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