Second Expedition Against Canada—depreciation.

In 1709, another expedition against Canada being intended,£30,000 in bills of credit were issued, and,£10,000 of the old were reissued. The preparations dragged on for two years, and, in 1711,£10,000 more were issued to pay military expenses. New Hampshire, Rhode Island, Connecticut, New York, and New Jersey joined in this expedition, and now began to issue bills of credit. The Massachusetts bills had hitherto been held close, and provisions for redemption by taxes in a year or two had always been made. They had been put out in payment of government expenses, and had thus been a kind of exchequer bills.

In 1709 the time for redemption was set at 4 years; in 1710 at 5 years; in 1711 at 6 years; this injured the credit of the bills at the same time that they became redundant. The depreciation now began. The paper was legal tender, its acceptance being enforced from time to time by more and more stringent enactments.