Ray Williams writes:

Jeff Rock writes:

Lou Jordan writes:

As British coppers entered the colonial economy in larger quantities during 1730s-1750s a problem arose over their value, since they usually traded at a premium, higher thanface value. This sometimes caused a problem as is seen in the following two episodes from New York and Philadelphia.

On December 16, 1737 New York passed an act stating:

The act went on to state the importation of more than ten shillings in coppers into the colony was subject to confiscation.

The problem was not with the coppers but with their valuation. Since coinage was at a premium in the colonies most coins were accepted above their face value. British and Irishcoppers were no exception. In New York English halfpence were accepted at twice their face value, so twelve British halfpence equaled a New York shilling of account. As New Yorkvalued the Spanish dollar at eight shillings, one could obtain a Spanish dollar for 96 British halfpence. Whereas in Boston, it took eighteen British halfpence to equal aMassachusetts shilling and, as they value the Spanish dollar at six shillings, a Spanish dollar cost 108 British halfpence. In Philadelphia there appear to have been various ratesat this time, one rate was fifteen British halfpence to the Pennsylvania shilling. As Pennsylvania valued the Spanish dollar at 7s6d (90d), a Spanish dollar could be obtained for112.5 British halfpence in Philadelphia if someone was using the fifteen halfpence rate (another lower rate that came into general use in Philadelphia during the Confederation erawas 14 British halfpence to the shilling or 105 halfpence to the Spanish dollar). Clearly it was advantageous to bring coppers to New York and exchange them for Spanish dollars.Bostonians obtained a 12.5% profit and some Philadelphians could reap a 17% profit. New York first handled this situation by limiting copper imports from other colonies. However,they still accepted casks of coins brought over from England.

In Philadelphia the problem of copper valuation led to a demonstration on January 2, 1741. Some merchants were accepting British halfpence at the New York rate of double(100%) their value, so that one halfpenny equalled one Pennsylvania penny. Other merchants were trading them at only 60% over face value, so that five halfpence equalled fourPennsylvania pence. The situation was so confusing and disruptive that on January 2nd the city bakers refused to open their shops causing a minor crisis. This event forced thecity and the merchants to work together to end this problem. The result was an edict by the mayor of Philadelphia on June 18, 1741 stating:

The rate of fifteen British halfpence to the Pennsylvania shilling (or 60% over face value) became the standard for the entire colony and was also adopted by New Jersey.

Jeff Rock adds:

To read the earlier E-Sylum article, see:
THE 1740 PHILADELPHIA HALFPENCE RIOT (https://www.coinbooks.org/v23/esylum_v23n16a20.html)