The Currency Act
Passed by the British Parliament on September 1, 1764, and sought out by George
Grenville, was The Currency Act. This act was passed in hope to reduce the British
National debt and in hope that it would boost the British Economy.
The British were in debt during the French and Indian war, the debt continued after the war
when the British had to continue to station troops in America. Once the war was over,
the colonial traders did not have enough buyers for their products, which resulted in the down-
fall of the British economy.
The Currency Act of 1764 was a more in depth version of The Currency act of 1751. In 1751 the
act forbid the New England Economies from issuing paper money. Paper money that had
already been issued was to only be used for paying debts. In 1764 when the new version
was passed, it prohibited ALL the colonies from issuing new bills and it prohibited the use of
already issued currency that was past its expiration date.
The Currency Act of 1764 backlashed. While the British were expecting this
to help them it made it worse. The trading industry died down because
the act made it less smooth to trade goods. Also because they weren’t allowed to use paper
bills for anything other than debts, colonies ran out of things to trade because they didn’t have
any resources left. The act also caused a lot of resentment among the colonies.
By: Lauren Hoisington