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Massachusetts-Bay

State of Massachusetts-Bay 1780 United States Guaranty Notes

Massachusetts-Bay, was the first paper money issuer in the New World, as well as the first government sponsored issuer of paper money. Paper money began being issued in 1690 as a result of a shortage of coinage in which to finance a military expedition against native Americans allied with the French in Canada. Despite the fact that Massachusetts-Bay issued the earliest paper money, issues were fairly conservative which explains their relative scarcity for collectors today. Fortunately the Continental Congress authorised and agreed to guarantee the "state" issues of 1780 and these issues superseded the previous state issues and Continentals that were issued by the "United Colonies" and then "United States" which had fallen out of favour. This 1780 "United States" guaranty issue would have the distinction later on of providing future generations of collectors with an opportunity to obtain notes from this era - they lost nearly all of their value, but were finally redeemed after the 1790's at 1/100th of their face value. Because they had been held for so long pending redemption, as soon as they were redeemed they were stored in archives - and would remain there for decades until released to collectors in the 20th century.

The issues of Continental paper money began in 1775, and were supposed to be paid with funds from tax revenue. In reality that never happened, the Continental Congress failed to follow through on a broad taxation scheme, and as a result confidence in the paper money waned until it was practically valueless. By 1780 rampant inflation necessitated a new issue of paper money, this time by resolution of the Continental Congress in March 1780. The older "Continentals" were called in and exchanged at a rate $40 : $1. In essence this really only exacerbated the problem, and the new "guaranty" notes rapidly depreciated in value. These notes pretty much dropped out of circulation and holders held onto them in hopes of redemption at a later date, which came only after the creation of the federal government, however they were redeemed for one cent on the dollar and to add insult to injury only in twenty year bonds.

One Dollar

These notes were issued with the date of 5 May 1780 and were issued with three signers, two for the State of Massachusetts and one for the United States. The first signature on this note is of Loammi Baldwin, one of those amazing figures from American history who would go on to become a military hero and his name is today found in practically every grocery store. He hailed from Woburn in NE Middlesex county and was descended from a family that lived in the area since the 1660's - in fact their home built in 1661 still is standing and is currently on the National Historic Place Register. He was a civil engineer, but also a farmer and is known for having identified a certain variety of the apple and promoting it - which is today why we have the Baldwin apple. He served in the militia and participated in the Battle of Lexington and Concord at the opening of the Revolutionary War, he quickly advanced in rank and served under General George Washington at the Battle of Trenton - a pivotal battle in which the Americans defeated the Hessian mercenaries fighting for the British on December 26th 1776. Due to ill health however he had to resign from the army in 1777. In 1780 his political career began with the election to the Sheriff of Middlesex county, subsequently he would also be appointed judge and after the formation of the United States in 1787 would stand for election for House of Representatives. In his other career as civil engineer his major project was the significant Middlesex Canal that linked the Merrimack River to the port of Boston. His legacy is also remarkable for his five sons that also became important engineers.

The second signature on this note is of Richard Cranch a prominent clock maker who would serve as postmaster in Braintree then later on become a Massachusetts state senator. He was originally born in England and came to America at the age of 19 in 1747, his first years in the American colonies were lived in relative obscurity and even poverty. However he established himself, and married Mary Smith, the sister of Abigail Smith - the wife of John Adams. He served as a Justice of the Court of Common pleas. During the formation of the United States and the writing of the constitution in 1787 Cranch served as a delegate from Massachusetts.

The Latin legend Depressa resurgit translates to "Having been pressed down it rises up again"

Two Dollars

Thomas Dawes was born in Boston in 1731 and was a career mechanic. During the years prior to the Revolution he was an ardent Whig and was well known for his anti-British sentiment. During the American Revolution he served as a colonel with the Massachusetts Militia. In addition he was prominent in several state positions within Massachusetts. After the Revolution Mr. Dawes was a personal friend of John Adams, and John Hancock.

The Latin legend on this note, Tribulatio ditat means "It is enriched by affliction"

Three Dollars

Inasmuch as I have attempted to research the signer of the guaranty for the United States on the reverse of the notes, Peter Boyer, I am currently finding that this individual has a fairly common name and I am going to have to discern through much materiel prior to writing about him.

The Latin legend on this note, Exitus in dubio means "The outcome is in doubt" - how is that for confidence in your cause!

Four Dollars

On this $4 note, unfortunately the first signature has faded to history and cannot be determined.

The Latin legend on this note, Aut mors aut vita decora means "Either death or an honorable life" - yet another somewhat ackward phrase to put on a note.

Five Dollars

This $5 note is a bit unusual in that it was never redeemed by any of it's holders, as a result it is quite a bit scarcer than the cancelled varieties on the rest of this page. The earlier Continental notes issued by authority of the Continental Congress had depreciated to the point where when this 1780 issue was released, it redeemed the previous issues at a rate of 40:1. Just as with the prior issues though, the 1780 issues depreciated rapidly as the general public lost confidence in this currency. The relative scarcity of the 1780 issues, particularly the uncancelled specimens is a result of the notes slowly being redeemed at a rate of $100 : $1 beginning in the 1790s in government bonds that were due in the early 19th century. So even though the notes became worth pennies on the dollar, pennies were worth more than nothing.

The Latin legend on this note, Sustine vel abstine means "With perseverance or with acquiesence".

Seven Dollars

The $6 denomination was passed over by Massachusetts-Bay, each state was alloted so much in note issue spread amongst several denominations, and in the calculations they decided they would do without a $6, but the $7 survived the cut and remains as an "interesting" denomination.

The Latin legend on this note, Serenabit means "It will clear up".

Eight Dollars

Thomas Walley was descended from a family that immigrated to America during the 17th century, he served in the legislature in Massachusetts during the American Revolution.

The Latin legend on this note, Majora minoribus consonant means "The larger are in harmony with the smaller" - a powerful testament to the unity of the colonies against the British oppressors.

Twenty Dollars

The $20 denomination was the largest denomination issued for Massachusetts-Bay during the 1780 issue.

The Latin legend on this note, Vi concitatae means "It assaults with violent force" - a pre-Tea Party Republican version of "Don't tread on me!"

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