Currency
Little paper currency existed in the early days of our history when trade or payment in kind by labor was used to settle debts. The Assembly of the Colony of Connecticut, to facilitate trade with a stable currency, voted the following into law:
1709 - The Assembly ordered the issue of £8,000 in paper currency, to be received at a premium of 5%, in payment of taxes. The basis was derived from a tax of ten pence per pound of each settlers assets payable in two annual parts. (1 pound = 240 pence) Later in the same year an additional £11,000 was issued with a provision for a tax payable in six annual installment. Other issues followed rapidly with what was called an earnest endeavor to provide for their redemption by special taxation.
1733 - The colony issued £30,000 divided in equal amounts among the five (Connecticut) Counties (Fairfield, New Haven, New London, Hartford and Windham).
Unfortunately this paper currency lost value as more was printed and the decrease in value can best be described by the fact that a pound sterling of silver was valued at 8 shillings in 1708, 18 shillings in 1732, and 32 in 1740. Thus the notes were worth only one quarter of their original value 32 years later.
The total value of all currency printed by 1740 is estimated to be £156,000 with all but £6,000 redeemed by taxation with a remaining debt of £45,000.
1740 - With war between England and Spain in the West Indies, the Assembly took measures to pay for 1,000 colonists to aid the English effort. A new issue of £45,000 was ordered with £8,000 to redeem earlier issues known as Old Tenor. £23,000 was to be loaned with the interest intended to pay for the new issue, called New Tenor.
1744 - Additional war efforts were met with the issue of more New Tenor until the war related printing totaled £132,000. These bills also depreciated rapidly but retained a value where £1 of New was equal to £3 1/2 Old.
1751 - Parliament ended the issue of paper in Connecticut other than that needed for present year taxes or secured by taxes payable in five years. The Colony was ordered to buy all of the Old Tenor obligations at 11% of face value. With a grant from Parliament, Connecticut liquidated all the outstanding paper.
1775 - With a pressing need of money to finance the Revolution, the General Assembly, in April, voted an issue of £50,000 in bills of credit for two years without interest. In May 50,000 more for three years and July another 50,000 for four and one half years.
1776 - Bills had depreciated to the point where they were refused until a few patriots offered to exchange silver for paper realizing their efforts would fail without action. The Legislature in October and November passed laws which regulated prices with fines and penalties attached. Those attempting to subvert the currency were later prohibited from using any as only those known as "Friends of Freedom" were allowed to trade with penalties of forfeiture of double the value of the goods purchased for those practicing speculation.
1778 - Paper money was worth 25% of the value in Philadelphia
1779 - It was enacted that no bills of the state would be current in trade after March 1, except those with sums under one dollar needed for change. Later that year local money was traded for Treasurers Promissory notes and Bills of the United States. The era of Connecticut currency had ended
In 1665 the Colony of Connecticut was divided into four Counties - Hartford, Fairfield, New Haven and New London. Later Windham 1726, Litchfield 1751, Middlesex 1765 and Tolland 1786 were constituted from towns divided from the wilderness and those previously incorporated.