Early Paper Money of America / Rhode Island / 1750/51 March 18
62,500 ounces of silver of sterling alloy in Bills of Credit without any denomination but equal to £50,000 New Tenor or £200,000 Old Tenor was issued. Under the Act of Mar. 18, 1750/51 the Ninth Bank was created to issue £25,000 in bills with specific denominations. These bills were to be loaned for 6% 5-year mortgages. Sterling alloy was valued at 6s9d sterling per ounce for this emission equal to 13s6d New Tenor or 54s Old Tenor. To pay a higher price for specie than the specified rate was made illegal. The proceeds were to be used for flax, wool, whale oil and codfish subsidies. By the June 1751 Act the subsidies were eliminated, interest was reduced to 5%, loans were extended to 10 years, denominations were to be eliminated from the bills, and one ounce of sterling alloy was made equal to 16s New Tenor or 64s Old Tenor. Old Tenor denominational equivalents were nevertheless for convenience placed on the engraved faces and the typeset backs. This issue was the primary cause of the English Parliament passing the Currency Act of March 12, 1750/51 restricting New England paper money issues. (See Introduction). Signers were James Arnold, Joshua Babcock, George Brown, Obadiah Brown, Samuel Chace, Nicholas Easton, B. Haszard, Jeremiah Lippitt, Benjamin Nichols, James Sheffield, and Gideon Wanton.