On the lower Mississippi horses were used chiefly for rid-

* A. N., C, Sir. A, vol. xxiii, Aug. 14, 1743; Breese, App., p. 295.

* Bossu, vol. i, p. 159; CoUot, vol. i, pp. 325-333.

3 Austin, A Summary Description of the Lead Mines in Upper Louisiana, etc., pp. 3-17; Pittman, p. 95.

* Pittman, p. 95; Early Western Travels, vol. xxvi, p. 97. » D'Anville's Map, N. Y. Pub. Lib.

* Reynolds, The Pioneer History of Illinois, pp. 49-50; Moses, vol. i, p. 105.

THE COMMERCE OF LOUISIANA

[96

picture3

5t.Gen^vi

HUTCHIKS' MAP*

ing and for carriages, and even for those purposes they were too small to be greatly esteemed. The two-wheeled carts were usually drawn by oxen. Before the end of the French regime a large majority of the well-to-do persons in this part of the province owned some sort of conveyance and horses or oxen or both. In New Orleans there were\ carriages and coaches. The first of the former type was \ brought from Havana in 1730 and the second, three years 1 later by Bienville, after which the number increased more ^ rapidly. In 1753 almost all men of means at the capital owned a chaise and two horses and there were some who had berlins and coaches drawn by four horses.*

» Hutchins' Map; Winsor, The Miss. Basin, p. 460.

* The Present State of the Country, etc., 1744, p. 18; Villiers du Ter-rage, p. 46.

CHAPTER VII Barter

Turning from this study of the facilities of transportation to an examination of the various commercial processes, it may be remarked that when the French came to the Mississippi valley they found the Indians carrying on trade by means of barter, as might naturally be expected among primitive peoples. Captives taken in war were disposed of in this way. The Illinois Indians warred on tribes to the south and west of them for the sole purpose of securing captives whom they " bartered, selling at a high price to other nations for muskets, powder, kettles, hatchets and knives ",^ and to the Iroquois for peace.^ To the south of the Ohio were the Chickasaw who in their numerous encounters with weaker tribes, secured captives for whom they, too, bartered with other Indians.' Slaves and many objects thus passed from tribe to tribe. It was not uncommon to find bartered goods miles away from the place of their origin. Marquette, for example, found the Arkansas Indians in possession of commodities that had been obtained from the Illinois and other Indians still more remote.*

Moreover the Indians along the Mississippi, before the French arrived, had had some experience in trading with Europeans. The Illinois and other tribes met at Michili-mackinac traders from New France with whom they ex-

^ Jes. Rel, vol. liv, p. 191; vol. lix, p. 127.

* Hist. Colls, of La., pt. i, p. 56.

* La Harpe, pp. 89-90, 186.

* Jes. Rel, vol. lix, p. 155.

changed skins for French merchandise/ while the southern Indians made similar exchanges with the Spanish of Pen-/ sacola and New Mexico and the English of Carolina.* It is, therefore, not surprising to read that Marquette found the Illinois Indians would give " hardly any more than do the French ". They acted so much like skilled traders, in fact, that, after he had traded a cubit of tobacco with them for three fine ox skins, he felt impelled to say mass immediately on being rid of them,*

Throughout the period of French control trade with the Indians continued to be carried on by means of barter. Father Gravier, on his way to the Illinois, in 1700, gave " a little lead and powder, a box of vermillion wherewith to daub his young men, and some other trifles " to the chief of the Arkansas tribes for a quantity of " dried peaches, of Piachimina" (persimmons), and squashes.* Several years later F'ather Poisson, in passing over the same route, observed that the Indian "gives nothing for nothing" and declared that the French must follow the same practice or expose themselves to the contempt of the Indians.' The French traders made no error of that sort. They carried their merchandise to the Indians and exchanged it for bear's oil, com, beans, horses, furs, slaves and other Indian commodities. In such transfers each party forced upon the other the hardest possible bargain."

Where the French traders held practically a monopoly of

* Jes. ReL, vol. lix, p. 91; Shea, Disc, and Exp. etc., p. liv.

' Margry, vol. iv, pp. S16-519; Tht Present State of the Country, etc., 1744. pp. 9-11. » Jes. Rel., vol. lix, p. 175.

* Ihid., vol. Ixv, pp. 121-123. */&td., voL Ixvii, p. 257.

* Margry, vol. vi, pp. 230, 246, 280; KerUrec's Report, 1758, p. 67; Charlevoix, Hist, and Gen. Description of New France, vol. vi, p. 32; The Present State of the Country, etc., 1744, p. n; Doc. Rel. Col. Hist, of N. Y., vol. ix, p. 409.

control in any region they were able to secure fabulous profits from their dealings. Sometimes they carried their extortions to the extent of offending the Indians by the ridiculously low prices they offered. One such trader had the temerity to offer an Indian one charge of powder and a bullet for a beaver skin, whereupon the Indian replied by burying a hatchet in the head of the trader.^ The possibility of such unfair exchange, however, came to an end when the English traders entered the field as competitors. The newcomers studied the tastes of the Indians with more care than the French did, and hence were able to offer a more attractive, diversified and richer stock of merchandise.* With these two sets of traders in the field, each trying to gain the whole of the trade, the Indians henceforth were able to secure for themselves better returns in trading operations with Europeans.

Since the Indians looked upon good opportunities for traffic as a clear evidence of friendship, the competitor who offered the better commodities at a lower rate was always able to attract them and to keep them friendly and obedient, so long at least as the advantage lasted.* For the most part the attitude of the Indians toward the whites was based on economic considerations alone. During the time of the French and Indian War the Creeks were accused of playing off the French and English against each other in order to secure better bargains in trade. When forced out of this neutrality they went over to the side that seemed to them the stronger.*

* Penn. Col. Rec, vol. v, p. 87.

* Public Records of South Carolina, vol. v, p. 196; vol. viii, p. 227. Transcripts, Columbia, S. C.

* Ibid., vol. v, p. 196; Board of Trade Papers, pt. 2, vol. x, 1718-1720, Penn. Hist. Soc. Trans.

* Bancroft Papers, Col. Doc, 1755-1757, Dec. 25, 1756; 1758-1760, Oct. 20. 1758, N. Y. Pub. Lib.

lOO THE COMMERCE OF LOUISIANA [iqq

Barter was not confined to exchanges made between the Indians themselves, as has been shown, nor was it used only when the Indian was a party. In the French settlements of the interior, barter was always the way in which by far the larger number of exchanges were eflfected. Almost from the beginning of French occupation, also, produce from the Arkansas, Natchitoches, Wabash and Illinois districts found its way to the Gulf region there to be exchanged for other merchandise. Wheat, flour, hams, bees-wax, lead, salt, furs, tobacco, bear's oil and other products were traded for spirituous liquors, groceries, dry goods and articles especially needful in the Indian trade.^ In none of these transactions was there a fixed standard of value. They were carried on purely by barter. Undoubtedly peltry and lead passed freely in exchange; ^ but there is no evidence of any standard of value among the French of the interior settlements or elsewhere in Louisiana comparable with the " made beaver ",* or wampum of the English.* The article last named was not used by the French in the Mississippi valley except by traders from New France when they were dealing with Indians who were allies of the English.'

In the French settlements of lower Louisiana, as in those to the northward, barter was always used in exchanges with the Indians. This method of action, however, did not persist among the French themselves in that area.

' Jes. Rel, vol. bcix, p. 213; Le Page du Pratz, vol. i, p. 331; Pitt-man, pp. 62, 82, 98; Dumont, vol. ii, pp. 56-57.

* Early Western Travels, vol. xxvii, p. 54.

* New England Magazine, vol. xxxiii, p. 260; " Made beaver " was a full-grown, perfect beaver skin taken from the animal killed in season, properly cured and weighing from a pound to a pound and a quarter.

* Dumont, vol. ii, p. 56; Early Western Travels, vol. xxvii, p. 54.

* Early Western Travels, vol. i, p. 59.

lOl] BARTER lOi

Almost from the foundation of the colony the French here made use of some form of money. There were, nevertheless, many transactions in which merchandise was given for service rendered, and for colonial products. Those who had labor or produce to sell for the most part preferred to exchange it for French foodstuffs and other goods. ^ In 1723 the carpenters at work for the Company of the Indies received in merchandise the amount of the wages they were to use in Louisiana, whereas the part that was to go to the support of their families in France was paid in silver.^

* Charlevoix, Hist, and Gen. Desc. of New France, vol. vi, pp. 32-33; Margry, vol. v, pp. 653, 661; A. N., C, Sir. C^*, vol. viii, fol. 123.

* Margry, vol. v, pp. 652-653, 661.

CHAPTER VIII Silver Coins

The only coins in circulation in Louisiana during the earlier years of its existence were those brought over by the colonists themselves or received by them from sailors for provisions/ Efforts were soon made, however, to secure piastres from the Spanish settlements near by.^ Trade sprang up between the inhabitants of Biloxi and the soldiers of Pensacola, which put a small amount of silver into circulation. It did not remain long, because on the arrival of the first vessel it was exchanged for European merchandise and carried to France on the return voyage.^ From this source, nevertheless, a little silver continued to flow into the colony until the arrival, in 1712, of the Crozat officials who ordered the Pensacola trade stopped. The enforcement of the order greatly distressed trade and practically deprived the province of its only medium of exchange.*

With the transfer of Louisiana to the Company of the West another channel through which a little Spanish money might enter was opened by the planting of the outpost of Natchitoches on the frontier of Texas, not far from the Spanish station of Adayes. The former supplied the latter with food in exchange for Spanish money. This trade lasted only about two years when the Spanish of that

' Dumont, vol. ii, p. 53. ' Margry, vol. vi„ p. 180.

* A. N., C, Sir. O', vol. iii, fols. 212-213; Giarlevoix, Hist, and Gen. Desc. of New France, voL vi, pp. 32-33-

* A. N., C, Sir. C>», vol. v, pp. 48-49.

post began to cultivate the soil and thus provide themselves with a food supply. For some time longer the trade in French merchandise continued, and amounted annually to about two hundred piastres. Later this sum was considerably reduced by the introduction into Adayes of cheaper and more desirable English merchandise.^ Some Spanish coins also came into Louisiana by way of the Illinois country. These the French obtained in trade with the western Indians who secured them directly or indirectly from New Mexico.^ With the entrance of the Company of the Indies into control, the Mobile-Pensacola trade was revived, and by 1720 Mobile had become a flourishing village with an abundance of Spanish money.^

The Spanish, like the French, specie flowed out of the province too freely, thereby leaving a serious shortage. This drain, due, it was believed, to the fact that the piastre was received in trade in Louisiana for but four livres, while by royal decree it was given a higher value in Martinique and St. Domingue, could be checked only by making the value of the Spanish piece uniform in all the French colonies in America. Accordingly the home government by an edict, January 12, 1723, raised the piastre to the value (seven livres ten sols) it had in the French West Indies.* As this action did not improve conditions, a series of reductions, February 26, May 2, and October 30, 1724, were made, which brought the value of the piastre down to four livres ten sols, almost the value it had had before the first change was made, though without greatly affecting the outflow.V,

* Margry, vol. vi, p. 231.

* A. N., C, Ser. C^a, vol. vi, fol 297. » Ibid., p. 363; La Harpe, p. 327.

* A. N., C, Sir. A, vol. xxiii, January 12, 1723; French MSS. Miss. Valley, 1679-1796, La. Hist, Soc. Lib.

» A. N., C, Ser. A, vol. xxiii; Sir. 0», vol. xi, fols. 51-62.

For about two years the Spanish money retained the value given it by the edict of October 30, 1724. On June 15, 1725, the crown increased the rate for the coinage of gold and silver bullion received at the mint of France. To meet this situation, on September 13, 1726, it raised the value of the piastre from four livres to five, and the change should go into effect when the royal edict was published in Louisiana.^ As specie continued to be scarce, in 1727 the Company of the Indies made five-sol silver pieces of the same value as the Spanish piastre and the French ecu.^ Since local necessities required something like 20,000 livres in circulation, the Company was requested by its agents in the colony to send over not less than 50,000 or 60,000 livres' worth of these five-sol pieces, so as to offset somewhat the risk that, on the arrival of the first vessel, most of the hard money would be carried back to France. The next year the silver asked for had not yet reached Louisiana, where it was greatly needed to pay the troops and meet other expenses of the government.^ Any assurances on this point in fact, seem never to have been fulfilled, for both gold and silver to the end of the Company's control continued to be rare, and what was received quickly passed back to France.'

From 1731 to 1735 the crown met the expenses of government in Louisiana partly with French money, and partly with merchandise.* As was the case during the time of the Company, the silver speedily found its way to France, leaving the colony without a metallic currency, except a small amount of coj^r and a few Spanish coins gotten

1 A. N., C, Sir. F», vol. cocHi, M. S. S. M., June 15, 1725. » Ibid., Sir. Ci«, vol. xi, fols. 54-56, 86; vol. x, fols. 193-194. * Ibid., vol. xvi, fols. 166-171. ^ Ibid., vol. xiv, fols. 142-143; vol. xvi. fol. 271.

in trade with Pensacola.^ The use of these two kinds of money caused difficulty in Louisiana, since some of the Spanish coins had no equivalent in the French money. On January 26, 1732, in order to facilitate commerce, Governor Perier, in conjunction with the " ordonnateur", issued a decree fixing the value of the Spanish silver in terms of French money. Beginning with the highest, each of the Spanish coins was to have a value double that of the next lower denomination. Even the smallest of these pieces, the " quarter real," though unknown in the other French colonies, was used in Louisiana, because of the shortage of small money there.^

The estimation of values of the different coins in use in the province no doubt was a benefit to domestic trade, but gave no aid to the keeping of the silver in the colony, which was the problem baffling the provincial officials. On April 12, 1734, there were about 140,000 livres in specie in the treasury. On April 15, 1735, this amount had dwindled to 51,000; on October 12 there were but 32,290 livres, and by February 20, 1737, the silver had entirely disappeared. Consequently, even though required by royal order so to do, the officials were unable, for the next two years, to pay the troops in specie.® To meet this emergency the gov-

1 A. N., C, Sir. F3, vol. ccxlii, M. S. S. M.

'Ibid., Ser. A, vol. xxiii, January 26, 1732; Baudry des Lozieres, Second Voyage a la Louisiane, p. 89.

Value of the coins as stated in the decree:

Piastre, equal to 5 livres, to pass for 100 sols.

Half piastre, equal to 50 sols, to pass for.. 50 sols. " Double real," equal to 20 sols, to pass for 25 sols.

"Real," equal to 10 sols, to pass for 12 sols 6 deniers.

" Half real," equal to 5 sols, to pass for... 6 sols 3 deniers.

" Quarter real," equal to 3 sols, to pass for. 3 sols i denier and a half.

* A. N., C, Sir. CIS, vol. xix, fols. 32-33; vol, xxi, fols. 230-232; vol, XX, fols. 15-16, 213-215.

emor and " ordonnateur " requested the home government to issue a special money for Louisiana. The crown in its replies, March 24 and April 9, 1738, complained that the colonial officials had proposed first one and then another kind of money, but that it seemed they preferred an issue of silver because it could not be counterfeited easily. Since the whole proposition was so vague and indefinite that it was impossible to determine just what was desired, the request was denied.*

The scarcity of silver in Louisiana continued until about 1740 when the vessels from France on their way thither began to make stops at the Spanish-American colonies, where they exchanged merchandise for Spanish silver. The latter was carried to the province and there paid over for colonial products and bills of exchange, thus assuring a considerable increase in the silver in circulation.* Although the war with England (1744-1748) disturbed this trade, it brought about a condition that made it possible to augment the supply of Spanish money in I^uisiana so much that from 1745 to 1748 the expenses of the colony were paid entirely in this medium. The first year of the war business took an official of the French West Indies to Havana where he learned that a number of French merchants there had Spanish silver which they wished to ship to France. This could be done directly only at very great risk of capture by the English. The island officials proposed to the merchants in question that they send their silver to Louisiana and there exchange it for bills of exchange on the French treasury-. The plan was adopted and carried out without an appreciable increase in the amount of bills of exchange. Throughout the period the rate of exchange remained five livres for each

I A. N., C, Sir. B, vol. Ixvi, fols. 8-10. *Ibid., Sir. 0«. vol. xxxi. fol. in.

piastre. The English believing Louisiana of small consequence had left it unguarded/ During each year of the war a million piastres found their way to the province, and in 1749 a squadron of six vessels, carrying 80,000,000 piastres brought from Havana, left for France.^

In 1750 the French merchants in the West Indies were able to send their shipments of silver directly to France, therefore the old-time scarcity was again felt in Louisiana. The next year there was not enough specie in the province to pay the troops,* and by 1752 practically all the Spanish money in circulation at New Orleans was the little that had found its way thither from the settlement at Natchitoches." Silver money became rarer each year, and after 1759 there was virtually none of it available.^

» A., B. N., Joly Coll, vol. 1726, fols. 136-147-

• Villiers du Terrage, p. 79; The Present State of the Country, etc., pp. 26-34; A. N., C, Ser. C^', vol. xxiii, pp. 6-8.

« A. N., C, Sir. F3, vol. ccxliii, M. S. S. M., May 18, 1751.

* Records of the American Catholic Historical Society of Philadelphia, vol. X, p. 206.

^ A. N., C, Sir. Ci3, vol. xH, pp. 318-322; Pittman, p. 48; Ker, The Memoirs of John Ker of Kersland in North Britain, Relating to Politicks, Trade and History, pt. 3, ii, 19.

CHAPTER IX Copper Coins

With the growth of the colony the necessity for small currency soon began to be felt, especially in the settlements on the Gulf coast. To meet this demand in some measure, a royal edict was issued, in December, 1716, providing for the coinage of 150,000 marcs (eight ounces) of copper money in twelve and six denier pieces, to be used exclusively in the American colonies. By a second decree, March 9, 1717, authorization was g^ven for the new money to circulate in Louisiana. The process of coinage was soon stopped, however, because of the inferior quality of the copper received at the mints. ^

Nothing further was done in the matter until June, 1721, when, by a further edict the mints were again ordered to coin 150,000 marc of copper money, as follows: at Bordeaux, 30,000; at La Rochelle, 50,000; at Nantes, 40,-000; and at Rouen, 30,000. The coins were to be used in paying the troops and for meeting other public expenses. They were to circulate with the following fixed values: those of twenty marcs to the silver marc, at eighteen deniers; those of forty, at nine deniers; and those of eighty, at four deniers. The colonists were assured, moreover, that they need have no fear to receive this money from the troops or other persons in payment for the products they had to sell, since it would be received by the Company in payment for

> A., B. N., Fr., vol. 14273, fol. 108; A. N., C, Sir. B. vol. xxxix, fol, 341 ; Zay, Histoire Monitaire des Colonies Frangaises, pp. 4&-51; Pro. St. Hist. Soc. Wis., vol. xli, p. 169.

all sorts of European merchandise without discrimination between it and gold or silver/ The mints at Bordeaux and Nantes struck no coins under this edict and the other two, only the nine-denier pieces. The coins issued at La Rochelle, 1721-1722, were marked by the letter "H", those at Rouen, 1721, by the letter "B".'

Before the colonial copper had been twelve months in circulation in Louisiana it had fallen into the hands of speculators. In September, 1723, complaints were made to the officials at New Orleans that twenty-five livres of copper money was demanded for a piastre. Thereupon the authorities made an unsuccessful attempt to fix the rate of exchange for the piastres at seven livres, ten sols. The officials went still further and instituted a search for the men who were carrying on the business of speculation. In this, however, they had no better results than in their efforts at rate-fixing. Consequently copper money gradually fell into greater and greater disfavor until it came to be looked upon as entirely worthless, and no one wished to receive it in exchange for even the most trifling article.* For example. Father Raphael de Luxembourge, of New Orleans, September 7, 1723, declared: " there are few offerings for masses, some (fees for) parochial functions in copper coin, which is valued so low that during our sickness I sent everywhere to get a couple of eggs, offering as much as — sous apiece, but could not find them. Those who sold them replied that they could do nothing with our copper, and that if we had white money to give them, they had eggs to sell us ".*

1 A. N., C, Ser. A, vol. xxiii, .Sept. 27, 1721; Ser. C^^, vol. vi, fol. 421; Zay, pp. 52-53; La Harpe, p. 295. « Zay, p. 54.

» A. N., C, Ser. C^^, vol. vii, fols. 15-17. * Proc. St. Hist. Soc. Wis., vol. xli, p. 172.

The colonial agents of the Company of the Indies at the time informed the home government that, if the copper coins in circulation in Louisiana were made legal money in France, they would be received in the province at the proper rate of exchange. The suggestion, should it be followed, would entail only the added expense of carrying the copper, with other shipments of money, back to the mother country. If this plan were not feasiWe, it was further proposed that the copper pieces be received at a ratio of one to five with silver at the posts in the interior where the vessels from the province landed, the deduction being made in order to put as little as possible of this money into use there. The Company could well afford this rate since, under the arrangement then in force in the province, it was obliged to receive some piastres at twenty-five livres each in copper money, a loss of 300 livres on every forty thus secured and sent to France. Moreover, the royal government was informed that the prevailing system of copper currency was most detrimental to the development of Louisiana, and that even the poor quality of laborers whom the crown succeeded in sending over were so dissatisfied with their pay that they were planning to return to France.*

By a decree of May 2, 1724, applicable both to France and to the colonial dominions, the copper coinage was made to suffer a reduction in value. That circulating in Louisiana was henceforth to have the following values: coins of eighteen deniers to pass for twelve; those of nine, for six; and those of four and a half, for three. Moreover, the colonial officials were given explicit orders for the enforcement of the decree.' / As a result of this act, bringing the face value of copper

> A. N., C, Sir. C", vol. vii, fols. 15-17.

• Ihid., Sir. A, vol. xxiii, May 2, 1724; Zay. pp. 56-57.

nearer to its current rate, an impetus was given to its circulation. On August 17, 1724, the superior council of the province made a loan to one of the inhabitants of 10,000 livres in copper money, payable in six months in different kinds of lumber. The next day it made a similar loan to ) the captain of the troops at Mobile for 3,600 livres, / returnable in six months in the same medium.^ On February 2y,' and again on July 27, 1725,® it was officially stated that the copper money had at no time been refused in payment for all sorts of merchandise at the Company's storehouses. At the same time, nevertheless, the Capuchin father, on the plea of insufficient knowledge in money matters, was demanding that offerings and gifts, as well as money for the services, should be paid in silver.*

In view of the fact that many persons who had contracted debts were being made to meet their obligations with Spanish silver, the crown issued a decree, October 31, 1726, ordering the copper coins to be received at their fixed value, without discrimination between them and silver, bills of exchange or notes, in payment of all debts whatsoever. Persons violating this law were to be whipped and branded on the hand by the executioner. The piastres were to be confiscated and a fine of 3,000 livres also was to be imposed, one-half to be given to the informer, the other half to the >. hospital.^

No sooner was copper made a legal tender for all debts than it began to leave the colony. On April 23, 1727, there was not a sol of it in the colonial treasury, despite the efforts'

1 A. N., C, Ser. Os, vol. viii, fol. 126.

* Ibid., vol. ix, fol. 26.

* Ibid., fols. 51-52.

* Ibid., fol. 150.

» Ibid., Ser. F^, vol. ccxlii, M. S. S. M., Oct. 31, 1726.

of the officials to prevent it. The pay of the laborers, sailors and other men employed by the Company was two months in arrears.^ Therefore even though the vessel "Dromadaire" brought to Louisiana, October 2, 1727, 13,000 livres in copper money, the sum was insufficient to meet immediate needs. It was officially stated, in fact, if the coins had been distributed before the departure of the vessel, not a sol would have remained in circulation. The coins were kept, therefore, and notes given out instead. In order to prevent the copper from leaving the colony, Governor Perier and the " ordonnateur " asked the crown to legalize the issuance of notes or bills of exchange in favor of any one willing to leave in the province the copper money he possessed. For this purpose the crown gave permission to draw 6,000 livres in treasury notes annually, stipulating, however, that the notes were to be discounted at ten per cent and the " ordonnateur " was to make no loans whatsoever in copper.*

The metal still continued to leave the province. On July 31, 1728, there was no copper left in the colonial treasury, the drawing of the 6,000 livres allowed by the royal government being insufficient to hold it.* By October of the same year there was almost no copper in circulation anywhere in Louisiana,* and the governor accordingly requested the home government, March 25, 1729, to instruct him how it wished him to provide a medium of exchange, since under the present arrangement it was not possible to keep specie in the colony.* There was no reply, and nothing further was done

1 A. N., C, Sir. Ci», voL x, fol. 174. ' Ibid., fols. 193-194; vol. xi, fols. 86-87. » Ibid., vol. xi, fols. 54-56.

* Ibid., fol. 125.

• Ibid., fols. 322-336.

in the matter during the rule of the Company of the Indies/ ^

For a time after Louisiana became a royal province the crown attempted to make use of copper as a medium of exchange. In order to meet the deficiency in small coins, Governor Perier and the " ordonnateur " were allowed to issue an ordinance, January 26, 1732, giving to the copper money in circulation a value of six deniers.^ On April 10, 1735, Bienville, who was now governor, requested the home government to increase the amount by sending to Louisiana yearly, for three years, about 6,000 livres of the copper currency issued under the Company of the Indies, or some other having equivalent value. Such pieces of money, he declared, were especially needed at the treasury where everyone demanded the last denier due him, and in commercial transactions where very small amounts were purchased.^ On October 12, 1735, there were but eighty livres of copper in the colonial treasury, and by February i8th of the next year the amount had been reduced to twenty-five.*

The copper money used by the Company of the Indies while in control of Louisiana was not available, but the home government relieved the shortage in small currency by ordering, October 11, 1735, 6,000 livres in "sols marques " to be sent to the province." The following year, October 15, 1736, a similar order was issued.* Bienville at once took measures to retain the money in circulation. To this end he asked to have its value in Louisiana increased by one-fifth of its value in France, and to have dispatched

1 A, N., C, Ser. Cis, vol. xi, fol. 125.

* Ibid., Sir. A, vol. xxiii, Jan. 26, 1732.

2 Ibid., Ser. C^^, vol. xx, fols. 16-17, 18-20.

* Ibid., vol. xxi, fols. 230-232.

* Ibid., Ser. B, vol. Ixiii, fol. 622.

* Ibid., vol. Ixiv, fols. 276-277.

in 1738, not less than 12,000 or 15,000 livres instead of the yearly allowance of 6,000.^ Though French copper money was not afterwards brought to Lxjuisiana in large quantities, some of it was seen in circulation there as late as 1769.'

» A. N., C, Shr. 0«, vol. xxii, fols. S-6.

* Museum Building, New Orleans, No. 40, Oct 31, 1769.

CHAPTER X Paper Money and Credit, 1699-1739

The rapidity with which specie of all kinds left Louisiana made it necessary for the colonial officials to resort to various expedients in order to retain it in the province. To this end before 1739 a number of forms of paper to serve as currency were made use of, such as bills of exchange, treasury notes, orders on the treasury, orders on the storehouse, contracts between individuals and with the Company of the Indies, royal notes and card money.

As early as 1703 Iberville received furs from the Canadian traders and gave in return bills of exchange.^ These were called a " designated " or " named " money and were negotiable only when indorsed. As stated at the time, a bill of exchange was drawn to the order of a certain person without affording any details as to the nature of the transaction, or indicating the kind of money in which it was to be paid. Otherwise, it was stated, much disorder in trade would have been caused through merchants being forced to make public the secrets of their business, thereby violating the freedom and security of commerce.^ At the time of the founding of Louisiana, and for some years afterward, bills of exchange, in all the French colonies, were drawn by the treasurer general of the particular province on the treasurer general in France and were signed by the intendant or a corresponding officer.

* A. N., C, Ser, O^, fol. 29; Margry, vol. iv, p. 628. ^ A., B. N., Fr., vol. 11342, fols. 95-102.

The home government, on the other hand, held that it had not pledged itself to pay such drafts without first making an examination of their validity. The law of trade, " a law so dangerous to break ", it was asserted, furnished the crown a " simple procedure " in the matter. Any one who drew bills of exchange might forge them on the person on whom they were drawn. If the latter accepted them when presented, the implication was that he recognized the indebtedness and obligated himself to pay them when they fell due. If he refused so to do, naturally they were protested. But in either case the bills ought to be paid, since in the hands of the holder of the last endorsement they were current money, the circulation of which should not be interrupted. The question then arose as to how this payment was to be effected.^ The payment, it was further declared, was to be made only after the holder had applied to the last endorser for reimbursement. He in turn was to go back to the preceding signer who was likewise pledged to redeem them, and thus by a retrograde movement the bills could be traced to their source, that is, to the original drawer who must prove the crown to be his debtor. Such was the " simple procedure " by which the home government was to secure justice in the payment of bills of exchange without thereby disturbing trade. Thus also the officials in France were to be given the legal means to ascertain and destroy abuses in the drawing of such bills, and at the same time to punish the oflFenders.* By 1720 these irregularities had become so excessive that the government itself was much embarrassed and only with g^eat difficulty could meet its indebtedness. Louisiana, however, when compared with other French provinces was only a mild offender.'

^ A., B. N., Fr., vol. 11342, fols. 95-102. *Ihid.

Other kinds of paper were early made use of. One of them took the form of orders on the treasury. On February 25, 1708, for example, the inhabitants of Louisiana were encountering much difficulty in securing domestic animals because they could find no one willing to accept such orders in payment.^ Another form of paper that was suggested, June 15, 1715, but apparently not utilized, consisted of royal notes of fifty and one hundred livres to be received in payment for half of every debt.^ On March 9, 1717, the home government announced that a new sort of paper money would be sent to New France, Martinique and Louisiana with an injunction that the decree providing for it should be registered with the respective superior councils. Almost two years later the Company of the Indies, under this ordinance, was supplied with 25,000,000 livres in numbered bank notes bearing the corporate seal, for which a receipt was given, the purpose being " to enable the inhabitants of Louisiana to trade amongst themselves and bring to France the fruits of their labor ". In order that such notes should be paid to no one but himself, the holder, on receipt, was to sign them, and in case of loss immediately to notify the Company. If not recovered by the end of five years the Company pledged itself to pay to the holder the full value.*

Along with the royal notes a local currency established itself naturally. When a person employed by the Company required merchandise from the storehouse, he made a memorandum or statement of the things he desired and

^ A.N., C, Sir, C13, vol. ii, fols. 89-117. * Ibid., vol. iii, fol. 860.

' La Revue Canadienne, 1893, vol, xxix, p. 31; The Am. Weekly Mercury, vol. i, No. 8, p. 15, Feb. 9, 1719; Anderson, Hist, and Chron. Deduct, of the Origin of Commerce, etc., vol. iii, p. 312; MacPherson, Annals of Commerce, etc., vol. iii, p. 68.

presented it to the local director who deleted the articles that seemed to him unnecessary- and signed for the remainder. The commodities were to be furnished on presentation of the statement thus approved. The holder could carry it directly to the storehouse and have it cashed, or could exchange it for whatever he saw fit. In other cases, by some form of endorsement, it became negotiable paper and served as currency. Either directly or indirectly, in the course of time, the order found its way to the storehouse and was duly honored.^

By the end of 1719 the ratio of paper money to silver stood at five to one or two. The Company was in a fair way to be ruined. It was obliged to receive its notes on a par with silver, but could not discharge its own debts with them unless the creditor saw fit to accept them. From the settlers who were not in the colony when the orders on the storehouse were put into circulation, or from other persons who could not be legitimate possessors, the Company refused to receive them at such a parity. Accordingly to persons who presented the orders in exchange for supplies, and who could not prove rightful ownership of them, the price of merchandise was advanced a hundred per cent' Conditions were not improved by this procedure; therefore, it was decided, October 26, 1721, to receive old orders on the storehouse at an advance of thirty per cent on the face value. Three months later this was cut to ten per cent, because it was believed the new rate would be just to all concerned, inasmuch as merchandise was then cheaper than when the original orders were put into circulation.^ /'An ordinance of May 20, 1722, decreed that no more

^ A., B. N., Joly Coll., vol. 1726, fols. 126-127; Ehimont, vol. ii, pp. 53-57.

• A. iV., C, Sir. Ci», vol. v, fol. 353-

* Ibid., vol. vi, fols. 148-15-.

orders on the storehouse were either to be issued or received by the Company. Instead, the first of January, 1723, the old paper in circulation was to be replaced by a species of card money having an equivalent value. This new currency was to be drawn by one official but signed, registered and numbered by another, and was to be received by the storekeeper in payment for merchandise and then retired. Public employees, on the other hand, were to be paid by the treasurer in copper money by means of orders supplied by the comptroller/ Despite this ordinance, the practice of drawing orders on the storehouse went on much as before; hence, on August 30, 1722, a second decree was issued prohibiting the practice absolutely. Instead, public employees should be paid in copper money by means of orders issued on the colonial treasury.^

At the interior post the older forms of paper money were still in use, and for a while the Company continued to redeem them.^ Eventually, in order to relieve the treasury of this drain, an ordinance was issued, December 4, 1722, calling in the outstanding notes drawn on the Company by the local commandants. These notes, too, were to be converted into cards.*

Since the several changes in question had led to speculation, on September 6, 1723, an ordinance was passed making it illegal to buy and sell the Company's notes. Confis--cation and a fine of 3,000 livres were to follow conviction for the offense.^ The paper in circulation, however, continued to depreciate. In the Illinois country, for example,

1 A. N., C, Ser. C^*, vol. vi, fols. 422-425, « Ibid.

» Ibid., vol. vii, fols. 16-17; vol. viii, fols. 286-289; A; B. N., Joly Coll., vol. 1726, fols. 131-132.

* A. N., C, Ser. A, vol, xxiii, Dec, 4, 1722,

* Ibid., Ser. Cis, vol, vii, fols, 15-16.

it required 5,000 livres in bills of exchange to buy a "quart" (16 gallons) of brandy.^

In the latter part of 1724, therefore, the Company's officials in France ordered the retirement of the 81,243 livres, 4 sols, 9 deniers of cards issued under the ordinance of 1722.^' The instructions sent in this connection made no mention of other forms of paper in circulation, because by the decree, in theory at least, they became valueless on January i, 1723. This omission brought protests from many persons who held older forms of paper, including 120,000 livres in bills of exchange drawn by the commandant in the Illinois country on the local directors and on Paris before the date last-named. The reasons given to the " or-donnateur " by the holders for not having converted the paper into cards at the proper time were as follows: they had had no knowledge of the ordinance before its expiration in 1723; the Illinois country was too far from New Orleans for them to make the journey to the capital in the period allotted; it was the general supposition that the first ordinance was simply a warning, and that no action would be taken until a third had been issued. The case, together with these protests, was placed before the superior council, by which, May 13, 1725, it was decided that all forms of paper money then in circulation should be redeemed, the same reduction being observed as under the decree of 1722. The comptroller, thereupon, was instructed to receive all forms of paper money presented, but to keep a separate record for each kind.^ As late as April, 1728, some of this old paper was sent to New Orleans to be redeemed. It was refused on the ground that ample time for redemption had been given in 1725.' ,

1 A. N., C, Sir. C", vol. vii, fol. 15.

'Ibid., vol. viii, fols. 286-289; vol. ix, fols. x 10-113. 133.

*Ibid., vol. xi, fols. 46-47.

Tampering with the paper still in circulation followed; it was subjected to all sorts of alterations and some of it was forged outright. In order to put an end to these illegal practices, the superior council, October 11, 1725, issued a decree that forgers should be arrested and punished. Any one caught altering, falsifying, counterfeiting, scraping or interlining any of the paper money was to be flogged and then prosecuted criminally by the attorney general.^

Scarcity of coin had forced the use of paper as a currency and fraudulent practices had caused it, from 1723 to 1726, to stand at a ratio of from thirty to thirty-five livres with silver.^ On October 27, 1727, the colonial officials informed the home government that 26,800 livres in treasury notes (billets de la caisse) had been put into circulation by the " ordonnateur " in order to keep specie in the treasury, and asked to be allowed to draw bills of exchange for a similar purpose. Permission was granted so to do on condition that the amount should not exceed 6,000 livres a year.' This sum was far too small. A single merchant sometimes carried away as much. Indeed the " ordonnateur" declared that 20,000 francs a year were needed to keep specie in the province.*

The shortage in bills of exchange and copper money made it necessary for the agents, in order to meet the obligations of the Company, to put into circulation 50,000 livres in treasury notes for each of the years 1728 and 1729. The paper was scarcely in circulation when it began to be falsified and soon 1,000 livres in fraudulent notes were abroad. In the former year a treasury clerk and two accomplices were arrested on suspicion. One of the con-

1 A. N., C, Ser. A, vol. xxiii, Oct. 11, 1725. ^ Ibid., Ser. C^^, vol. xvi, fols. 166-177. ' Ibid., vol. xi, fols. 51-52, 86-87. * Ibid., fols. 51-62, 125, 329.

federates turned state's evidence and thereby escaped punishment ; the other, because of his extreme youth, was dismissed. The originator of the fraud was convicted and sentenced to the galleys for life. The whole of the issue of notes was retired, and in its place others for the same denominations were given out. This second emission was signed by all the members of the council because it was believed the added signatures would make them difficult to forge. ^

From 1729 to 1731 the Company sent merchandise to the colony and managed through its sale to retire a g^eat many of the notes at a reduction of fifty per cent on the face value. This action forced the piastres down to ten or twelve livres. Consequently when on July i, 1731, the crown took control of affairs in Louisiana there was not a great deal of the Company's paper in circulation there.*

During the last year of its control contracts involving the use of notes for payment were made by the Company, and between private individuals, which later gave rise to litigation. Circulating as money, these notes were sometimes offered at a reduction of half their nominal value; in other cases the full face value was demanded. On October 15, 1731, the governor and " ordonnateur " issued jointly an ordinance to the effect that the notes were disarranging the values of royal money, hence would be considered only as contracts between private individuals and were no longer to j)ass current. In order to give some ease to the holders, a time limit of fifteen days was allowed for adjusting the matter.* A similar ordinance was issued, October 30th, giving to persons holding such notes, and residing at the remote

1 A. N., C, S^r. 0», vol. xi, fols. 51-62, 125, 329.

• Ibid., vol. xvi, fols. 166-177.

» Ibid., SSr. A, vol. xxiii, Oct. 15, 1731.

posts, an additional fifteen days for the purpose/ By May 15, 1732, the notes still in the colony had lost half their value.^ The matter dragged on until September 30, 1733, when it was decreed by the superior council that all paper of the old type should be reduced in value by one-half and then redeenled in such currency as the treasury saw fit to give. This loss fell in large measure upon the Company, which was not in a position to protest since it had paid its own notes on practically the same basis.*

After the retrocession the crown sought to place the finances of Louisiana on a specie basis by sending over silver and merchandise to meet the yearly expenses.* The royal government next tried to meet local obligations with merchandise alone.^ To this end it made several unsuccessful attempts to ascertain in advance the approximate yearly expense for Louisiana, but the estimate was always too inaccurate to be of any use in devising plans in advance for the financing of the province. These methods at all events did not keep the silver money in circulation, but it did hold the piastres at five livres.^ The crown soon fell back on the use of bills of exchange as a means of retaining specie in the province, and by the end of the fiscal year, July, 1732, 46,629 livres, 16 sols, 5 deniers had been drawn.^

On February 16, 1733, there was scarcely enough metallic currency in the treasury to meet the government's obligations for the ensuing six months. In order to preserve what

1 A. N., C, Ser. A, vol. xxiii, Oct. 30, 1731.

* Ibid., Ser. O^, vol. xv, fols. 133-136.

* Ibid., vol. xvi, fols. 166-177; Margry, vol. v, pp. 654-655.

* Supra, p. 104.

^ A. N., C, Ser. C^^, vol. xxxiv, fols. 376-378; A., B. N., Joly Coll., vol. 1726, fols. 132.

* A., B. N., Joly Coll., vol. 1726, fols. 132-133.

^ A. N., C, Ser. O^, vol. xv, fols. 174; vol. xvii, fols. 178-180.

there was, orders were issued on the local treasurer to the amount of 55,090 livres, one sol, eight deniers/ On May 12, 1733, the governor and " ordonnateur " recommended the employment of bills of exchange in moving the tobacco crop.' Accordingly the end of the fiscal year, in July, 108,-933 livres, thirteen sols, eight deniers were utilized in this form, and the amounts due for general expenses paid in merchandise.'

So serious indeed was the shortage of specie in Louisiana that the crown deemed it advisable, September 15, I733» to issue card money for the province similar to the kind used in New France. Unlike the old notes, the cards were to be received at the royal storehouse on a par with silver and bills of exchange, the supposition being that the new currency would cause no increase in the price of merchandise and other supplies.* Before putting the cards into circulation the home government ordered the governor and " ordonnateur " to ascertain how the money was likely to be received by the people of the province."

On April 3, 1734, the colonial officials reported that they had examined conditions in Louisiana with the greatest possible care, but could discover nothing that would make an issue of cards dangerous. Metallic currency was not much needed at the interior posts where everything was purchased largely by means of barter. Practically all the actual money required in Louisiana was for the settlements on or near the coast. There a certain amount of silver was

^ A. N., C, Sir. 0», vol. xvii, fols. 55-56; voL xxxi, fols. 108-113; A., B. N., Joly Coll., vol. 1726, fols. 132-133. » A. N., C, Sir. Ci8, vol. xvi, fols. 80-82. « Ihid., vol. xvii, fols. 178-180. * Ihid., Sir. B, vol. Hx, fols. 578-588. » Ibid., Sir. C", vol. xviii, fols. 4S-50.

needed, part of which would come from Pensacola by way of Mobile. It would be well, however, to delay the issue two or three years, in order to let time efface any remembrance of the Company's paper which had fallen into great discredit, and also to allow some of the settlers to become more prosperous. But, if the royal government were determined to make the issue at once, it probably would be received by the people of the province without objection. In that case the officials proposed that, in order to accustom the settlers gradually to the new money, the crown issue no more than 300,000 livres, half of which, together with an equal amount of silver, should be put into circulation in 1735 and the remainder in the following year.^ To this communication the home government replied, August 17, 1734, stating that since 1729 card money had been in use in New France and had given the greatest satisfaction there. Hence no doubt was felt that a similar issue for Louisiana would produce a like effect."

Meanwhile the officials continued to encounter great difficulty in keeping specie in the colony. By the close of the fiscal year of 1734 the " ordonnateur " had drawn in favor of the merchants 118,476 livres, sixteen sols, ten deniers in bills of exchange and had issued notes also on the colonial treasury. Moreover he had drawn 104,410 livres, eleven sols, four deniers in bills of exchange payable in 1735, and 2,210 livres, in 1736.^ To this amount were added 12,349 livres, two sols, four deniers drawn on New Orleans by the commissary at Mobile.^ For the two years beginning

^ A. N., C, Sir. Ci3, vol. xviii, fols. 45-50.

« Ibid., Sir. B, vol. Ixi, fol. 696.

'Ibid., Sir. C^^, vol. xix, fols. 32-33, 86-87, 104-105, 106-107; vol. xxi, fols. 245-249.

* Ibid., vol. xix, fols. 151-157.

April I, 1732, the " ordonnateur " had drawn in bills of exchange 361,671 livres, fourteen sols, eight deniers.^

Since the reception of the communication from the crown the governor and "ordonnateur" had been working to create a sentiment in the province in favor of the card money. It seemed that their efforts met with some success, for in a dispatch, April 10, 1735. they stated that the people were awaiting the introduction of the new currency on the arrival of the first vessel. As at this time the piastre was still valued at five livres, they suggested that it be used as a unit of value for the cards.^

On August 29, 1735, the royal government informed the officials that it had been put to great trouble to redeem the large quantities of bills of exchange they had drawn and ordered that in future the amount be lessened. This command seems not to have been heeded.* Before the end of the year the amount of bills of exchange drawn was 327,384 livres, six sols, nine deniers, whereupon the crown proceeded to fix the yearly allowance at 150,000 livres.*

On September 14, 1735, the home government finally issued an ordinance creating a card money for Louisiana to the amount of 200,000 livres in denominations of twenty, fifteen, ten, five and two livres ten sols, and in still smaller ones of twenty-five sols, twelve sols six deniers, and six sols three deniers each. The money was to bear the royal arms and was to be written and signed by the comptroller in Lx>uisiana. Cards of the first five values were also to bear the signatures of the governor and the " ordonnateur ", while the lower denominations required only the initials of these offi-

' A. .\., C, Ser. 0», vol. xix, fols. 32-33.

^ Ibid., vol. XX, fols. 16-17; sec note i^, p. 105.

» Ibid., Sh. B, vol. Ixiii, fol. 584.

* Ibid., Sh". 0». vol. xxi. fols. 245-249, 311-316.

cers. In order to detect counterfeits when presented for redemption, four duplicates were to be made and deposited with the officials in charge of the finances of the province; three in Louisiana and one in France. Moreover, in order not to flood the colony with the new issue, the crown decreed that at first only part of it was to be put into circulation.^ So much for a project, the realization of which was to take place some years later.

The year 1736 opened with the finances of the province in a bad condition. Only 53,074 livres, sixteen sols, three deniers of the 150,000 allowance remained unused; there was a debt of 105,385 livres, nine sols, five deniers for the war against the Natchez and Chickasaw; the foreign merchants were making heavy demands upon the colonial treasury for bills of exchange. To meet these obligations, the " ordonnateur " resorted to the use of large quantities of treasury notes, and drew on the allowance of the current year 69,878 livres, fourteen sols, seven deniers; 80,122 livres, two sols on that of 1737 and 31,202 livres, two sols, three deniers on 1738.^ On October 10, 1736, the crown saw fit to increase the amount of bills of exchange permitted for that year to 230,122 livres, which amount was to include the 80,122 livres, two sols that had been drawn in advance on 1737.* At the close of the year it was estimated that there were 350,000 livres in paper circulating in the province.*

The disorder in the finances of Louisiana grew gradually worse. In the early part of 1737 the merchants

^ A. N., C, Sir. A, vol. xxii, fol. 146; vol. xxiii, Sept. 14, 1735; Ser. 03, vol. xxxiv, fols. 376-378.

* Ibid., Ser. C^^, vol. xxi, fols. 245-249, 301-302, 319-323; vol. xxii, fols. 268-269.

'Ibid., vol. xxii, fols. 134-135, 190-191.

* Ibid., vol. xxi, fols. 328-329.

took from the province 72,891 livres, six sols, eight deniers in bills of exchange, and by June there remained only 15,058 livres, twelve sols, six deniers of the allowance which the " ordonnateur" had reserved for current expenses. Therefore he informed the crown that, if it were not for the extraordinary expense of the war and the debt of 42,000 livres due merchants who would reach the province toward the end of the year, he would be able to keep the amount expended within the annual allowance of 150,000 livres.^ Under existing circumstances, however, it was impossible. The ordinary expenses for the year were 156,000 livres and the war debt was 42,803 livres, nine sols, seven deniers. It therefore became necessary to increase the paper in circulation by 150,000 livres, thus bringing the quantity at the end of 1737 up to 500,000 livres.'

The crown refused to sanction an increase in bills of exchange. Accordingly, in 1738, after deducting 31,202. livres, two sols, three deniers that had been drawn in advance, the " ordonnateur " had but 118,797 livres on hand. This was not enough to satisfy the claims of the French merchants, to say nothing of the obligations of the war which amounted to 90,000 livres, not including the supplies that had been drawn from the royal storehouses.^ The colonial officials were unable longer to keep the paper in the province from depreciating. Each year since the retrocession public expenses had increased without provision being made to meet them.

1 A. N., C, Sir. 0», vol. xxii, fols. 134-13S, IQO-IQI. » Ibid., vol. xxxi, fols. 108-113.

* Ibid., vol. xxii, fol. 216; vol. xxiii, fols. 134-137; vol. xxxi, fols. 108-113.

CHAPTER XI Paper Money and Credit, 1739-1763

Excepting the years 1742-1750, the period under consideration was one in which paper money was practically the only form of currency in use in Louisiana. During these years there were no entirely new kinds of paper introduced, yet the variations in the forms and the irregularities and excesses in the use of this currency make the period distinctive.

At the beginning of 1739 only 45,389 livres, eleven sols, five deniers were left of the annual allowance in bills of exchange.'^ Before the end of the year the war debt had risen to 530,353 livres, eleven sols, three deniers, not including the bills of exchange drawn by the commandants at I'Assomption. Moreover the demands of the merchants for bills of exchange were increasing.^ The " or-donnateur ", therefore, found it necessary to make use of large quantities of treasury notes, 200,000 livres being in circulation at the close of the year; to exceed the amount of bills of exchange permitted by the crown by 50,000 livres and also to draw on the grant for 1740, in order to meet current expenses.^ Under the circumstances the officials were unable to redeem the paper with either silver or bills of exchange, and as a result the piastre which had been equivalent to eight or nine, soon equaled eighteen livres of

^ A. N., C, Sir. Ci3, vol. xxiv, fols. 121-122.

* Ibid., vol. XXV, fol. 136.

* Ibid., vol. xxiv, fols. 31-32; vol. xxv, fol. 137.

treasury notes and other paper currency.^ As a remedy, the " ordonnateur" proposed to the crown an issue of 2CX),ooo livres more in cards for the purpose of retiring all the treasury notes which he was continually being forced to redeem in bills of exchange.^ The people of the province, in fact, regarded the cards with so much favor that they had withdrawn them almost entirely from circulation."

Each year the finances of Louisiana became more and more entangled. In 1740 the "ordonnateur" was confronted with a war debt of 830,137 livres, fifteen sols, ten deniers,* with no funds supplied by the home government to meet it. He was forced to make a generous use of treasury notes and to draw 244,236 livres, sixteen sols, one denier in bills of exchange. At the end of the year there were 900,000 livres in all kinds of paper passing current in the province.'

The finances in 1741, therefore, were in even greater confusion than in the previous year. To make matters worse, the governor and " ordonnateur" were not on friendly terms. It was not until the former returned from his last campaign against the Chickasaw that he learned of " the unwise distribution of bills of exchange which had made it possible to buy and sell them the same as silver ". For some time, in fact, many of the speculators had been using their entire credit in order to obtain bills of exchange for the purpose of trafficking in them with the merchants for paper at an advance of fifty per cent and, in two instances, sixty per cent. The abuse was followed by the

> A. N., C, Sir. C", vol. xxiv, fols. 31-32. I33-I35.

* Ihid., vol. xxiv, fols. 31-32; vol. xxv, fols. 9-16.

* Ihid., vol. xxv, fols. 9-16.

* Ihid., vol. xxxi, fols. 108-113.

* Ihid., vol. xxv, fols. 350-362; vol. xxxi, fols. 108-113.

usual consequences. Cards and treasury notes (bons de la caisse), equally, lost half their face i^alue and every one in the province, except a few jobbers who were able to establish themselves on well-equipped plantations, was greatly injured by the trade/

Foreseeing this decline as soon as he heard of the liberal use of the treasury notes. Count de Maurepas, minister of marine, declared it would be wise to retire all the paper at once. He further asserted that every increase in the amount would cause it only to fall into still greater discredit. His suggestion, however, was acted upon only to the extent of sending an order to Louisiana to find out how much paper was actually in use. There the colonial office allowed the matter to rest, since the procuring of information on this point was next to impossible owing to the irregularity in the way the currency had been issued at the interior posts. On his own account, however, and without waiting for orders from the crown, the " ordonnateur ", May 15, 1741, issued an ordinance calling in all notes which, on penalty of invalidation for non-compliance, were to be signed and registered at his office. Through neglect of enforcement or other reasons the ordinance did not bring in the paper or remedy the financial distress.*

This decline in the value of paper caused a demand to be made by the colonial officials for bills of exchange on France in payment of their services, they being unable to live on their salaries if paid in any other way.' On October 13, 1741 the crown informed Salmon his letter was most unsatisfactory. His silence on some points concerning the finances it disapproved; in other cases the action

1 A. N., C, Ser. O^, vol. xxvi, fols. 61-65.

^ Ibid., vol. xxviii, fols. 334-340; Sir. F^, vol. ccxiii, M. S. S. M,, April 30, 1744. » Ibid., Sir. O^, vol. xxvi. fol. 182.

he had taken it strongly condemned. The home government had been informed that the great quantities of paper money issued thus far caused a depreciation in value. It commanded the " ordonnateur ", therefore, to ascertain the amount outstanding, to call in the paper and redeem it with bills of exchange. It further ordered him when distributing such bills, always to give preference to the merchants from France.^

Before receiving this communication from the crown, Salmon had drawn 176,682 livres, eight sols in advance on the year's allowance of bills of exchange, which had been raised to 200,000 livres annually. The home government gave him permission to draw 60,000 livres more, which sum he exceeded by 1,245 livres, nineteen sols, six deniers, bringing the total for the year to 237,928 livres, seven sols, six deniers. In addition to this amount he drew 119,112 livres, ten sols, six deniers on the allowance for 1742. This last act greatly disturbed the French government, because it was unable to determine how it could meet its bills in the following May.^

By 1742 the officials and men who were living on salaries or wages paid in colonial paper were almost destitute. They could not buy themselves shoes and other necessities. The money received was scarcely enough to enable them to pay even their laundry bills. The European traders, moreover, made so great a distinction between colonial paper and piastres that there were few persons in the province with means sufficient to engage in the Spanish trade, which was in a fair way to be ruined. In fact the merchants would receive only silver or bills of exchange for their goods. As a means of relieving the situation, therefore, the governor

^ A. N., C, SSr. B, Louisiane, vol. bcxiii, fol. 309. * Ibid., vol. Ixxii, fols. 30-31.

asked the crown to pay half of the salaries or wages of employees in bills of exchange. This plan, he claimed, would have two beneficial results. In the first place, it would improve the condition of men who had nothing to sell and every thing to buy; secondly, it would prevent the constant increase in the number of treasury notes which led to a proportionate depreciation in all forms of paper.^ The crown seems to have taken no action in the matter, hence the amount in bills of exchange drawn, though beyond the limit of 200,000 livres which the home government had instructed Salmon under no circumstances to exceed, was 236,620 livres,—only a little less than the amount for the previous year.^

The depreciation of paper money that had begun somewhat gradually in 1730 went on more rapidly later, and in 1743 silver and bills of exchange stood at a ratio of two to five and even in some instances reached three to one in terms of paper.^ The ordinance of May 15, 1741, failed in its purpose; a second was issued January 15, 1743, giving the settlers a month in which to bring to the capital their treasury notes in order to have them converted into new money. Failure to present them in time made them valueless. This ordinance seems to have been better enforced. It is stated by the colonial officials that in a short time the greater part of 454,620 livres then outstanding had been turned in and converted into " bons de la caisse ", thereby fulfilling the object of the law.*

Some persons in the colony and others in the mother

^ A. N., C, Sir. C^^, vol. xxvii, fols. 48-49, 127-128. ' Ibid., fols. 190-191.

* Ibid., vol. xxviii, fols. 334-340; vol. xxxii, fols. 151-158; Sir. B, vol. Ixxviii, fol. 40; Sir. F^, vol. cclxii, M. S. S. M., April, 30, 1744.

* Ibid., Sir. F^, vol. cclxii, M. S. S. M,, April 30, 1744; Sir. O^, vol. xxviii, fols. 334-340; vol. xxxi, fols. 106-113; Sir. B, vol. Ixxviii, fol. 47.

country asserted that one of the chief causes of the financial disorder in Louisiana was the maladministration of Salmon, the " ordonnateur", who was accordingly recalled and Normant, a man who had rendered intelligent, accurate and valuable service at Cape Francis, was named as his successor.^ The charges against Salmon were at once investigated by the governor who sent a report to the crown stating that the accusations were not borne out by the evidence presented. In fact he could not find the slightest ground for any of the charges adduced, and gave it as his opinion that no one under the same circumstances could have managed the finances better or more profitably than Salmon had done.* Moreover, this opinion is reinforced by the fact that the new " ordonnateur ", in his communication to the royal government on the finances of the province at the time he entered office, criticised few of the methods employed by his predecessor. Instead, he traced the chief causes for the disorder to the fact that the crown since the retrocession had annually supplied inadequate funds to meet the colonial expenses, and to the method in which European merchants carried on trade in the province.'

Normant entered upon his duties in October, 1744. He found 1,050,000 livres of paper money in circulation made up as follows: 454,620 livres in "bons de la caisse", issued in 1743 to retire the existing treasury notes; 200,000 livres in cards; 395,380 livres in "simples recepisses ", and orders on the treasury (ordonnances). The "ordonnateur" began his administration of the finances of Louisiana by collecting royal debts and using the money thus secured in

» A. N., C, Sir, C", vol. xxviii, fol. 2Z3-

* Ibid., vol. xxix, fols. 27-31; vol. xxxi, fols, 10&-113. •

• Ibid., vol. xxxi, fol. no; vol. xxix, fols. 184-186.

redeeming the " simples recepisses" and orders on the treasury. By the close of the year the paper in circulation had been reduced to 847,435 livres, twelve sols, six deniers/

Experimenting with these forms of currency having brought no relief, there was general agreement in favor of their retirement. There was, however, no such unanimity of opinion as to the method of withdrawal. The governor and " ordonnateur" proposed the sending to the colony of merchandise or cargoes of negroes to be exchanged for paper at a fixed ratio with silver. Currency thus drawn into the hands of the home government could be readily retired. The suggestion was rejected because its fulfillment was considered too slow in accomplishing the results desired, and also because a large part of the paper was in the hands of speculators and traders who would get the merchandise or negroes and sell them to the settlers at such high prices as to injure rather than benefit the colony.*

Another point under discussion at the time was whether all forms of paper should be retired on the same basis. Since cards had always been preferred to other kinds of colonial currency, some were inclined to give them an advantage in the rate of exchange, at least over the treasury notes which had contributed most to the course of depreciation. This method of adjustment received small support because it would create a new zest for speculation, and thus would be lucrative only to the persons who had been so instrumental in discrediting paper money. As far as the crown was concerned, one kind of colonial paper was

^ A. N., C, Ser. C^*, vol. xxviii, fols. 334-340; Sir. B, vol. Ixxviii, fols. 46-47. According to another of the "ordonnateur's" reports: 455,000 livres, "bons de la caisse"; 167,799 livres in old paper of the Company of the Indies, 110,000 in "simples recepisses"; 200,000 livres in cards, total 932,799 livres.

* Ibid., Sir. C^^, vol. xxviii, fols. 334-340.

as good as another, and from its point of view all deserved the same treatment. It was thereupon decided to fix the ratio of withdrawal at five to two, the degree of depreciation in terms of silver in August, 1743. The retirement was to be effected by means of silver and bills of exchange, part in 1745 and the remainder in 1746.^ In compliance with the royal command the " ordonnateur " proceeded to call in the paper money, then verify, check and burn it. By October 24, 1745, 838,148 livres, eight sols, nine deniers of the sort had been canceled.'

This done, it at once became necessary to determine the nature and form of a new issue. The " ordonnateur " was opposed to paper currency of any kind. It was impossible, he declared, for him or the governor to limit the amount drawn on the colonial treasury by the post commandants whose bills were not received for a year or eighteen months after their date. Moreover he could not know in advance how much would be needed for Indian affairs. The great distance between the mother country and the province often delayed the royal ships and made it necessary for him to buy supplies at the private shops where he was obliged to pay high prices. Then, too, when these vessels reached the colony in considerable numbers it was often impossible for him to dispose of the merchandise advantageously. It was consequently out of the question to estimate even approximately the amount of paper money required for the fiscal year, and the bills of exchange needed to redeem it. This state of affairs made the paper subject to depreciation and led to a complete disarrangement of the local finances. Even a small depreciation was dangerous, since there was a strong tendency among the people of the province to en-

» A. N., C, Sir. C", vol. xxviii, fols. 334-340.

'Ibid., voL xxix, fols. 184-186; vol. xxxi, fols. iio-ni.

gage in speculation with anything susceptible of it. In fact the " ordonnateur " claimed it was the only occupation to which the inhabitants were really attached. Nor-mant admitted that a card money would give temporary relief, which might last perhaps a year, but asserted that this advantage would in no way counteract the trouble that would be caused by attempting to maintain it longer. He proposed instead: first, the use of Spanish money, assigning it a value greater than its intrinsic worth in order to keep it in circulation in the province; secondly, the making of the prices of colonial products so attractive that the people would be induced to take up substantial local industries and thereby raise products that could be exchanged for foreign goods, thus eliminating the need of other forms for foreign trade.^

By this time it seems to have been demonstrated that silver, under ordinary circumstances, could not be kept in the province. The experience of New France with card money, on the other hand, indicated that there was no better form of currency available for Louisiana, even if its issue might bring on a repetition of the old troubles. Those who upheld this viewpoint argued that the cards formerly in use had maintained their value for two years and had lost credit only on account of the extraordinary expense of the war then in existence, and the action of the " ordonnateur " in giving preference over them to the treasury notes. Therefore it was asserted that, with merchandise in the royal storehouses and bills of exchange drawn on the treasury of France as security, card money would put the finances of the provinces on a substantial basis.^ The opinion at all events won the approval of the home government,

1 A. N., C, Sir. O^, vol. xxxi, fols. 112-113; vol. xxxiv, fols. ZT^y?^-^ Ibid., vol. xxxi, fols. 112, 113; Ser. B, vol. Ixxviii, fols. 40, 42-51-

which, April 30, 1744, ordered a card money to be issued for Louisiana on the five to two basis, and put into circulation two months from the day that the decree should be made public there. ^

Because of a change in the situation in the French West Indies/ and the continuance of the war, it was deemed advisable to take no action in the matter as yet. Silver in considerable amounts was brought to the colony causing some difficulty in the drawing of bills of exchange. In order to insure a safe arrival, much against his better judgment, Normant was forced to make as many as five separate issues of the same bills of exchange, sent by different routes, via Havana, Canada, etc., to France.'

In 1746 the entire allowance of 200,000 livres was used up in return for Spanish silver expended on strengthening the fortifications at the " English Turn " and at Mobile.* On December 9, 1748, the colonial officials informed the home government that they had to meet local expenses by means of bills of exchange and a small amount of silver obtained from sales of merchandise from the royal warehouses."

The new "ordonnateur", Michel de la Rouvilliere was convinced very soon after entering office that there was an absolute need for more money. Without consulting Governor Vaudreuil, he drew up an ordinance on the subject and presented it to that officer for his signature. Because of the irregularity of this procedure, and because of his doubt as to its legality, the governor hesitated to attach his name,

1 A. N., C, Sir. B. vol. Ixxviii, fols. 42-51.

^ Supra, p. 106.

*A.N., C, Sir. Ci», vol. xxix, fols. 184-186.

* Ibid., vol. xxxi, fol. 139.

• Ibid., Sir. B, vol. Ixxxvii, fols. 30-31. ,

whereupon the " ordonnateur " informed him, that if he refused to sign, the issue would be made without his approval. On further reflection the governor signed the ordinance, believing that since there would be an issue anyhow, the joint sanction of governor and "ordonnateur" would give the people greater confidence in the paper money provided for, and make its circulation more acceptable. The notes were to be drawn in denominations of from twenty-five sols to thirty livres; larger values, if needed, were to be numbered, registered, signed and placed in the colonial treasury to be there used in paying public expenses. The ordinance,' without stating the amount to be issued, went into effect February i, 1750, along with an assurance from the " ordonnateur " that there need be no fear to accept the new money in payment for all debts. About 108,000 livres were put into circulation at this time, which amount was soon so considerably augmented as to create public uneasiness. The " ordonnateur", however, assured the governor that there was no cause for anxiety but gave him no information regarding his confidence, nor did he explain the increase in the quantity of notes.^

On October 23, the home government reprimanded the governor and " ordonnateur" for their action in the matter, since no one but the crown, the commanders of besieged cities or blockaded colonies during times of actual investment had the right to issue money. Creating or altering the money of the kingdom, it declared, was a sovereign right to be shared with no one. Therefore, the " ordonnateur " had exceeded his power and had broken a most important law for which act there was not the slightest justification. If the treasury was without money, the " ordonnateur " could have recourse to bills of exchange

1 A. N., C, Sir. C^', vol. xxxiv, fols. 25^260; vol. xxxv, fols, 99-101.

and the sale of merchandise from the royal storehouses. For the last two years the records of receipts had shown large quantities of supplies there. The home government stated further that there were still other expedients that might have been tried. Even if there were none, the colonial situation did not warrant Michel in adopting the course he had followed, especially since the province was only just recovering from the disorders occasioned by an excessive amount of paper. The '* ordonnateur ", thereupon was ordered to withdraw, by means of bills of exchange on the allowance for succeeding years, all the notes he had put into circulation. It was further stated that the shortage in the silver drawn from the Spanish trade could be made up either by sending over French money, by a new issue of cards or by some other method not yet undertaken.^

Before it was possible to make the ordered retirement, counterfeits began to be found in circulation. Public uneasiness through distrust in the paper was thereby greatly augmented.^ In order to increase public confidence in the paper money, some effort was made to bring the counterfeiters to justice. Too many important personages, however, were implicated in the transaction. The prosecution ended disgracefully in the trial and conviction of but one culprit, a mulatto slave belonging to the crown. The negro was whipped, branded on the hand with the fleur-de-lis and sold into slavery in St. Domingue.*

The " ordonnateur ", January 30, 1752, sent to the royal government a report of the finances during his term of

1 A. N., C, Sir. B, vol. xci, fol. 31.

* Ibid., Sir. C", vol. xxxv, fols. 99-101; Sir. F', vol. ccxliii, M. S. S. M., May 18, 1751.

» Ibid., Sir. C^', vol. xxxv, fol. 205; Sir. F», vol. ccxliii, M. S. S. M., May 18, 1751.

hi]

PAPER MONEY AND CREDIT

141

office. It is evident from this statement that the Spanish trade still made it necessary each year to draw large sums in bills of exchange. In 1749, the amount was 453,408 livres, nine deniers; in 1750, 550,000 livres; in 1751, 700,-000 livres; and in 1752, but 535,000 livres. The sum for 1752 indicates a recovery from the conditions in the Spanish trade brought on by the war (1744-1748), and the whole statement brings out the further fact that during these years the home government had made much more liberal provision for meeting the expenses of the province. The 200,000 limit of bills of exchange was disregarded and during the years in question the provision in money made exceeded the amount of bills of exchange used by the colonial officials. Therefore in 1752 there remained 532,023 livres, nine sols, eleven deniers in unused funds, which shows that for these years there was no need of an issue of paper money.^

This same year Michel was recalled and his place taken by d'Auberville as " ordonnateur ". Governor Vaudreuil was transferred to New France and Kerlerec sent over in his stead. Nevertheless Michel's example in issuing notes redeemable with bills of exchange was followed by all his

1 A. N., C, Ser. C^^, vol. xxxvi, fols. 299, 243.

" Fonds ordonnes et ii ordonner"

Year 1749.. 1750..

1752..

Livres

529.537 601,264

889,957 928,567

Sols

3 16

" Fonds remis S. la colonic les lettres de change "

Den.

II

6

Livres

453.408

550,000

790,000

535,000

Sols

Den. 9

" Fonds remis k la

colonic par les

proems ver-

baux "

Livres Sols

Den.

62,137 19,481 7,268

2,949,326 19 5 2,328,408 .. 9

Unused funds—532,023 livres, 9 sols, 11 deniers.

88,886 8

successors.^ The war begun with England in 1756 made the risk of sending silver to the province too great; accordingly the governor and " ordonnateur" were instructed to issue certain special notes, also called " bons ", and deriving their name, it was said, from the first word of the inscription. Drawn on the colonial treasury in denominations ranging from ten sols to 100 livres, they were to be payable in three months and redeemable at New Orleans in bills of exchange on France if presented to the amounts of 300 or 400 livres at a time. During the progress of the war, also, the governor and " ordonnateur " gave the commandants at the interior posts the power to issue similar " bons " for provisions, public works and Indian affairs. These debts, contracted with merchants and settlers by the officials, gre-w to enormous sums and the abuses accompanying the privilege rendered the expense excessive.^ For the years in which the annual outlay exceeded the amount in bills of exchange, treasury notes, instead of being redeemed in the regular manner, were exchanged for "bons" payable in colonial currency twelve months after date,—^an arrangement termed " making the reduction ".*

In order to expedite matters, the officials of Louisiana occasionally drew bills of exchange on the treasury of other French colonies. In 1755, for example, the "ordonnateur" took such action in the case of Cape Frangais, sending receipts of the bills to the home government, so that it might make no mistake in effecting payment.*

In 1754, both card money and notes were redeemable on equal terms by means of bills of exchange payable in part

1 A. N., C, Sir. F», vol. xxv, fols. 201-205, ' Ibid.; Pittman, pp. 46-47-

• Trans. Lit. and Hist. Soc. of Quebec, 1871-1877, p. loi.

* A. N., C, Sir. 0», vol. xxxix, fols. 76-77.

during 1754, 1755 and 1756, of which 800,000 livres were drawn in the year first named. The " ordonnateurs " from 1752 to 1758, in fact, contributed nothing novel to the administration of colonial finances. Large quantities of paper money of one sort or another continued to be put into circulation.^

Rochemore, the new " ordonnateur ", on reaching New Orleans, August 17, 1758, reported to the home government that he found a vacancy in the office of comptroller, no records for that office to give him any information concerning the department, and the work being carried on by various persons at different places without any one being directly in charge. The treasury he found without specie, more than^1,800,000 livres in paper money outstanding, and 1,401,800 livres, eight sols, nine deniers in bills of exchange drawn on the allowance for future years. As the royal storehouses were entirely empty, he was obliged to buy at the local shops at high prices.^ Accordingly he thought it advisable to call in all paper in circulation and make a new emission, similar in form but signed by himself, in order, as he stated, to distinguish his administration from that of his predecessor. The withdrawal and replacement were effected on December 13, by means of bills of exchange to the amount of i ,469,848 livres, seventeen sols, eight deniers, drawn on the allowance for 1758, and also of 525,151 livres, two sols, four deniers on that for 1759, or altogether 1,995,000 livres.* For the process of recall only eight days were allowed, a requirement that caused great inconvenience and much discontent. Everything, furthermore, was done without the advice or even the

^ A. N., C, Sir. Ci3, vol. xxxviii, fol. 265; Trans. Lit. and Hist. Soc. of Quebec, 1871-1877, p. loi. » A. N., C, Ser. C^^, vol. xl, fols. 181-182. ' Ihid., fol. 215.

knowledge of the governor, who first learned of the transaction when he read the notice to the people on the public bulletin board/

On January 2, 1759, Rochemore sent to the home government his plans for the adjustment of the colonial finances. In his opinion it would be wise, for the present at least, possibly also for the future, to establish a card money, similar to the one of 1744, with the emission, however, being made entirely in France. Such a money, he affirmed, would put confidence in colonial paper and thereby reduce the price of all sorts of commodities; provided that treasury notes, signed and issued by the " ordonnateur " were prohibited, except in cases of absolute necessity. For the knowledge of the crown, should it act upon his suggestion, Rochemore estimated the value of the card money needed for current expenses at 7,000,000 or 8,000,000 livres, 200,-000 livres of which, he stated, should be in small denominations for use in local transactions. Before this communication reached the home government it had learned of the work of the " ordonnateur " during his first months of incumbency, and therefore, made no reply to the proposal.*

On the other hand, the crown, January 19, 1759, dispatched to the " ordonnateur" a severe reprimand for the unauthorized emission of paper money of the previous year. He had violated the instructions given him on leaving France. To have introduced a new money into Louisiana was declared a flagrant violation of the law that made such an act exclusively a royal privilege. Not to have consulted the governor in the matter was condemned, and the whole affair pronounced a blunder that in no way could be excused. He was then ordered at once to

1 A. N., C, Sir. CIS, vol. xli, fols. 75-76. ' Ibid., fol. 154.

call in all of the paper in question and redeem it by means of bills of exchange. In future he was to furnish the governor a report on the conditions of the finances semi-annually, oftener if the latter requested it. Furthermore he was to make his superior a quarterly report on the bills of exchange drawn on the French treasury.^

On February 25, and again on June 25, 1759, the governor informed the crown that the finances of Louisiana were in a deplorable state. On the latter date he asserted it was positively known that, of the 1,995,000 livres in bills of exchange drawn the previous year, not more than 200,-000 livres were issued in the regular way. Instead they were sold at an advance of from fifteen to eighteen per cent to the merchants who made up the premium by a proportional increase on the selling price of their goods. Moreover it was affirmed that the treasurer, who was also in control of munitions, had permitted supplies to the amount of 200,000 livres to be taken from the storehouses in order to provision royal ships. He then drew on the French treasury a bill of exchange for an equal amount, thus making the merchandise cost the crown 400,000 livres. The bill of exchange he sold to the jobbers at the above-named profit. In order to keep himself better informed and if possible to prevent such practices as enumerated above, the governor proposed to provide the treasury with a safe in which the records and cash were to be kept. The safe was to be provided with a lock having three keys. One was to be held by the treasurer, a second by the comptroller, and the third by someone whom the governor himself would name. Rochemore on his part informed the crown that such allegations were simply incredible.'

1 A. N., C, Sir. B, vol. cix, fols. 1-2; Ser. F^, vol. ccxliii, M. S. S. M., Jan. 19, 1759. ' Ibid., Ser. C^', vol. xli, fols. 30-31, 72-75.

The home government seems to have gotten a different impression from the governor's reports. On August 29, it addressed Rochemore as follows: " your antipathy for Governor Kerlerec and a disregard for all the wise council he gave you on your arrival in the province; your haste, in spite of his advice, to call in all the treasury notes and to draw that year more than 1,800,000 livres in bills of exchange on the French treasury . . . for these reasons and for many more, founded upon your unsociable nature and incompatibility with the colonial service . . . the crown has decided to recall you to France "^ Because of the political influence of his family in France, however, no order to return immediately, was sent to him at this time. Accordingly for several months more, Rochemore continued to hold the office of " ordonnateur ".'

Ignorant of the results of his labor upon the home government, and determined that it should know the truth about the administration of the finances of Louisiana by Rochemore, Kerlerec continued to send further information directly to France and also by way of Denmark, Holland and Spain. On October 8, 1759, he despatched a letter to France stating that the " ordonnateur " was selling from the royal storehouses goods intended for Indian presents. This, merchandise, at low prices, passed into the hands of members of Rochemore's political clique who sold it at a profit of 500 to 600 per cent. By such a manoeuver the " ordonnateur " was able to share the gains and at the same time present to the governor a balanced treasury report. The governor also asserted that the " ordonnateur ", contrary to his instructions, was buying up whole cargoes of European merchandise in order to con-

^ A. N., C, Sir. B, vol. cix, Louisiane, fol. 13. * ViUiers du Terrage, pp. 140-144.

trol prices. One instance is cited in which Rochemore gave a bill of exchange amounting to 250,000 livres for a cargo that he was able to dispose of for 400,000. Public clamor against such proceedings, it was affirmed, was increasing daily, and the discontent was augmented by the way in which bills of exchange were distributed. Unless they belonged to the Rochemore faction, it was difficult for persons in the service, who had families in France, to secure bills of exchange to make them remittances. Some of these men were able to send part of the amount they desired, while others, for example, four captains and Macarty, commandant in the Illinois country, could obtain none.^

Such methods made speculation in bills of exchange lucrative. A treasury clerk, an appointee of Rochemore, kept a shop in New Orleans where he sold bills of exchange at an advance of fifteen per cent or more.^ It seems the crown had received, in part at least, the same information. On October i, it asked for a fuller report on the administration of the finances of the province, and asserted that it was impossible for Rochemore's secretary to amass 40,000 livres in less than a year unless the " ordonnateur " himself had had some part in the intrigue.^

On October 12, Rochemore defended his action in regard to the recall of treasury notes the preceding year on the ground that he had simply followed the example set him by Michel and Vaudreuil, but made no mention of the many accusations made against him by colonial officials. He at this time informed the home government that for the past six months his health had been in a wretched state, hence he greatly needed a change of climate—the only point, perhaps, on which he and the governor were ever in ac-

^ A. N., C, Sir. (7^3, vol. xH, fols. 120-12^. * Ihid.

Ibid., Sir. B, vol. cix, fol. 25.

cord/ October 16 he made another report to the crown stating that he had drawn on 1759 for but 869,000 livres." On Decemljer 7 he sent the home government a more detailed statement in which he asserted the only money in use in the province was treasury notes, orders on the treasury and a very little silver. The paper of itself depreciated in value by soon becoming so worn and torn that it was difficult to know its value, hence no one wished to receive it except at a very great discount. Speculation in bills of exchange, the " ordonnateur " asserted, had now become a business with the discount on treasury notes so great as to make them almost worthless.*

The financial perplexities of Louisiana at this time were augmented greatly by the conditions existing in the royal treasury. So nearly was the home government bankrupt that it was obliged, October 15, 1759, to suspend payment on bills of exchange and was able to send to Louisiana none of the supplies asked for. For the coming year it permitted Kerlerec to draw on the crown in bills of exchange to the amount of 400,000 livres to be used for the most pressing current expenses and to hold, if possible, the confidence of the troops and colonists in the royal government*

The outlook for an improvement in the finances of Louisiana in 1760 could scarcely have been more discouraging, yet the governor kept up his efforts to rid the province of the services of Rochemore. In his report, March 30, he attempted to elucidate the matter to the crown by making a summary of the financial operations of the "ordonnateur" for the past eighteen months, as follows: from the i ,996,-

1 A. N., C, SSr. C", vol. xli, fols. 262-287.

• Ibid., fol. 310.

» Ibid., fols. 318-322.

* Ibid., Sir.. B, vol. cxiv, Louisiane, fols. 20-21,.

000 ^ of bills of exchange issued in October, 1758, he deducted 1,400,000 livres for the administration of Desclo-siaux, " ordonnateur " ad interim, which subtracted, left charged to Rochemore 596,000 livres. The last issue of October, 1759, amounted to 1,050,000 livres. The records since that date, he asserted, showed 4,000,000 livres more were issued, which made the entire amount 5,646,000 livres. Before the governor was able to despatch the report to France he learned of 1,041,850 additional, drawn in October, 1759, which brought the amount for the period in question to 6,687,850 livres. The governor affirmed that this last issue had been announced in Louisiana to be 500-000 or 600,000 livres.^ Rochemore's statement to the crown made it 869,000 livres.^ On June 25, 1760, the " ordonnateur ", in making reference to this same issue, apparently, put it at only 150,000 livres, 70,000 livres drawn on 1759 and 80,000 on the allowance of 1760.*

During the year the bitter struggle between the governor and " ordonnateur" reached its climax when Kerlerec, amid shouts from the people of " Vive le roi et Monsieur le governeur ", and with the physical support of the soldiers, entered a house and seized goods belonging to Roche-more. It had been rumored that the "ordonnateur" was to be assassinated. He undoubtedly believed the time had come. Rochemore, a man of less than mediocre ability, deprived of his best political supporters by this time, fearful of being murdered, was unable, henceforward, to carry on extensively his evil practices in the administration of the finances of the province. Kerlerec was practically in full control.'

1 Supra, pp. 143, 145. The governor's error.

2 A. N., C, Ser. C^s, vol. xlii, fols. 12-21. 3 Supra, p. 148.

* A. N., C, Sir. C^', vol. xlii, fols. 126-127.

* Villiers dti Terrage, p. 94.

The governor now formulated a plan which he believed would improve the colonial currency and communicated it to the crown. He informed the home government that there were more than 3,000,000 livres in different kinds of treasury notes in use. They had been issued from time to time by the " ordonnateurs " because of a lack of funds for current expenses, and at first had been redeemed each year with bills of exchange; but that practice long since had been g^ven up. Since the notes were signed only by the " ordonnateur " and comptroller, it was the general belief in the province, that they were without royal sanction, hence no one had the least confidence in them. He therefore proposed, as his solution of the currency difficulty, the issuing of 4,000,000 livres in parchment or paper money to be used in redeeming the treasury notes. They were to have the form of " bons ", six by four inches in size, bearing the king's arms, and ranging in value from six sols up to 5,000 livres.^ After receipt in New Orleans, they were

* A. N., C, Sir. C»», vol. xlii, fol. 198. The values and amounts of each kind of " bons " to be issued:—

Denominations Total

Number. in livres. in livres.

100 5,000 500,000

100 4,000 400,000

200 3,000 600,000

300 2,000 600,000

600 1,000 600,000

1,000 500 500,000

1,000 300 300,000

1,000 200 200,000

1,000 100 100,000

1,000 50 50,000

1,000 40 40,000

1,000 20 20,000

1 2,000 12 24,000

'■ 2,000 6 12,000

' Zfxxi 3 9,000

10,000 48 sols 24,000

10,000 24 sols 12,000

10,000 12 sols 6,000

10,000 6 sols 3,000

55,300 4,000,006

to be numbered and signed by the comptroller and also by the governor and " ordonnateur ", after which they were to become current money for the sum cut in the corner. This currency was to be accepted on a par with silver and bills of exchange, and was to be legal tender for all debts. Six months, from the date of the publication of the ordinance in Louisiana, were to be allowed in which to bring the old notes to the treasurer at New Orleans, by whom they would be redeemed with " bons "; otherwise they would be null and void.^ Notwithstanding the fact that the proposal would have gone far toward the solution of the currency problem, nothing was done to enact it into law.

On May 20, 1761, Foucault became acting " ordonnateur ". He found the storehouse entirely empty, hence was obliged to buy supplies for the troops at the private shops at extravagant prices. There were abuses everywhere. Paying the officers in bills of exchange fostered speculation in paper money of which he found 6,783,347 livres in circulation, standing at five to one with silver.^ On July 7 the governor informed the royal government that the irregularities in the administration of the finances multiplied daily, that there were innumerable petty annoyances and many quarrels of a most indecent sort. He estimated the paper money outstanding at 10,000,000 livres, and added, " France is indeed to be pitied if it can find no one there, nor here, with whom to replace Rochemore. For some time I have forced him to hold the position of a secretary and in so doing I have rendered great service to the crown and to the state ".* Before the end of the year the home government appointed d'Abbadie " ordonnateur " of

1 A. N., C, Sir. CIS, vol. xlii, fols. 195-200.

* Villiers du Terr age, pp. 144-145.

M. N., C, Ser. C^^, vol. xlii, fols. 221-223.

Louisiana. December 22 it granted him a " gratification " of 6,cxx) livres to be paid him immediately, and on that day he left France, reaching Louisiana April 29, 1762.* For the administration of the office, the crown gave the new " ordonnateur" very full instructions, perhaps too complete ever to be read. On the subject of the finances, for example, he was permitted to draw 6cx),ooo livres in bills of exchange for current expenses, 250,000 livres of which were to be expended at Vera Cruz and Campeachy in supplying urgent needs, the remaining 350,000 livres in paying for provisions drawn from France. 200,000 livres additional were allowed for the purpose of liquidating the colonial debt. The " ordonnateur " was further instructed to divide the bills of exchange into parts with four, six or eight months to run so that their time of maturity would be equally distributed over the twelve months of the year. Moreover, it was stated, no bills of exchange would be paid unless a report explaining the cause for which drawn either preceded or accompanied the bills. In order to restore confidence in the treasury notes and other paper money issued by Rochemore and those who had held the office before him, d'Abbadie was commanded to redeem the paper with new notes of the same value and form. He was further ordered to make an exact valuation of the paper money in circulation. The statement was to be signed by himself, the governor, the treasurer and the comptroller and then sent to the home government. It was its wish to withdraw as soon as practicable all the paper money in use in the province and to replace it with silver. The " ordonnateur " was finally commanded to carry out the royal instructions in conjunction with the governor and comptroller. ' Just how well d'Abbadie followed this instruction

^A. N., C, Sir. B, vol. cxiii, pt. 1, fols. 298, 313.

'Ibid., vol. cxiv, Louisiane, fols. 10-14; vol. cxvi, Louisiane, fol. i.

PAPER MONEY AND CREDIT

153

belongs to the story of the finances under the Spanish regime. Before the province passed to Spain, however, a bill of exchange for 50,000 livres drawn by Rochemore for supplies furnished the new floating post established just before he left office, reached the royal treasury. This bill astonished the home government, since it had supplied that post with provisions at Havana to the amount of 71,000 livres. ^

picture4

1710 ITIS IT20 IT2S IT30 I73S 1740 I74S l7fO IT55 1760 IT6S

1 A. N., C, Ser. B, vol. cxiv, Louisiane, fols. 2021.

THE COMMERCE OF LOUISIANA

[154

irii iTjo irai itio nif ir«a oAf itm

tfS iTM I7»t

By way of summarizing the story of paper money in Louisiana during the French regime the five above curves have been drawn. Curve I represents the bills of exchange that were authorized by the home government; Curve II, the bills of exchange drawn by the different " ordonna-teurs"; Curve III, the treasury notes that were in use; Curve IV, the estimated amount of all kinds of paper money in circulation; Curve V, the depreciation of paper money as compared to that of silver or bills of exchange. Line i represents the paper; line 2, the silver.

CHAPTER XII Trade between France and Louisiana, i 699-1731

The men who made up the settlement founded by Iberville on Biloxi Bay in 1699, were interested chiefly in mining and trading, with scarcely even a secondary interest in agriculture. Consequently, for the first years of the settlement's existence the mother country was obliged to send foodstuffs from France in order to keep the colony alive. For the reception of this merchandise a storehouse, 52X 26x14 feet, was built on Dauphin Island at a cost to the crown of 490 livres, and wa-s paid for with royal merchandise at a considerable advance on the cost in France/

On the orders from the home government, commodities from this repository were to be drawn for the support of the settlement and for the purpose of building up trade between France and her infant colony. From 1702 to 1706 the colonial officials, without the royal orders, took out of this warehouse 47,807 livres, eleven sols, eight deniers worth of merchandise, some of which sold at a profit on the cost in France of 600 per cent. Unfortunately for the crown, however, the gains did not find their way into the royal treasury. Instead, the profits passed into the pockets of Iberville and his brothers who often sold the goods to the Spaniards when the colonists of Louisiana, themselves, were actually suffering from lack of food. At the end of the year 1706, the results from this method of administration were that the province had made but little advance-

^ A. N., C, Ser. C", vol. i, fols. 1-20. 155 [155

merit and as yet no trade with the mother country was established.^ Scarcity of food could not always be traced to the unwise distribution of the merchandise by the officials.

(The French government, during the early years of the colony, was too hard pressed for money to send commodities 1 regularly to Louisiana. Moreover, some that were provided I were unfit for use when they reached America." ^ To establish trade with a province having so few products for export as Louisiana during the first years of its life was a difficult undertaking. The crown had instructed Iberville to make pearls and buffalo wool the two chief articles for the trade in question. The pearls found in Louisiana were fine neither in luster nor shape, yet the royal government ordered that a careful search be made for them. It was soon admitted, even by the crown itself, that Louisiana pearls were worthless, but it was some time before the wool project was given up.^ In 1708 the home government sent out a vessel for the purpose of establishing fisheries in the province where fish could be dried for the export trade. This venture, however, was no more successful than that in pearls and wool.*

Iberville had told Count de Pontchartrain that it was his opinion, as well as that of men " most versed in American affairs, that Louisiana would never be settled unless trade was thrown open to all the merchants in the kingdom ".' No importance being attached to this opinion, the royal authorities began to look about for some one who, for an

^A. N., C, Sir. B, vol. xxxii, fol. 47; Sir. F^, vol. ccxH, May 13, 1710.

» Ibid., SSr. O^^ vol. i, fols. 514-569; vol. ii, fols. 519-527; Sir. B, IC, vol. xxix, fol. I.

* Charlevoix, Hist, and Gen. Desc. of New France, vol. v, pp. 128-129.

* A. N., C, Sir. Ci», vol. v, fols. 257-259.

* Charlevoix, op. cit., vol. v, p. 128.

exclusive trading privilege, would be willing to relieve them of the task of supporting the new colony. An offer was made to some merchants of St. Malo, to whom Louisiana was represented as having great possibilities in mines and in a trade in ship lumber with the Spanish-American colonies. The venture, it seems, did not appeal to these men; hence the crown was forced to go on with the work until some one, willing to relieve it of the burden, could be found.^ During the intervening period the government, to i some extent, increased its activities and by 1712 had two | ships making trips more or less regularly." |

On September 24, 1712, the crown by letters-patent } granted to Antoine Crozat, a French merchant, the sole right of trade in Louisiana. This trade monopoly for a period of fifteen years required, among other things, the sending to the colony, yearly, of a fixed number of settlers 1 and a certain amount of merchandise for the support of the garrison. Crozat was to pay the crown a fifth part of all gold, silver and precious stones he secured from the province. He was permitted to buy all kinds of peltry, except beaver skins, and under some limitations his trade between France and the colony was to be free from duties. The plan of giving a province to a merchant or company of merchants was not a new policy. It had been tried elsewhere with very discouraging results, yet the French government was too glad to be rid of this unprofitable possession to consider possible consequences.^

At first, trade under Crozat's control was confined to Dauphin Island and Mobile, the only articles of export being peltry and lumber. Scarcity of ships from France

^ A. N., C, Ser. B, vol. xxx, fols. 51-S2.

^ Ibid., vol. xxxi, fol. 513; Ser. C^', vol. ii, fols. 193-211, 213.

8 Hist. Colls, of La., pt. 3, pp. 38-42.

at times made it necessary to keep the pelts so long in the warm, damp climate of the Gulf coast that they were partly destroyed by insects.^ In April, 1713, a vessel from France came to the colony with a cargo of merchandise and ammunition which was deposited in the royal storehouse.^ The next year a boat brought to the province a cargo of 80,000 pounds of merchandise, but before it was landed the ship and cargo were lost. So great was the distress caused by this disaster that the officials of Louisiana were obliged to send out a vessel in search of food.' From the end of the year 1712 to the beginning of 1716 four ships loaded with merchandise left France for the settlements on the Gulf coast. As yet the province had made little progress, hence with the exception of peltry, it was producing no exports for the mother country.*

An exclusive privilege like the one given to Crozat in 1712, stands always in need of protection. In making other grants in the colony the crown was careful not to bestow any that might run counter to the trading interests of Crozat." This merchant, himself, however, took means to protect his Louisiana rights. He first selected colonial officials upon whom he could rely to carry out his instructions, but unfortunately both for him and the province these men were not otherwise fitted for colonial posts. Under no circumstances were foreign traders allowed in the province. Therefore, in 1714 and 1715, when ships with car-

* A. N., C, Sir. C^*, vol. iii, fols. 212-213, 216-223. ' Margry, vol. v, p. 506.

' La Harpe, p. 115.

* A. N., C, Sir. C*», vol. iv, fols. 67-68; Charlevoix, op. cit., voL vi, p. 32.

' A. N., C, Sir. B, vol. xxxiv, fol. 127.

goes of merchandise sorely needed by the colonists reached Louisiana they were not permitted to be sold. At the same time these selfsame agents were buying peltry for what they chose to pay for it and selling European merchandise at a profit of not less than 300 per cent/ Such greed on the part of Crozat's officers created much discontent in the colony and caused the inhabitants to trade clandestinely on every possible occasion.^

Infringements of this sort were not conducive to the success of Crozat who from the first had found the enjoyment of his patent very expensive. As early as 1714 he informed the crown that the maritime trade had been reduced almost to nothing.^ He kept control of Louisiana three years more and then surrendered his rights. In the month of August, 1717, the crown ceded the province to the " Company of the West" with substantially the same trading privileges as those bestowed in the patent of 1712. Vessels not belonging to the Company and found trading in Louisiana were, together with their cargoes, to be confiscated.* This grant was made for twenty-five years and by the decree of September 2y, 1717, the territory within which it should operate was extended so as to include the Illinois country.°

The Company of the West began its control of Louisiana by making an attempt to establish trade on a better basis. By means of colonization with settlers who would engage in agriculture the Company planned to secure products for export. Growth of settlement was to be effected on the

^A. N., C, Ser. C^^, vol. in, fols. 209-310; Charlevoix, op. cit., vol. vi, p. 34. M. N., C, Ser. C^s, vol. iii, fols. 245-251. ^ Charlevoix, op. cit., vol. vi, p. 36.

* Le Page du Pratz, vol, i, pp. 47-81.

* Margry, vol. v, p. 589; A. N., C, Sir. B, vol. xli, fol. 616.

l6o THE COMMERCE OF LOUISIANA [i6o

lower Mississippi where there were direct connections both with the Illinois country and the interior settlements of Mexico, with which the Company desired to open trade. Accordingly, about a hundred miles from the mouth of the Mississippi a site for a new capital, New Orleans, as the center of commercial activities, was selected.^

During the period of the Company's control vessels came oftener and much more regularly than before, touching always, both on the inward and outward voyages, at the French West Indies." They brought settlers and merchandise, and carried away peltry. Between November 14 and 25, 1718, alone, three ships took from the province 100,000 pounds of tobacco, Campeachy wood and skins. The two first-named articles, however, were not products of the colony, itself, but had been secured from Spanish merchants who had conveyed them to the province in order to exchange them there for French merchandise which had been brought over in large quantities during August and September of that year.'

In December, 1718, certain changes were made in the French trading corporations. The Company of the West acquired the rights of the Senegal Company, and after other changes assumed the name of the " Company of ^ the Indies", March 9, 1719.* The policy adopted by the reorganized Company was much the same as ^hat of its predecessor; that is, sending out ships with settlers and merchandise so as to secure products for export.' This method under the management of the Company of the

' Margry, vol. v, pp. 549-550-

' A. N., C, Sir. B, vol. xxxix, fol. 70; Sir. C^», vol. v, fols. i6, 36-41.

• Le Gac, op. cit. Newberry Lib., Chicago.

* Margry, vol. v, pp. 589-590; A. N., C, Sir. C^», vol. v, fols. 240-241, 267.

M. AT., C, Sir.C^*, vol. ix, fols. 26-28.

Indies resulted in a substantial increase in the population of the province. In 1719, German settlers willing to engage in agriculture were sent to the colony/ In 1720, a ship from Dunkerque brought to Louisiana 300 galley slaves, hardly a valuable contribution to the development of it, since few of them could be induced to take up any kind of work, let alone a laborious occupation like agriculture, in a new country where fields had to be cleared before crops could be planted. Before the end of the year, however, two vessels brought from France 300 men of a much better quality. Many of them took up land from choice and began the cultivation of the soil.^

Already the province was exporting peltry, lumber, pitch and tar, with the last-named product selling at eight livres a barrel if paid for with silver, but ten if bills of exchange or merchandise were offered in payment. To this list of exports the Company was attempting to add both rice and tobacco. Furthermore the Company, in 1720, proposed the building at New Orleans, Biloxi and Mobile of large sheds or covered markets for the reception of colonial products, and also agreed to pay at these places twenty-five livres a hundredweight for the best tobacco, twenty for the second, and fifteen for the third grade. In order to increase more rapidly the amount of tobacco put upon the market, it was further proposed to allow the overseer of plantations for the Company, the only person in the province in a position to take up the culture, a bounty of 500 livres annually and an additional one of three per cent on the price of the best grade of tobacco. Under the new rules, furthermore, only one or two cases, taken at random

* Margry, vol. v, p. 571.

2^., B. de rA., vol. 4497, fols. 65-66; A. N., C, Sir. C^*, vol. vi, fol. 23; Chaville, p. 7.

from the lot presented for sale, were to be weighed and these weights taken as the standard for the remainder. The arrangement, however, seems to have been unsatisfactory to the colonists who from lack of laborers were unable to make the regulation cases. They preferred to ship the tobacco in any sort of contrivance they could most easily construct.^

The price of rice was at the same time fixed at twelve livres a hundredweight, with the same arrangement with regard to the cases as for tobacco. Foreign merchandise was to be sold in the coast settlements for an advance of 50 per cent on the cost in France and an increase of 100 in the Illinois country, with proportional prices for the posts between. Under this regulation wine sold in lower Louisiana for 120 livres a cask (60 gal.) and brandy at 100 livres a "quart" (15 gals.), a rate that made the former retail at ten and the latter at 20 sols a quart.* It was reported to the royal government that the settlers wished to make an agreement whereby they would be allowed to pay for European goods with indigo, tobacco and cotton payable at the close of each harvest.^

In 1722, nine ships arrived in Louisiana with 4,200 prospective settlers on board. Among the newcomers were men, with their families of German, French and Jewish origin. Many of these colonists took up land along the Mississippi and at once began to devote themselves to agriculture.* The colony was now able to make some progress in producing exports for trade with the mother

1 Margry, vol. v, pp. 617-621; A. N., C, Sir. C^', vol. vi, fol. 23; vol. xii, fols. 202-207; La Harpe, pp. 290-291.

* A. N., C, Sir. C^*, vol. vi, fols. 14-24; xii, fol. 204.

* Ibid., vol. vi, fol. 23.

* Margry, vol. v, pp. 576-583; A. N., C, Sir. C^', vol. vi, fols. 14, 287-289.

country. The Natchez district contained what was regarded as the best tobacco land in the province, yet the exportation there was hampered in two ways: first, by the regulations as to cases, and second, by a shortage of boats to carry the tobacco to market/ Other parts of the province were not so restricted and on January 20, 1725, a boat that had been waiting at New Orleans for the coming of the convoys from the Illinois country left the capital for Mobile where it took on a cargo of tobacco and tar. This craft, with its cargo valued at 200,000 livres, was wrecked soon after setting sail and both ship and cargo were lost.^

In September a vessel left the colony for France with a cargo consisting in part of indigo and peltry valued at 8,438 livres, six sols. A few days later an incoming ship, through the ignorance of the pilot, was run aground on an island off the Louisiana coast and in order again to put the boat afloat it was necessary to cast overboard between 300 and 400 barrels of flour and many boxes of shoes. The loss of the two cargoes was a great setback to the trade between France and the province.* In order to counterbalance these disasters, the colonial council requested the royal government to send over a supply of fish oil, cloth and knives to be used in the making of indigo.*

This year the people of Louisiana were granted some liberty in trade. They were to be allowed to sell their tar and pitch either at the colonial market proper, or to ship it directly to France at their own risk. In the latter case freight rates for these commodities were fixed at 100 livres

^ A. N., C, Sir. C^^, vol. viii, fol. 227.

* Ibid., fol. 234.

* Ibid., vol. ix, fols. 241-243.

* Ibid., fols. 239, 243.

a ton of not less than eight barrels. One-half of each shipment was to go toward paying the bills due the Company, the remainder could be disposed of as the owner saw fit. In order to stimulate production, the Company agreed to pay for these products, for a year or two, fifteen livres a barrel (200 pounds), after which time the price was to drop to eight or ten livres. The plan was financially beneficial to all concerned. It was calculated that at each shipment the exporter would send not less than 100 barrels, twelve and a half tons. This amount would net the Company 1,250 livres from the freight and leave the manufacturer 250 livres for other expenses and profit.^ The privilege seems to have brought about no immediate improvement for on October 24, 1725, the colonial council complained that the ordinance had not been put properly into execution.*

In 1726 the exports of Louisiana were silk, tobacco, rice, indigo, pitch, tar, lumber, masts, sassafras and quinine of a rather poor quality." The next year the Company's interest was centered chiefly in making tobacco the most important export product. Because of the expense necessary to begin the growing of tobacco, and in order to encourage the settlers who were financially able to enter this industry but were slow in doing so, the Company paid in some particular localities ten sols a pound for this commo^^ dity. The farmers at Capitoulas, three leagues above New Orleans, received this special price for some of a very inferior quality because they considered the culture unprofitable and had determined to g^ve it up.*

The inhabitants of the Natchez settlement were also paid

1 A. N., C, Sir. C", vol. xi, fols. 46-49. » Ihid., vol. viii, fol. 243.

* Ihid., vol. X, fols. 151-153.

* Ibid., fols. 186-187.

ten sols for what they put upon the market. Many persons in other places in lower Louisiana were already established in the industry. At this time they requested the Company to take for the next ten years what tobacco they had to sell at eight sols a poimd, if delivered in bundles, and payable in silver; seven sols, if in bills of exchange and ten, if for cancelling debts they had contracted under the old regime. The Company rejected the proposal on the ground that it was offering farmers already started in this work a fair price for tobacco.^

The encouragement the Company gave to the tobacco growers was somewhat fruitful. On April 29, 1728, a ship sailed for France with a load of tobacco and peltry.^ In July another one set out laden with lumber, tobacco, peltry and 2,382 piastres, and before the end of the month still another with a shipment of tar and lumber.^

The tobacco crop of 1728 was very short and much of that put on the market was of inferior quality. Some of the colonists nevertheless were cultivating the plant to the exclusion of all other products, not even excepting their own food supply. Tobacco of the best grade was then selling at three " reaux " (real = twelve sols, six deniers) a pound and, in bundles, two " reaux ". The governor said he had paid as much as eight " reaux " for some of a superior quality.* The following year the crop was short because of a season of almost continuous rain, suffering a reduction from 400,000 pounds to about 300,000. In spite of these unfavorable conditions, therefore, the colony put upon the market a considerable amount, and some cotton as well.''

1 A. N., C, Sir. C12, vol. x, fols. 169-170, 186-187. * Ihid., vol. xi, fols. 165-167.

» Ibid., fols. 52, 56. * Ihid., fol. 65.

' Ihid., vol. xii, fols. 138-140.

There were other products that might have been included ; among the exports if France, Hke other countries of the , time, had not prohibited raising in her dominions commodities that competed with similar articles brought forth in 1 the mother coimtry. Thus hemp, flax and wine were not produced in Louisiana. For a while also there was quite a' trade in walking-sticks made from the root of the cane. They were very popular in France and varied in value according to the closeness of the nodes of the root from which the sticks were made.*

The endeavors of the Company of the Indies to establish Louisiana on a substantial commercial basis had, therefore, not been a failure from the point of view of the province. A goodly number of new settlements had been made, and the production of commodities for export had undergone a considerable increase. By 1731, pitch, tar, lumber, tobacco, rice, corn, beans, indigo and cotton were produced, and each year, on a whole, showed a gain in' quality.

It is now needful to consider the cost to the Company in bringing about this development. Almost from the start it had been hampered by abuses in the trade; hence on October I, 1722, it issued an ordinance forbidding anyone, without the consent of the commandant, to board a vessel on its arrival in the province for the purpose of buying up the cargoes and thereby of controlling the price. Because of this practice the colonists were often forced to purchase European goods at unnecessarily high rates. Violations of the ordinance were to be punished with a fine of 100 livres and confiscation of the merchandise.^ Since the law did not put an end to the trouble, on May 26, 1723,

/ ' Dumont, vol. i, p. 28.

* A. N., C, Sir. A, voL xxiii, Oct. i, 1722.

the council issued a decree making it illegal for any one to board such ships without a permit from that body itself/

In the following September the " ordonnateur" complained to the home government that the boats coming to the province brought prodigious quantities of trumpery owned by the officials and crew. The commander of one craft sold in Louisiana what belonged to his private account for more than 3,000 piastres. There were others, also, on board owning goods which they disposed of on arrival. A galley slave, in fact, had smuggled on board 100 piastres worth of such wares, enough to buy his freedom and passage money for his return to France. This ship, the colonial officials claimed, was only a fair example of the enormous quantity of "pacotille" carried by all boats coming to the province.^ The master of a slave vessel in 1723, for another example, touched at Cape Frangais, where, under the pretext of buying supplies for his craft, he purchased instead, wine, soap and other kinds of merchandise which / he sold to advantage in Louisiana.* Two years later these / private sales were still going on. One ship captain in particular disposed of a cargo of wine, flour, cheese and beer on a plea that the Company had not sent merchandise enough to supply the needs of the colonists. This private trade was injurious to the Company in two ways; its vessels were being used to carry freight from which it received no profit, while at the same time the crews were being rendered wholly indifferent to their employer's interests, and the development of Louisiana was being made to suffer by the excessive prices demanded for the goods. These private merchants paid no attention to the official rates of sale, but disposed of their goods for whatever'the needs

1 A. N., C, Sir. A, vol. xxiii, May 26, 1723.

^ Ibid., Sir. C^', vol. vii, fol. 27. »

»/6iJ., fol. 6i.

of the people would allow them to charge; thereby, to a considerable extent, defeating the Company's desire to advance the industries of the province/

In April, 1728, other irregularities in the trade were brought to the attention of the crown. It was discovered that on the five ships that reached the province this year, there was a marked leakage in brandy, wines and all kinds of drugs on board. This shortage entailed great loss to the Company and indirectly was detrimental to the province as a whole, in that there were not enough drugs with which properly to treat the sick. This in turn led to a considerable increase in the death rate, a further obstacle to a realization of the Company's plans.* To these losses arising from dishonesty of employees must be added those produced by the inefficiency of these persons and by actual misfortunes.'

Aside from the obstacles above described, the Company of the Indies as early as 1722 began to realize the enormity of the undertaking of making Louisiana a lucrative commercial province. The principles adopted to develop trade between the province and France were sound, but they entailed large investments on which the profits were most precarious. Moreover it was soon evident that the large expenditure must go on for many years. The Company, therefore, transferred its interest to the building up of a x trade with the Spanish colonies by making Louisiana the base for the necessary merchandise. Therefore, at the end \

of thirty-two years of the existence of the province, and y

after having been under several different controls, the trade y with the mother country was still not yet well started.

1 A, N., C, Sir. C", vol, ix, fols. 17-19. *Ibid., vol. xi, fols. 30-32. • Supra, p. 161.

CHAPTER XIII Trade between France and Louisiana, i 731-1763

France, in 1731, stood at a considerable disadvantage in the commercial world when compared with the Dutch and English who had on the seas a hundred merchant vessels to her one/ There seems to be no justification for this difference. At this time France, like all other European states having foreign possessions, permitted its colonies to trade with no one but the mother country. In America, where its provinces were far greater m extent / than those of England, France employed but 300 ships. By providing a sufficient number of white settlers and | black laborers whereby commerce might be augmented, it was claimed that in a few years, and at no expense to the home government, 1,000 vessels would be needed to carry j on the American trade.^ Such was the spirit of France / j when Louisiana, for a second time, became a crown colony. !

From the commencement of the royal control, this spirit is reflected in the administration of Louisiana. An earnest endeavor was made to interest French merchants in the commerce of the province. Soon an agreement was reached with a trader of La Rochelle to send a vessel of 200 tons with a cargo of food and other merchandise to the province toward the end of August, 1731. This pledge, however, was made only on the condition that the crown should get a merchant of Bordeaux to make a similar promise. To

^ A. B., A. £., Fr., vol. 1990, fol. 79-

* Ibid., fols. 109, 113; Margry, vol. v, p. 590.

/

170 THE COMMERCE OF LOUISIANA [170

this end, on July 31, the men there engaged in maritime activities were appealed to by the royal government and urged to send ships to Louisiana/ A further attempt was made to draw the merchants of the kingdom into the trade when, August 4, the crown exempted for six years all merchant vessels from carrying soldiers and arms and declared the commerce of the province open alike to all its subjects. The fare for each soldier sent out by the home government was in future to cost it sixty livres plus the food necessary for the voyage.^

The goods of the Company of the Indies at the time of the retrocession consisted for the most part of articles suited only to the Spanish trade and in amount about 180 tons.* As early as June 24, 1731, the supply of flour, wine, brandy and salt was inadequate.* The gov- X emor and " ordonnateur " estimated that the colony would require annually, exclusive of the flour for the troops, 3,000 quintals of flour, 200 casks of wine and 3,650 gallons of brandy." At the time bread for the soldiers was made of a flour composed of equal parts of rice and wheat— a practice the " ordonnateur " proposed to continue since the former was one-fourth cheaper than the latter, and because there was always, when the supply of wheat flour from France for any reason was shortened, the danger of being forced to give the troops a bread made entirely from rice, a diet that never failed to create discontent among the men."

» A. N., C, Sir. B, vol. Iv, foU. S5-S6.

* Ibid., fol. 148; 5"^ A, vol. xxiii, Aug. 4, 1731. » Ibid., Sir. C^», vol. xiv, fol. 3-

* Ibid., vol. xiii, fol. 146. » Ibid., fol. 17.

* Ibid., vol. XV, fol. II. '

Supplies from France reached the province in December, 1731, when a royal ship brought to the colony merchandise, and carried back between 40,000 and 50,000 pounds of Louisiana tobacco. The " ordonnateur" advised the settlers to send to France only that of the best grade since there was transportation for but part of what was then ready for the market.^ Heretofore the exporters had been allowed to send this commodity to France on the Company's vessels at a freight charge of fifty livres a ton for cotton, tobacco and rice. The settlers at this time asked the crown to continue the practice and also to exempt Louisiana imports from all duties, as was the custom in all French colonies not well established. They further begged the royal government not to reduce the price of six sols a pound that the Company was paying them for their tobacco.^ The crown, therefore, September 30, 1732, for a period of ten years, permitted the exemption asked for.^

Before the end of the year 1731 the vessel promised by the La Rochelle merchant reached the province with a cargo valued at 37,000 livres, cost in France, and consisting of some good wine, 875 quintals of flour and other merchandise. The captain began selling the day after his arrival at New Orleans and in the first few days the receipts were 9,000 livres, after which the merchandise was disposed of much less rapidly. In order to hasten the return to France, it was decided to sell at 50 per cent advance on the cost in France what was left of the cargo. A prominent settler who represented a colonial association took the remainder of the goods and gave in exchange something more than 100,000 pounds of tobacco, also rice and cotton in consid-

1 A. N., C, Sir. C13, vol. xiii, fols. 79. 132-133; vol. xiv, fol. 4.

' Ibid., vol. xiv, fol. 4.

^ Ibid., Ser. A, vol. xxiii, Sept. 30, 1732.

erable quantities and the balance in cash. This money the captain invested partly in peltry, brick and logwood to complete the cargo, and for 15,157 livres, the remainder, received from the " ordonnateur " a bill of exchange on France/ The supplies of the province were still further augmented by the arrival, December 22, of a vessel belonging to the Company. The captain of the ship spent ten days in disposing of the cargo and in buying up tobacco, peltry and cotton for another for the return voyage.''

During the year 1732 trade in Louisiana was good. In March a royal vessel brought to the province 100,000 livres in French money, 1,200 quintals of flour, 20,000 pounds of powder, and clothing for the troops, all of which, excepting the dry-goods, was in good condition when it reached the province.* Early in the next month a ship belonging to a Bordeaux merchant arrived. The merchandise on board did not sell readily because during the last month of the previous and the early months of the current year there had been landed in the colony an abundance of European goods. In most things, therefore, the supply was already adequate. In order that the merchandise from Bordeaux should be disposed of as advantageously as that from La Rochelle, the governor proposed to the captain of the former ship to sell enough goods for cash to buy a cargo of brick which he should carry to the French West Indies and there exchange it for sugar and syrup, meanwhile leaving the remainder of the merchandise in Louisiana. Bricks were selling for fifteen livres a thousand, on which it was claimed a profit of nine livres, ten sols could be made. On the return from the islands the tobacco crop

^A. N., C, Sir. C^', vol. xiv, fols. 139-141; vol. xv, fol. 5.

* Ibid., vol. xiv, fols. 37, 44-45-

^ Ihid., vol. xiv, fols. 5-6; vol. xv, fols. 57, 117-118.

which was then estimated as worth between 3,000 and 4,000 livres would be ready for shipment. He could then sell his merchandise well and at the same time secure a cargo for the return to France. The proposal was not accepted. It, however, seemed impossible to glut the market with liquor. The inordinate demand for this commodity made it possible, at this time, to sell wine at thirty sols a pot, and at wholesale at from 150 to 200 livres a cask. Brandy from the ship was sold at from forty to fifty sols a pot. The colonial officials desiring supplies for the hospital bought part of the cargo in question, worth 5,160 livres, sixteen sols, six deniers. They gave in exchange deerskins at twenty-five sols a pound. The officials considered this transaction advantageous to the crown, since the peltry had already begun to decay and all would have been lost if allowed to remain longer in the storehouse. When the products of the province suited to the French trade were exhausted, the remainder of the merchandise was sold for 30,472 livres in silver. This amount, however, was left in the colonial treasury and the captain took instead a bill of exchange on France.^

In August, 1732, Louisiana was visited by a violent storm that swept over the province, destroying crops and property of all kinds. Many worthy settlers were ruined and would have died of starvation but for a daily distribution of rice from the royal storehouse. There were still in the province many lazy and shiftless men who spent at cards on Sunday all they could earn in the following week, and at this time such persons were reduced to extreme want, since the government gave support only to deserving persons who showed a willingness to work.^

^A. N., C, Sir. Ci3, vol. xiv, fol. 63; vol. xv, fols. i73-i74-' Ibid., vol. xvi, fols. z-6, 7-8.

The vessels reaching Louisiana in the latter part of the year were, therefore, most opportune in the time of arrival. Every thing in the way of foodstuffs was very scarce and prices correspondingly high. The first ship to reach the province was unable to furnish enough supplies even to remove the existing distress, consequently when a ship from St. Malo arrived at New Orleans on December 6, it found brandy and wine selling at twenty-four and fifteen livres a pot, respectively.^ The men in charge of this vessel, however, were not satisfied with these prices and endeavored to push them up by circulating a rumor that the royal ship, then overdue, had been lost at sea. This report, the captain of the merchant craft believed, would destroy all hope there was left of securing aid from the crown and thus enable him to put upon his merchandise any price his fancy might dictate. Whatever the influence of the story upon prices, the cargo, valued at between 10,000 and 12,000 livres, was disposed of for 100,000 livres; some very poor wine that cost in France only fifteen to twenty livres a cask sold for 300, while brandy brought seven livres, and " guil-dive ", a kind of rum, four to five livres a pot.^

In order to develop the trade on the colonial side the settlers on their part were urged to grow tobacco and cotton, since with a small labor supply a greater amount of exports could be produced from these two than from any other of the staples. In tobacco, it was claimed, a good worker could easily harvest a thousand pounds, while a very industrious man in the same season could produce double that amount and be able to find time to raise his own foodstuffs.*

» A. N., C, Sir. C", vol. xvi, fols. 3-6, 7-^.

» Ihid., fols. S-6.

•/W</., vol. xiv, fols. 148-150.

Louisiana cotton was marvelously beautiful and could be produced quite as easily and as abundantly as tobacco, but its culture was hampered by the difficulty the planters found in separating the fiber from the seed. This obstacle was formidable and resulted in greatly reducing the value of cotton as an export, since it took as much as three pounds in the grain to make one without the seed. The freight to France at fifty livres a ton for unseeded cotton was too expensive, while a rate of twenty-five livres for it separated from the seed was quite out of the question, since there were no laborers in the province to remove the seed before exportation/

The inhabitants of Mobile themselves took the initiative in the matter of adopting measures whereby they could increase their exports. On May 12, 1732, one of the men at that post proposed to make an experiment in order, if possible, to increase the output of tar. He asked for and was granted free transportation on a royal ship for 250 barrels of tar which he proposed to send to France. It was to go to New Orleans and there to be placed on the first of the government's boats bound for France, where it was to be offered for sale on the open market at Rochefort at twelve livres a hundredweight for the tar and eight or nine for the pitch. Such prices would insure a good profit on the venture, it was claimed, and would result in increasing the output by stimulating many persons to enter the industry.^

For several years the province had been producing indigo for the export trade, yet nothing at this time was done to increase the yearly amount put upon the market. Silk culture received some attention, but no definite plans were laid for the development of the article.* Lumber, however,

1 A. N., C, Sir. CIS, vol. xiv, fols. 3-4, 148-149. ^ Ibid., vol. XV, fols. 113-114. ^ Ibid., vol. xiv, fols. 44-46,

came in for a share of the consideration for an increase in the colonial exports, and the same year a cargo of cypress lumber was sent to France in order to ascertain whether further shipments would be advisable.^

The European side of the Louisiana trade was also investigated with the hope of improving conditions. The crown on its part advised the merchants engaged in the commerce of the province not to send too many vessels to the colony at one time, because the merchandise thus carried would glut the market and therefore would not sell well, and because there would not be enough products there to supply all the ships with cargoes for the return voyage." The home government, however, virtually had control of this matter since a merchant must, before sending out his ship, first secure for the venture a royal permit which fixed the time of departure of the vessel from France, the destination and to some extent the nature of the cargo carried.^ The royal government, therefore, during the year 1732, had taken much interest in the province and had expended considerable energy in promoting its development.

The crown's activities among the French merchants was fruitful, and by the beginning of 1733 merchants from La Rochelle, Bordeaux and St. Malo had vessels in the Louisiana trade. The successful disposition of the first cargo sent to the colony perhaps spoke more eloquently than any urging on the part of the French government. Be that as it may, the port from which the first ship set sail had two vessels in the traffic while the others represented had only one each. The home government, moreover, appreciated this fact and did what it could to make the ventures of the merchants bring back good returns, yet, at the same time,

1 A. N., C, Sir. C»«, voL xiv, foL 142.

» Ibid., Sir. B, Ivi, fol. 95. » Ibid., vol. Ixii, fols. 7, 62, 83.

it did not lose sight of the development of Louisiana. Accordingly for the transportation of goods to and from the province the merchants, by making special petitions to the crown, could secure a " gratification ", or subsidy, at this time amounting to forty livres a ton, on such merchandise. After the subsidy had been granted, the merchant in order to secure the money must present to the home government a certificate of sales of the cargo and also a statement showing the amount of colonial products carried on the return trip. No statement of certificates, however, would be honored by the crown unless made out and signed by the " ordonnateur " of Louisiana.^

During the year 1733 the hopes for a rapid increase in the amount of cotton put upon the market was raised by the introduction into the province of a species of cotton gin which, it was believed, would make the separation of the seed from the fiber easy and rapid.^ The merchants in France interested in the tobacco trade, however, obscured this rosy outlook for Louisiana cotton through a possible lessening of the prospects for colonial tobacco, by refusing to pay anything like reasonable prices for that commodity unless shipped in rolls. The supply of laborers in the province often made this work impossible; therefore the planters were obliged to take any price the traders saw fit to offer them, or make the shipment of tobacco to France at their own risk, paying freight for transportation either on the royal or private vessels. Most of the settlers were in no condition to wait for the sale of their tobacco and the return from France, which occupied as much as eighteen months. During this period they were apt to be without