Resumption in Massachusetts.

Parliament voted to ransom Louisbourg from the colonies. The sum coming to Massachusetts was,£138,649 sterling, which at eleven for one, the ruling exchange, would nearly cancel the paper. Hutchinson proposed that they should ask Parliament to ship to them their share of the payment in silver dollars and copper coins, and that these should be used to cancel the paper as far as they would go, the rest to be called in by tax. After considerable opposition this course was adopted. The silver was sent over and exchanged. Prices were adjusted to this new measure, and the silver remained in circulation when it no longer had a meaner rival. The “ shock” which was apprehended did not occur. The only shock was to Rhode Island and New Hampshire, who found their trade transferred to the “ silver colony,” and their paper suddenly and heavily depreciated. The West India trade of Massachusetts had been largely done through Newport. It was now transferred to Salem and Boston In 1752 a Newport merchant, Joseph Whipple, who was deputy governor at the time, failed. Failures “had been almost unknown in Newport,” and Mr. Whipple was constrained to resign his office.

The apprehensions of loss and danger from the change in Massachusetts led to some demonstrations of riot, but the change took place so quietly and easily that these fears were not realized and the tumult subsided. Trade had been immediately before (1749–50) at the lowest ebb. Ship-building and fisheries had declined, and people were moving away. Trade now revived steadily and rapidly, and we hear no more of “scarcity of money” until the next violation of the laws of circulation.

The following table shows the depreciation of Massachusetts paper:

The following table shows the depreciation of the paper of the several colonies:

Douglas, though bitterly opposed to paper money, opposed violently the plan of Hutchinson. His own history shows that he was irascible and impracticable. He thought the measure too sudden, and wanted to use the English payment by drawing bills of exchange on long time and selling them for the bills of credit. If a contraction had been practicable it ought certainly to have been gradual and careful, but this was out of the question with a currency sunk to 1/11 of its denomination, and a bankruptcy could not be too sharply and definitely accomplished when resolved upon.