ng another in its place, and the alarm was increased by the
circumstance that the taxes had been so lightly apportioned on the
first years, as to require the imposition of heavy burdens for the
redemption of what remained in circulation. The discontents excited by
these causes were manifested in the elections, and were directed
against the governor, who was openly hostile to the paper system.

[Sidenote: Land bank.]

The projector of the bank again came forward; and, placing himself at
the head of seven or eight hundred persons, some of whom possessed
property, proposed to form a company which should issue one hundred
and fifty thousand pounds in bills. By this scheme, every borrower of
a sum larger than one hundred pounds, was to mortgage real estate to
secure its re-payment. The borrowers of smaller sums might secure
their re-payment either by mortgage, or by bond with two securities.
Each subscriber, or partner was to pay, annually, three per centum
interest on the sum he should take, and five per centum of the
principal, either in the bills themselves, or in the produce and
manufactures of the country, at such rates as the directors should,
from time to time, establish.

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[Sidenote: Company dissolved.]

Although the favourers of this project were so successful at the
elections as to obtain a great majority in the general court, men of
fortune, and the principal merchants, refused to receive these bills.
Many small traders, however, and other persons interested in the
circulation of a depreciated currency, gave them credit. The directors
themselves, it was said, became traders; and issued bills without
limitation, and without giving security for their redemption. The
governor, anticipating the pernicious effects of the institution,
exerted all his influence against it. He displaced such executive
officers as were members of it, and negatived the speaker, and
thirteen members elected to the council, who were also of the company.
General confusion being apprehended, application was made to
parliament for an act to suppress the company. This being readily
obtained, the company was dissolved, and the holders of the bills were
allowed their action against its members, individually.[131]

[Footnote 131: Hutchison.]

About this time governor Belcher was recalled, and Mr. Shirley was
appointed to succeed him. He found the land bank interest predominant
in the house, and the treasury empty.

{1741}

I