The Pennsylvania packet, or, The general advertiser — Lancaster, Pa.;Philadelphia, Pa., 1780-01-20 00:00:00, page 4

LETTERS on APPRECIATION.
No. 11.
JF taxes will not flippy the present exigencies, and
Loans both domestic and foreign are rejected; you fay
"appreciate the money to 20 for 1 by a&s of the several
Affemblies,and obligeehe venders of ^oods and tradesmen
to charge their goods and work at that rate. Has not this
mode bee, attempted three several times, and universally
failed? Did not general discontents and murmurs prevail?
Was not every artifice used to elude the scheme ? Were not
goods secreted ? And did not one State take the advan
tage ^f the other, in eitner buying up from their neigh
bour, or refufing to have intercourse with them ? Did not
Congress (aware of the evils it produced) recommend the
difeontinuing such regulations? And is it not probable
the fame inconveniences will still arise? And after the
people have been worrying and perplexing each other,
will it not be likely to fall through ? As trade carried
OB under restraint will be for ever attempting to break the
fetters. But should success attend the attempt, it would
produce thevery evil I would with to avoid. An evil of
the most alarming nature; converting an imaginary into
a real debt, and rivetting on the Continent, a succession of
taxes, which we fliould scarce ever be able to get clear of.
Suppose we cenfider this fubjeft a little more minutely.
We will for arguments fake allow of the desired apprecia
tion in its utmost extent ; that by some magical stroke
the whole Continental money, calling it 200 millions,
should become equal to gold and silver ; that a Continen
tal dollar woul J purchase as much as a hard dollar would ;
why truly, we should suddenly arrive at the possession of
immenle riches, provided we could export this fame mo
ney as a commodity, and import, in lieu thereof, the
production of other countries ; but as no one can exped
this can happen ; what is to be done with it ? The ex
cels of quantity is far beyond the value of faleables ; is the
surplus to be locked up? No, we will put it to interest
with such as want . •But this cannot be ; for those who
are to be the borrowers, cannot find materials to vest it in.
What is next to be done with this surplus ? It appears to
be a nominal not a real estate ; it lies dormant by us, and
nothing is to be bought with it, for the proportion in act
ual circulation, answers every purpose. Is it to exist for
ever in bits of paper, under the denomination of money ?
Or is it tobe destroyed ? Burned by all means ; that in
case of another war, we may not have too great ft redund
ance of it, by striking afrelli, and again bring on our
backs this monster depreciation. But how shall this fame
money be destroyed, in such equal proportions, as to
give general fatisfadion ; very eafily^by taxes, agreed.
We will now if you please b^gin to lay them, and try how
long it will take to do the business.
Here is John Harrow the Farmer, for instance, he has
a farm of 200 acres, and raises 400 bushels of wheat per
annum, which at 201. per bushel, the present price is
80001. for which he fliall pay the old accustomed rate of
1/6 in the pound; his tax will then be 6001. per annum—
But flop, the money is appreciated. John Harrow cannot
get above Bf. per bushel for his wheat, his 400 bushels
will only amount to 160 L of consequence his tax of 1/6
in the pound will yield no more than 12b per annum ;
which is only one fiftieth part ; very pretty, truly ; why
then if this 200 million, is to be made good money, we
fhall,take 50 yea r s to pay off that portion of the debt,
which would have been paid off in one year, if the money
had not appreciated : That is, John Harrow instead of
felling 30 bushels of wheat one year, at 201. per bushel
to raise his 6ocl. he muff now fell this fame 30 bushels for
121. and have the fame to do every year for 49 years to
come; which would in sass be a tax upon John Harrow
of 1500 bushels, instead of 30; and all this for the ho
nour of making our money good.
We will now if you please bring it upon a more gene
ral hale. Pencfylvania formerly railed by an 1/6 tax, a
bout 25 cool, per annum, at 7/6 the dollar Now Penn
sylvania being deemed i-Bth of the Continent, we may
fay the whole Thirteen States would raise by a 1/6 tax, a
bout 200,0001,which is somewhat about half a million of
dollars. Thus we find it would take only about 400
years, to fink the said zoomillions of dollars. But this
fame 400 years, would carry us to so diflant a period, that
few of the present generation could hope to fee a fetflement
of the account; and great frauds might be committed by
our successors ; to remedy which, suppose, for the honor
of the present race, we should annually pay the
whole of ourincomes, or 20/ in the pound, which will
raise just 16 times and 13 as much as the 1/6 tax would,
an Ifo finifh the job in about 25 years. In the mean time,
we may go abroad upon our travels, whilst our estates are
outat nurse, as the English phrase is; and at the end of
this quarter of a century, we might return, and spend the
remainder of our lives in Peace and Plenty. But pray
who are to work your eflates in your absence—a good re
mark—why then we must 'een drudge on as slaves during
the said 25 years, live on the bulks and fell the grain for
the honor of appreciation.
You ask next "how this enormous debt of 200 millions
cameupon u^ Is itpoffiblewe canhave expended 50 mil. per
annum honestly and fairly, or have there been fraudsand
embezzlements ?" All very fairly, the quantity of money
increasing daily beyond the medium necessary for circula
tion, a gradual depreciation took place ; every one having
plenty of money to buy with, the fellers advanced their
prices, in proportion to the number of bidders, 'till at
length they rose on an average to about 50 for 1. " And
have the public expences been managed in this way ?"
Undoubtedly, all the late expenditures for the army, navy,
&c. have been on an average at that rate. Then surely the
different receivers, and all subsequent handlers of the mo
ney, who have made Congress pay 50 prices, ought not
to have that fame money made equal with gold; for should
that be the case, the present money-holders would be e
normous gainers, and the Continent for 400 years to come
must feel its effe&s. Then you would have the money re
main at its prefenf value ? certainly, if it can be kept there ;
but by no means carried back towards its former value.
But the depreciation will run on rapidly if we keep stri
king; for you intimatethat the taxes we may exped to
raise, will be but as a drop in the bucket, pray what great
public evildo you imagine has happened from the depre-
PHIL ADELPHIA: Printed and Sold by JOHN DUNLA P, in Market-tot,
ciation ? Oh very great! Our money is good for nothing,
it will take an estate to go to market, every thing is so
high, that common people can scarcely find money enough
to purchase the meceffaries of life, putting taxes out of
the quefboa, which taxes they fay must be railed or we
shall be all ruined, Suppose I was to assert in answer, that
there is at prefeatno abfelute necessity for high government
taxes,that the natural unavoidable tax of depreciation is the
mod certain, expeditious, and equal tax that could be
devised. Upon the scale which has lately existed, every pef
feffor of money has paid a tax for it, in proportion to the
time he held it. Like a Hackney coach it must be paid
for by the hour. And this no man can escape. It is the very
tax the Assembly of Pennsylvania have, in vain, at-,
tempted to levy, by obliging every person to disclose,
on oath, the sum in his possession. I fay in vain
for I will venture to predict, that the Assessors will
not find out one fifth part of the cash which is actually a
mongst us. But depreciation is an Assessor that gets at
every farthing, and baffles every attempt to deceive. To
make myfelf better understood, I will Rate an account in
double columns, viz. Continental and Hard money, at
the different dates of depreciation ; though it is to be not
ed, that I have no certain documents, as to time or quan
tity, and that I estimate the depreciation by the price of
gold, which has always been below every other commo
dity. It will serve however to illustrate my reasoning.—
When this account is examined, it w ill probably be thought
very furprizing, that the neat expences of 1779, when
brought into gold, should fall so much fliort of those in the
preceding years. It cannot well be accounted for, but
by supposing that the large sums received at the Loan-Of
fice have made up the.deficiency; but of this we have no
account later than September last. The only certain pre
mises we can proceed on, are : That two hundred millions
of dollars have been issued ; that one hundred and twen
ty-three millions were expended December 1778; that
the remaining seventy-seven millions were expended in
the year 1779 i and that the table of depreciation, in
the foregoing part of this paper, is a true fate of the de
cline of the money when compared with gold. Be the ap
pearance what it may, the fact is, that at whatever dares
the two hundred millions have been expended, the value
of money at those dates must be taken for the real sum ex
pended ; for though at one time it took fix thousand de'•
jars to purchase a thousand barrels of flour, and at another
time two thousand dollars, the adual expence to thecoun
try is exadly the fame; it is the article supplied, and not
the nominal sum paid, which conftiutes the real expen
diture.
Dr. The United States in account with Continental
Money.
1775. To paper money emit
ted by Congress, being the Dol. Hard Dol.
firftemiffion, 3 mil. Exch. at par is 3 mil.
1776, June. To ditto ditto 3 ditto is 3
Dec. To ditto ditto 9 ditto is 9
>777, June. To ditto ditto 13 ditto 2 1-2 is 9 2-19
Dec. To ditto ditto 27 ditto 3 1-2 is 7 7-10
1778, June. To ditto ditto 28 , ditto 4 . 1-4. is 6 5-10
• Dec. To duto ditto 30 ditto 5 is 6
i779> June. To ditto ditto 32 do. 14 is 2 2-10
Dec. To ditto ditto 4.5 do. 2! 3-$ is 1 5-10
Continental 200 mil. Hard dol. 48 mil.
era—,fyurcCCTß
Cr. By the present value of Continental mo
ney at 40 for i, fay 200 mil, at this rate is 5 mil.
By balance of the above 48 mil. of hard dol
lars funk by depreciation, and is therefore
an actual tux of 43
48 mil.
By this state of the matter, the whole expences have
amounted to 48 millions of hard dollars, 4.3 of which have
been funk in the time by depreciation. Now I would ask
the best Financier amongst us, whether in four years he
could have levied a tax 0'43 millions of hard dollars, in
a more equal or less expensive way? Here have been no
commiffi^ns to pay, no embezzlements, no public de<
filters, and no appeals, except by the possessors of old
contrasts, who have been ungenerously and unjustly paid
off in current nominal value, udder fanaion of laws,
which ought long ago to have been repealed.
I can scarcely think it poffibb, that those who wish to
fee the money restored to its orig nal value, have ever
adverted seriously tc the fubj*a. We find that Congress
h^vt expended, in the last four months, 40 millions of
dollars, besides the sums received at the Loan Office.
Now would any man, in his senses, wish ts have the
Continent at the exp^nce of above 10 millions of bard
dollars per month ? Is he aware that at & Veiling per
dollar, it amounts to nine millions of sterling pounds
for the said four months ? A sum almost twice as large
at Great Britain expended in any four months of the
last war. This would be extravagance in the extreme,
arid th: more inexcusable, as the nature of the case by
no means requires it. Every man who now receives the
money, estimates it at the proper difeount. If he fells
a house, a borfe, or a piece of goods, he demands at
least 40 prices for them, and in many articles vastly more,
so as to have on an average near 50 prices; then from
what train of reasoning are these money-holders to re
ceive the value of a hard dollar, for every Continental
dollar thus obtained, at the fiftieth part of its value.
Should the war continue, emissions of some fort must
run on, and the money will inevitably fink in value;
an^, politically speaking, this would not be an evil, for
it would (till operate as a gradual tax, affecting every
individual in the community. Let us for argument lake
suppose that the war should last another year. The
expences of that year addeJ to the foregoing emissions
would probably stand as follows:
Dr. The United States in account with Continental
Money. Cr.
To the amount already Dol. Dol.
emitted, 209 mil. Exch. 48 mil.
January. To an emission of 10 Exch. 50 200 000
Feb. To ditto 10 12 52 1-2 200,400
Meroh Ta dtito 11 55 200,000
April To ditto 11 1-2 57 3-4. 220,000
May To ditto 22 60 3-4 200,000
June To diro 12 3-4 631 4 200,000
July To di to 13 1-4 66 3-4 100,000
August To ditto 14 70 1-4 200,000
Sept. To ditto 14 3-4 73 3.4 2C9,000
06t. To ditto 15 3-4 77 1-4 200.000
Nov. To ditto 16 3-4 81 1-4 200,000
Dec. To ditto 17 85 1-2 200,000
Total, mil. 359 1-4 dol. 50 14 mil,
hard doir
Cr. By the value of Continen- Exch.
tal monry in 1780, 85 1 2
But as gold has generally been
about 1-5 lower than any 0-
tber commodity, there mutt
be deducted from the above
85 1-2 one fifth, viz. 17
The rate of exchange then is 68 12 for 1.
At which rate the whole debt of 359 1-4
dollars is„ 5x4 mit
By balance gained by depreciation which
has operated asan a&ual tax, 45 mil.
hard money.
50 1-4 mil.
In stating this second account, I have gone upon the
principles of Congress having emitted, for the four last
months, at the rate pf ten millions per month ; which
at fifty for one, is 100,000 hard dollars. This sum I
have taken as the expenditure of every month, and have
gradually varied the exchange, ex^iy in proportion to
the quantity cncreafed, beyond the sum required for a
medium; from whence it followed, that as the rate of
exchange advanced, a proportionable addition to the
monthly emission became necessary; and though the e
missions have amounted in this estimate to three hundred
fifty-nine millions of dollars, we find depreciation
has still been our faithful friend, and kept us from fink
ing under the burthen. We find notwithstanding the
enormous found, that the sum of 5 14 millions cf hard
dollars would redeem them all, without any person hav
ing 2 right to complain ; for having received the money
from time to time at the depreciated rate, no one could
icrforatly obj-ft to reducing them to that real value.
When the war is over, I should h^ve no objeaion to a
foreign loan, to pay off he whole currency at the rate
then existing, which 10 man could be displeased with,
and geeat confufions might be avoided. We should then
know what was our real debt, and apply ourselves in
gord earnest to fink both principal and interest as faft as
the country could bear it. But funding paper money
with paper money, and paying an interest for what we
may hxve without, is an imposition on the middle and
poorer class cf people, who will have nothing to lend,
but will be forever paying taxes for inteeft money re
ceived by the rich. I am therefore averse to a Lean-
Office of any kind .•t the present; to enormous taxes,
and by all means object to every scheme tending to ap
preciation.
#6*4 DQg-ftQ-fr,^'##* g^+
THE MEMBERS of the LIBRARY
COMPANY of Philadelphia, met pursuant
to advertisement on the 6th instant, not being compe
tent to the passing cf a Law with the concurrence of the
Dircaors present, adjourned the business of the meeting
to Fuefday the firft day of February next, at which day
it is hoped every Member desirous cf keeping ,the Li
brary open will attend in person or by pioxy at the
Library Apartments, to determine on the Law mention
ed in the laid advertisement. Unless immediate ffeps he
taken, this public and beneficial Institution, which ha
hitherto done honor to its founders and Supporters, will
become totally useless.
January 10. ANDREW ROBESON, Sec.
WHITE SW A NTS KIN SY
Also an assortment of
Irish Linens, Chintzes, Blue Callicoes,
Ofnabrugs, &c.
To BE SOLD BY
COXE, FURMAN and COXE,
In Water street, below Pine street, Philadelphia.
HENRY DEBERGER,
At the corner of Coats's Allev, in Second street, above
Race-street, and opposite to Col. Farmar's,
Has for SALE,
TH E heft London Fiddles in ca^s, German Flutes
in ditto, English regimental Fifes in sets, of the
best kind; also a fie(h assortment of the best Fiddle-
Strings of all kinds ; green and white ivory and buck
handled Knives and Forks, Carvers of ditto, mens gilt
Watch Chains, steel ditto of the best fort, steel and iron
bladed Hand-Saws, an assortment of the best White
chapel and other Needles, Pins, and many other articles
of Hard Ware too tedious to enumerate.
N. B. Said Deberger has also for file, a set of Chi
na, confining of a large tureen, dishes and plates of va
rious sizes, butter boats, &c. &c. also a compleat set of
T^a China.
Coarse blue BROADCLOTHS;
A L s 0,
MADEIRA W I N E,
By the pipe or quarter-calk ; and a small quantity of
P E P P E R,
TO BE SOLD BY
PETER K U H N,
In Market street, between Fourth and Fifth-ftreets,
Philadelphia.