The Monetary System in Early America

To understand the reason, and perhaps necessity, for the conception of the Currency act of 1764, one must have a grasp of the economic situation in the American colonies prior to 1764. The currency used in the American colonies has always revolved around, specie or the two types of paper currency, legislatively issued legal tender or land bank notes (Finkelstein 39). Foreign specie was far more common than British specie, due to an export prohibition of British specie and an unfavorable balance of trade between the American colonies and Britain that drained whatever British specie

"We must have a currency, not as rigid as now, but readily, elastically responsive to sound credit, the expanding and contracting credits of everyday transactions, the normal ebb and flow of personal and corporate dealings. Our banking laws must mobilize reserves; not permit the concentration anywhere in a few hands of the monetary resources of the country or their use for speculative purposes in such volume as to hinder or impede or stand in the way of other more legitimate, more fruitful uses. And the control of the system of banking and of issue which our new laws are to set up must be public, not private, must be vested in the Government itself, so that the banks may be the instrument, not the masters, of business and of the individual enterprise and initiative…"

And again his talent and knowledge helped him to achieve this aim. The substance behind the “Rules” was scarcely new. Franklin had, in more sober fashion, made almost every point before. He touched hardly at all upon the constitutional issues that the Bostonians had set boiling, no doubt because they were difficult to treat satirically; but he marshaled most of the other themes that were his stock in trade as a controversialist. Some related to the colonies in general, some to Massachusetts in particular, and they ran the gamut from old trade restrictions and novel taxes to the oppression wrought by the army and navy; the result was, as he said, comprehensive. These themes were so familiar from long reiteration that in their usual form they might well have evoked no more than a shrug from the British public. By recasting them in the “out-of-the-way” form of satire he gave them a new bite (Willcox,

The bank provided credit to growing enterprises, issued bank notes which served as a dependable medium of exchange throughout the country, and it exercised a restraining effect on the less well manages state banks. Nicholas Biddle, who ran the Bank, tried to put the institution on a sound and prosperous basis. But Andrew Jackson was always determined to destroy it (Brinkley, 249). The Bank had two opposition groups: the “soft-money” faction and the “hard-money” faction. Soft money advocates objected to the Bank of the United States because it restrained the state banks from issuing notes freely. Hard money advocates believed that coin was the only safe currency, and they condemned all banks that issued bank notes.

Franklin, despite his British’s loyalties and love, comes up with an alternative plan for raising revenue instead of taxing legal paper. He proposes a plan that parliament authorize the issuing of paper currency at interest. Franklin knows exactly how his proposed plan will work and assures his fellows by saying that “it would not be an unpleasing one”. This action taken by Franklin to find another option to raise money demonstrates how he has his country of birth’s interest at heart. Unfortunately, his proposal is rejected by Greenville, a chief minister under who’s the Stamp act is planned. But that does not stop him from appealing the plan. However, many colonies such as Pennsylvanian blame Franklin for creating the Stamp Act. Even his home back in America, his wife and relatives are threatened because of the Act. They blame him for framing the

In 2015, America is in a New Gilded Age because of similar individuals and their philanthropic work, similar wealth gaps and the cultural and social changes that have been made in that time seem to go in a similar flow as in the Gilded Age of late 1800’s.

Currency during the late 1800s was always a topic of great conflict between the different classes of people. The document The platform of the People’s Party 1892 stated “The Newspapers are largely subsidized or muzzled, public opinion silenced, business prostrated, homes covered with mortgages, labor impoverished, and the land concentration in the hands of

How has United States Changed in size? well that answer varies, if you wanted to be lazy you could say the size obliviously got bigger or because we own more states but that’s not this case. The United States changed in not just size but in literature, technology and in history too. I think the change of United States in 1776 to 1870 was a drastic one, I mean tons of wars and battles happened and important documents were written too, oh don’t forget about the people involved in the time era as well.

Hamilton's fiscal insight or what Norton described as 'matters of policy', is further illustrated in his proposal for the creation of a National Bank. This bank would assist in the creation of one identifiable and controllable currency, it could lend the Government money, collect and disburse money for the Treasury. This Report faced opposition not on policy as the 1st Report but on the constitutionality of such a move by Government. The opposition was represented by James Madison and Thomas Jefferson, who both ignored the benefits of such an institution and simply questioned the constitutionality.

Indeed, Franklin’s public service and prominent role in the American Revolution later in his life reinforce his willingness to sacrifice and work for the good of others, and we remember Ben Franklin for these accomplishments as somewhat of a revolutionary rock star. On paper, however, he comes across as quite humble and funny, somewhat of everyday man, describing his writing as “rambling Digressions” and noting the “erratum” he made throughout his life (Franklin 473 and 506). Although his character definitely contains his flaws, Franklin seems to be a man that lived to serve others.

What issues divided the New York’s “old money” merchants (trade and banking) from its “new money” manufacturers?

This work by Mason is cited often in the literature, although the reason for its inclusion appears to be his tirade renouncing the tradition of slavery. However, beyond a brief mention of the evils of slavery in the opening paragraph, the true value of this document is the description of a scheme to avoid Stamp Act taxation while retaining security in bonds and rents. This intricate plan was never implemented as the Stamp Act was repealed shortly afterward.

“The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. ” (3) Jefferson knows that a national bank that printed its own money backed by coin is the only answer.

Colonial paper money is perhaps one of the most fascinating aspects of colonial America in the 1700s. The lack of specie in the colonies is a well documented phenomenon and, in New England it’s effect was heavy, and led to the issuance of paper money. This paper will investigate the successful implementation of paper currency as endogenous money to grow colonial money supply and stimulate economic activity in the early American economy. Additionally this paper will argue loss of faith in the governments backing the paper bills, as opposed to a shock to the money supply was the rationale for inflation of colonial New England currency. New England colonial paper currency will be the predominant focus, but this paper will also examine the Pennsylvania pound. New England colonial currency experienced a considerable amount of inflation in the latter years of 1740. This can be attributed in part to large amounts of paper money issuance and the funding of King George’s War. Alternatively, this essay will argue that the bulk of the inflation experienced was due to a loss in faith of the governments backing.

Franklin also believed that “industry and thrift were being destroyed by aid to the poor,” (Stern & Axinn, 2012, p.28-29). He associated this with the law of nature and God, by stating that by providing aid for these individuals we are going against what God wanted for them. This went along with the view that had been developing at this time, that if someone was living in poor circumstances or had a tragedy occur it must be due to their own sins and their misfortune must have been a punishment from