Legal-tender Paper Abolished.

In the year 1751 Parliament passed an act forbidding any more legal-tender paper issues, and allowing no issues, save in the form of exchequer bills, redeemable by taxes in a year, bearing interest, or, in case of war, similar issues redeemable in four years. The colonies now set to work earnestly, though with only partial success, as above shown, to retire their old issues.

A new war with the French in 1756 involved them once more in war expenditures, and bills of the above description were issued. They were of small denominations, bore interest, and circulated only until the interest accumulated so much as to make them worth hoarding. Remittances were continually received from England to partially reimburse the colonies for their expenses, and by these funds, and by taxes, the bills were redeemed to such an extent as to save them from great depreciation.

Early in the eighteenth century Virginia adopted tobacco as a currency. It was deposited in warehouses, and the receipts for it passed as currency. It was a true money, but not a good one, as it naturally fluctuated considerably in value. In 1755 Virginia issued paper money.

North Carolina issued paper to build a palace for the governor. A similar project was started in New Jersey, but it never passed the legislature.