A State of the Paper Currency in North Carolina from 1715 to 1739.
It does not appear that the Assembly of that Province emitted any Paper Bills of Credit till the year 1715. At which time they issued Bills of Currancy, to the amount of £24,000 which were to be deemed a proper Tender in law, for all their Comoditys, as rated by Act of Assembly the preceding year. But it is provided by the Act, that if any Demands are made for sterling Debts, the Bills of Credit in such Case shall pass, and be a legal Tender at 50 per ct Exchange.
From the year 1715 till the year 1722, there were no other Bills issued or Currant amongst them, But at this time the Assembly of that Province passed a law for the emitting £12,000 bills of Credit, upon the same foot as the former, to be Exchanged for such other bills of Credit, as were then Currant amongst them. Thō the sum issued was not above half what had been formerly issued Yet there were so many of the former Bills defaced and lost that £12,000 was deemed equal to the Bills of Currency then Extant.
When the two laws above mentioned were passed There was no fund appropriated for the Discharge of the Bills, nor had they at that time any settled Exchange.
In the year 1729, the Assembly passed an Act for Emitting of £40,000 bills of Currency rated at 500 per ct Excha £10,000 Currency in said bills to be applyed to the discharge of their former bills of Creditt, and the remaining £30,000, to be lent out at 6 per ct Interest on Land security The same to be paid in in 15 Years in Equal Proportions. And in regard to the uncertain value of the Bills the Assembly by the same Act, reserved a power to themselves, to declare at their first meeting annually, at what Excha the said Bills should pass.
In the year 1735, An Act of Assembly was passed, for the emitting the sum of £40,000 to be Exchanged for the former Bills of Currency issued in 1729. by this Act the Bills were not made a legal Tender, at any rated Exchange.
In the said year 1735 An Act was passed for the granting to his Majesty the sum of £4,150 : 3 : 2 for the service of the Publick . . . . And for the laying a poll tax on the Inhabitants for the payment of the same and for the stamping and Emitting the sum of £10,000 bills of Credit for the more immediate discharge of the Public debts. Which bills were not issued at any rated Exchange. In the latter end of February or beginning of March 1738-9 by an Act passed, for the Confirmation of Proprietory Grants (Intituled the Quit rent Law) the Governor Council Attorney General and Receiver General for the time being and the Speaker and as many of the Members of the House of Burgesses, as are Equal in number—Are by the said Act impowered on or before the sixth day of March annually, to regulate the value of their Bills in such manner & in such proportion as appears to themselves Equitable.
The Exchange as regulated last March is at a 1000 per ct. There remains now outstanding about 50,000£.