Note 100 — Period of Paper Money, 1710-1751.

126Provision was made for sinking these bills by an annual tax of £1,000, (R.I. Col. Recs. IV, pp. 100, 106, 150) The law however does not seem to have been vigorously enforced and in some instances the taxes collected were diverted to other purposes than that intended. Five payments of this annual tax are entered on the credit side of the treasurer's accounts, the last being in 1715. In that year the first bank was issued and the sinking annually of £1,000 of the earlier bills was one of the purposes to which the interest was to be applied. The provision was not carried out. No further taxes for the purpose seem to have been collected. From the manner of keeping accounts at that time, it is not quite clear whether those taxes entered as received in the treasurer's books had been actually received in full. Up to 1715, only £1,102-8s. 6d. had been burnt. As regards the legal tender character of this and future issues there seems to be some uncertainty. The bills of the first issue of £5,000 emitted in 1710, read "This indented bill x x x shall be equal in value to money, and shall be accordingly accepted by the general treasurer and receivers subordinate to him, in all public payments". The law as printed in the colony records (Vol. IV, p. 96) makes no further reference to the subject of tender, but, as printed in the Digest of 1744, (p. 43) enacts that the bills "shall be received and paid for the same value and equal to the current Coin passed in this Colony, for Goods or any other thing bought or sold in all Payments to be made whatsoever; (Specialties only excepted)". In the other issues of 1710 and 1711, it is provided in some cases that the bills shall pass in "all Payments", in other cases that they shall pass in "all publick Payments" as the bills of the first issue do. The bills of the bank emitted in 1715, were declared to be of the same tenor as those of former issues, but in the same year there was passed an act "making public bills of credit of this colony, to be lawful pay, on tendering the same for all bonds and specialties." This caused so much opposition that in the following year it was repealed and the act declared to extend "to no other bonds and specialties that what mention current passable bills of credit of this colony, or of any of the governments of New England." (R.I. Col. Recs. IV, 210) The other bills emitted up to 1740, were "of the same Tenor" as those previously issued. The act emitting the bank of 1740, declares the bills equal to silver at 6s. 9d. per ounce and that it "shall be accordingly accepted by the Treasurer, and the Receiver thereof, in all Payments." (Dig. 1744, p. 230). In the following year 6s. 9d. of this "new tenor" was declared equal to 27s. of the previous issues or "old tenor", and a sufficient tender for the same in all payments. Courts of Justice were to govern themselves accordingly. (Dig. 1744, p. 237). Subsequent issues until 1750, were in accordance with these acts. The most severe of the laws to enforce circulation was passed in connection with the issue of March, 1750. (Digest 1752, pp. 86, 99). The act recites that the depreciation of the bills of credit is due to "illegal Practices" in "offering from time to time, for Gold and Silver, and Bills of Exchange, for Sterling Money," larger sums in bills than was stated in the acts of emission. The new bills were declared equal to silver at 6s. 9d. per ounce--to 16s. "new tenor" and to 64s. "old tenor". Any person who should receive or pay bills of credit at any higher rate for gold, silver, or bills of exchange, was to be fined £50 in the new bills. In case of suits for money due (specialties excepted) the courts were to make their judgments in accordance with the above values. Clerks of courts were forbidden to issue execution or process on any judgment in favor of any person until such person should make oath that he had not violated the above law. No person could enter a public office without taking the same oath. Foreigners coming into the colony to trade were required to take the same oath under penalty of £50. In August, 1751, (Acts and Laws of Rhode Island 1745-1752, p. 104), probably in accordance with the act of Parliament already referred to, it was provided that in all debts which should come due, for every sixty-four shillings appearing to be due in old tenor, sixteen shillings in new tenor, and six shillings and nine pence in the present bills, the debtor should pay as much in any of the afore-mentioned bills as should at the time be worth one ounce of silver sterling.