DeCourcy W. Thom.

Wakefield Manor.






A HISTORY OF PANICS IN THE UNITED STATES
CONSIDERED WITH SPECIAL REFERENCE TO AMERICAN BANKS.



The English Colonies soon after their settlement issued paper money.
The first was Massachusetts, which issued it even before her
independence, in 1690, to obtain funds in order to besiege Quebec.

This example was followed to such an extent that it caused a marked
speculation in favor of hard money, varying according to the quantity of
notes in circulation. In 1745, after a successful campaign against
Louisburg and the taking of that fortress, two million pounds of paper
money were issued, which step decreased its value. When liquidation
occurred these paper pounds were not worth 10 per cent. of their face
value.

The War of Independence obliged Congress to issue three million of paper
dollars. This amount increased to $160,000,000, so that Congress
declared, in 1779, that it would not issue more than $200,000,000.