North America's First Experience with Paper Money: Card Money in New France
In his History of Money and Banking in the United States, Murray Rothbard writes that apart from medieval China, the world had never seen government paper money until the colonial government of Massachusetts emitted a fiat paper issue in 1690. In a footnote however, he explains that the only exception was a curious form of paper money issued five years earlier in Quebec, which became known as "card money." Martin Masse explains. FULL ARTICLE
Comments (8)
back2future
wow :) this explains a lot of things :)
thank you mises.org :)
Published: March 23, 2006 7:52 AM
billwald
Was there a monetary or fiscal (not weather or war related) problem of inflation in China prior to 1690?
Published: March 23, 2006 9:47 AM
Ohhh Henry
Good essay. In my opinion Canada has always lagged behind the United States in wealth, because of continuing pattern of government interference in the market which was established all the way back in the days of New France. At first the favored recipients of government protection were friends of the kings of France; later they were well-connected Englishmen; nowadays they are Canadian businessmen based in Montreal and Toronto who have strong connections to the two major political parties. The most influential of them all has a good name for his company: Power Corporation. Doesn't that tell you all you need to know?
Published: March 23, 2006 7:19 PM
Roy W. Wright
Brother Joseph!
Published: March 25, 2006 11:30 PM
Ohhh Henry
billwald, I just stumbled across this. I think it shows that inflation is as old as any empire on earth:
When the empire [of the Yuan a.k.a. Mongol Dynasty AD1271-1368] decided to adopt the paper note policy of its former enemies- the Southern Sung and Jin – the circulation of silver began to be restricted or even banned. However, this temporary setback did not cause silver to lose its attraction; the unlimited issuance of paper notes by the empire created serious inflation, and as a result, through the remainder of the Mongol Empire, silver was used by people secretly and privately instead of the devalued paper money.
Subsequent to the Yuan Dynasty, silver ingots continuously circulated in the Ming Dynasty (1368-1644), until another "paper money only" policy was implemented in the 8th year of its 1st emperor Hung Wu (1466 AD). Again, silver ingots were forced to be hidden and circulated secretly. People never gave up using silver, since the paper money was debased, and they even resort to barter rather than using paper notes. This situation lasted for several decades until the silver ban was abolished by emperor Yin Zhong (1435-1450, 1457-1464). Silver was once again widely circulated in China, and almost all the surviving Ming silver ingots date from that time. According to a historical record, officials of late Ming period received their salaries10% in cash coins and 90% in silver, and all levels of Chinese people conducted transactions using silver.
Link
Published: March 27, 2006 4:49 PM
George Giles
Murray always tells it quicker and with an attratactive contemporary lilt to his language, but the ground he plows is not new.
William Sumner Graham covered all of this in excruciating detail in his four volume "History of Banking in the Leading Nations". It's the oldest story in the world: once you allow paper money swindling is never far behind. The swindlers are always politicians and their friends.
A History of banking in all the leading nations
Sumner, William Graham, 1840-1910
Title: A History of banking in all the leading nations. William Graham Sumner, editor.
Publication info: New York, A. M. Kelley, 1971.
Physical details: 4 v. 24 cm.
Series statement: Library of money and banking history
Series statement: Reprints of economic classics
Note: Reprint of the 1896 ed.
Note: "Comprising [the histories of banking in] the United States, Great Britain, Germany, Austro-Hungary, France, Italy, Belgium, Spain, Switzerland, Portugal, Roumania, Russia, Holland, the Scandinavian nations, Canada, China [and] Japan; compiled by thirteen authors."
Note: Includes bibliographical references.
ISBN: 0678005540
Published: April 20, 2006 8:24 AM
BillG (not Gates)
does anyone know if Murray Rothbard wrote about the mutualist land bank system of issuing of private credit money (backed by land values) that occurred in Mass. Bay in the 1686 and the New London Society United for Trade and Commerce in 1732??
http://www.dinsdoc.com/davis-2.htm
Published: April 20, 2006 8:50 AM
student
Professor Rizzo, at the University of Rochester, NY, says that the card money was not the first experience with paper money in North America.
I checked a book "Canadian monetary, banking, and fiscal development" by Canadian economist Craig McIvor, and I found out the card money was the first paper money used in North America.
Whom should I follow: economist Craig McIvor or prof Rizzo?
Did anyone find any other evidence of that the card money was not the first experience with paper money in NA?
Published: October 23, 2009 11:47 AM