The Currency Act - 1764
On September 1, 1764, Parliament passed the Currency Act which banned paper money as legal tender.
(McDowell, 1976) Parliament favored a "hard currency" system based on the pound sterling, but did not want to regulate the colonial bills. Rather, they simply abolished them. Basically, it was England assuming control of the colonial currency system. (Independence Hall Association, 2012) The colonies protested strongly against this. They suffered a trade deficit with Great Britain to begin with and argued that the shortage of hard capital would further aggravate the situation. (Timelines, 2012)
Document: http://totallyhistory.com/wp-content/uploads/2011/06/Currency-2.jpg
(McDowell, 1976) Parliament favored a "hard currency" system based on the pound sterling, but did not want to regulate the colonial bills. Rather, they simply abolished them. Basically, it was England assuming control of the colonial currency system. (Independence Hall Association, 2012) The colonies protested strongly against this. They suffered a trade deficit with Great Britain to begin with and argued that the shortage of hard capital would further aggravate the situation. (Timelines, 2012)
Document: http://totallyhistory.com/wp-content/uploads/2011/06/Currency-2.jpg