Men of fortune and the principal merchants CHAP. VIII. refused to receive these bills, but many small 1740. traders, and other persons interested in the circulation of a depreciating 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 exerted all his influence against the institution. Such officers

as were members of it were displaced, and the speaker and thirteen members elected to the council, who were also of the company, were negatived. A general confusion was apprehended, and application was made to parliament whose controlling authority, except in levying money, seems at that time not to have been questioned, for an act to suppress the company. This was readily obtained. The Company company was dissolved, and the possessors of by act of the bills were allowed their action against every member of it for their amount.

dissolved

parliament.

Shirley

arrives.

About this time governor Belcher was re- Governor called, and mr. Shirley was appointed to succeed him. He found the land bank interest predominant in the house and the treasury empty.

In this state of things he deemed it necessary to depart from the letter of his instructions, to preserve their spirit. A bill was passed declaring that all contracts should be understood to be payable in silver at six shillings and eight

1741.

CHAP. VIII. pence the ounce, or in gold in proportion. 1741. Bills of a new form were issued, purporting to

Review of transactions

be for so many ounces of silver, which were to be received in payment of all debts, with this proviso, that if they should depreciate from the time of contract to that of payment, a proportional addition to the debt should be made. This act it is said could not have passed the house of representatives had not the governor found means to soften the members of the land company. Such of them as were afterwards elected to office were permitted to remain, and those who had been removed were gradually reinstated.

The long peace which had prevailed, afforded in New York. the opportunity of settling the boundaries between the northern provinces, and considerable progress was made in adjusting the line between New York and New Jersey. The contests and doubts on this subject had occasioned much jealousy and disquiet, and their termination may be considered as a fortunate event. The geographical situation of New York was such that its attention was early turned towards the commerce of the lakes. Mr. Burnet, then governor of that province and of New Jersey, deemed it an object of great magnitude to obtain the command of lake Ontario, and in pursuance of this plan he had in 1722, erected a trading house at Oswego in the country of the Senecas, which soon became of considerable importance.

By the erection of a new trading house at the CHAP. VIIL mouth of Onandaga river, the jealousy of the 1741. French was naturally excited; who, becoming apprehensive of losing a profitable trade they had heretofore almost entirely engrossed and the command of lake Ontario, launched thereon two vessels, and transported materials for building a large store house, and repairing the fort at Niagara. This was strongly opposed by the Senecas. Mr. Burnet laid the matter before the house, and remonstrated against it to monsieur Longueil the governor of Canada, as an encroachment on New York. He also wrote to the ministry in England who complained to the French court; but mr. Longueil proceeded to complete the fort. Unable to prevent this measure, governor Burnet to countervail, as much as possible, its effects, erected at his own expense, a fort at Oswego. Beauharnois, who had succeeded Longueil, as governor of Canada, sent a written summons to the officer posted at Oswego, requiring him to evacuate the fort; and on his refusal, remonstrated warmly on the subject to mr. Burnet, who replied politely to him, and in turn remon strated against the proceedings at Niagara.

Information was afterwards received of an expedition determined on by the governor of Canada for the purpose of demolishing the works, but the garrison being strengthened, and the Indians shewing a determination to

CHAP. VIII. engage in defence of the place, the proposed 1741. expedition was laid aside.

Soon after the building of this fort, while mr. Van Dam was governor of New York, the French took possession of Crown Point which they fortified. This important position gave them the entire command of lake Champlain. An encroachment so evidently calculated to favour either the offensive or defensive operations of France in America, was remonstrated against and submitted to.

Hutchinson.

CHAPTER IX.

War with the southern Indians.... Various causes of dissatisfaction given by the proprietors to the assembly of Carolina....Rupture with Spain....Governor endeavours to prepare the militia to repel an invasion....Combination throughout the colony to subvert the proprietary government....Revolution completed....Expedition against Charleston from the Havanna....Peace with Spain ....Many of the proprietors surrender their interest to the crown.... The province divided....Georgia settled.... Impolicy of the first regulations....Intrigues of the Spaniards with the Indians....And with the slaves of South Carolina....Insurrection of the slaves.

THE contests between the lords proprietors 1715. and the settlers of Carolina, and the favourable disposition manifested by queen Anne on receiving the complaints of the dissenters, had turned the attention of the people towards the crown. This year a circumstance occurred which served greatly to increase the wish already entertained in that colony, of substituting the regal for the proprietary government.

the southern

The Yamassees, a powerful tribe of Indians War with on the northeast of the Savanna, instigated, as Indians. was understood, by the Spaniards at St. Augustine, prepared with great secrecy a general combination of all the southern Indians against the province. They fell suddenly on the traders settled among them whom they massacred; and being joined by the Creeks and Appala