troubles interrupt these measures here, and as yet I am not informed how they go on in other States. But something more is necessary: force must inevitably be employed, and I dread to see that day. We have already calamities sufficient for any country, and the measure will be full when one part of the American people is obliged to dragoon another, at the same time that they are opposing a most powerful external foe."

In a letter to the President of Congress, under date of Dec. 23, 1776, he speaks in a similar strain :

"It is very mortifying to me when I am obliged to tell you disagreeable things; but I am compelled to inform Congress that the Continental currency keeps losing in credit. Many refuse openly and avowedly to receive it; and several citizens that retired into the country must have starved, if their own private credit had not procured them the common necessaries of life when nothing could be got for your money. Some effectual remedy should be speedily applied to this evil, or the game will be up. Mr. Commissary Wharton has told the General that the mills refuse to grind for him, either from disaffection, or dislike to the money. Be that as it may, the consequences are terrible; for I do suppose the army will not consent to starve."

As the alarm and apprehension for the future increased, Congress, in order to allay them, adopted, on the 14th of January, 1777, the following preamble and resolution:

"Whereas, The Continental money ought to be supported at the full value expressed in the respective bills, by the inhabitants of these States, for whose benefit they were issued, and who stand bound to redeem the same according to the like value; and the pernicious artifices of the enemies of American liberty to impair the credit of the said bills, by raising the nominal value of gold and silver, or any other species of money whatsoever, ought to be guarded against and prevented:

"Resolved, That all bills of credit emitted by the authority of Congress ought to pass current in all payments, trade, and dealings in these States, and be deemed in value equal to the same nominal sums in Spanish milled dollars; and that whosoever shall offer, ask, or receive more in the said bills, for any gold or silver coins, bullion, or any other species of money whatsoever, than the nominal sum or amount thereof in Spanish milled dollars, or more in the said bills, for any lands, houses, goods, or commodities whatsoever, than the same could be purchased at of the same person or persons in gold, silver, or any other species of money whatsoever; or shall offer to sell any goods or commodities for gold and silver, or any other species of money whatsoever, and refuse to sell the same for the said Continental bills, -every such a person ought to be deemed an enemy to the liberties of these United States, and

to forfeit the value of the money so exchanged, or house, land, or commodity so sold or offered to sale. And it is recommended to the legislatures of the respective States to enact laws inflicting such forfeitures and other penalties on offenders, as aforesaid, as will prevent such pernicious practices.

"That it be recommended to the legislatures of the United States to pass laws to make the bills of credit issued by Congress a lawful tender in payment of public and private debts; and a refusal thereof an extinguishment of such debts; that debts payable in sterling money be dischargeable in Continental dollars at the rate of 48. 6d. sterling per dollar; and that, in discharge of all other debts and contracts, Continental dollars pass at the rate fixed by the respective States for the value of Spanish milled dollars; that it be recommended to the legislatures of the several States to pass resolutions that they will make provisions for drawing in and sinking their respective quotas of the bills emitted by Congress at the several periods fixed, or that shall be fixed, by Congress. That it be recommended to the legislatures of the several States to raise by taxation in the course of the ensuing year, and remit to the treasury, such sums of money as they shall think will be most proper in the present situation of the inhabitants; which sums shall be carried to their credit, and accounted in the settlement of their proportion of the public expenses and debts, for which the United States are jointly bound."

Congress was withnotes, which were

The situation was indeed most critical. out means, except those raised through its already largely depreciated, and becoming more so day by day, as no one would longer receive them at their nominal value. It passed, 27th of December, 1776, a resolution empowering Washington to raise forces, and take whatever could be found necessary for their subsistence or clothing; and if the owner would not sell at a fair price, to be paid in Continental money, he might be arrested, and kept in confinement. The Committee of Safety of Pennsylvania were, at the same time, requested to take speedy and rigorous measures to punish all who refused to receive the government notes. It acted with commendable promptness; and, on the 31st of December, of the same year, it resolved, — and its resolution at such time had all the force of a legal enactment, that if any person should refuse to receive government notes offered to him in payment for goods, he should forfeit, for the first offence, the goods to the party seeking their purchase; and, in addition, be liable to a penalty of £5, where the amount to be purchased was under that sum; and to a penalty equal in amount to that of the purchase, when it was above it. One-fourth part of the

penalty was to be paid to the informer, and three-fourths to the State. For a second offence, in addition to the above. penalties, the offending party was rendered liable to banishment from the State to any place the Committee might designate. The result was that shop and inn keepers took down their signs, and refused to expose their goods or premises for sale or use. It was the reign of anarchy as well as tyranny. That the nation did not speedily succumb, and its cause utterly collapse, was due to the fact, that the greater part of the people were cultivators of the soil, and in the possession of an abundance of fertile land, which, with very little labor, brought forth abundant crops. The bounty and forces of nature more than compensated for the poverty and weakness of man.

The total amount of notes issued in 1776 equalled $19,000,000; and, for 1775 and 1776, $25,000,000. To meet the increasing unwillingness on the part of the public or malcontents to receive them, the States established tariffs of prices, by which all goods were to be sold. The four New England States met, by their delegates, at Providence, on the 25th of January, 1777, and formed a tariff of prices, by which a bushel of wheat was made the equivalent of 78. 6d. in notes; one of rye, 58.; a pound of wool, 28. ; a bushel of salt, from 108. to 128.; a gallon of rum, 68. 8d. ; a pound of raw cotton, 338.; and so on, through the whole list of articles ordinarily consumed. Congress immediately passed an approving vote, and recommended other States to follow the example; that the delegates from Virginia and other Middle States should meet at Yorktown, on the third Monday of the ensuing March, and those from the Southern States, at Charleston, on the first Monday of the ensuing May, to concert and adopt similar Congress, at the same time, earnestly entreated the States to cease the issue of their own notes, and to forbid the circulation of those issued previous to April 19, 1775. These had been issued in immense amounts in nearly all of the States, and very seriously interfered with the operations of the Central Government. As the State Governments possessed the power of taxation, which the Central Government did not, their notes began to be preferred, and were hoarded in large amounts.1

1 As all government currencies are the same in kind, a sketch of that issued by the central one will suffice for all issued at the time. All were issued from

Meanwhile the embarrassments of the government were no little increased by the immense amount of spurious notes thrown into circulation,—a matter of very little difficulty, from the inartistic manner in which its own were printed or engraved. These counterfeits were held to be the tricks of the enemy. The results of the war, during the whole year of 1776, continued adverse, which greatly increased the confidence and influence of the Tories, who were especially numerous and powerful in the State of New York. Congress had still little other resource than its notes. In the latter part of 1776, Benjamin Franklin was sent to France, in the hope of securing the co-operation of that country. Although, for some time, he could not obtain any open recognition of the cause of the patriots, he was enabled to secure loans to the amount of 3,000,000 livres, which were expended chiefly in the purchase of arms and supplies, all of which safely reached their destination. In this way he was of great service, although he could do but little to relieve the pressure upon the Home Government. The cause of the patriots at the time was at its lowest ebb. France, though desirous of doing all in her power in their aid, was not willing to take any step likely to embroil her in war, till their success was better assured. This assurance came from the capture of Burgoyne, in the latter part of 1777. That was properly regarded as an achievement of the first magnitude; and her government, on the 6th of February, 1778, entered into a treaty of alliance and commerce with the United States; made their cause her own; dispatched powerful fleets, with considerable bodies of troops, to America; and from time to time made considerable loans of money. For the present, however, Congress had no other resource than its notes; and on the 26th of February, 1777, it made a further issue of $5,000,000; on the 27th of May, of the same year, an issue to an equal amount; on the 15th of August, one of $1,000,000; on the 7th of November, $1,000,000, and the the same necessity; all produced precisely the same results; and all, in great measure, met the same fate. Such of the State issues as were redeemed, were taken in at very low rates. Of the loss and suffering which were caused by them all, no pen or pencil can present any thing like an adequate picture.

1 The total amount of money borrowed by the United States from France, during the War of the Revolution, as recognized by the United States after the adoption of the Constitution, equalled 34,532,364 livres. The arrears of interest due up to the first day of January, 1790, equalled 8,967,912 livres; making a total of 43,500,276 livres, or $7,895,300.

same amount on the 3d of December, 1777: the total issue for the year being $13,000,000. The amount outstanding at the close of 1777 was $38,000,000. The value of the notes at that time was reduced in ratio of four to one. At the date last named, Congress made a requisition upon the States to the amount of $5,000,000. The amounts called for were not considered as the proper proportions for each State; but were made rather with reference to the present abilities of each, the territories of several of them being largely held by the enemy. The proceeds were to be put to the credit of their States, which were to be allowed interest at the rate of six per cent on their respective amounts, until the proper quotas were adjusted for each by the the final action of Congress. The excess of payments or contributions was to take the form of a debt against the government. If a deficit should be found against any State, this was to be made good by further requisitions. Congress again urged the withdrawal of the currencies of the States, and still invoked their aid in securing the circulation of the government notes, and in continuing the tariff regulating prices.

The

The year 1778 was comparatively an uneventful one. nation, however, was greatly buoyed up by the success achieved at the close of the previous one, and attempted to make large loans in Europe, in the expectation of which its own financial affairs were greatly neglected. Congress again attempted, without success, to compel the States to take in their notes issued previous to the outbreak of the war. It still had little

1 The apportionment among the several States was as follows: