The “Pine-tree” Coinage.

Coin was now coming in freely by the trade with the West Indies. The buccaneers also spent a great deal of their booty in the colonies, but it all just as steadily went out. In 1652 Massachussets set up a mint at Boston to coin this metal and try to keep it in circulation. They coined shillings, sixpences, and threepences, and continued to do so for many years, but, as it was a breach of the prerogative to coin, they dated all the coins 1652. The coins were to be of sterling alloy, 11/12 fine, and the shilling worth Iod. sterling. The mint master had 15d. in 20s. for coining. As silver was worth 5s. 2d. sterling per oz., if the New England shillings had been equal to Iod. sterling each, silver should have been worth 6s. 2½d. New England currency per oz., but as the mint master kept 15d. out of every 20s., silver was worth 6s. 7d. New England currency per oz., if the coin was up to its own standard. It would therefore have been 22 per cent, worse than sterling. The English Mint declared it not of even weight or fineness, and it was taken in England only at 25 per cent. discount. The normal rate, therefore, was 6s. 8d. per oz. The law forbade exportation on penalty of forfeiting all visible estate. Of course this restrained but it did not prevent it. This currency, known as the “pine-tree” currency, forms the standard by which calculations were made from this time on.

Meantime the barter currency was continued, and another act passed in 1654 provides that all contracts in kind shall be so satisfied. In 1655, a constable brought cattle to the treasurer for taxes which were so poor that he would not take them. In 1657 another prays for relief because, having taken boards for taxes, the treasurer would not allow him as much as he allowed for them. In 1658 it was ordered that no man should pay taxes in “lank” cattle. In fact the barter currency continued general.

In 1655 the colony accounts allow for £35 ids. peag burned with the treasurer's house, and contain an entry of eighteen strings of peag at six a penny.

Accordingly, the silver money no sooner appeared than it was either smuggled out of the country or clipped. The principle laid down by Sir Thomas Gresham in Queen Elizabeth's time, that a better and a worse currency cannot circulate together, but that the worse will drive out the better, was the only secret. If the better currency could not be exported, it was clipped down to the rate of the inferior currency, or rather below it, in order to be on the safe side, and pay rather less than more than one need.

The silver which came to the colony consisted for the most part of Spanish pillar coins. On account of the heavy mint charges these were not taken to the mint. They were not allowed to be circulated. The dollar, or piece of eight, was worth 4s. 6d. sterling, or 6s. New England curency. In 1672 a law was passed allowing these pieces to circulate at 6s. and other pieces in proportion. In 1675 the mint was leased again, in spite of prohibitions from England. In the same year, 25 per cent. discount on barter taxes was allowed for cash, and afterwards 50 per cent. In the same year, it was provided that, instead of transporting barter payments of taxes to and from the treasury, the transfers should be made by paper orders. Meantime, the coin was sent to England and to the other colonies, and was extremely scarce in Massachusetts.

In 1686 a bank was proposed, to issue notes. Its history is obscure, and though it seems to have made issues, they soon disappeared. Andros stopped the mint about 1688. It formed one of the chief charges against the colony on account of which the charter was revoked in 1684.