Did Massachusetts's 1690 paper money and Continental money keep their value?

"The evidence for this argument comes from a close look at the way in which the colony of Massachusetts ended a severe long-term inflation in 1750."

"Other British North American colonies endured similar episodes, all of which parallel some periods of severe inflation in the 20th century United States."

"Maryland issued three distinguishable types of paper money, namely, “red” money, “black” money, and “state continental” money in 1780-81. The three monies were backed differently, some by future taxes and some by the expected sale of confiscated loyalist property, and they also traded at differing discounts off their face value."

"In some cases they switched between the policy of taxing the money out of circulation and physically burning it, and the policy of rolling-over issues of paper money as they where paid in as taxes"

"They served a backing function by holding the value of paper money above its opportunity value through paper money’s acceptance for tax obligations, and a quantity function by influencing the quantity of money through the time-path of note redemption."

"They also could not defend an exchange rate between paper money and specie in the short run. However, they could and did engage in monetary actions in response to large crises, such as wars, depressions, and trade shocks"

"Virginia’s paper money was not a fiat currency, but a barter asset, with just enough “moneyness” value to make it the preferred medium of exchange for local transactions."

"Positive risk discounts occurred in years when treasurer malfeasance was suspected."

"The Parliamentary removal of legal tender status of colonial paper monies did not reduce the TP or “moneyness” value Virginians placed on their own treasury notes."

"The face value of the notes for redemption purposes was fixed in law to be 1£ = 200 pounds of tobacco = 1.25£ [£ = Virginia paper pounds, £ = pounds sterling]"

"Virginia’s paper money was mostly a barter asset. It functioned as a zero-coupon bond and not a fiat currency. It traded below face value due to time-discounting, notdepreciation."

"The typical method of Tm tax-redemption was to set net new taxes to redeem M to be an equal amount per year (Tm) over an N-year redemption window... The Virginia legislature took note redemptionanditseffectoncontrollingthevalueofitspapermoneyseriously"

"Positiveriskdiscountsoccurredinyearswhenmon-etarytroublesweresuspected,namelyworriesthatthegovernmentwouldnotredeemthepapermoney aspromised.Counterfeiting,however,wasnotoneoftheseworries."

"Thelegislaturehadthetoolsand used them effectively to mitigate the effects of counterfeiting on the value of its paper money."

"That the present currency has no funds to fuppert it.- It refison nothing fub fubftantal, - ftantal, fubftantal, and the only way to give permanent value to what appears now to be its worth, ic for each S:ate to ingraft jts quota on its own funds."

"A merchant asks 30 or 40 pounds for 2 gallon of rum, and a miller go or 10 pounds for hundred weight of flour; tive real value of the firft is not above. five or fix thillings Seerling"

"Voted, THat wé will adopt theaflutes fimi fimi-lar - -lar fimi-lar to those agreed to by the Merchants ard Traders in. Philadelphia énd Boston, in re regard - gard regard to reddcing the prices of the neceflaries of life, atid for fapporting tlie credit of ot turrency."

"Resolved, Upon condition the other towas TAUESD A Y JULY 8 1776 in this State adopt fimilae measures respect respecting - ing respecting their Merchandize and Produce, that from and dfter the 29th day of July inst, we will fell no article of Merchandize higher than it w as fold on the firft day of May last, arid-from the said 29th'day of July, we will continue month by moath to 'Bwer the prices of"

"Resolved, That we will not direltly or indireétly buy or fell; and that we will do all in outr power to discourage the buying and fglling of Silvet and Gold ; and that we wiil exert ourselves to carry into execution any measures Governriient may adopt, to grcvcnt a ‘praltice so detrimental to the üblic Waal, . .~ R g Whereas the buying and [elling Goods for Bard money in pars or in whole, bas a di"

"Voted, That all those who fhail hereaiter dave to refufe Continental Currenmcy, OF require Hagd Money for Rents, of any Article what - ever, shall not” remain among us, but be traniported to .our Eoemics, as unworthy and dangerous Members of Society."

"We have'the pleafyre Qf’,,'i‘xyifi,;?%mg-“bc public, that the {pirited measures entered - to by the ciiizéns of Philade!phia, for appre= ciating our currency, and lowering the prices of the necessaries and conventences-of g I€, are followed by several of theCountiésint is State,and we have the grezteit rezion to hcpe will soon be adopted by all."

"le gouvernement colonial du Massachusetts émette de la monnaie fiduciaire de papier en 1690"

"Its market value was predominately determined by its real-asset present value."

"the practice was started in Massachusetts, where colonists initially used it to finance raids into the French colony of Quebec."

"sa valeur est fortement dépendante du degré de confiance accordé par les porteurs de billets à l'organisme qui les émet"

"The arrows indicate that r* rose to 100+ percent in 1719, before returning to 7.7 percent in 1721."

"the states never levied sufficient taxes, while the Continental Congress added roughly $225 million in “Continentals” to the existing money supply of about $10–12 million within the next five years"

"devalued the Continentals from the initial exchange rate in specie of 1:1 to 42:1 by December 1779, and to 168:1 by spring 1781"

"2 shows no overall depreciation of New Jersey paper money, deprecia-"

"Cette monnaie de carte fut créée en juin 1685 par l'intendant Jacques de Meulles"

"L’inflation est immédiate, et après 42 émissions, on frôle l' hyperinflation"

"It was paid out, in default of any available coined money, to the soldiers, sent out in the defense of the country, who were clamoring for their arrears."

"la monnaie de carte à jouer canadienne avait fait son apparition cinq ans plus tôt"

"les colons du Massachusetts, face au succès remporté par la monnaie de carte canadienne, s'y sont familiarisés"

"Paper money finally came to Massachusetts not in the form of a land banks notes, but as the first issue of government paper money in the world, apart from medieval China."

"le principal émetteur, la Maison de secours (Paris), laisse bientôt apparaître un déficit de plus de 2 millions"