What did the Currency Act of 1764 do Quizlet?
The Currency Act of 1764 extended the restrictions of the Currency Act of 1751 to all 13 of the American British colonies. While it eased the earlier Act’s prohibition against of the printing of new paper bills, it did forbid the colonies from using any future bills for payment of all public and private debts.
Why was the Currency Act important to the colonies?
The Currency Act banned the colonies’ printing their own paper money. English merchants had insisted for years that payment in colonial currency left them underpaid for their goods. But colonists insisted that without their own paper money they could not maintain vigorous economic activity. Who did the Currency Act affect?
Why did the British get rid of colonial bills?
The act prohibited the issue of any new bills and the reissue of existing currency. Parliament favored a "hard currency" system based on the pound sterling, but was not inclined to regulate the colonial bills. Rather, they simply abolished them. The colonies protested vehemently against this.
When did the Colonies start using paper money?
In 1773, Parliament amended the Currency Act of 1764 to allow all of the colonies to issue paper money for the payment of public debts — especially those owed to the British Crown.
Why were merchants uncomfortable with the colonial currency system?
British merchant-creditors were very uncomfortable with this system, not only because of the obvious complexity, but because of the rapid depreciation of the notes due to regular fluctuations in the colonial economy. On September 1, 1764, Parliament passed the Currency Act, effectively assuming control of the colonial currency system.
Why did the colonies have a shortage of currency?
The colonies suffered a constant shortage of currency with which to conduct trade. There were no gold or silver mines and currency could only be obtained through trade as regulated by Great Britain. Many of the colonies felt no alternative to printing their own paper money in the form of Bills of Credit. But because there were no common regulations and in fact no standard value on which to base the notes, confusion ensued.
What was the currency act of 1764?
On September 1, 1764, Parliament passed the Currency Act, effectively assuming control of the colonial currency system. The act prohibited the issue of any new bills and the reissue of existing currency. Parliament favored a "hard currency" system based on the pound sterling, but was not inclined to regulate the colonial bills.
What was the purpose of the notes issued by the British?
Some notes paid interest, others did not, some could be used only for purchase and not to repay debt. Some were issued only for public debts and could not be used in private transactions. There was no standard value common to all of the colonies. British merchant-creditors were very uncomfortable with this system, not only because of the obvious complexity, but because of the rapid depreciation of the notes due to regular fluctuations in the colonial economy.
Economic Problems in The Colonies
The Currency Act of 1751
- The first Currency Act banned only the New England colonies from printing paper money and from opening new public banks. These colonies had issued paper money mainly to repay their debts to for British and French military protection during the French and Indian Wars. However, years of depreciation had caused the New England colonies’ “bills of cred...
The Currency Act of 1764
- The Currency Act of 1764 extended the restrictions of the Currency Act of 1751 to all 13 of the American British colonies. While it eased the earlier Act’s prohibition against of the printing of new paper bills, it did forbid the colonies from using any future bills for payment of all public and private debts. As a result, the only way the colonies could repay their debts to Britain was with g…
Point Made, England Backs Down
- In 1770, the New York colony informed Parliament that difficulties caused by the Currency Act would prevent it from being able to pay for housing British troops as required by the also unpopular Quartering Act of 1765. One of the so-called “Intolerable Acts,” the Quartering Act forced the colonies to house British soldiers in barracks provided by the colonies. Faced with th…
Legacy of The Currency Acts
- While both sides managed to temporarily move on from the Currency Acts, they contributed substantially to the growing tensions between the colonists and Britain. The acts were considered as a “major grievance” in all of the colonies except Delaware, where they had been of minimal financial impact. When the First Continental Congress issued a Declaration of Rightsin 1774, del…