Pennsylvania pound
Encyclopedia
The pound was the currency
of Pennsylvania
until 1793. It was created as a response to the global economic downturn caused by the collapse of the South Sea Company. Initially, the British pound and certain foreign coins circulated, supplemented from 1723 by local paper money, called Colonial Scrip
. Although these notes were denominated in pounds, shilling
s and pence
, they were worth less than sterling, with 1 Pennsylvanian shilling = 9 pence sterling.
The Pennsylvania Pound was first conceived by Francis Rawle, who can be rightly called The Father of the Pennsylvania Pound.
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
, imposed sufficient penalties on all persons who presumed to make any bargain or sale on cheaper terms in case of being paid in gold
or silver
, and provided for the gradual reduction of the bills by enacting that one-eighth of the principal, as well as the whole interest
, should be paid annually. Pennsylvania made no loan
s but on land security
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
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—if not the very last—colonies that emitted a paper currency. In 1775, the Colonial "Scrip" currency was replaced by Continental currency. The Commonwealth of Pennsylvania issued Continental currency denominated in £sd and Spanish dollar
s, with 1 dollar = 7 shillings 6 pence. The continental currency was replaced by the U.S. dollar at a rate of 1000 continental dollars = 1 U.S. dollar in 1793.
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
of Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
until 1793. It was created as a response to the global economic downturn caused by the collapse of the South Sea Company. Initially, the British pound and certain foreign coins circulated, supplemented from 1723 by local paper money, called Colonial Scrip
Colonial Scrip
Early American currency went through several stages of development in the colonial and post-Revolutionary history of the United States. Because few coins were minted in the thirteen colonies that became the United States in 1776, foreign coins like the Spanish dollar were widely circulated....
. Although these notes were denominated in pounds, shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
s and pence
Penny
A penny is a coin or a type of currency used in several English-speaking countries. It is often the smallest denomination within a currency system.-Etymology:...
, they were worth less than sterling, with 1 Pennsylvanian shilling = 9 pence sterling.
The Pennsylvania Pound was first conceived by Francis Rawle, who can be rightly called The Father of the Pennsylvania Pound.
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
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
, 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
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
or silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
, and provided for the gradual reduction of the bills by enacting that one-eighth of the principal, as well as the whole interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
, should be paid annually. Pennsylvania made no loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s but on land security
Security
Security is the degree of protection against danger, damage, loss, and crime. Security as a form of protection are structures and processes that provide or improve security as a condition. The Institute for Security and Open Methodologies in the OSSTMM 3 defines security as "a form of protection...
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
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
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—if not the very last—colonies that emitted a paper currency. In 1775, the Colonial "Scrip" currency was replaced by Continental currency. The Commonwealth of Pennsylvania issued Continental currency denominated in £sd and Spanish dollar
Spanish dollar
The Spanish dollar is a silver coin, of approximately 38 mm diameter, worth eight reales, that was minted in the Spanish Empire after a Spanish currency reform in 1497. Its purpose was to correspond to the German thaler...
s, with 1 dollar = 7 shillings 6 pence. The continental currency was replaced by the U.S. dollar at a rate of 1000 continental dollars = 1 U.S. dollar in 1793.