Currency+Act

=** //Currency Act// **=

===** Why? The colonies suffered a constant shortage of currency with which to conduct trade. Because there were no gold or silver mines, currency could only be obtained through trade with Great Britain. Many of the colonies printed their own paper money in the form of Bills of Credit. However, there was no standard value on which to base notes, and no common regulations. The Currency Act was enforced to take control of the colonies' currency issues, and because many London merchants were complaining about the paper money. ** ===

**When? 1764 **
===**What? The Currency Act prohibited the is ** **sue of any new bills and the reissue of existing currency. Instead, Parliament favored a "hard currency" system based on specie.** ===



===**Result: The colonies protested vehemently against this Act.They suffered a trade deficit with Great Britain and argued that the shortage of hard capital would further exacerbate the situation. This act also had a psychological impact on colonists. They started to think that Parliament did not understand or care about their problems. Colonial leaders came to believe that they, rather than Parliament, were better suited to legislate for the colonies. ** ===

** Quote: **
===** “The impact of the Currency Act upon the Revolutionary movement should not be overlooked. Its psychological effects were especially important. It served as a constant reminder that the economic well-being of the colonies was subordinate to the desires of the imperial government at the very time when colonial legislatures were beginning to demand equality for the colonies within the empire.” **===