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Xe CurrencyLast update: Wednesday 23rd of May 2012
3) Prices of Foreign Goods: 2. Futures Governmental and municipal offices were required to accept up to 100 Francs of tokens (even though they were not convertible and had a lower silver content than the Union coins. The New England colonies (Connecticut, Massachusetts Bay, New Hampshire and Rhode Island) accepted each other's paper money as legal tender until 1750. These notes were even accepted as tax payments by the governments of the colonies. Massachusetts was a dominant economy and sustained this arrangement for almost a century. It was envy that ended this very successful arrangement: the other colonies began to print their own notes outside the realm of the union. Massachusetts bought back (redeemed) all its paper money in 1751, paying for it in silver. It instituted a mono-metallic (silver) standard and ceased to accept the paper money of the other three colonies. Monetary unions which did not follow this course are no longer with us. The LMU was officially dismantled in 1926 - but died long before that. The lesson: a common currency is a transmission mechanism of economic signals (information) and expectations, often
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