gold and filver out of the province, and fo ruins the country; as experience has fhewn, in every colony where it has been practifed in any great degree.

This opinion,of its ruining the country, feems to be merely fpeculative, or not otherwife founded than upon mifinformation in the matter of fact. The truth is, that the balance of their trade with Britain, being greatly against them, the gold and filver are drawn out to pay that balance; and then the neceflity of fome medium of trade has induced the making of paper money, which could not be carried away. Thus, if carrying out all the gold and filver ruins a country, every colony was ruined before it made paper-money. But, far from being ruined by it, the colonies that have made ufe of paper-money, have been, and are all in a thriving condition. The debt indeed to Britain has increased, because their numbers, and of courfe their trade, have increased; for all trade having always a proportion of debt outstanding, which is paid in its turn, while fresh debt is contracted, the proportion of debt naturally increases as the trade increases; but the improvement and increase of eftates in the colonies has been in a greater proportion than their debt. New-England, particularly, in 1696, (about the time they began the ufe of paper-money) had in all its four provinces but 130 churches or congregations: in 1760 there were 530. The number of farms and buildings there, is increafed in proportion to the number of people; and the goods exported to them from England in 1750, before the reftraint took place, were near five times as much as before they had paper money. Pennsylvania, before it made any paper-money, was totally fript of its gold and filver; though they had, from time to time, like the neighbouring colonies, agreed to take gold and filver coins at higher and

higher nominal values, in hopes of drawing money into, and retaining it, for the internal uses of the province. During that weak practice, filver got up by degrees to 8s. gd. per ounce, and English crowns were called fix, seven, and eight fhilling pieces, long before paper money was made. But this practice of increafing the denomination, was found not to answer the end. The balance of trade carried out the gold and filver as faft as it was brought in; the merchants raising the price of their goods in proportion to the increased denomination of the money. The difficulties for want of cash were accordingly very great, the chief part of the trade being carried on by the extremely inconvenient method of barter: when in 1723, paper-money was firft made there, which gave new life to bufinefs, promoted greatly the fettlement of new lands (by lending small fums to beginners on eafy intereft, to be repaid by inftalments) whereby the province has fo greatly increased in inhabitants, that the export from hence thither is now more than tenfold what it then was; and by their trade with foreign colonies, they have been able to obtain great quantities of gold and filver to remit hither in return for the manufactures of this country. New-York and New-Jerfey have alfo increafed greatly during the fame period, with the ufe of paper-money; fo that it does not appear to be of the ruinous nature afcribed to it. And if the inhabitants of thofe countries are glad to have the ufe of paper among themselves, that they may thereby be enabled to fpare for remittances hither, the gold and filver they obtain by their commerce with foreigners, one would expect that no objection against their parting with it, could arife here, in the country that receives it.

The fecond reafon is, That the merchants trading to America have fuffered and loft by the paper money.

This may have been the cafe in particular inftances, at particular times and places as in South Carolina, about 58 years fince, when the colony was thought in danger of being deltroyed by the Indians and SpaBiards; and the British merchants, in fear of lofing their whole effects there, called precipitately for remittances, and the inhabitants, to get fomething lodged in fafe countries, gave any price in paper-money for bills of exchange; whereby the paper, as compared with bills, or with produce, or other effects fit for exportation, was fuddenly and greatly depreciated. The unfettled ftate of government for a long time in that province, had alfo its fhare in depreciating its bills. But fince that danger blew over, and the colony has been in the hands of the crown, their currency became fixed, and has foremained to this day. Alfo in New-England, when much greater quantities were iffued than were neceffary for a medium of trade, to defray the expedition against Louifbourg, and during the last war in Virginia and North Carolina, when great fums were iffued to pay the colony-troops, and the war made tobacco a poorer remittance, from the higher price of freight and insurance: in these cafes, the merchants trading to thofe colonies may fometimes have fuffered by the fudden and unforeseen rife of exchange. By flow and gradual rifes, they feldom fuffer; the goods being fold at proportionable prices. But war is a common calamity in all countries, and the merchants that deal with them, cannot expect to avoid a fhare of the loffes it fometimes occafions, by affecting public credit. It is hoped, however, that the profits of their fubfequent commerce with thofe colonies, may have made them fome reparation.

And the merchants trading to the middle colonies, (New-York, NewJerfey, and Pennsylvania) have never faffered by any rife of exchange, it

having ever been a conftant rule there to confider British debts as payable in Britain, and not to be difcharged but by as much paper (whatever might be the rate of exchange) as would purchase a bill for the full fterling fum. On the contrary, the merchants have been great gainers by the ufe of paper money in those colonies, as it enabled them to fend much greater quantities of goods, and the purchafers to pay more punctually for them. And the people there make no complaint of any injury done them by paper-money,with a legal tender; they are fenfible of its benefits; and petition to have it fo allowed.

The third reafon is," That the reftriction has had a beneficial effect in New-England." Particular circumftances in the New England colonies, made paper-money lefs neceffary and lefs convenient to them. They have great and valuable fisheries of whale and cod, by which large remittances can be made. They are four distinct governments; but having much mutual intercourfe of dealings, the money of each ufed to pafs current in all: but the whole of this common currency not being under one common direction, was not fo eafily kept within due bounds; the prudent referve of one colony in its emiffions, being rendered useless by excefs in another. The Maffachufetts, therefore, were not diffatisfied with the reftraint, as it restrained. their neighbours as well as themfelves; and perhaps they do not defire to have the act repealed. They have not yet felt much inconvenience from it, as they were enabled to abolish their paper currency, by a large fum in filver from Britain to reimburfe their expenfes in taking Louisbourg, which, with the gold brought from Portugal, by means of their fifh, kept them fupplied with a currency, till the late war furnished them and all America with bills of

exchange; fo that little cash was needed for remittance. Their fifheries, too, furnish them with remittance through Spain and Portugal to England, which enables them the more eafily to retain gold and filver in their country. The middle colonies have not this advantage; nor have they tobacco, which in Virgiginia and Maryland anfwers the fame purpofe. When colonies are fo different in their circumstances, a regulation that is not inconvenient to one or a few, may be very much fo to the reft. But the pay is now become fo indifferent in New England, at least in fome of its provinces, through the want of currency, that the trade thither is at prefent under great difcouragement. The fourth reafon is, "That every medium of trade should have an intrinfic value, which paper money has not. Gold and filver are therefore the fitteft for this medium, as they are an equivalent, which paper never can be." However fit a particular thing may be for a particular purpofe, wherever that thing is not to be had, or not to be had in fufficient quantity, it becomes neceffary to use fomething elfe, the fittest that can be got in lieu of it. Gold and filver are not the produce of North America, which has no mines; and that which is brought thither cannot be kept there in fuficient quantity for a currency. Britain, an independent great ftate, when its inhabitants grow too fond of the expenfive luxuries of foreign countries, that draw away its inoney, can, and frequently does, make laws to difcourage and prohibit fuch importations; and by that means can retain its cash. The colonies are dependent governments, and their people having great refpect for the fovereign country, and being thence immoderately fond of its modes, manufactures, and fuperfluities, cannot be restrained from purchafing them by any province-law; becaufe fuch law, if made, would immediately be re

pealed here, as prejudicia! to the trade and intereft in Britain. It feems hard, therefore, to draw all their real money from them, and then refufe them the poor privilege of ufing paper instead of it. Bank bills and bankers, notes are daily used here as a medium of trade and in large dealings, perhaps the greater part is tranfacted by their means: and yet they have no intrinfic value, but reft on the credit of those that iffue them, as paper-bills in the colonies do on the credit of the refpective governments there. Their being payable in cash upon fight by the drawer, is indeed a circumstance that cannot attend the colony-bills, for reafons just above-mentioned, their cash being drawn from them by the British trade; but the legal tender being fubftituted in its place, is rather a greater advantage to the poffeffor, fince he need not be at the trouble of going to a particular bank or banker to demand the money, finding (wherever he has occafion to lay out money in the province) a perfon that is obliged to take the bills. So that even out of the province, the knowledge that every man within that province is obliged to take its money, gives the bills a credit among its neighbours, nearly equal to what they have at home. And were it not for the laws here, that reftrain or prohibit as much as poffible all lofing trades, the cash of this country would foon be exported; every merchant who had occafion to remit it, would run to the bank with all its bills that came into his hands, and take out his part of its treafure for that purpofe, fo that in a fhort time it would be no more able to pay bills in money upon fight, than it is now in the power of a colony treafury fo to do. And if government afterwards fhould have occafion for the credit of the bank, it must of neceflity make its bills a legal tender, funding them however on taxes, by which