of the province was proportionate to the volume of currency in circulation. "Considering the demand of the Government as to their taxes and the great occasions of the People as to their trade"[1] more money of some kind was necessary to facilitate trade and commerce. But the one great principle of redemption for all paper currency in specie of intrinsic value was a conception they did not grasp. Hence every effort made to relieve the burden only tightened the ligatures of a cheaper fiat money. Those who possessed the precious metal knew its value. An early eighteenth century writer remarks:[2]
"Men are very loth to part with this charming Specie. And tho' it may go from them with less pain than when their Skin is stript from their Fingers, yet it comes away with much aversion."
This observation made by a leading citizen of the time when fiat money was forced upon the people with no provision for redemption in specie, illustrates a condition which, in the very nature of things, must ever exist when an unknown quantity is offered in exchange for a fixed value. A writer of the time, Mr. Wise, of Chebacco,[3] discussing the ubiquitous problem "How Shall We Keep up the Value of our Bills of Public Credit?" in a pamphlet styled "A Word of Comfort"[4] offers an ingenious argument in support of the bills of credit:
- ↑ Dudley, op. cit.
- ↑ Rev. John Wise—"The first logical, clear-headed American Democrat."
- ↑ Now Essex.
- ↑ "A Word of Comfort to a Melancholy Country. Or the Bank of Credit Erected in the Massachusetts-Bay, Fairly Defended by a Discovery of the Great Benefit, accruing by it to the whole Province; With a Remedy for Recovering a Civil State when Sinking under Desperation by a Defeat on their Bank of Credit." By Amicus Patriae. Boston. Printed in the Year, 1721, 16mo. pp. (2930) 58.
