The House of Commons ever watchful over the interests of British commerce, began to look with suspicion on the frequent “emissions of paper currency in His Majesty’s colonies in America, in which Rhode Island has too large a share.” An address to the King was followed by instructions to the colonial governors from the Board of Trade to transmit to the home government “an account of the tenor and amount of the bills of credit” issued by each colony, the times when they fell due, the number actually outstanding and their value in “money of Great Britain, both at the time such bills were issued and at the time of preparing the account.” The Governor’s opinion was also required upon the still more difficult subject of “sinking and discharging all such bills of credit.”
Governor Ward replied on the part of Rhode Island by an elaborate history of the colonial currency and an able exposition of the causes and necessities from which it arose. Unfortunately these necessities still existed, and without heeding the warning implied by the action of the House of Commons the Assembly “created a new bank of twenty thousand pounds for ten years at four per cent.” The paper issued under this act was called the new tenor, because unlike the earlier issues the bills bore on their faces the exact amount of gold and silver they were supposed to represent. Silver on the new tenor notes was rated at six shillings and ninepence sterling, gold at five pounds an ounce, and thus the value of a new tenor bill was four times that of an old tenor bill. The seeds of bankruptcy were thickly sown in both.
The question of the eastern boundary line, one of the bitterest of the many disputes with Massachusetts, had after several vain attempts to come to an amicable agreement, been referred, in 1741, to a royal commission. With the decision of this commission neither party was altogether satisfied, Massachusetts claiming a great deal and Rhode Island something more than it awarded them. Both parties appealed. But the commission adhered to its decision, and the line fixed by it continued to be the boundary between the two colonies till after the adoption of the Federal constitution.
CHAPTER XX.
PROGRESS OF THE WAR WITH THE FRENCH.—CHANGE IN THE JURISDICTION OF THE COURTS.—SENSE OF COMMON INTEREST DEVELOPING AMONG THE COLONISTS.—LOUISBURG CAPTURED.
War still continued to give its stern coloring to legislation. The Tartar was held ready for instant service. The Governor and his council were vested with the power of laying an embargo upon outward bound vessels. Speculation turned seaward, and the money which in peace would have been employed in building up commerce and manufactures was spent upon privateers.
Still the interests of peace were not altogether neglected. The productive enterprise which was to raise Rhode Island so high in the list of manufacturing states, was already awakened, and as early as 1741 James Greene and his associates petitioned the Assembly for permission to build a dam across the south branch of Pawtuxet river and lay the foundation of those iron works which in the sequel became so celebrated throughout the colonies. Population was increasing. The large townships became too large for the demands of local government and were divided. Thus Greenwich, carrying out the suggestions of its position, was divided into East and West. About the same time Warwick was divided and a new township set out under the name of Coventry. In the next year North Kingstown was divided and the Town of Exeter incorporated, and a year later the country district of Newport, which was separated from the town by thick woods, was incorporated as Middletown. The territorial struggle was nearly over and Rhode Island was settling down into its permanent proportions. The schedules still continue to record the progress of organization as experience called for new changes. The office of attorney-general was abolished and a King’s attorney for every county appointed instead. A Court of Equity composed of five judges, annually elected by the Assembly, was formed to try all causes of appeal in personal actions from the Superior Court to the General Assembly—a course which “by long experience had been found prejudicial.” To draw closer the ties of loyalty a form of prayer for the royal family was sent from England to be read in every religious assembly throughout the colonies as a part of public worship.
The dissensions with Connecticut concerning the western boundary had taken a new form. The line, as the reader will remember, had been drawn and marked by competent authority. A committee appointed by Connecticut displaced the bound at the southwest corner of Warwick. The Rhode Island Assembly sent surveyors to examine the ground and restore the line. This outrage was repeated twice.