The institution here mentioned was a measure of financial policy, which had its origin in Pennsylvania, at an early period of the provincial government: and, from an experience of its beneficial effects, it was not only continued, at various intervals of time, from the year 1723, to the termination of that government; but was resorted to, and for some time continued, by the state legislatures after the revolution. The scarcity of gold and silver, among the earlier settlers of the province, subjected them to many and great inconveniences, and suggested to the legislature the necessity of adopting some rational and efficient means of remedying the evil. The expedient was, the emiting, and making current, bills of credit; which were loaned to cultivators of the soil on the security of their lands, and repayable with interest, in annual payments, within an assigned term of years. The first act of assembly for this purpose was passed the 11th of May, 1723; and the preamble to that law is expressive of its object: it states, that, “Forasmuch as through the scarcity of money, the trade of this province is greatly lessened and obstructed, and the payment of the public debts of this government rendered exceeding difficult, and likely so to continue, unless some medium in commerce be by law made current, instead of money: for remedy whereof, may it please the governor that it be enacted, and be it enacted by Sir William Keith, baronet, Governor, &c.” This act then goes on to direct the emission of “fifteen thousand pounds, current money of America, according to an act of Parliament made in the sixth year of Queen Anne, for ascertaining the rates of foreign coins in the Plantations;” and provides for the loaning of these bills, by persons thereby appointed “trustees of the general loan-office;” to be loaned out, upon the security of mortgages of real estates, within the province, of at least three times the value of the sums lent: which sums so loaned were made repayable in those bills, in eight years, in annual payments of one-eighth part of the amount of the principal with the addition of an interest of five per cent. per annum. The act also contains a provision (but one which was omitted in the subsequent loan-office laws,) for lending these bills upon the security of plate also, for the term of one year. This paper-money, thus established upon indubitable funds,[202] was made a legal tender in the payment of debts;—and it never suffered any depreciation of its nominal value.[203] ----- Footnote 202: