The sugar act of 1764 was the first tax in grenvilles program to raise a revenue in. A new colonial system reading with questions student. On september 1, 1764, the british parliament took control of the currency system in the colonies and passed the currency act. The sugar act aimed to take advantage of the demand for sugar and rum and was seen as an easy way to raise money through tax. This was not done to restrict economic growth so much as to take out currency that was thought to be unsound, but it did severely reduce the circulating. The currency act 1764 was a british attempt to limit and regulate the use of paper money in the american colonies. The act prohibited the issue of any new bills and the reissue of existing currency. The coming of the american revolution, 17641776 massachusetts historical society. The coming of the american revolution, 17641776 massachusetts historical society the sugar act. The currency act of 1764 was a more in depth version of the currency act of 1751.
On september 1, 1764, parliament passed the currency act, effectively assuming control of the colonial currency system. People of the civil war lincoln, davis, grant, lee, frederick douglass, harriet tubman, dred scott and more. And whereas the great quantities of paper bills, or bills of credit, which are now actually in circulation and currency in several colonies or plantations in. Home british government documents the currency act of 1764 whereas great quantities of paper bills of credit have been created and issued in his majestys colonies or plantations in america, by virtue of acts, orders, resolutions. The currency act of 1764 was a british law, passed by the parliament of great britain on september 1, 1764, that was designed to control the colonial currency system. The coming of the american revolution, 1764 1776 massachusetts historical society the sugar act. Parliament, desiring revenue from its north american colonies, passed the first law specifically aimed at raising colonial money for the crown.
British government restricted the free exportation of specie monies from britain. Whereas the act of parliament made in the sixth year of her late majesty queen anne, intituled an act for ascertaining the rate of foreign coins in her majestys plantations in america, hath been intirely frustrated in his majestys said colonies of rhode island and providence plantations, connecticut, the massachusets bay. The currency act, 19 april 1764 the sugar act, 29 sept. All currencies of all the colonies would now be regulated by the crown. Freeholders meeting, society for the encouraging of trade and commerce. The currency act of 1764 prevented the american colonies from creating their own currency. The colonial assemblies in massachusetts, new york, rhode island and north carolina all petition the british government, calling for the repeal of the sugar act. He was soon released, but enmity now defined the relationship of the colonial merchants and british trade officials. There were no gold or silver mines and currency could only be obtained through trade as regulated by great britain. Philosophical transactionsvolume 54a letter from thomas lawrence, m. Currency act 1764 colonies were prohibited from issuing paper.
Parliament then passed the currency act of 1764 the currency. They believed that the colonists should help pay this cost since much of the fighting was done to defend them. A new colonial system reading with questions student handouts. Introduction to the problem some forbidding issues a summary view of british paper money policies the currency act of 1764. London passes another currency act, a measure extending british control over the issuance of colonial currency. The department of state for the government of the united states of america shall have enforcement authority for the national currency act of 2017, be it resolved by the united states, in congress assembled convened on the 173 rd. Later in 1764, parliament enacted a currency act to prevent paper bills of credit hereafter issued in any of his majestys colonies from being made legal tender. This act prohibited american colonies from issuing their own currency, angering many american colonists. On september 1, 1764, parliament passed the currency act. The following is the original text of the currency act of 1764. The colonies suffered a constant shortage of currency with which to conduct trade. The currency act was passed in the year 1765 banning the colonies from assessing paper bills of credits because of the belief that the colonial currency has developed british money. There was no standard value of currency in the british colonies at the time, and the frequent fluctuations in the economy of britain due to the wars werent helping traders and merchants in the colonies. Name of 1763 sugar act 1764 currency act 1764 stamp act.
Sep 23, 2014 in december 1763 and january 1764, lord hillsborough and the board of trade conducted a series of hearings to determine whether the act of 1751 should be extended. So on the 1st of september 1764, the parliament passed the currency act. Virginia monetary practices and the protection of british debts the repeal movement. In fear of depreciation the currency act forbid the colonies to. Under him, salutary neglect comes to a close, the navigation acts are enforced, and enforces the molasses act of 1733, the sugar revenue act of 1764, the currency act of 1764, the stamp act of 1765, and the quartering act. To collect the tax the british sent several ships to new england including hms squirrel in 1764 crew members on another british ship, hms st john had allegedly stolen goods from newport merchants.
How benjamin franklin caused the revolutionary war opednews. While it eased the earlier acts prohibition against of the printing of new paper bills, it did forbid the colonies from using any future bills for payment of all public and private debts. The currency act of 1764 the smugglers gambit history. The currency act prohibited the colonies from making their currency legal tender. It prohibited the colonists from possessing british currency. Preamble an act for granting certain duties in the british colonies and plantations in america. Archived from the original pdf on 24 november 2011. And be it further enacted by the authority aforesaid, that from and after the twentyninth day of september one thousand seven hundred and fiftyone, no paper currency, or bills of credit, of any kind or denomination, which may be made, created or issued in any of the said colonies or plantations, pursuant to the provisions herein before made in this act, shall be a legal tender in payment of any private bargains, contracts, debts, dues or demands whatsoever, within the said colonies or. Pdf on apr 12, 2018, cameron harsey and others published. It set an unfavorable exchange rate between colonial currency and british pounds. Why did the currency act anger colonists when it was passed in 1764. The stamp act of 1765 was an act of the parliament of great britain which imposed a direct tax. An act to prevent paper bills of credit, hereafter to be issued in any of his majestys colonies or plantations in america, from being declared to be to a legal tender in payments of money. Parliament put a limit on the amount of money that was allowed in the colonies.
Many of the colonies felt no alternative to printing their own paper money in the form of bills of credit. Parliament then passed the currency act of 1764 the. Currency act of 1764 and quartering act of 1765 nok. The colonies now faced a large shortage of money due to the debts they owed england. The passage of parliaments 1764 currency act forced the colonies to use only british money bank of england notes, and put the colonists squarely under the thumb of the british central bank, just. Currency act of 1764 and quartering act of 1765 nok view. Passed by parliament on september 1, 1764, the act extended the restrictions of the currency act of 1751 to all of the american british colonies. The currency act of 1764 from the trenches world report. Stamp act was enacted parliaments first direct tax on the american colonies, this act, like those passed in 1764, was enacted to raise money for britain. The sugar act of 1764 was put in place to raise revenue, as the british government was heavily in debt after the french and indian war, and directly replaced the molasses act. The currency act is one of many several acts of the parliament of great britain that regulated. Virginia and the currency act of 1764 american revolution. He decided to take a different approach with the stamp act of 1765. The end result the problem was that the colonies were always had a shortage of currency and werent able to trade.
A study in the currency act of 1764 and the political economy of revolution. Currency act 1764 colonies were prohibited from issuing paper currency of any kind to pay for public or private debts. Parliament favored a hard currency system based on the pound sterling, but was not inclined to regulate the colonial bills. It banned the printing of any new currency and forbid the use of the old colonial currency. Choose from 44 different sets of the currency act of 1764 flashcards on quizlet. The currency act of 1764 extended to the other american colonies restrictions placed on new england in 1751 that prohibited the emission of paper money as legal tender and required the retirement of existing emissions on the dates set forth by the colonial assemblies. Apr 29, 2017 currency act was just another move in the chess board. The currency act of 1764 was the second and most impactful of two laws passed by the british government during the reign of king george iii that attempted to take total control of the monetary systems of all colonies of british america. The reason they didnt have money was because it was taxed and the. Pdf economics and the american revolution researchgate. Jul 14, 2011 the passage of parliaments 1764 currency act forced the colonies to use only british money bank of england notes, and put the colonists squarely under the thumb of the british central bank, just. Since the colonies were a deficit trade area and were constantly short of hard currency, this measure added a serious burden to the colonial economy. Parliament passed the currency act of 1764 to take control of the colonial currency system.
Events leading up to the american revolution for kids and. Why did the currency act anger colonists when it was. Why did the currency act anger colonists when it was passed. In fear of depreciation the currency act forbid the colonies to make their currency legal tender. It placed limits on the amounts of new currency that could be minted in the colonies. The currency act of 1764 it was a compromise measure between colonial planters who wanted to defend their right to issue their own currency, london merchants who did not want to see debts incurred in pounds sterling paid with colonial currency worth much less, and scottish traders who needed local currency to ensure the payment of debts owed to. How benjamin franklin caused the revolutionary war. C r to the a c a of 1764 a selection from petitions. Learn the currency act of 1764 with free interactive flashcards. Currency act of 1764 american colonists were not happy in 1764. An act relating to currency, coinage and legal tender. The colonies then attempted to issue their own paper money.
The act increased duties on nonbritish goods shipped to the colonies. Passed by parliament on september 1, 1764, the act extended the restrictions of the currency act of 1751 to all of the american. Terms to know currency act 1751 currency act 1764 new england colonies bills of credit french and indian war private vs. To us they are bland terms sugar act and currency act but in 1764 they were. The sugar act of 1764 the history carperthe history carper. The currency acts of 1751 and 1764 by chip heuston on prezi. The british parliament is the government in great britain.
Rhode islanders were violently opposed to the passage of the sugar act in 1764, because the colonys main industry was producing rum from molasses. Image from wikipedia the currency act of 1764, along with its earlier iteration, the currency act of 1751 which applied only to new england, in essence, prohibited the colonies from issuing their own. Currency act of 1764, which pushed the same new england. Parliament would not let the colonists print any money. Prior to the 1760s the american colonists had created their own paper money for internal trade see the picture, right, for a 1740 example from new hampshire. Unlike the earlier act, this statute did not prohibit the colonies from issuing paper money, but it did forbid them from designating future currency issues as legal tender for public and private debts. Jun 22, 2018 the currency act of 1764 extended the restrictions of the currency act of 1751 to all of the american british colonies. So parliament passed the sugar act, which was a tax on sugar, wine, indigo a. The act prohibited the issue of any new bills of credit and the reissue of existing currency by the american colonists in the. The government of great britain, parliament, needed money to pay off the cost of the seven years war, known in the colonies as the french and indian war. In december 1763 and january 1764, lord hillsborough and the board of trade conducted a series of hearings to determine whether the act of 1751 should be extended. Timeline detailed the road to nationhood 17641800 america. Obverse and reverse of a three pence note of paper currency issued by the province of pennsylvania and printed by benjamin franklin in 1764. Name of 1763 sugar act 1764 currency act 1764 stamp act 1765.
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