What did the british do in the currency act of 1764?

Answer 1

In the Currency Act of 1764, the British Parliament took over the issuance of money ("currency") in the American colonies. The colonies had no gold or silver mines and currency could only be obtained through whatever trade was permitted by Great Britain. The shortage of cash money interfered with trade within the colonies, so some of the colonies printed their own paper money in the form of Bills of Credit. There was no single regulatory system for these notes or bills of credit (some required payment of interest, others did not; some could be used to buy things but not to repay debt; some could be used only for public debts and could not be used by ordinary citizens) and there was no set standard value for the notes. The system was not only confusing, it was uncertain, because the value of the notes changed from time in response to changes in the colonial economy. British merchants who were paid in the various colonies' notes did not feel secure. In response, Parliament passed the Currency Act, which not only prohibited the issuance of any more bills of credit but also essentially abolished existing ones. With no cash to purchase items or pay debts either to fellow colonists or to merchants in Britain, the colonists suffered economically. This was one of the issues that contributed to the American Revolution.