Massachusetts' early colonial economy was mainly based on agriculture. The steady flow of English immigrants allowed Massachusetts's first farmers to make a profit for about a decade growing corn and raising cattle. Massachusetts' current economy is largely based on technological research and development and the service sector (including tourism). This represents a major change from the state's pre-industrial agricultural base and maritime trade in the 17th and 18th centuries and the heavy manufacturing that characterized the 19th and first half of the 20th centuries.
The units of account in colonial times were pounds, shillings and pence (1£%3D 20s. Doing so is comparable to treating Canadian dollars and modern US dollars as interchangeable, simply because both are referred to as “dollars”. All local currencies were less valuable than the British pound, 2 A Spanish piece of eight, for example, was worth 4 s. The same piece of eight, on the eve of the Revolution, would have been treated as 6 s.
In New England, like 8.In New York, like 7 s. In Philadelphia, and like 32 s. Grubb then uses contract records in early Republic (2003, 200) and runaway announcements in colonial Pennsylvania (200) to develop time series of hitherto immeasurable components of the money supply and draws many surprising conclusions from them. The Pennacooks occupied the Merrimack River Valley to the north, and the Nipmucs, the Pocumtucs and the Mahicans occupied the western lands of Massachusetts, although some of those tribes were under tribute to the Mohawks, who were aggressively expanding from upstate New York.
Charles sought to extend real influence over the colonies, which Massachusetts resisted along with the other colonies. Due to the retirements Phillips lost, he overestimated the number of Pennsylvania bills of credit outstanding at the end of the colonial period by 50 to 100%. He concludes that “there was no concerted effort by the king and his ministers to crush the Massachusetts mint. In fact, many private banking schemes, such as the Merchants Bank of Massachusetts, the Merchants Bank of New Hampshire, the New London Society and the Land Bank of 1740, were based on private hand notes, and each consisted of a partnership designed to circulate such banknotes on a large scale.
One of the first and largest shoe plants in the United States was the United Shoe Machinery Corporation in Beverly (built 1903-0), while the construction of the Springfield armory in 1777 boosted the industry in western Massachusetts while helping the revolutionary cause. People's creditworthiness was more difficult to determine in colonial times than it is today, and asymmetric information problems abounded. King William III issued a letter in 1691, despite efforts by Massachusetts agents to revive the old colonial charter. However, the colonists' main transgressions were the minting of money (the pine shilling) and their violations of navigation laws, which had been passed by Parliament to regulate trade within the English colonial empire.
In the colonial era, the unit of account and the medium of exchange were different in ways that now seem strange. The unit of account and the medium of exchange were equally disconnected in colonial times (Adler, 1900). The Massachusetts government, unable to fulfill the promises of redemption made when the first new tenor issue was created, decided in 1742 to revalue these notes from three to one to four to one with the previous maturity as compensation. However, some twentieth-century economists have gone too far in the other direction by generalizing on the basis of the success of the system in the middle colonies and attributing the benign results there to the fundamental soundness of the system and its shrewd management.
All estimates of the number of colonial bills of credit in circulation, including those of Brock (1975, 199), on which recent authors from all sides of the debate have been based, inevitably lead to the conclusion that in 1774 there were very few outstanding bills of credit, not close to 22 million. dollars implied by Hamilton. . .