Chapter II. Of Provincial Paper Money
Paper money was first issued by Massachusetts in 1690. The object was not to supply any supposed want of a medium for trade, but to satisfy the demands of some clamorous soldiers. Other issues were subsequently made, partly with the view of defraying the expenses of Government, and partly with the view of making money plenty in every man’s pocket.
Chapter III. Of Continental Money
According to an estimate by the Register of the Treasury, in 1790, the issues of continental money were as follows, viz:
The first emission was dated May 10 1775, but the notes were not actually in circulation till the August following.1
Chapter IV. Of the Bank of North America
It is a common opinion that the Bank of North America rendered essential service during our revolutionary struggle—that, without it, the achievement of independence would have been difficult, if not impossible. Assertions to this effect have been made with so much confidence that we once believed them to be well-founded; but on examination we find—
Chapter V. Of the Old Bank of the United States
“Let the Americans,” said Wm. Pitt, “adopt their funding system, and go into their Banking institutions, and their boasted independence will be a mere phantom.”
Chapter VI. Of Banking from 1790 to 1810–11
In Vol. III of the American edition of the Edinburgh Cyclopedia, published in 1813, the following table is given, “to exhibit in one view the names of the Banks most deserving of notice, the time of their institution, and the amount of their capital.” The table is not complete, but it shows the time in which the Banking system was introduced into the different States.
Chapter VII. Of Banking from 1810–11 to 1814–15
After the unsuccessful attempt to obtain from Congress a renewal of the charter of the United States Bank, overtures were made to the Legislature of Pennsylvania.
Chapter VIII. Of Banking from 1814–15 to 1815–16
“At the time of the suspension of our city Banks, a public meeting of merchants and others was held, who publicly sanctioned the measure, under a pledge given by the Banks, that as soon as the war was terminated, specie payments would be resumed.
Chapter IX. Of Banking from 1815–16 to 1816–17
The bona fide revenue of Government for the year ending December 31st. 1815, was only fifteen million seven hundred thousand dollars, and the charges on Government in the same period amounted to upwards of thirty-nine million dollars: but with so much skill did the high officers of State exert those powers of financial metamorphosis which the funding and treasury note system gave them, that there was, at the end of the year, a balance in the treasury of upwards of thirteen millions of dollars.
Chapter X. Of Banking from 1816–17 to 1817–18
During the year ending December 31st, 1816, the re venue of the United States’ Government amounted to the enormous sum of forty-seven millions of dollars, or to two millions more than the total of the national debt on the first of January, 1812. The appearance of increasing riches, and the general rise of prices produced by the free use of paper money, had caused a consumption of foreign commodities, the effect of which was felt by Government in the great increase of its revenue.
Chapter XI. Of Banking from 1817–18 to 1818–19
In the first part of the next year, the Bank of the United States conducted operations on the same principles that had governed it in 1817. In January and February, 1818, the amount of its discounts and exchange dealings was swelled to forty-two millions, and in March and April to upwards of forty-three millions.
