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The pound was the
/ref> In March 1723, it issued Colonial Scrip, paper bills of credit to the amount of $60,000, made them a legal tender in all payments on pain of confiscating the debt or forfeiting the
The pound was the currency
A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins.
A more general def ...
of Pennsylvania
Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
until 1793. It was created as a response to the global economic downturn caused by the collapse of the South Sea Company. Initially, sterling and certain foreign coins circulated, supplemented from 1723 by local paper money, colonial scrip
Early American currency went through several stages of development during the colonial and post-Revolutionary history of the United States. John Hull was authorized by the Massachusetts legislature to make the earliest coinage of the colony (the ...
. Although these notes were denominated in £sd
£sd (occasionally written Lsd, spoken as "pounds, shillings and pence" or pronounced ) is the popular name for the pre-decimal currencies once common throughout Europe, especially in the British Isles and hence in several countries of the B ...
, they were worth less than sterling, with 1 Pennsylvanian shilling equalling 9d sterling.
The Pennsylvania Pound was first conceived by Francis Rawle
Francis Rawle (1660 – 5 March 1727), originally from England, was a Quaker and colonist in Philadelphia, where he served in administrative positions and was a member of the assembly.
Early life
Rawle was born in England in 1660, son of Franci ...
, who can be rightly called ''The Father of the Pennsylvania Pound.''Borawski, Thomas,"From Pennsylvania Pounds to Surveillance Money, The Bailout Debate of 1722/ref> In March 1723, it issued Colonial Scrip, paper bills of credit to the amount of $60,000, made them a legal tender in all payments on pain of confiscating the debt or forfeiting the
commodity
In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
The price of a comm ...
, imposed sufficient penalties on all persons who presumed to make any bargain or sale on cheaper terms in case of being paid in gold
Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile met ...
or silver
Silver is a chemical element with the Symbol (chemistry), symbol Ag (from the Latin ', derived from the Proto-Indo-European wikt:Reconstruction:Proto-Indo-European/h₂erǵ-, ''h₂erǵ'': "shiny" or "white") and atomic number 47. A soft, whi ...
, and provided for the gradual reduction of the bills by enacting that one-eighth of the principal, as well as the whole interest
In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct ...
, should be paid annually. Pennsylvania made no loan
In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that d ...
s but on land security
Security is protection from, or resilience against, potential harm (or other unwanted coercive change) caused by others, by restraining the freedom of others to act. Beneficiaries (technically referents) of security may be of persons and social ...
or plate deposited in the loan office, and obliged borrowers to pay 5% for the sums they took up. The scheme worked so well that, in the latter end of the year, the government
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
emitted bills to the amount of $150,000 on the same terms. In 1729 there was a new emission of $150,000 to be reduced one-sixteenth a year. Pennsylvania was one of the last colonies that emitted a paper currency. In 1775, the colonial "scrip" currency was replaced by Continental currency
Early American currency went through several stages of development during the colonial and post-Revolutionary history of the United States. John Hull was authorized by the Massachusetts legislature to make the earliest coinage of the colony (the ...
. The Commonwealth of Pennsylvania issued Continental currency denominated in £sd
£sd (occasionally written Lsd, spoken as "pounds, shillings and pence" or pronounced ) is the popular name for the pre-decimal currencies once common throughout Europe, especially in the British Isles and hence in several countries of the B ...
and Spanish dollars, with 1 dollar equalling 7 shillings and 6 pence. The continental currency was replaced by the United States dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
at a rate of 1000 continental dollars = 1 U.S. dollar in 1793.
References
Historical currencies of the United States 1793 disestablishments in Pennsylvania Pre-statehood history of Pennsylvania Economic history of Pennsylvania {{Pennsylvania-stub