History of Taxation in Rhode Island to the Year 1790

by Henry B. Gardner

Bills of Credit.

The history of the bills issued up to the year 1751 we have already considered. It remains to describe the issues of the present war.

The first of these issues was in 1755 to meet the expenses of the Crown Point expedition. The bills were of the old tenor denomination, amounting to £240,000 equal to £13,500 sterling. They were to circulate two years without interest and then be called in and sunk. The subsequent issues were all in what were known as lawful money bills. They were issued at various times from 1756 to 1767, the total amount being £97,569 equal to £73,360 sterling. All but £6660 were issued on or before August 1762, £14,000 issued in 1756 were to run for two years and without interest. The other emissions were for five years with interest at 5%. The bills were declared equal to silver at 6s. 9d. per ounce.

Treasury Notes.

These were interest bearing notes issued to meet the bills of credit, bonds given for money borrowed or other treasury notes as they fell due, when receipts from other sources did not suffice for redemption. The practical effect was to work an extension of the debt. As shown by the treasury reports these notes seem to have been issued for the most part between the years 1765 and 1775 and amounted to £46,549 lawful money equal £34,999 sterling. The greater part seem to have been redeemed at the outbreak of the Revolution.

Receipts from England.

These were grants made by the English government to reimburse the colony for expenses incurred in the war. These grants made throughout the course of the war amounted to about £50,000 sterling and there was received from the English commanders in this country about £4000 or £5000 more, making in round numbers £55,000.

Taxes.

We now come to the source of revenue which concerns us most nearly. A slight attempt to resume taxation had been made at the time of King George's war. A tax of £10,000 old tenor (£1677 sterling) had been ordered in 1744 and another of £5,000 new tenor (£2000 sterling) in 1747/8, but the paper money party was still in the ascendant and it was not until after the overthrow of that party that the policy of taxation was seriously resumed in 1754.

The following table will show the taxes levied from that date to the beginning of the Revolution, together with their sterling values at the time the tax was ordered.