On the whole, no method has hitherto been formed to establish a medium of trade, in lieu of money, equal in all its advantages, to bills of credit--funded on sufficient taxes for discharging it, or on land-security of double the value for repaying it at the end of the term; and in the mean time, made a GENERAL LEGAL TENDER. The experience of now near half a century in the middle colonies has convinced them of it among themselves; by the great increase of their settlements, numbers, buildings, improvements, agriculture, shipping, and commerce. And the same experience has satisfied the British merchants, who trade thither, that it has been greatly useful to them, and not in a single instance prejudicial.
It is therefore hoped, that securing the full discharge of British debts, which are payable here, and in all justice and reason ought to be fully discharged here in sterling money; the restraint on the legal tender within the colonies will be taken off; at least for those colonies that desire it, and where the merchants trading to them make no objection to it[56].
[55] The best account I can give of the occasion of the Report, to which this paper is a reply, is as follows. During the war there had been a considerable and unusual trade to America, in consequence of the great fleets and armies on foot there, and the clandestine dealings with the enemy, who were cut off from their own supplies. This made great debts. The briskness of the trade ceasing with the war, the merchants were anxious for payment, which occasioned some confusion in the colonies, and stirred up a clamour here against paper-money. The board of trade, of which lord Hilsborough was the chief, joined in this opposition to paper-money, as appears by the report. Dr. Franklin being asked to draw up an answer to their report, wrote the paper given above. B. V.
[56] I understand that Dr. Franklin is the friend who assisted governor Pownall in drawing up a plan for a general paper-currency for America, to be established by the British government. See Governor Pownall's Administration of the Colonies, 5th Edition, p. 199, and 208. B. V.
_To the Freemen of Pensylvania, on the Subject of a particular Militia-Bill, rejected by the Proprietor's Deputy or Governor._