pensioners in Pennsylvania ib. ib. 350 336 335 15 32 ib. 56 62 80 139 144 effect of dam on shad fishery 304, 320 University of Pennsylvania,medical graduates 1829 202 T Table of justices of the peace commerce expenses on Indian affairs from 1733 to 1751 33 of situation of the banks of Pennsylvania of graduation of Pennsylvania rail road 82, 88 94 126 Weaving in perfection at Pittsburg 214 261 of inspections of flour and corn meal in dif- consecration of 405 report on Phil. &Columb. rail road 45 ditto of bark at do. 7 years ib. Josiah, report on Lehigh canal 75 213 ib 237, 238 of diseases and deaths in Philadelphia prison 208 White-washing, annual, Hopkinson's account of of prisoners admitted to penitentiary in 1828 of senators and representatives in Congress Youngsville, notice of 91 399 of diseases and deaths in Arch st. prison 255 wild pigeons at ib. 349 a fat young lady at ib. proceedings at on Boston port bill 35 1816 to 1828 352 poor in alms-house at 192 county, heavy rain in 348 Tax on offices 178 York and Chambersburg rail road, report on 132 THE REGISTER OF PENNSYLVANIA. DEVOTED TO THE PRESERVATION OF EVERY KIND OF USEFUL INFORMATION RESPECTING THE STATE. VOL. III.-NO. 1. EDITED BY SAMUEL HAZARD. PHILADELPHIA, JAN. 3, 1829. TO THE PUBLIC. Gentlemen who are disposed to patronise this work, can be furnished with the two preceding volumes, either in numbers or bound, adding the price of binding. Those who have not had an opportunity of examining the work, so as to enable them to decide upon subscribing, will be furnished with a volume for a few days, for the purpose, upon application to the editor, personally or by note, addressed to him through the post office. DIFFICULTIES OF TRADE & CURRENCY. NO. 53. their sentiments of the danger of ill concerted schemes "Being admitted, upon our address to the house, presented yesterday, to exhibit any further sentiments, in relation to a paper credit, now vigorously pressed to be established by law; we accordingly offer the following when the House thinks fit to require them. that kingdom have always pursued, in the like cases; in whom nothing has been more conspicuous than a most strict care, that no subject should lose by the coin, or public credit, of the kingdom. In the year 1722, it appears from the votes of assem-heads, which may be supported by solid arguments, bly, the province experienced great embarrassments from the decay of trade and depreciation of currency. First, That as this province derives all its powers from, On the 2d of January 1722-3, a petition was presented and is wholly dependent on the kingdom of Great Brifrom sundry inhabitants of the city and county of Phi- tain, it will be the highest wisdom in our Legislature, upon all exigencies, to direct themselves by the same ladelphia, setting forth, "That they are sensibly aggriev-prudent and just, measures, which the parliaments of ed in their estates and dealings to the great loss and growing ruin of themselves and the evident decay of this province in general, for want of a medium to buy and sell with, and praying for a paper currency;" and on Secondly, That as, when the nation was most grieva the same day a petition from a portion of the inhabitants ously distressed, in the time of a dangerous and expenof Chester county was also presented, praying "that the sive war, by a general debasing of their current coin, the parliament would hearken to no proposal (though -current money be raised, and not to make a paper curmany were made) for relieving the state, by raising the rency—that the produce of the province be made a curnew minted money to a higher value; but, under the rency, and the exportation of money prohibited."-A- vastest difficulties, renewed it, at the same weight and nother portion from the same county, as well as of Bucks, fineness, to pass at the former rates; which they have unalterably kept to. And further, by the sum of twelve united in favor of a paper currency. On the petition hundred thousand pounds, made good to private persons from Philadelphia, the committee of grievances report all the loss of exchanging their clipped and debased ed "that it contains matters of fact and what they believe coin, for the new milled money, which was delivered out to be true and worthy of weighty consideration, and refer at a par to them: so the like justice and prudence reit to the house." On the petition from Chester, they "requires, that no further alteration, than what the parlia ment has made here, should, on any terms, be admitted, fer to the house, whether the raising the cash or striking in the value of our gold and silver, but that it still conpaper money will be most to the advantage of this pro- tinue, as it now passes. Thirdly, That, as the parliament, as often as they vince? but humbly presume if dollars were raised to five shillings a piece, it might be of benefit;" they think found it necessary to issue bills of credit, called excheit would be impracticable to prevent the exportation of quer bills, or notes, took the utmost care to keep them equal in value with silver, by giving the Bank of Engspecie," but are of opinion, if a law was made to make land, when they fell into any discount, vast sums of mothe country produce, at market price, pay for servants, ney, to receive those bills, as their own, and to exchange goods imported, and to discharge judgments and execu- them with ready cash, on the demand of the bearer: so it appears absolutely necessary, that if bills of credit be tions, it would be of public service." On the 8th of Ja-raised here, due care should be taken (since we can nuary, 1722-3, the subject was discussed at length and the question "whether it was necessary that a quantity of paper money, founded on a good scheme, be struck or imprinted" decided in the affirmative. It was also determined that 'Lion or Dog dollars weighing sixteen pennyweights or upwards, shall pass for five shillings,' This appears to be the first scheme for the introduction of a paper currency into the province. On the 9th of the same month, a petition was read from several gentlemen and merchants, "entreating an opportunity of offering VOL. III. 1 have no such banks in this province, as are in Europe, whose rules are to pay down ready money for their bills, upon demand) to establish them on so just a foundation, that, while in being, they may still continue of the same value with real money, according to the rates, at which they are at first issued. Fourthly, That, if those bills be issued on any easier terms to the receiver, than gold, or silver would be, if it were to be paid, or lent, out of the treasury, by how much easier these terms are, by so much, at least, will the bills fall in value; for credit has its own laws, as unalterable in themselves, as those of motion or gravity are, in nature, and which such as are versed in these affairs in Europe, as carefully consider. Fifthly, That the schemes most commonly talked of, for lending out sums, to be discharged by annual payments, equal to, or not much exceeding the interest, for a certain number of years, without paying any principal, are partial and unjust, and would be destructive to public credit; because the consideration given is not an equivalent to the sum received. For instance, should one hundred pounds be lent out, to be discharged, by the payment only of eight pounds annually, for sixteen years; were such an annuity to be brought, according to the known rules for purchasing estates, it would here be worth no more than £70, 168. & 3d. in ready money, nor is an annuity for nine pounds ten shillings per annum, for twelve years, worth more than seventy one pounds twelve shillings. In either of these cases, the borrower, could he discharge debts of that value with it, though he were to pay the annuity in gold and silver, would gain near thirty pounds by the loan, but no other person would feel the least advantage by it; now, if no man would let out his own money on these terms, none ought to desire it so of the public; the credit of which is of vastly greater importance, than any private persons; because a failure in that, affects the fortune of every individual, in his money, the medium of his commerce and dealing. Secondly, That it be not continued for any longer time; for the paper will wear out, and it will not be so easy to exchange it for new, es some have imagined; which, it is much to be doubted, will be found impracti cable: besides, the sooner it is to expire, the more easily will people be satisfied to take it. But further, our laws can continue in force no longer than five years, without the royal approbation. Thirdly, That care be taken to force the sinking of it in course, and in a just manner, by measures, that shall render it absolutely necessary for the public to have it sunk; which, it is conceived, none of the methods hitherto discoursed of, will effect. These heads, may it please the House, are what we have, at present, humbly to offer to your consideration, on this subject." Several motions were then made and negatived as to the amount to be struck, and £12,000 finally agreed upon. On the 11th of January it was decided to abate the interest of money, from 8 to 6 per cent. per annum, upon all future bonds and contracts. It was then considered in what way the £12,000 pounds should be issued. A proposal to lend it, out of an office to be erected, at 6 per cent. interest, was negatived, and 5 per cent. interest agreed to; and the money thus raised Sixthly, That all such projects are either exceeding was to pass for 5 years, it being "at the choice of the weak or unjust; for the paper money is to be lent either borrower to pay off the principal sooner, or any part, not to all, who shall desire it, on a tender of the security less than one-fourth, at one payment." The security proposed, or to some only; if to all (as it is natural for to be given to be "three times the value in lands and all men to desire what they may gain by) it will be im-lots, and four times the value in houses." On the 12th practicable to strike enough to answer all demands; or, if it were struck, it would, because of its quantity, be- the Governor, Sir William Keith, delivered his senticome of little or no value; if to a few only, what tribu- ments in writing on the subject of a paper currency, as nal can be erected, to judge and distinguish who of the follows: King's subjects, are to be admitted to the favour, and who to be rejected' If the poor only are to be the objects, they have not security to give, or if they had, perhaps they have as little merit as any: commonly people become wealthy by sobriety and industry, the most useful qualifications in a commonwealth, and poor by luxury, idleness and folly. What rules then can be found, for dispensing the public favours? Seventhly, That by these schemes, the more the currency or paper money falls in value (by which word falling, is meant the rising of gold, silver, English goods, and all other commodities, in nominal value, which is the certain proof of the other's falling) the greater is the borrower's advantage; for the more easily will he pay his annuity; so that he may happen, by virtue of the act, to discharge, with the value of twenty pounds, a debt of one hundred, due to the man, who, perhaps, kindly lent him the money, to relieve him in distress, or honestly sold him his land, or goods, at their real value, at the time of lending, or sale. Eighthly, That all those deceive themselves, who, because gold and silver may be had at New York, or other places, in exchange for their paper money, suppose that the one, therefore, is as good as the other, unless the silver can be had at eight shillings per ounce, or the gold at six shillings per penny weight, at New York, as they were rated at the first striking of their bills; but when their silver brings from nine to ten shillings per ounce, and their light pistoles pass at twenty-eight shillings, or higher, then bills are truly so much fallen in value, as the others are advanced. So, in Carolina, silver is to be purchased for their bills, but it is at thirty shillings per ounce, though they were struck, as is said, at seven shillings only! These being premised as general heads, what next follows, is to point out what are conceived to be the only means of supporting the credit of such a currency, if issued. First, That the whole sum struck be but small, and just sufficient to pass from hand to hand, for a currency "Mr. Speaker, and Gentlemen Of the Assembly, resolutions of the House, upon your Journals, relating to I have, at your request, very carefully considered the public credit; and also, some things which I there find have been offered to you upon the same subject.. Credit may, no doubt, be compared to the mathemasolid conclusions from self evident and clear principles: ticks, in so far as both sciences will admit of deducing And yet, by the subtilty of an artist, truth or falshood in either of them is often so darkly wrapped up and involved, that it is lost unto, or misapprehended by the plainest, and generally speaking, much the honestest part of mankind. whole body of the people, being a subject of importance, But the common necessity and general interest of the on which we ought to speak plainly, and act freely, I shall, without any preamble or disguise whatsoever, communicate my thoughts to you in the simplest and most intelligible manner that I can. First, If it be true, that the riches and prosperity of this Province chiefly depend on the manufacture of provisions, and the exchanging of that manufacture with other things to advantage, it will also be true, that whatsoever increases the one, and at the same time encourages the other, will justly deserve the name of a publick good; and the majority of those employed in such manufacture and exchange, have thereby a fight to be considered as the body of the people whom you represent. Secondly, It is evident, that where there is no public. debt, and a real value in lands to be pledged, paper may, if there is occasion for it, be struck to advantage, without any risque at all; for though perhaps it may contribute to hurt some weak people in the management of their private affairs, yet, while any unfrugal person is lost to the community; and is succeeded by one more industrious than he, the public cannot suffer by such a change. Thirdly, If in the case of a paper currency amongst us, it should happen to follow (as it may be supposed it 1829.] DIFFICULTIES OF TRADE AND CURRENCY. will) that silver and gold will be kept up for remittances to Great Britain, we shall then have no other means of dealing with one another but the paper: Should the quantity, therefore, be less than is necessary to circulate our home trade in its natural course, usurers and sharpers would have the same opportunity as they have now, to lie at catch for bargains, and make a monopoly of trade, by ingrossing the current money into their hands. Fourthly, The very essence and nature of credit, as well as the practice and experience of the greatest banks in Europe, directs all such bills to be issued at something less than common interest, for that is, in effect, a premium given by the publick to encourage their circulation: And whoever is pleased to say, that the Bank of Amsterdam loses credit by lending money at two per cent. or the Bank of England by lending money at four per cent. shall scarce prevail with me to think the assertion worthy of any answer. Fifthly, I am not of opinion with those gentlemen, who are pleased to alledge, that the value of silver at New York, which, in the month of September last, was from eight shillings and three pence to eight shillings and nine pence, is occasioned by their paper; for in this Province, where there never has been any paper yet, from five to ten per cent. has for several years been given in exchange for silver. And as to their computation of gold, the gentlemen, perhaps, have not had occasion of late to be informed, that the heaviest Pistoles in York, go at no more than twenty-eight shillings, and smaller, or cut gold, at the common standard value in that Province, where it is believed the people could not possibly carry on half the quantity of their present trade and business without the help of paper. Sixthly, I must also take leave to differ in opinion with those, who, without enquiry, and by wholesale, are pleased to condemn all schemes of lending money to be discharged by annual payments; for I truly think that method will not only suit the different circumstances and conveniency of the people best, but in all respects will prove the safest and most profitable, as well as equal; and my reasons for it are these. 3 weight; for, besides that it would not be very civil to January 22, 1722-23." The proceedings of the Assembly do not appear to have given satisfaction, for petitions were on the 22d November presented, praying that the paper currency "may be made to answer former contracts, and be continued longer than ten years;" "that the sum be increased;" and "that the manner of its sinking be formed on a scheme of sinking principal and interest together,” and the security to be given be lessened." It was then determined, after a long debate to increase the amount to £15,000; to extend the time to 8 years; to be paid in annual payments, the security to be double the value in lands, lots, ground rents, and free hold estates, in fee simple; and in houses freehold in fee simple, three times the value of the sum borrowed. "It was agreed to appoint 4 commissioners and trustees to execute the office of managing and disposing of the paper currency, and that the office to be erected for the issuing of it be settled in Philadelphia; but on occasion, to be also held in Bucks and Chester county." It was ordered also, that a committee "consult the Attorney General, and other persons skilled in the law, as they think fit, in relation to drawing the bill for a paper currency." Good plate was agreed to be received as security for paper at five shillings per ounce. On the 26th of January, two of 2dly. If so great a share of the whole comes in yearly the petitioners of the 22nd, presented the following anto the office, in order to be let out again, it will, in a swer to the sentiments of Logan and Norris. great measure prevent engrossing, and help the circu-"To the Honourable House of Representatives of the lation considerably: It will also give more frequent opportunity of discovering frauds, and gradually increase the public stock and revenue of the bank; and by that means it will demonstrably sink the original sum within the time prefixed; that is to say, the paper at the end of that term, will either be found in the office, or its value in cash, ready to pay what shall then happen by accident to be yet abroad. 1st. Whatever quantity be issued, if one fifth, sixth, or tenth part of the sum, according to the time for which it is to last, must necessarily come into the office every year, it may be lent out again at five per cent. for any time within the term, to such persons as had no place or opportunity to come into the first loan: By which means all the frightful odd things, mentioned in the Gentlemens sixth observation, will presently vanish; for every man, in this case, according to his ability, may, if he thinks fit, share in that advantage, which the publick most generously and prudently offers to the necessities of the people. Seventhly, If too great a security is demanded for the loan of publick money, I think it will in a great measure frustrate the design of relieving many of the middling and most industrious sort of the people, whereof, it is my opinion, that one half of the value of lands, one third of houses, and personal estates, and near the whole value of ground rents, may very safely be lent to those who are willing and able to give such security. Eighthly, If upon further consideration, you find that the sum intended may be issued to better advantage for a longer time, I think the objection that our acts can only subsist five years without being approved, is of no Province of Pennsylvania, in Assembly met, the twenty-fourth day of January, 1722-23. May it please this Honourable House, We beg leave to lay before you some considerations, in answer to the sentiments of several gentlemen and merchants, in relation to a paper credit, which they were admitted to present the tenth instant. First, It is but just to concede to their notion, 'That this Province is dependent on, and derives all its powers from, Great Britain, and that it is the highest wisdom in our legislature, to direct themselves by the same prudent measures, as far as our circumstances with theirs may agree. Secondly, It is by them alleged, That when the nation was distressed by war, and their coin generally debased, yet the parliament would not advance their currency on any account; and that they renewed it at the same fineness, to pass at the former rates, and they have unaltera, bly kept to the same. And further, that twelve hundred thousand pounds made good to private persons all their loss received from exchanging their clipped and debased coin for the new milled money delivered at a par. To which we say, that we know (by what authority soever it was or is done) that since, if not then, the coin hath been (particularly the gold) often raised and lowered; and that the twelve hundred thousand pounds did make good all the loss in the kingdom for the debased coin, is an assertion we doubt not but there are many in Great Britain, (and some here) can inform those gentlemen otherwise. Thirdly, In concurrence with the sentiments of these gentlemen, in their third paragraph, we humbly recommend it to our legislators, that our bills be established on so just a foundation, that while in being, they may still continue of the same value with real money, according to the rates at which they are first issued. tremely scarce) they have imposed on the necessities of people, by advancing it near two shillings per pound; but it is not improbable, that our bills being always capable of purchasing our country produce, their value being equal to silver, will again reduce it to its stated worth, and be as satisfactory to the kind lender, who (according to them) relieved the borrower in distress, or sold him land or goods at their real value at the time of lending or sale. Eighthly, Those do not deceive themselves, who, because gold and silver may be had at New York, or other places, in exchange for their paper money, suppose that the one is as good as the other. It is a received maxim, that the value of any thing is in proportion to what it will purchase. Now paper bills will, at this time; and would formerly, purchase goods in New York cheaper than Cash will at Philadelphia; and it is obvious that some other reasons may have occasioned the rise of silver and gold there, since we have here advanced at least six pence per ounce on silver, beyond the rate ascertained by act of parliament, without any such measure as paper money. These being premised on the general heads, what next follows is an answer to their three conclusive points: 1st. If the whole sum struck be so small, that it will not answer the absolute and immediate necessities of those who have real securities to give, it will not (we humbly conceive) be sufficient to pass from hand to hand for a currency. Fourthly, If those bills cannot be procured, where they are to be issued, for a less pledge or security than gold or silver would be, the casy terms of refunding them will not lessen their value; for the stamp of authority has its own laws, as unalterable in themselves as those of interest or increase are in usury, and which, such as are versed in those affairs, as carefully consider. Fifthly, The schemes most commonly talked of for lending out sums, to be discharged by annual payments equal to, or not much exceeding the interest, for a certain number of years, without paying any principal, are not partial and unjust, nor destructive to publick credit; for the pledge secured is more than an equivalent to the 2d. That which is a benefit to any person for five sum received, and the interest given is not inconsiderable years, will be a further benefit for a longer term; and, even of the lowest rated schemes. To whom are they perhaps, the fixing it to a short date may abridge some partial and unjust, since no method is proposed or con- persons from effecting what they might accomplish for trived for any particular man or men, excluding others? their own good and the country's advantage, in more The benefit is to be general, and though the necessities time. The difficulty of exchanging worn out bills for of the poor chiefly call for the succour, yet it is more new, in an office to be erected for that purpose, we doubt within the compass of the rich to be thereby favoured, not the care and ability of this assembly to surmount, because they have plenty of pledges: Let them not then and render practicable. And, if our laws can continue complain of partiality and injustice through their own in force no longer than five years without the royal apnegligence. How are such schemes destructive to pub-probation, yet we presume a law so beneficial to the lick credit, since the publick is capable of yielding so subject here, so concurrent to the practice of neighbormuch relief to a necessitous people, without hurting it- ing colonies, and no ways repugnant to the laws of Engself? No, the design is laudable, and greatly becomes land, will, when duly represented at home, not want our generous patriots. But perhaps there are some that approbation. that are partial to themselves, although they seem to speak in defence of the publick, affording us room to guess, they would have no money borrowed, but of private persons, and begrudge the borrowers of the publick the grain (of near thirty pounds, according to the exquisite calculation of those gentlemen) because they know, that such an advantage is not equal to the sweet incomes of usury. Sixthly, All such projects are not exceedingly weak and unjust; for what man, had he money by him to lend, would refuse it on sufficient security? And if he does lend it on such a security, where can we suppose the lender's loss to be? Or wherein is the paper credit lessened, when there is more than its value to support it? Their supposing it to be lent to all is an amusement; and the tribunal is easily to be erected, to find out persons of worth from those that are worth nothing; and the poor (who, they say, have as little merit as any) may have a chance to get it by labour, by the employers having something to pay, both to their and the poor man's advantage: And thus a way may easily be found for dispensing publick favours. We presume to add to those great and rich men, (and therefore, according to their account, sober and industrious men) that we humbly hope a medium in business will run us from the loose way of luxury, idleness and folly, which often happens from being nonplused in a regular dispatch of affairs for want of pay when due. Seventhly, This currency, or paper money, will not fall in value, if raised on a good foundation, as recommended in the third article. The rising of silver is alone owing to the avarice of the possessor, who knowing there is no other currency, (and that too at this time ex 3d. We confide in this, that the wisdom of this ho nourable House needs no direction, in the care to be taken, of sinking the paper currency in course, and in a just manner; for we esteem you (and not these gentlemen petitioners) to be proper judges of the methods hitherto discoursed of. These observations, may it please this honourable House, on the sentiments of those gentlemen, we humly offer to your consideration, and pray your favourable construction." On the 29th, the bill for making £15,000 in bills of credit was reported, and read a second time on the 30th, and further to be considered in the afternoon. In the meantime, the following "Further sentiments of the gentlemen and merchants," were read. To the Honourable House of Representatives of the Province of Pennsylvania. "In the important affair of a paper credit, now under the consideration of your House, it is to be hoped that all honest men, amongst us, think of it from the same principles, and with the same inclinations, viz: to promote the true interest and reputation of this colony. Upon these views alone we lately took the liberty to petition your honourable House, to be heard upon the subject, and the next day exhibited our sentiments, in writing, drawn into several heads, and built on such solid foundations of truth, that we are well assured they cannot be shaken. Yet, as the opinions of men are extremely various, and great pains have, of late, been taken here, to instil and strengthen popular errors on that subject; we find |