might be put into circulation without injuring their of credit. credit. The legislature therefore ordered twenty thousand pounds to be emitted. By act of the Assembly, the bills were to be redeemed at the rate of twenty shillings to eve- ry ounce of silver, Troy weight. It was enacted by the Assembly, That a considerable part of the bills should be loaned, at six per cent, and for double the amount of the bills in land security : and that each county in the colony, should have such a proportion of it as was equal to their
49
CONNECTICUT.
CHAP. III.
respective lists. It was designed that all the people might Book II. have an equal benefit by the bills.
Until about the year 1735, the colony had been so hap- Provision py, that no attempts had appeared to have been made for against counterfeit the counterfeiting of its currency. But about this time bills, Oct .. there arose a set of villains, who counterfeited the five 1735. pounds, the forty, and the ten shillings bills. Numbers of these bills appeared to be circulating, in various parts of the colony. The legislature, to prevent the mischief which the circulation of counterfeit bills might effect, en- acted, That twenty-five thousand pounds should be imme- diately emitted, with a different stamp, and exchanged for the old bills which had been counterfeited.
War having been proclaimed against Spain in October The war 1739, and letters having been received from his majesty, occasions
with Spain requiring the assistance of the colony, in an expedition a new against the Spanish West Indies, the Assembly, in their emission session in May, passed a resolve to the following effect : of bills of credit, That whereas the expenses of this government were likely May 1740: to be very great, by reason of the expedition directed by his majesty against the Spanish West Indies, and those necessary preparations for the defence of our borders, sea coasts and navigation, and as the medium of exchange is exceedingly scarce, bearing but a small proportion to the demand which there is for it, therefore be it enacted, That thirty thousand pounds, in suitable bills, shall be emitted. On the face of the bill it was said, By a law of the colony of Connecticut, this shall pass current within the same, for twenty shillings in value; equal to silver, at eight sliil- lings per ounce, Troy weight sterling, in all payments and at the treasury. The Assembly enacted, That eight thou- sand pounds of this emission, should be issued for the payment of the public debt ; and that the remaining twen- ty two thousand pounds should be loaned to freeholders and inhabitants of the colony. It was also enacted, That the eight thousand pounds should be redeemed in five years, by five equal payments, annually, until the whole should be redeemed.
As the government had engaged to provide transports for the troops to be raised in the colony, and to victual them, until they should arrive in the West Indies, it was resolved, at a special Assembly, that fifteen thousand July 8th, pounds more should be emitted in bills of credit : That five thousand pounds should be retained in the treasury for the redemption of old outstanding bills which had been torn and defaced, and that the other ten thousand pounds should be issued by the treasurer. At the same time a
G
HISTORY OF
CHAP. III ...
Book II. tax of ten thousand pounds was levied on the grand list of the colony, for the payment of the whole within ten years.
1740. About this time letters were received from the Lords commissioners of trade and plantations, requiring an ac- count of the tenor and amount of the bills emitted, by the Assembly ; and its opinion on the best mode of sinking them. Their Lordships also faulted them, for making the. emission of thirty thousand pounds a lawful tender, as, in their opinion, it was contrary to the act of the sixth of Queen Anne, ascertaining the rates of foreign coins in the several plantations. The answer of the legislature to their Lordships' letters, will evince that before the emis- sions occasioned by the war with Spain, the colony had but a small amount of bills in circulation. They represent. that the bills outstanding, which had been issued to de- fray the expenses of the government, were nearly or quite sunk, by the taxes of the years 1738 and 1739 : That of the bills loaned before the commencement of the war with! Spain, three thousand pounds had been drawn in for inter- est in the year 1740, and that the whole would be dis- charged by the year 1742 : That the emission of four thousand pounds Old Tenor, and of eight thousand pounds in bills of the New Tenor, in May last, and ten thousand pounds in July following, was for the sole purpose of ena- bling them to comply with his majesty's instructions res- pecting the expedition against the Spanish West Indies, and for the necessary defence of the colony. They affirm- ed that without these emissions it was impossible for them to have answered his majesty's expectations, or to have provided for the common defence., With respect to the twenty two thousand pounds in New Tenor, which had been loaned, they represented, that it had been emitted and loaned to supply the want of a medium of exchange. and that one half of it would be paid in within four, and the other within eight years : That the bills which would be discharged in the year 1742, and the twenty two thou- sand pounds, were the only bills ever loaned by the colony. With reference to the act of May, for the emission of thirty thousand pounds, in bills of the New Tenor, they answered, that the clause making it obligatory on all per- sons to receive said bills, in all payments, was added with an honest intent, to prevent their depreciation. They pleaded further, that they had been encouraged to do it from the example of the neighboring government of New- York, and from the information which they had received of its good effect, in preventing the discount of their bills of credit.
Special Assembly Nov. 26th 1740.
51
CONNECTICUT.
CHAP. III.
In relation to the inconsistency of that act with the act of Book Il. Queen Anne, they pleaded, That they had not the least apprehension of it, and that they had never received the 1740. least insinuation of his majesty's pleasure, nor of that of Nov. 26th. the house of commons on that subject : And that, on the first intimation of his majesty's pleasure, they had repeal- ed that clause in the act which made the bills a lawful ten- der. They concluded by observing, That by the laws which were there transmitted, and by the returns they made, their Lordships would be certified of the tenor and amount of. the bills which had been emitted : and that they persuaded themselves, that their Lordships, in view of the whole matter, would not be of the opinion, that they had made large and frequent emissions of paper currency, as had been represented : That the sums they had emitted, reduced to sterling, or compared with the emissions of some of the other colonies, would appear but small. The legislature gave their Lordships assurance, that special at- tention should be given to his majesty's intentions, and to the opinion of the house of commons.
From these statements, it appears that there had been no redundancy of a circulating medium in the colony, and consequently that there had been little or no depreciation of the bills of credit before the Spanish war in 1740. It appears that then as small a number of bills was emitted as would comport with his majesty's requisitions, and a prop- er defence of the colony. From this time the number of bills in circulation was constantly diminishing. In two years the first bills loaned were all paid into the treasury. The twenty two thousand pounds, was in four years to be one half reduced. The times for calling in a considerable amount of the outstanding bills had expired, and they had been sunk by the provisions made for that purpose by the year 1744, when the French war commenced. During 17449 this term of about four years, there was not a single emis- sion. At this period, therefore, the bills of credit must have been rather in a state of appreciation than of discount. The credit of the bills appears to have been well support- cd until after the commencement of the war with France and the expedition against St. Louisburg.
HISTORY OF
CHAP. IV.
CHAPTER IV.
The colony in fear of losing their Charter. Measures adopted to prevent it. Mr. Winthrop complains of the Colony. In un Appeal to his Majesty in Council in a case between him and Thomas Lynchmere, Esq. he obtained a sentence, in which a certain law of the colony, entitled an Act for the settlement of intestate estates, was rendered null and void. The colony declare, that they will not surrender their charter, and pray for the continuance of the act relative to intestate estates.
BOOK II. LTHOUGH the colony had been able to maintain their charter privileges against the intrigues of Dud- ley, Cornbury and other enemies, in 1712, and 1713, yet the danger was not yet past. There were strong parties in England, and some in the colonies, who were unfriendly to the charter governments, especially to those of New- England. They were considered as too independent of the crown and government of England. A bill was there- fore brought into parliament for a repeal of the charters which had been given to the colonies. Mr. Dummer, the agent for the colony, in a letter to the Governor, dated August 1715, had given information of the measures which the ministry were pursuing, and had sent over a copy of the bill which was pending in the parliament relative to the charter governments. No sooner were the Assembly con- vened in October, than a committee was appointed to ex- amine all papers and documents relative to that affair, and to make report what were the best measures for the legis- lature to adopt for the preservation of their charter. The arguments in vindication of their charter rights, and the instructions to former agents relative to them were so com- plete, that nothing new on that subject could be added. The committee therefore, after a full examination of the letters and instructions which had been sent to former a- gents, at different times, and especially on the 27th of Oc- tober 1712, reported, That those were the best instruc- tions which could be given in this case : and that those in- structions and documents were sufficient to support all the articles in the case of the colony, a report of which had been printed by their agent. They gave it as their opin- ion, that those articles being substantiated, they might hope that Connecticut would be kept out of the bill. They further gave it as their opinion that it would be advisable
Oct, 1715.
53
CONNECTICUT.
CHAP IV.
to encourage the agent and engage him to make the best Book II. defence in behalf of the colony, and to supply him with money sufficient to answer the extraordinary charges which 1715. it might occasion.
The Governour was desired to return the thanks of the legislature to Mr. Dummer, their agent, for his faithful care and great diligence on all occasions ; and especially in this critical juncture, for the general good of this colo- ny, and in the defence of their invaluable privileges : and to encourage him to employ his utmost endeavors to save the colony out of the bill pending in the house of com- mons. He was instructed to spare no cost which he should judge necessary for that purpose, and the strongest assur- ances were given him, that the colony would cheerfully reimburse him. Mr. Dummer exerted all his powers in defence of the charter governments ; and by his plea, on that occasion, not only did singular service to his country. but great honor to himself, both in Europe and America. The charter was preserved, and the fears of the colony with respect to the loss of their charter rights, for a number of years subsided.
The colony however was put to great expense, and found peculiar difficulties, at this time, in making pay- ments in England. Governor Saltonstall therefore gene- rously offered to give the colony credit there to such an amount as was necessary. The Assembly accepted his proposal, and returned him thanks for his generosity.
The colony were again brought into great fear and trou- ble with respect to the loss of their charter privileges, and the repealing of their laws relative to all testamentary mat- ters. A number of circumstances united to awaken their concern. The agreement between his majesty and seven of the Lords proprietors of the Carolinas, that they should resign their titles to that country, and the jurisdiction of it to his majesty, and an act of parliament enabling his ma- jesty to purchase the lands belonging to those colonies, and establishing the government between his majesty and them, clearly manifested a desire in his majesty and the parlia- ment to bring the colonies into a state of more entire de- pendence on the crown and parliament, and to have them more immediately under their government. The opposi- tion which the Province of Massachusetts had made to their Governors, Shute and Burnet, and the obstinate re- fusal to vote them a permanent salary, according to the ex- press requisition of his majesty, were considered, by Con- necticut, as having an unfriendly aspect upon the charter governments. This controversy had been heard by his
54
HISTORY OF
CHAP. IV.
Book II. majesty in council, and after a full hearing of all which could be pleaded in their vindication, the conduct of the province had been condemned, and the Governors had been justified. His majesty had been advised to lay the affair before the parliament. The province of Massachu- setts had lost one charter before, and it was very much ex- pected that they would now lose a second, and that it would have an ill effect on the other colonies.
the loss of the char- ter.
Reasons Another ground of fear was this, that it had been pro- for fearing posed to the colony to resign their charter. In addition to these circumstances, John Winthrop, Esq. son of the last Governor Winthrop, had become disaffected towards the government, and had made a voyage to England with complaints against the colony. He had conceived the idea that his family had been injured, and that his ances- tors had not been rewarded according to the public ser- vices which they had rendered to the colony. He imagin- ed that there were monies due to him, which the colony did not consider as due, and were unwilling to pay. Hc had been engaged in a long controversy with Thomas Lynch- mere, Esq. a brother in law of his, relative to their pater- nal inheritance. The court of probate, as he imagined, had made an unjust and illegal settlement of the estate in. favor of his sister, Mrs. Lynchmere ; he therefore, after go- ing through a course of law in the courts of this colony, in which he was unable to obtain redress, appealed to his majesty. Upon the hearing of this case, between the par- ties in England, in which Connecticut did not view itself as particularly concerned, and in which it was not heard, the law of the colony respecting intestate estates was re- pealed. It was judged repugnant to the laws of England, as not securing the lands to male heirs, and admitting daughters to a share in the paternal estate, which the Eng- lish law did not warrant. These circumstances threw the colony into a state of great fear and alarm. They not on- ly feared the loss of their charter, but that all former set- tlements relative to intestate estates would be set aside, and that not only families, but the whole commonwealth would be brought into a state of great trouble, animosity and confusion ; and that the laws of England relative to. such estates, would be established in this colony.
By the answer of the legislature, and their instructions to their agents, it appears that they were in great fear, and almost in a state of despondency relative to the preser- vation of their former rights and privileges. On the recep- tion of a letter from their agent, Jeremiah Dummer, Esq. certifying, that a certain law of the colony, entitled " An
July 3d, 1728.
CHAP. IV.
CONNECTICUT.
act for the settlement of intestate estates, was rendered null Book II. and void ;" a special Assembly was called and a commit- tee chosen, consisting of the deputy governor, Jonathan 1728. Law, Esq. Roger Wolcott, James Wadsworth and Hezeki- ah Wyllys, Esquires, to search the records of the courts and files, and to take out all such copies of acts and records as they should judge necessary to transmit to their agent. They were also to assist the governor in draughting in- structions to him, both with respect to the complaints of Mr. Winthrop against the colony, and relative to the law respecting intestate estates.
The legislature viewed the consequences of annulling the law relative to intestate estates as so terrible, that they determined to spare no pains or expense to prevent it. They resolved to employ another agent, Jonathan Belcher, Esquire, afterwards Governor of Massachusetts, to assist Instruc- agent Dummer in his defence of the colony, and in plead- agents, tions to the ing for the continuance of the law respecting intestate es- July 3d, tates. The agents were instructed to apply themselves to 1728. his majesty king George the second, in behalf of the cor- poration of this colony, praying his majesty, that the said law might be continued, in its full force, and that intestate estates might be divided as had been usual, for a long course of years : that it had been allowed in all preceding reigns from the first settlement of the colony : That in this coun- Reasons try it was reasonable and useful, tending to a more gene- for contin- ral settlement of the country : That the abrogation of it uing would be an occasion of numerous law suits, of great ex- relative to the law pense to individuals and to the colony ; would disturb the intestate peace of families, in many instances do injustice, and injure estates. the general peace and good order of the colony : and that the continuance of it would tend to its general growth, peace and welfare. But notwithstanding the exertions of the legislature and the agents, the aspect of affairs be- came still more unfavourable. The Assembly the next year were still more alarmed with respect to the loss of their charter, and appear to have been nearly in a state of despondency with respect to his majesty's continuing the law relating to intestate estates.
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.