Pennsylvania
18th century

Between 1730 and when the Pennsylvania Colony was shut down by Parliament with the Currency Act in 1764, the Pennsylvania Colony made its own paper money to account for the shortage of actual gold and silver. The paper money was called Colonial Scrip.

The Colony issued bills of credit, which were as good as gold or silver coins because of their legal tender status. Since they were issued by the government and not a banking institution, it was an interest free proposition, largely defraying the expense of the government and therefore taxation of the people. It also promoted general employment and prosperity, since the government used discretion and did not issue excessive amounts that inflated the currency. Benjamin Franklin had a hand in creating this currency, whose utility, he said, was never to be disputed. The currency also met with "cautious approval" by Adam Smith.

The University of Pennsylvania in Philadelphia was founded by Benjamin Franklin in 1740, becoming one of the nine colonial colleges and the first college established in the state and one of the first in the nation; today, it is an Ivy League university that is ranked one the world's best universities. Dickinson College in Carlisle was the first college founded after the states united. Established in 1773, Dickinson was ratified five days after the Treaty of Paris on September 9, 1783, and was founded by Benjamin Rush and named after John Dickinson.

James Smith wrote that in 1763, "the Indians again commenced hostilities, and were busily engaged in killing and scalping the frontier inhabitants in various parts of Pennsylvania. This state was then a Quaker government, and at the first of this war the frontiers received no assistance from the state." The ensuing hostilities became known as Pontiac's War.

After the Stamp Act Congress of 1765, delegate John Dickinson of Philadelphia wrote the Declaration of Rights and Grievances. The Congress was the first meeting of the Thirteen Colonies, called at the request of the Massachusetts assembly, but only nine of the 13 colonies sent delegates. Dickinson then wrote Letters from a Farmer in Pennsylvania, To the Inhabitants of the British Colonies, which were published in the Pennsylvania Chronicle between December 2, 1767, and February 15, 1768.

When the Founding Fathers convened in Philadelphia in 1774, 12 colonies sent representatives to the First Continental Congress. The Second Continental Congress, which also met in Philadelphia beginning in May 1775, authored and signed the Declaration of Independence in Philadelphia, but when Philadelphia fell to the British in the Philadelphia campaign, the Continental Congress moved west, where it met at the Lancaster courthouse on Saturday, September 27, 1777, and then to York. In York, the Second Continental Congress adopted the Articles of Confederation, largely authored by Pennsylvania delegate John Dickinson, that formed 13 independent States into a new union. Later, the Constitution was written, and Philadelphia was once again chosen to be cradle to the new nation. The Constitution was drafted and signed at the Pennsylvania State House in Philadelphia, now known as Independence Hall, the same building where the Declaration of Independence was previously adopted and signed in 1776.

On December 12, 1787, Pennsylvania was the second state to ratify the U.S. Constitution, five days after Delaware became the first. At the time, Pennsylvania was the most ethnically and religiously diverse of the thirteen colonies. Because a third of Pennsylvania's population spoke German, the Constitution was presented in German so those citizens could participate in the discussion about it. Reverend Frederick Muhlenberg, a Lutheran minister and the first Speaker of the U.S. House of Representatives, acted as chairman of Pennsylvania's ratifying convention.

For half a century, the Pennsylvania General Assembly met at various places in the Philadelphia area before it began meeting regularly in Independence Hall in Philadelphia for 63 years. However, events such as the Paxton Boys massacres of 1763 had made the legislature aware of the need for a central capital. In 1799, the General Assembly moved to the Lancaster Courthouse.
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