South Carolina: Governor James Glen to the Board of Trade,
December 23, 1749
I have also inclosed a State of the Paper Currency in this
Province prepared by the Council and Assembly, by which your Lordships
will see that our Paper money of all denominations amounts to no more
than thirteen thousand and six pounds seven shillings and ten pence
Sterling, including both what is legal Tender, and all other kinds, a
sum so small that it is surprising that any person acquainted with the
circumstances of this Country would have complained of more especially
when it is Considered how punctually we have for many years kept the
Public faith by sinking it at the proper periods fixed by Law: We are
a new and improving Province, and are yearly adding to our
wealth, but it is impossible and it were improper that our Increase or
Profit, our Surplus or Ballance from abroad should be immediately turned
and converted into Cash and Bullion, since it may be more profitably
returned in other things that bear a better price. I make no doubt but
that our exported Produce is sufficient to pay for all our Importations
from Great Britain, and to leave an Annual Ballance due to us of several
thousand Pounds Sterling, but instead of purchasing Gold and Silver with
this Ballance, the Planters immediately lay it out in more slaves, these
slaves raise more Rice and Indigo to pay for more Cloaths and to
purchase more Slaves, and this is certainly a more profitable way of
employing the Ballance, for when the Interest of money was at ten per
Cent it was near Eight years before they could double their Capital or
principal sum, whereas a Planter expects that Slaves will pay for
themselves in four or five years, and whatever is most profitable for
the Planter, will in the end prove so for the British Merchant, and it
is to be wished that they were of that Opinion, but some of them seem to
think that nothing is to be regarded
but Gold or Silver. They
may at length repent the pains they have taken to teach the Planters to
love these tempting metals, for should they ever prefer Gold or Silver
to British Manufactures the Cloaths and Household furniture that they
are at present fond of and be forced to make such things as they have
not money to purchase Britain will reap far less benefit from her
Provinces. A Considerable quantity of Cordage has hitherto been
Annually imported into this Province from England, but a Rope walk has
been lately Established here and there can be no doubt of Success. The
amount of sugars sent us Annually from Britain is hardly to be credited,
but we have a Sugar house lately finished and the Sugars are equal to
the London Sugars and are much cheaper, the Merchants here clearly see
the consequences of these things, and I think it were easier to Silence
the Merchants at home, who make a noise about paper Money, by arguments
unanswerable, but I consider that I write to your Lordships whose
superior knowledge makes any observations from me unnecessary, for tho'
it may be pernicious to permit mall Colonies such as Rhode Island to
issue immense Sums without Limitation
and without settled Funds
to call it back into the Treasury again, yet that is not the case of
Carolina and therefore I shall only add that a larger sum in Paper Money
upon a good Fund and to be sunk at different Periods, seems to me to be
Absolutely necessary, without which it will be difficult for the people
to pay the Taxes for the support of his Majestys Government, to pay the
King's Quit Rents to carry on their Commerce, or even to drive their
little domestic Trade, all intercourse between Man and Man must for some
time be at a stand and they must deny themselves the most common and
ordinary necessaries of life, not for want of means but for want of a
Medium. The Planter must give the Merchant a Slave for a Suit of
Cloaths, which the Merchant must sell again to the Spaniards for silver
to send home.
See the reply of the Board of Trade.
