his Subjects, may be abundantly rewarded, we have the Honour to subscribe ourselves,

May it please your Lordship,

Your Lordship's most respectful
and obedient Servants,

Letter from Governor Franklin to the Earl of Hillsborough, relative chiefly to Mr. Hatton and his complaint.

[From P. R. O. America and West Indies, Vol. 176 (194).]

BURLINGTON Oct! 21th 1771

Rt. Honble the Earl of Hillsborough

My Lord,

I have had the Honour to receive your Lordship's Dispatches N° 31, & 32.

It gives me great Pleasure to find that the Steps I took to give Efficacy and Dispatch to the Plan for recruiting His Majesty's Forces, has appeared in so favourable a Light to your Lordship.

M: Lawrence desires me to make his Acknowledgments to your Lordship and the Board of Trade, for the Favour done him in recommending him for the Vacancy in the Council occasioned by the Death of Mr Smith.

I am very happy that my Endeavours to prevail on the Assembly to provide the King's Troops with the usual Necessaries have met with His Majesty's Appro

bation. I have called another Meeting of the Legisla ture to be held here on the 20th of November, when I shall not fail to renew my Endeavours to persuade the Assembly to a Compliance with the Terms of the Mutiny Act.

It is with great Concern I observe that the Commissioners of the Customs at Boston have transmitted to the Treasury Board the Complaint exhibited by Hatton, a Man whom they knew, from Documents in their own Hands, to have before acted as a Villain in his Office. The Report of their Inspector General (a Copy of which I sent your Lordship) is alone a sufficient Proof of Hatton's Villainy; but I am also credibly informed that another Gentleman, who was sent by the Commissioners as Inspector of the Customs into this and some of the neighbouring Colonies soon after Hattons last Complaint, has openly declared that he found he had been guilty of many undue Practices, and was every way unfit to be a Collector of His Majesty's Customs. It is, however, with Pleasure I observe that your Lordship approves of the Conduct of the Council Board in the Examination into his Complaint and that you have caused so full and candid a Communication of it to be made to the Treasury

Board.

The two Orders of His Majesty in Council on the 7th of June, disallowing two Laws passed in New Jersey, were duely published immediately after I received. them.

I have the Honour to be, with the greatest Respect, My Lord, Your Lordship's most obedient,

& most humble Servant

W FRANKLIN

Letter from Governor Franklin to the Lords of Trade, in answer to a letter of their Lordships, relative to two Acts proposed to be repealed, the emissions of Paper Bills, and the appointment of an Agent.

My Lords,

[From P. R. O. B. T., New Jersey, Vol. 10, L 44.]

BURLINGTON Oct 21st 1771

I am honoured with your Lordships Letter of the 21st of June.

The two Acts of Assembly, which your Lordships mention as proposed to be repealed, I had some Doubts concerning the Propriety of at the Time of Passing, and therefore refused to give my Assent to them before Clauses were added to suspend their taking Effect until His Majesty's Assent was obtained.

As to that Part of the Act for the Support of Government which appears to your Lordships to require Explanation, it is necessary that I should inform you, that although the last Act directed the Salaries to be "paid out of such Money made current for His Majes"ty's Service in the late War, that now is in the "Treasury," yet in fact there was not at the Time any of that particular Money remaining in the Treasury, the whole having been paid out before, either to the Commissioners appointed during the War to pay and cloath the New Jersey Troops, or for the Support of Government. The Money, however, in the Treasury owed its being there to the Money made current for His Majesty's Service during the War, and may in some Respects be considered in the same Light tho' it is not specifically the same. It is the Amount of the several Ballances which were due from the Commissioners to

the Province, after paying & cloathing the Troops and selling of the Military Stores, &c. remaining on Hand at the Conclusion of the War. These Ballances were not paid into the Treasury in New-Jersey Money, but chiefly in Gold and Silver and such Paper Money of the neighbouring Colonies as had obtained a Currency here. The Law therefore would have been better had it directed the Salaries to be "paid out of such Money "granted (instead of made current) for His Majesty's "Service in the late War, that now is in the Treas"ury;" for the Sum there must be considered as Part of what was granted, remaining unexpended, and tho' not the identical Money that was made current yet the adequate Representative of it. But the Assembly, it seems, without attending to this Difference, adopted the Words used in the former Act when there was Paper Bills actually in the Treasury of different Emissions. There is, however, no Doubt when the Matter is explained to them, that they will readily make the necessary Alteration in the next Support Bill.

Your Lordships may be assured that there has not been any Attempt of the Legislature here, to give a further Currency to our present Paper Credit, than what the Act of Parliament allows. Yet it is proper that you should be inform'd, that altho' the Quantity of Paper Money required by Law to be sunk in each Year is upon the whole regularly called in and destroyed, yet it often happens that there is but little among it of the particular Emission which ought to be sunk at that Time. So that Bills emitted in the year 1761 (for Instance) which by Law might be all current until 1774, when a Part is directed to be called in, may be all sunk before that Period commences, and other Bills of a former Emission, which ought to have been already sunk, may continue in Circulation until the Year 1783, the last Period allowed by Law

for the Existence of Paper Currency in this Province. By this your Lordships will perceive that the whole Sum of Paper Money struck at different Times during the War is considered in the Light of one Emission, and the Quantity required by Law to be annually sunk out of particular Emissions is sunk out of any Emission which happens to be paid into the Treasury. This Practice took its Rise from Necessity, the New Jersey Currency having such an extensive Circulation through the Neighbouring Provinces, that the Treasurers have never had it in their Power to collect a sufficient Quantity of the particular Emission directed to be sunk in any one Year. The Letter of the Law to be sure is not strictly adhered to on this Occasion, nor can it be,. yet the Spirit of it is fully complyed with, as no greater Sum of Paper Bills in the whole is ever suffered to continue in Circulation than what the Law allows.

I shall not fail to pay due Attention to that Part of your Lordships Letter which respects the Appointment of an Agent, when the next Support Bill comes under Consideration; but I must confess I have very little Hopes of their receding from a Claim which I understand has been long acquiesced with in this Province as well as in most other of His Majesty's Colonies in North America.

I have the Honour to be with great Respect,

My Lords, Your Lordships

most obedient humble Servant WM FRANKLIN