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Mr. Clay's statement of affairs in May 1836, 141.-Rise and pro-
gress of the pressure, 143.—Publications on the subject, 147.—Causes
assigned for the pressure-first, the excessive issue of notes by the

THE

HISTORY OF BANKING

IN

AMERICA.

SECTION I.

THE RISE AND PROGRESS OF AMERICAN BANKING.

THE first settlers in America had not a sufficient quantity of gold and silver to serve as a circulating medium. Hence other materials, such as tobacco or corn, were in some of the States occasionally employed as money. In the year 1618, Governor Argall, of Virginia,* ordered "that all goods should be sold at an advance of twenty-five per cent., and tobacco taken in payment at three shillings per pound, and not more or less, on the penalty of three years servitude to the Colony." In 1641, the General Court of Massachusetts "made orders about payment of debts, setting CORN at the usual price, and making it payable for all debts which should arise after a time prefixed." In 1643, the same General Court ordered that WAMPOMPEAG (an article of traffic with the Indians) should pass current in the payment of debts to the amount of forty shillings, the white at eight a penny, the black at four a penny, except for county rates. In Virginia, the value of a wife even was estimated in tobacco. The following extract is taken from Holmes' American Annals:

*See "A Short History of Paper Money and Banking in the United States," published by William M. Gouge, at Philadelphia, 1833.

B

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