Whitehall: The Board of Trade to Governor James Glen, November 15, 1750 | ||
We come now to that Letter of yours which relates to the internal State of Your Government. And before we make any observations
From the year 1703, when the Province of South Carolina first began to issue Paper Money, to the year 1743 there were issued as follows viz.
8th May 1703 | — | 6,000 |
5th July 1707 | — | 8,000 |
4th Feb. 1707 | — | 3,000 |
24th Apl 1708 | — | 5,000 |
1st Mar. 1710 | — | 3,000 |
10th Nov. 1711 | — | 4,000 |
7th June 1712 | — | 36,000 |
27th Aug 1715 | — | 30,000 |
24th Mar. 1715 | — | 5,000 |
21st June 1716 | — | 15,000 |
23rd Feb. 1719 | — | 34,000 |
Do 1722 | — | 40,000 |
£194,000 |
The several Laws upon which these Sums were issued, provided Funds for the due payment of them, upon which the Bills were to be sunk & Cancelled; but as these Provisions were set aside the obligation of many of the Acts broke thro, and the Funds diverted to other purposes, there remained outstanding in the year 1723 £120,000.
On the 15th of February 1723, an Act was passed entitled an Act for calling and sinking the Publick Bills of Credit, in which Provision was made for Cancelling the Sum of £55,000 only of the said Bills &c. the Remainder of £65,000 was continued current.
By the operation of this Act £13,500 was
After this Expedition the Merchants trading to Carolina petition'd the Crown in 1731, further to suspend the Execution of the sinking Fund Act for seven years and that the Duties arising from it might be applied to the settling Foreign Protestants. The Petition was complied with, and upon an Instruction to the Governor an Act was passed for that purpose, but the Assembly were so far from Appropriating those Duties to the Purpose for which they were intended that they passed a Law for appropriating them to the Cancelling certain publick orders which had been issued for the Services of Government.
Upon the complaint of the Merchants this Act was repealed, and in 1735, An Act passed for appropriating the Duties of the Sinking Fund Act to the Settlement of Poor Protestants, in which Provision was also made for sinking the Publick Orders.
In the Year 1739 both the sinking
Since that time there have been issued the following Sums in publick orders, viz.
5th March 1736/7 | 35010 | |
5th April 1740 | 25000 | |
19th Sept. 1740 | 11508 | |
10th July 1742 | 63000 | |
21st May 1745 | 20000 | |
Of these Sums there appear to have been Cancelled | 72,800 | |
remains outstanding in old Bills | 106,500 | |
Publick Orders | 81,718 | |
188,218 |
You observe that this State agrees exactly with yours as to the old Bills of Credit, but it differs greatly from it as to the Publick Orders, of which the Committee state only 63000 to have been issued. The Difference upon the whole is 55,173 . 5 . 0
The Reason you urge to shew the necessity of permitting some Paper Currency in your Province are the strongest and most convincing that can
You say it would be imprudent in the Province to buy Gold and Silver wth this Balance in which We are at a loss to discover your meaning, for if in your Barter with other Nations there remains a Surplus due to you, which we suppose is in no case left a Debt, how can that Balance be remitted to you, but in Gold or Silver? You add also that it is Wisest in the Province to buy Slaves with it, which Slaves will raise more Rice &c. which you say will increase this Balance, and which, if you will
We did not expect to hear the manner in which the Paper Currency of your Government has been conducted urged as a Reason for continuing it, & it is with a degree of Astonishment We find your Province praised for having punctually observed the appropriations of these Acts and kept the Publick Faith inviolable. Is it possible you should have ever examined any State of your Paper Currency, and not seen the Evasive manner in which from time to time upon pretence of Necessity & upon every general Reason of State the greater number of these Acts have been prevented in their due operation? Insomuch that every Currency Bill from 1703 to this Day has a Clause for issuing more money and a Clause for cancelling the whole then in being the first of which is always executed and the latter has been never once performed agreeable to Law?
As to the Payment of Quit Rents which
You cannot but be sensible that your opinion with regard to the necessity of a paper Currency has been suddenly and greatly altered: Since in your Letter to us dated the 14th of April 1748, wherein you give us an Account of your refusal to pass a Law for issuing Paper Money, you say you begged the Assembly to consider the fatal Consequences wch had attended such Measures in other parts of America, for that some Provinces by giving way to such temporary Expedients, and opening these Flood gates and Sluices, had been overwhelmed with an Inundation of Paper Money. And in another Letter dated the 24th of July following you say that the Province was in a Condition to have raised the Money wanted, by an additional Tax without having recourse to such an Expedient as Paper in Lieu of Money, and then state to us the Trade of the Province, the Exceedings of the Exports, and the Charges of Government.
But whatever Reasons you may think there are to shew the necessity of admitting some Paper Currency in your Province, there cannot even upon your own Reasoning be any for permitting an Increase of the present quantity. What has been sufficient for the Occasions of your Government and Commerce of it of late years when your Trade has ben in it's Infancy and Expences incurred on great and Extraordinary Service will doubtless very amply Answer every occasion which can arise in your Province atpresent when you are in a State of Peace advancing every year in your Trade and adding to the Balance of it. You say yourself that you are a new and improvingd rovince, Your Exports last year Amounted to £146000 which is £46000 more than they were the first year after the War, the Charges of Government are but £9000, and for these Reasons We have resolved, and We think it proper to inform you of it to recommend it to the Crown to revoke your 99th Instruction, and that you should be Instructed never gain to give your consent to any Act for emitting any additional Bills of Credit, but to
See Governor Glen's response.
Whitehall: The Board of Trade to Governor James Glen, November 15, 1750 | ||