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Table of Contents

Proceedings of the legislature of Massachusetts. … Intrigues of the French among the Indians. … War with the savages. … Peace. … Controversy with the governor. … Decided in England. … Contests concerning the governor's salary. … The assembly adjourned to Salem. … Contest concerning the salary terminated. … Great depreciation of the paper currency. … Scheme of a land bank. … Company dissolved by act of Parliament. … Governor Shirley arrives. … Review of transactions in New York.

1714

The heavy expenses of Massachusetts during the late war had produced such large emissions of paper money, that a considerable depreciation took place, and specie disappeared. The consequent rise of exchange, instead of being attributed to its true cause, was ascribed to the decay of trade.

The colony, having now leisure for its domestic concerns, turned its attention to this interesting subject.

Affairs of Massachusetts.

Three parties were formed. The first, a small one, actuated by the principle that "honesty is the best policy," was in favour of calling in the paper money, and relying on the industry of the people, to replace it with a circulating medium of greater stability.

The second proposed a private bank, which was to issue bills of credit, to be received by all the members of the company, but at no certain value compared with gold and silver. It was not intended to deposit specie in the bank for the redemption of its notes as they might be offered; but to pledge real estates as security that the company would perform its engagements.

The third party was in favour of a loan of bills from the government, to any of the inhabitants who would mortgage real estate to secure their re-payment in a specified term of years; the interest to be paid annually, and applied to the support of government.

The first party, perceiving its numerical weakness, joined the third; and the whole province was divided between a public and private bank.

At length, the party for the public bank prevailed in the general court, and fifty thousand pounds were issued and placed in the hands of trustees; to be lent for five years, at an interest of five per centum per annum, one-fifth part of the principal to be paid annually.

1716

This scheme failing to improve the commerce of the colony, governor Shute, who had succeeded Dudley, reminded the assembly of the bad state of trade, which he ascribed to the scarcity of money; and recommended the consideration of some effectual measures to supply this want. The result of this recommendation was a second loan of one hundred thousand pounds for ten years, to be placed in the hands of commissioners in each county, in proportion to its taxes. The whole currency soon depreciated to such a degree, that the entire sum in circulation did not represent more real value, than was represented by that which was circulating before the emission. The governor had now sufficient leisure, and the general court furnished him with sufficient motives, to reflect on the policy he had recommended. An attempt to raise his salary as money depreciated, did not succeed, and only the usual nominal sum was voted for his support.

1719

In Massachusetts, peace abroad was the signal for dissension at home. Independent in her opinions and habits, she had been accustomed to consider herself rather as a sister kingdom, acknowledging one common sovereign with England, than as a colony. The election of all the branches of the legislature, a principle common to New England, contributed, especially while the mother country was occupied with her own internal divisions, to nourish these opinions and habits. Although the new charter of Massachusetts modified the independence of that colony, by vesting the appointment of the governor in the crown, yet the course of thinking which had prevailed from the settlement of the country, had gained too much strength to be immediately changed; and Massachusetts sought, by private influence over her chief magistrate, to compensate herself for the loss of his appointment. With this view, it had become usual for the general court to testify its satisfaction with his conduct by presents; and this measure was also adopted in other colonies.

Apprehending that this practice might dispose the governors to conciliate the legislatures at the expense of their duty to the crown, the Queen had given peremptory orders to receive no more gifts; and to obtain acts fixing their salaries permanently at a sum named by herself. The mandate respecting presents was, of course, obeyed; and some of the colonies complied with the requisition respecting the salary; but in Massachusetts and New York, it was steadily resisted.

A controlling power over salaries was a source of influence which was pertinaciously maintained; and its efficacy was tried in all the conflicts between Massachusetts and her governor. Almost every important measure brought before the legislature, was productive of contests between these departments. They disagreed, not only on the policy of particular acts, but on the limits of their power. The governor claimed the right of negativing the speaker chosen by the representatives, which was denied by them; and, each party persisting in its pretensions, the assembly was dissolved, and new elections took place. The same members being generally re-chosen, the house of representatives assembled with increased irritation, and passed some angry resolutions respecting its dissolution. The governor, in turn, charged the house with encroachments on the power of the executive; among other instances of which, he mentioned certain resolutions passed on the commencement of hostilities by the Indians, which were deemed equivalent to a declaration of war, and had therefore been rejected.

1721

Disagreements were multiplied between them. Paper money and trade were inexhaustible sources of discontent. New elections produced no change of temper. After war was formally declared against the Indians, the house endeavoured to exercise executive powers in its prosecution; and, the council not concurring with them, the representatives attempted, in one instance, to act alone.

The measures recommended by the governor to successive assemblies, were disregarded; irritating resolves were adopted and reiterated; and a course of angry crimination and recrimination took place between them in the progress of which the governor's salary was reduced in its nominal as well as real amount; and the sum granted, instead of being voted, as had been usual, at the commencement of the session, was reserved to its close.

1722

In the midst of these contests, governor Shute, who had privately solicited and obtained leave to return to England, suddenly embarked on board the Sea Horse man of war, leaving the controversy concerning the extent of the executive power, to devolve on the lieutenant governor.[127]

The house of representatives persisted in asserting its control over objects which had been deemed within the province of the executive; but its resolutions were generally negatived by the council. This produced some altercation between the two branches of the legislature; but they at length united in the passage of a resolution desiring their agent in England to take the best measures for protecting the interests of the colony, which were believed to be in danger from the representations of governor Shute.

Intrigues of the French with the Indians.

During these contests in the interior, the frontiers had suffered severely from the depredations of the Indians. The French had acquired great influence over all the eastern tribes. Jesuit missionaries generally resided among them, who obtained a great ascendancy in their councils. After the cession of Nova Scotia to Great Britain, father Rahlé, a missionary residing among the savages of that province exerted successfully all his address to excite their jealousies and resentments against the English. By his acts, and those of other missionaries, all the eastern Indians, as well as those of Canada, were combined against New England. They made incursions into Massachusetts, in consequence of which, some troops were detached to the village in which Rahlé resided, for the purpose of seizing his person. He received intimation of their approach in time to make his escape; but they secured his papers, among which were some showing that in exciting the savages to war against the English colonists, he had acted under the authority of the governor of Canada, who had secretly promised to supply them with arms and ammunition.

1726

Envoys were deputed with a remonstrance against conduct so incompatible with the state of peace then subsisting between France and England. The governor received this embassy politely, and, at first, denied any interference in the quarrel, alleging that the Indians were independent nations who made war and peace without being controlled by him. On being shown his letters to Rahlé, he changed his language, and gave assurances of his future good offices in effecting a peace. On the faith of these assurances, conferences were held with some Indian chiefs then in Canada; several captives were ransomed; Peace.and, soon after the return of the commissioners to New England, the war was terminated by a treaty of peace signed at Boston.[128]

Decision against the house on the controversy with the governor.

Meanwhile the complaints of governor Shute against the house of representatives were heard in England. Every question was decided against the house. In most of them, the existing charter was deemed sufficiently explicit; but, on two points, it was thought advisable to have explanatory articles. These were, the right of the governor to negative the appointment of the speaker, and the right of the house on the subject of the adjournment. New Charter.An explanatory charter therefore affirming the power claimed by the governor to negative a speaker, and denying to the house of representatives the right of adjourning itself for a longer time than two days. This charter was submitted to the general court, to be accepted or refused; but it was accompanied with the intimation that, in the event of its being refused, the whole controversy between the governor and house of representatives would be laid before Parliament. The conduct of the representatives had been so generally condemned in England, as to excite fears that an act to vacate the charter would be the consequence of a parliamentary inquiry. The temper of the house too had undergone a change. The violence and irritation which marked its proceedings in the contest with governor Shute had subsided; and a majority determined to accept the new charter.

1727

The trade of the province still languished, and complaints of the scarcity of money were as loud as when only specie was in circulation. To remedy these evils, a bill for emitting a farther sum in paper passed both houses, but was rejected by the lieutenant governor, as being inconsistent with his instructions. The house of representatives, thereupon, postponed the consideration of salaries till the next session. The assembly was then adjourned at its own request, and, after a recess of a fortnight, was again convened. As an expedient to elude the instructions to the governor which interdicted his assent to any act for issuing bills of credit, except for charges of government, a bill passed with the title of "an act for raising and settling a public revenue for and towards defraying the necessary charges of government, by an emission of sixty thousand pounds in bills of credit." This bill providing for the payment of the salaries to which several members of the council were entitled, passed that house also; and the lieutenant governor gave a reluctant assent to it. Its passage into a law furnishes strong evidence of the influence which the control over salaries gave to the house of representatives.

1728

Contest respecting salary.

Mr. Burnet, who had been appointed governor of Massachusetts and New Hampshire, was received with great pomp in Boston. At the first meeting of the assembly, he stated the King's instructions to insist on an established salary, and his intention firmly to adhere to them. The assembly was not less firm in its determination to resist this demand; and, that no additional and unnecessary obloquy might be encountered, resolved, not to mingle any difference concerning the amount of the salary, with the great question of its depending on the will of the legislature. As soon therefore as the compliments usual on the arrival of a governor had passed, the house voted one thousand seven hundred pounds towards his support, and to defray the charges of his journey. This vote was understood to give him, as a present salary, a sum equal to one thousand pounds sterling per annum. The governor declared his inability to assent to this bill, it being inconsistent with his instructions. After a week's deliberation, the assembly granted three hundred pounds for the expenses of his journey, which he accepted; and, in a distinct vote, the farther sum of one thousand four hundred pounds was granted toward his support. The latter vote was accompanied with a joint message from both houses, wherein they asserted their undoubted right as Englishmen, and their privilege by the charter, to raise and apply money for the support of government; and their willingness to give the governor an ample and honourable support; but they apprehended it would be most for his majesty's service to do so without establishing a fixed salary. The governor returned an answer on the same day, in which he said, that, if they really intended to give him an ample and honourable support, they could have no just objection to making their purpose effectual by fixing his salary; for he would never accept a grant of the kind then offered.

The council was disposed to avoid the contest, and to grant a salary to the present governor for a certain time; but the house of representatives, remaining firm to its purpose, sent a message to the governor requesting that the court might rise. He answered, that a compliance with this request would put it out of the power of the legislature to pay immediate regard to the King's instructions; and he would not grant a recess, until the business of the session should be finished. The representatives then declared that, "in faithfulness to the people, they could not come into an act for establishing a salary on the governor or commander in chief for the time being," and, therefore, renewed their request that the court might rise.

Both the governor and the house of representatives seem, thus far, to have made their declarations with some reserve. A salary during his own administration might, perhaps, have satisfied him, though he demanded that one should be settled, generally, on the commander in chief for the time being; and the house had not yet declared against settling a salary on him for a limited time. Each desired that the other should make some concession. Both declined; both were irritated by long altercation; and, at length, instead of mutually advancing fixed at the opposite extremes. After several ineffectual efforts on each side, the representatives sent a message to the governor, stating at large the motives which induced the resolution they had formed. The governor returned a prompt answer, in which he also detailed the reasons in support of the demand he had made. These two papers, manifesting the principles and objects of both parties, deserve attention even at this period.

The house, not long after receiving this message, far from making any advances towards a compliance with his request, came to two resolutions strongly expressive of its determination not to recede from the ground which had been taken.

These resolutions gave the first indication, on the part of the representatives, of a fixed purpose to make no advance towards a compromise. They induced the governor to remind the court of the danger to which the proceedings of that body might expose the charter. This caution did not deter the house from preparing, and transmitting to the several towns of the province a statement of the controversy, which concludes with saying, "we dare neither come into a fixed salary on the governor for ever, nor for a limited time, for the following reasons:

First, Because it is an untrodden path which neither we, nor our predecessors have gone in, and we cannot certainly foresee the many dangers that may be in it, nor can we depart from that way which has been found safe and comfortable.

Secondly, Because it is the undoubted right of all Englishmen, by magna charta, to raise and dispose of money for the public service, of their own free accord, without compulsion.

Thirdly, Because it must necessarily lessen the dignity and freedom of the house of representatives, in making acts, and raising and applying taxes, &c. and, consequently, cannot be thought a proper method to preserve that balance in the three branches of the legislature, which seems necessary to form, maintain, and uphold, the constitution.

Fourthly, Because the charter fully empowers the general assembly to make such laws and orders as they shall judge for the good and welfare of the inhabitants; and if they, or any part of them, judge this not to be for their good, they neither ought nor could come into it, for, as to act beyond or without the powers granted in the charter might justly incur the King's displeasure, so not to act up and agreeable to those powers, might justly be deemed a betraying of the rights and privileges therein granted; and if they should give up this right, they would open a door to many other inconveniences."

Many messages passed in quick succession between the governor and the house, in the course of which the arguments stated in the papers which have been mentioned, were enlarged and diversified. At length, the house repeated its request for an adjournment; but the governor replied that "unless his majesty's pleasure had due weight with them, their desires would have very little with him."

The council now interposed with a resolution declaring "that it is expedient for the court to ascertain a sum as a salary for his excellency's support, as also the term of time for its continuance." This resolution was transmitted to the house of representatives, and immediately rejected.

After much controversy, a small seeming advance towards an accommodation was made. Instead of voting a salary, as had been usual, for half a year, a grant was made to the governor of three thousand pounds, equal to one thousand pounds sterling, to enable him to manage the affairs of the province. This was generally understood to be a salary for a year. The governor having withheld his assent from this vote, the house entreated him to accept the grant; and added "we cannot doubt but that succeeding assemblies, according to the ability of the province, will be very ready to grant as ample a support; and if they should not, your excellency will then have an opportunity of showing your resentment." The governor however persisted to withhold his assent from the vote.

The colony generally, and especially Boston, was opposed to a compliance with the instructions of the crown. At a general meeting of the inhabitants, the town passed a vote, purporting to be unanimous against fixing a salary on the governor. Adjournment of the Assembly to Salem.In consequence of this vote, and of an opinion that the members of the house were influenced by the inhabitants of the town, the governor determined to change the place at which the court should hold its session; and on the 24th of October, adjourned it to the 30th then to meet at Salem, in the country of Essex.

Change of place did not change the temper of the house. This was not, as in the contests with governor Shute, an angry altercation, into which the representatives were precipitated by a restless and encroaching temper, but a solemn and deliberate stand, made in defence of a right believed to be unquestionable, and of a principle deemed essential to the welfare of the colony. The ground taken was considered well, and maintained with firmness. Votes and messages of the same tenor with those which had been often repeated, continued to pass between the representatives and the governor, until the subject was entirely exhausted. Each party being determined to adhere to its principles, the house met and adjourned daily, without entering on business.

In the mean time, the governor received no salary. To the members of Boston, who had not been accustomed to the expense of attending the legislature at a distant place, a compensation, above their ordinary wages, was made by that town.

The house, firmly persuaded of the propriety of its conduct, prepared a memorial to the King praying a change in the royal instructions to the governor. Agents were appointed to represent the general court in England, and a vote was passed for defraying the expenses attendant on the business. The council refused to concur in this vote, because the agents had been appointed by the house of representatives singly; and the measure must have been abandoned for want of money, had not the inhabitants of Boston raised the sum required, by subscription.

1729

Letters were soon received from these agents, inclosing a report from the board of trade, before whom they had been heard by council, entirely disapproving the conduct of the house. The letters also indicated that, should the house persist in its refusal to comply with the King's instructions, the affair might be carried before parliament. But, should even this happen, the agents thought it more advisable that the salary should be fixed by the supreme legislature, than by that of the province. "It was better," they said, "that the liberties of the people should be taken from them, than given up by themselves."

The governor, at length, refused to sign a warrant on the treasury for the wages of the members. "One branch of the legislature," he said, "might as well go without their pay as the other." The act, and the reason for it, were alike unsatisfactory to the house.

Death of Governor Burnet.

After a recess from the 20th of December to the 2d of April, the general court met again at Salem. Repeated meetings at that place having produced no accommodation, the governor adjourned the legislature to Cambridge. A few days after the commencement of the session, he was seized with a fever, of which he died.

Mr. Burnet is said to have possessed many valuable qualities; and, had he not been engaged, by a sense of duty, in this long contest, he would, in all probability, have been a favourite of the province.[129]

1730

Arrival of Governor Belcher.

Mr. Belcher, who succeeded Burnet, arrived at Boston early in August where he was cordially received. At the first meeting of the general court, he pressed the establishment of a permanent salary, and laid before them his instructions, in which it was declared that, in the event of the continued refusal of the assembly, "his majesty will find himself under the necessity of laying the undutiful behaviour of the province before the legislature of Great Britain, not only in this single instance, but in many others of the same nature and tendency, whereby it manifestly appears that this assembly, for some years last past, have attempted, by unwarrantable practices, to weaken, if not cast off, the obedience they owe to the crown, and the dependence which all colonies ought to have on the mother country."

At the close of these instructions, his majesty added his expectation, "that they do forthwith comply with this proposal, as the last signification of our royal pleasure to them on this subject, and if the said assembly shall not think fit to comply therewith, it is our will and pleasure, and you are required, immediately, to come over to this kingdom of Great Britain, in order to give us an exact account of all that shall have passed on this subject, that we may lay the same before our parliament."

The house proceeded, as in the case of governor Burnet, to make a grant to Mr. Belcher of one thousand pounds currency for defraying the expense of his voyage, and as a gratuity for his services while the agent of the colony in England; and, some time after, voted a sum equal to one thousand pounds sterling to enable him to manage the public affairs, &c.; but fixed no time for which the allowance was made. The council concurred in this vote, adding an amendment "and that the same sum be annually allowed for the governor's support." The house not agreeing to this amendment, the council carried it so as to read "that the same sum should be annually paid during his excellency's continuance in the government, and residence here." This also was disagreed to and the resolution fell.

The small-pox being in the town of Cambridge, the assembly was adjourned to Roxbury.

Two or three sessions passed with little more, on the part of the governor, than a repetition of his demand for a fixed salary, and an intimation that he should be obliged to return to England, and state the conduct of the house of representatives to the King. Some unsuccessful attempts were made by his friends to pass a bill fixing the salary during his administration, with a protest against the principle, and against that bill's being drawn into precedent. Failing in this expedient, and finding the house inflexible, he despaired of succeeding with that body, and turned his attention to the relaxation of his instructions. 1731He advised an address from the house to his majesty, praying that he might be permitted to receive the sum which the legislature had offered to grant him. This was allowed by the crown; with the understanding that he was still to insist on a compliance with his instructions. Leave to accept particular grants was obtained for two or three years successively; and, at length, a general permission was conceded to accept such sums as might be given by the assembly.[130]

Contest concerning the salary terminated.

Thus was terminated, the stubborn contest concerning a permanent salary for the governor. Its circumstances have been given more in detail than consists with the general plan of this work, because it is considered as exhibiting, in genuine colours, the character of the people engaged in it. It is regarded as an early and an honourable display of the same persevering temper in defence of principle, of the same unconquerable spirit of liberty, which at a later day, and on a more important question, tore the British colonies from a country to which they had been strongly attached.

1733

The immense quantity of depreciated paper which was in circulation throughout New England, had no tendency to diminish the complaints of the scarcity of money. Massachusetts and New Hampshire were restrained from farther emissions by the instructions to their governors, who received their appointments from the crown. Connecticut, engaged chiefly in agricultural pursuits, suffered less from this depreciated medium than her neighbours, and was less disposed to increase its evils. Rhode Island, equally commercial with Massachusetts, and equally fond of paper, chose her own governor, and might therefore indulge, without restraint, her passion for a system alike unfavourable to morals and to industry. That colony now issued one hundred thousand pounds on loan, to its inhabitants, for twenty years. The merchants of Boston, apprehensive that this capital would transfer the stock of Massachusetts to Rhode Island, associated against receiving the new emission; and many of them formed a company which issued one hundred and ten thousand pounds, redeemable with specie, in ten years, a tenth part annually, at the then current value of paper. The association against receiving the new emission of Rhode Island was not long observed; and the bills of New Hampshire and Connecticut were also current. Silver immediately rose to twenty-seven shillings the ounce, and the notes issued by the merchants soon disappeared, leaving in circulation only the government paper.

1739

Great uneasiness prevailed through Massachusetts on this subject. The last instalment of the bills would become due in 1741, and no power existed to redeem them by new emissions. Serious consequences were apprehended from calling in the circulating medium without substituting another in its place, and the alarm was increased by the circumstance that the taxes had been so lightly apportioned on the first years, as to require the imposition of heavy burdens for the redemption of what remained in circulation. The discontents excited by these causes were manifested in the elections, and were directed against the governor, who was openly hostile to the paper system.

Land bank.

The projector of the bank again came forward; and, placing himself at the head of seven or eight hundred persons, some of whom possessed property, proposed to form a company which should issue one hundred and fifty thousand pounds in bills. By this scheme, every borrower of a sum larger than one hundred pounds, was to mortgage real estate to secure its re-payment. The borrowers of smaller sums might secure their re-payment either by mortgage, or by bond with two securities. Each subscriber, or partner was to pay, annually, three per centum interest on the sum he should take, and five per centum of the principal, either in the bills themselves, or in the produce and manufactures of the country, at such rates as the directors should, from time to time, establish.

Although the favourers of this project were so successful at the elections as to obtain a great majority in the general court, men of fortune, and the principal merchants, refused to receive these bills. Many small traders, however, and other persons interested in the circulation of a depreciated currency, gave them credit. The directors themselves, it was said, became traders; and issued bills without limitation, and without giving security for their redemption. The governor, anticipating the pernicious effects of the institution, exerted all his influence against it. He displaced such executive officers as were members of it, and negatived the speaker, and thirteen members elected to the council, who were also of the company. 1740Company dissolved.General confusion being apprehended, application was made to parliament for an act to suppress the company. This being readily obtained, the company was dissolved, and the holders of the bills were allowed their action against its members, individually.[131]

About this time governor Belcher was recalled, and Mr. Shirley was appointed to succeed him. He found the land bank interest predominant in the house, and the treasury empty.

1741

In this state of things, he deemed it necessary to depart from the letter of his instructions, in order to preserve their spirit. A bill was passed declaring that all contracts should be understood to be payable in silver at six shillings and eight pence the ounce, or in gold at its comparative value. Bills of a new form were issued, purporting to be for ounces of silver, which were to be received in payment of all debts, with this proviso, that if they should depreciate between the time of contract and of payment, a proportional addition should be made to the debt.

Affairs of New York.

While these transactions were passing in New England, symptoms of that jealousy which an unsettled boundary must produce between neighbours, began to show themselves in Canada and New York. The geographical situation of these colonies had, at an early period, directed the attention of both towards the commerce of the lakes. Mr. Burnet, the governor both of New York and New Jersey, impressed with the importance of acquiring the command of lake Ontario, had, in the year 1722, erected a trading house at Oswego in the country of the Senecas. This measure excited the jealousy of the French, who launched two vessels on the lake, and transported materials to Niagara for building a large store house, and for repairing the fort at that place. These proceedings were strongly opposed by the Senecas, and by the government of New York. Mr. Burnet remonstrated against them as encroachments on a British province, and also addressed administration on the subject. Complaints were made to the cabinet of Versailles; but the governor of Canada proceeded to complete the fort. To countervail the effects of a measure which he could not prevent, governor Burnet erected a fort at Oswego; soon after the building of which, while Mr. Vandam was governor of New York, the French took possession of Crown Point, which they fortified; and thus acquired the command of lake Champlain. Obviously as this measure was calculated to favour both the offensive and defensive operations of France in America, the English minister, after an unavailing remonstrance, submitted to it.