Although the expedition to North Carolina was well conducted, and proved as successful as the most sanguine of the Carolineans could have expected, yet the expense the public had incurred by it fell heavy on the province, the revenues of which were inconsiderable, and not at all adapted for such important and extensive enterprizes. But as great harmony at this time subsisted between the Governor and assembly, they were well disposed for concurring with him in every measure for the public safety and relief. The stamping of bills of credit had been used as the easiest method of defraying these expenses incurred for the public defence: however, at this time the legislature thought proper to establish a public bank, and issued forty-eight thousand pounds in bills of credit, called Bank-bills, for answering the exigencies of government, and for the convenience of domestic commerce. This money was to be lent out at interest, on landed or personal security; and, according to the tenour of the act for issuing the same, it was to be sunk gradually, by four thousand pounds a-year; which sum was ordered to be paid annually by the borrowers, into the hands of commissioners appointed for that purpose. After the emission of these bank-bills, the rate of exchange and the price of produce quickly arose, and in the first year advanced to one hundred and fifty, in the second to two hundred per cent.
[Sidenote] Remarks on paper currency.
With respect to the utility of this paper money, the planters and merchants, according to their different views and interests, were divided in opinion. The former, who, for the most part, stood indebted to the latter, found that this provincial currency was not only necessary to answer the exigencies of government, but also very useful and convenient in the payment of private debts. This money being local, in proportion as it increased in quantity, it raised the nominal price of provincial commodities: and became of course prejudicial to creditors, in proportion as it was profitable to debtors; for though it depreciated fifty per cent. in a year, during which time the planters stood indebted to the merchants, the next year such creditors were obliged to take it in payment, or produce, which had advanced in price, according to the quantity of money in circulation. By the acts of assembly which established these bills of credit, the currency was secured, and made a tender in law in all payments; so that if the creditor refused this money before witnesses offered to him, the debt was discharged from the minute of his refusal. Besides, the planters knew, that in a trading country gold and silver, by various channels, would make their way out of it when they answer the purposes of remittance better than produce, to their great prejudice: paper-money served to remedy this inconvenience, and to keep up the price of provincial commodities, as it could not leave the colony, and answered the purpose for paying private debts as well, or rather better, than gold and silver. As the trade of the country increased, no doubt a certain quantity of money was necessary to carry it on with ease and freedom; but when paper bills are permitted to increase beyond what are necessary for commercial ease and utility, they sink in value; and in such a case creditors lose in proportion to their depreciation.
In Carolina, as well as in the other British colonies in America, the greatest part of gold and silver current was foreign coin, and the different assemblies settled their value from time to time, by laws peculiar to each province. To remedy the inconveniences arising from the different rates at which the same species of foreign coin did pass in the several colonies and plantations, Queen Anne, in the sixth year of her reign, had thought fit, by her royal proclamation, to settle and ascertain the current rate of foreign coin in all her colonies. The standard at which currency was fixed by this proclamation, was at an hundred and thirty-three pounds, six shillings and eight-pence per cent.; but this regulation, however convenient and advantageous to trade, was afterwards little regarded in these provinces, and the confusion of current money continued and prevailed.
After the emission of this great quantity of bank-bills in Carolina, and speedy rise of the price of produce in consequence of it, the merchants of London, to whom the colony stood indebted, judging it prejudicial to trade, complained of it to the Proprietors. They perceived that the trade of the country, by this means, would be carried on entirely without silver or gold; and although their factors in Carolina might raise the price of British commodities and manufactures, equal to the advanced price of the produce, yet it might be for their interest sometimes to take gold and silver rather than produce in return for their British goods. They considered the issuing of such bank-notes as a violation of the laws of England, and prevailed on the Proprietors to write Governor Craven a letter to the following effect: "We have heard complaints from several hands of an act you have passed, called the Bank Act. We do recommend to you to consider of some expedient for preventing the mischievous consequences of that act, lest, upon further complaints, we be forced to repeal it. The act is exclaimed against by our London merchants as injurious to trade, as an infringement and violation of the laws of Great Britain, and made almost in opposition to the act of the sixth of Queen Anne. Therefore we expect, for preventing such complaints for the future, that you will endeavour, as much as in you lies, to reduce that paper credit, pretended to be established in your bank act, and that you will strictly put in execution the aforesaid act of Queen Anne."
[Sidenote] Trade infested by pirates.
As the trade of the colony had of late years considerably increased, and was almost entirely carried on in British ships, its protection was an object which demanded the attention either of the Proprietors or the British administration. The war in Europe had engrossed the care of the latter, and the former were either unable or unwilling to bear the expence of its protection. They had leased their property in the Bahama islands to a company of merchants, which turning out to little account; the Island of Providence became a receptacle for vagabonds and villains of all nations. From this place of rendezvous a crew of desperate pirates had been accustomed to push out to sea, and, in defiance of the laws of nations, to obstruct navigation. The trade of Carolina and that of the West Indies suffered greatly from their depredations. For five years after this period those lawless robbers reigned as the masters of the Gulph of Florida, plundering and taking ships of every nation. North Carolina, by the conquest of its maritime tribes of Indians, had also become a refuge for those rogues, who carried their prizes into Cape Fear river, or Providence, as best suited their convenience or interest. Their success induced bold and rapacious spirits to join them, and in time they became so formidable, that no inconsiderable force was requisite to suppress them.
[Sidenote] Several English statutes adopted.
After a long and expensive war, a treaty of peace and commerce was concluded between Britain, France and Spain in Europe; and orders were sent to all the colonies to desist from acts of hostility. Governor Craven, deeply interested in the prosperity of Carolina, now turned his attention to improve the precious blessings of peace, and to diffuse a spirit of industry and agriculture throughout the settlement. The lands in Granville county were found upon trial rich and fertile, and the planters were encouraged to improve them. Accordingly a number of plantations were settled in the neighbourhood of Indian nations, with whom the Governor studied to cultivate a friendly correspondence. For the purposes of trade some men took up their residence in their towns, and furnished them with clothes, arms, and ammunition, in exchange for their furs and deer-skins. An agent was appointed to superintend the affairs of Indian tribes, and to conciliate by all possible means their friendship and esteem. Several interior regulations, conducive to the peace and prosperity of the colony, were also established. The colonists, as an eminent writer observes, in general carry with them so much of the English law as is applicable to their local circumstances and situation; such as, the general rules of inheritance, and of protection from personal injuries. What may be proper to be admitted, and what are necessary to be rejected, is judged and determined, in the first instance, by the provincial judicature, then subject to the approbation or disapprobation of the Proprietors; and so far of the British parliament, that nothing may be attempted by them derogatory to the sovereignty and supreme jurisdiction of the mother country. At this time Governor Craven obtained the assent of the General Assembly, to make several English statutes of the same force in Carolina as if they had been enacted in it. The people regarded him as a wise and indulgent parent, and wished to copy the spirit of their laws from the English original, although they received their obligation and authoritative force from their being the laws of the colony.
About this time Nicholas Trott, the Chief Justice of the colony, returned from England, where he had been for some time engaged in the settlement of private affairs. During his stay in Britain he had engrossed the favour of the Proprietors, who finding him to be a man of great abilities, professed a high respect for him, and afterwards desired his assistance and advice in every case respecting the future management of their colony. They advanced his salary to one hundred pounds a-year, and he agreed to carry on a regular correspondence with their secretary, and to give them the best intelligence with respect to their provincial affairs. Trott having thus secured the confidence of the Proprietors in England, soon after he came to Carolina, began to plume himself on his advantageous circumstances, and to treat his former friends in the colony with that pride and insolence too common to most men in office and power. On the other hand, those men, offended at his arrogance, watched his conduct with an envious and malignant eye, and seemed to desire nothing more than to humble his pride and destroy his influence. To this fatal difference may be ascribed several future jealousies and disturbances with which the colonists were harassed, and which terminated in the total subversion of the proprietary government.