2. "That the _merchants_ trading to America _have suffered_ and lost by it.
3. "That the restriction [of it] _has had a beneficial effect_ in New England.
4. "That every _medium of trade should have an intrinsic value_, which paper-money has not. Gold and silver are therefore the fittest for this medium, as they are an equivalent; which paper never can be.
5. "That _debtors_ in the assemblies make paper-money with _fraudulent views_.
6. "That in the middle colonies, where the credit of the paper-money has been best supported, the bills have _never kept to their nominal value_ in circulation; but have constantly depreciated to a certain degree, whenever the quantity has been increased."
To consider these reasons in their order; the first is,
1. "_That paper-money_ carries the gold and silver out _of the province, and so ruins the country; as_ experience has shewn, _in every colony where it has been practised in any great degree_."--This opinion, of its ruining the country, seems to be merely speculative, or not otherwise founded than upon misinformation in the matter of fact. The truth is, that the balance of their trade with Britain being greatly against them, the gold and silver are drawn out to pay that balance; and then the necessity of some medium of trade has induced the making of paper-money, which could _not_ be carried away. Thus, if carrying out all the gold and silver ruins a country, every colony was ruined before it made paper-money.--But, far from being ruined by it, the colonies that have made use of paper-money have been, and are all, in a thriving condition. The debt indeed to Britain has increased, because their numbers, and of course their trade, have increased; for all trade having always a proportion of debt outstanding, which is paid in its turn, while fresh debt is contracted, the proportion of debt naturally increases as the trade increases; but the improvement and increase of estates in the colonies have been in a greater proportion than their debt. New England, particularly in 1696 (about the time they began the use of paper-money) had in all its four provinces but 180 churches or congregations; in 1760 they were 530. The number of farms and buildings there is increased in proportion to the numbers of people; and the goods exported to them from England in 1750, before the restraint took place, were near five times as much as before they had paper-money. Pensylvania, before it made any paper-money, was totally stript of its gold and silver; though they had from time to time, like the neighbouring colonies, agreed to take gold and silver coins at higher nominal values, in hopes of drawing money into, and retaining it, for the internal uses of the province. During that weak practice, silver got up by degrees to 8s. 9d. per ounce, and English crowns were called six, seven, and eight-shilling pieces, long before paper-money was made. But this practice of increasing the denomination was found not to answer the end. The balance of trade carried out the gold and silver as fast as they were brought in; the merchants raising the price of their goods in proportion to the increased denomination of the money. The difficulties for want of cash were accordingly very great, the chief part of the trade being carried on by the extremely inconvenient method of barter; when in 1723 paper-money was first made there; which gave new life to business, promoted greatly the settlement of new lands (by lending small sums to beginners on easy interest, to be repaid by instalments) whereby the province has so greatly increased in inhabitants, that the export from hence thither is now more than tenfold what it then was; and by their trade with foreign colonies, they have been able to obtain great quantities of gold and silver to remit hither in return for the manufactures of this country. New York and New Jersey have also increased greatly during the same period, with the use of paper-money; so that it does not appear to be of the ruinous nature ascribed to it. And if the inhabitants of those countries are glad to have the use of paper among themselves, that they may thereby be enabled to spare, for remittances hither, the gold and silver they obtain by their commerce with foreigners; one would expect, that no objection against their parting with it could arise here, in the country that receives it.