The Pennsylvania packet, or, The general advertiser — Lancaster, Pa.;Philadelphia, Pa., 1779-06-19 00:00:00, page 1

SATURDAY, JUNE jg,. 4779=
GENERAL ^OGIiO ADVERTISER
Mr. DUNLA P.
SIR,
Pieafe to insert the following ADDRESS to the
rood People of these States in your next Paper.
" r PHILODEMOS.
X T seems to be agreed on all hand, however we may
) differ about the mode of effe&ing it, that forcething is
Beceffary to be done in support of the credit of our paper
currency, and, to a certain degree, to appreciate its value.
Congress have been much blamed for Pilfering the decree
elation to proceed to fuc-h an enormous height, without
exerting every means in their power to flop rts/progreE.
They Ihould have began to tax sooner, it has been laid.
Perhaps they fhouTJ. But, every one, f believe, who
judges candidly on this fubjeft, will allow, that, had
Colure's began ever so early to tax, they could not have
been able, even by the mod rigid economy, to have de
frayed the current expences of the war from the produce
of taxes alone. Some other expedient then for railing of
money became absolutely necessary; which, in addition
E taxation, might foperfede the necessity of farther emif
fioDS, and thereby prevent the depreciation that wduld
unavoidably arise from a fup^rfluity of money.
To this end &opgrcfs wifely eflablifhed Loan-Offices in
the several States, for borrowing of money, at firit allow
ing an interest of four per cent, per annum, but which
they afterwards railed t^ fix.
But this mode of railing money, through want of pro.
permin tgemeot, has been rendered in a great me#! ;re
abortive. Congress ffill continued, imprudently, to emit
large fume of money, after a Efficient quantfry, to serve
as a medium of trade, had already been thrown cut into
circulation. The inevitable ^onfequence of which was to
brin^ on a depreciation of the currency, which, though it
proceeded but slowly at firfl, yet has its rapidity been
continually encreafing. , ~, r . ,
Unfortunately for us, the depreciation which took
its rife from the fuperfluous quantity of money, was after
wards amazingly accelerated by the co operation of a va
riety of otheg concurrent causes. The real scarcity of
goods in many places, and, at the fame time, the depre
ciation not proceeding every where with an equal degree
of rapidity gave rife to enormous profits to those who made
a practice of purchasing commodities in one part of the
country, and felling them again in another. Hence have a
risen theft innumerable swarms of jobbers and speculators,
engroffers and fore Wallers, which have every where infefted
the country; and who, though not the original cause,
have contributed greatly towards accelerating the progrtfs
of depreciation.
When it was found that the value of the money was
constantly dimm'ifhite, those who were poffelfedof it, in
order to,fecure themselves from incurring loss by depreci
ation, chose to lay it out in any one valuable commodity,
rather than to lend it to'government. Indeed it is alto
ndlring that Congress have been able, by means of this
expedient of borrowing, to obtain from individuals such
large sums as we find they have; and I can in no way
account for it, but by attributing it, partly to a patriotic
spirit, which has induced many to lend money to the pub
lic, though manifeftly contrary to their interest, partly to
a (anguine expectation of a sudden appreciation.
When Congress therefore came to the resolution of bor
rowing at a moderate interest, an immediate flop fhopld
have been put to all farther emissions. The keeping
the money up to its original value, was absolutely ne
cefary to ensure success to this plan.The mod inconsider
able depreciation was fufficient to deter individuals from
lending , for let us even suppose It to be no more than ten
per cent, per annum, yet still would the lender incur con
siderable loss. At the end of the year he would indeed
receive fix pounds in addition to Bis capital of one hun
dred; but after deducing for depreciation ten per cent,
on the whole sum of principal and interest, then would re
main something less than ninety-fix pounds: Here then
is a clear loss of better than loir per cent. To induce an
individual, therefore, who underfiood and consulted his
own interest merely, to invest his money- in the public
funds, it became necessary to offer an interest for the
fame equal to the annual depreciation, in addition to the
fix per cent, But the depreciation, after it once begad,
proceeded so rapidly, that in order to keep pace with it,
Coagrefs must have given an interest for money extrava
' gant beyond all bounds.
But this is not all. Even though Congress, by flopping
farther emissions of money, had prevented depreciation,
yet, whilst trade was left to regulate itfelf, and a real
scarcity of many necessary articles prevailed, great profits
would necessarily accrue to the trader : And thus indivi
duals would find it more to their advantage to employ
their money in trade, than to lend it to the public.
Hence then antes a combination of embarrassing cir
qumfiances, fufficient to perplex the rr^ft able financier.
To give fufficient encouragement to trade, and, at the
fame time, make it the interest of individuals to lend mo
ney to the public, is no easy talk: For if, on the one
hand, we mould attempt to regular? foreign trade, by the
fluctuating flandard of our depreciated currency, no good:
•would be imported; and, on the other hand, if trade be
[ Price 2S. 6d. finglQ 2S. by the quantity. Published every Taelday, Thursday and Saturday, j
left open, prices unlimited, and merchants thereby en
abled to make great profits, no money ^ould be borrowed.
But, through bad management in the firft instance, and
afterwards by a train of concurring causes, the deprecia
tian of our paper currency has at prefect arisen to a meft
enormous height, and the evil daily encreafing. In tins
desperate Hage of the disorder in our finances, whet feme
'dy can prove effectualr Thus much, I.think, I Way ven
ture to assert boldly, that, as taxation is inadequate, and,
in the prefect exigency, too flow in its operation; an I, as
borrowing at home, whiift the depreciation continues, is
quite impracticable; to afford an immediate relief for the
prefcnt, a foreign loan is absolutely necessary. I fay, for
the prefect ; because to place the money on f® rerpeflable a
footing as to prevent depreciation in Julure, something
farther mull be done. 1 -
Every one, who is the leaf! conversant in the nature of
paper credit,' must be fully fehfible, that it is impossible to
support it for any length of time, but by a well grounded
confidence in the sincerity and honefly of intention, as
likewise in the capacity of government to redeem the fame.
Any attempt therefore at reflating the depreciated value
of our money, which has a manifeft tendency to weaken
this necessary confidence, must, in the present situation
of affairs, infallibly terminate in the totd deftru&ion of
all paper credit. And indeed, it is astonishing that our
, money has so long preserved its credit, when so little his
been done to support it. The rapid depreciation, which
has been the consequence of the resolution of Congress of
the 2d of January las, will, I hope, be a fufficient warn,
ing to us, to avoid tampering with a fubjeft so extremely
delicate in its nature.
Should Congrefs,'for inflance, be so mad (which lam
not at prefect disposed to believe) as to adopt any thing
similar to 'the feheme of a writer, who ttiles himfelf A T^ue
Patriot, what I fa,, would be the consequence— the imme
diate annihilation of all paper credit. But his propofiti^n
js really curious—the public are only to become bankrupt,
anJ compound with their crediton at a (hilling in the
pound, and so wipe offall old fibres. This indeed would
have been excellent, provided at the fame time, be had-de
vised a method of carrying on the war in future without
either money or credit : for he himfelf, I believe, would
be vety loth to trust Congress, after playing such a dug
trick as this.
In short, in the present inveterate stage of the disorder,
palliative expedients can te lunger produce any salutary
effects—nothing that does not operate radically, can pre
vent immediate death, much less perform a perfect cure.
But what mode of application fhaJl we pursue, in case A
Foreign loan or credit Should be obtained, to make it most
beneficial to the public ? This is certainly a'queftiou of the
bigheft importance. I have as yet heard of but two ex
pedients talked of, the one to draw for the money in bills
of exchange, aid fell them to the merchants here, to the
best advantage for Continental money. Tie other is to
-traafport the money itfelf to this Continent, Both these
plans, I think, areliable,o considerable objections. As 1
to the former, the merchants to whom these bills muff be
fold, would certainly take advantage of the necessities of
the public. Combinations would be formed amongst them
to beat down the price of bills. Neither would this be at
tended with any considerable diminution in the price of o
ther articles of dale. My opinion is founded on the follow
ing reasons.
I ft. The far greater part of foreign articles arp in the
hands, not of the original importers, but of (peculators
and jobbers, who have purchased them for Continental
money. These people will not willingly fell again for less
than they gave. We must not therefore expe& to lower
the prices of foreign articles, but by frefh importations.-
But before the merchants, who have purchased the public
bills, can remit the fame to Europe, and receive cargoes
here in return, the .evils, thereby intended to be redressed,
would be past all remedy.
2d, As the farmer is regulated in the price of what he
has to fell by what he buys, the prices of all home commo-'
ditifts will also be kept up.
3d. As bills of exchange to a large amount cannot be
disposed of very suddenly, and, inAhe mean time too, im
mense sums of money 'muft necessarily be drained off for
the immediate support of the war, Ido not conceive we
shall be able, by means qf this expedient, to draw such
large sums out of circulation, as to effect any considerable
diminution of prices.
As to the transporting the money itfelfto this Continent,
I confess, Ido not fee'how any valuable purpose can be
answered by it -so pay it away to the army could answer
no fort of purpose, and to attempt to exchange it for Con
tinental money would be attended with great inconvenience 1
and liable to imposition, and at best would afford but a
temporary relief..
But if neither the drawing bills of exchange, and felling
them to the merchants here, nor the transporting the mo-<
ney-itfeifto this Continent, is peffbie, but both liable to
material objections, what plan, it may be asked, can you,
propose which will be less exceptionable? Such as it is I
here offer it to the consideration ofthe public ; at the fame
time, heartily wishing that some comprehensive penetrat
jr:£ genius may be happy enough to Arike out a bettm
Ift. Let Congress, after having negociated a loan in
Europe, appoint Ageuff to refidqiu such of the fea-pofi
towns, throughout the several States, as shall be thought
must convenient.
2d. Let these Agents be empowered to purchase all
foreign goods, which shall be imported (perhaps articles
of luxury ihould be excepted, but upon this I do not pre
tend to decide) to be paid for in bilk of exchange, allow
ing the importer a generous profit:
id . Let tuerebe a general tariff of prices made from time
to time by Congress, at which.their Agents, throughout
the Continent, ?hall be ordered to Eli to the retailers.
• 4th. Let the prices, at which retailors shall fell, be re
gulated and adjusted by fara tariff, allowing them a z^c
derate profit, as alfd the expecce of tranfeortation, which
must be fixed at so much per mile.
sth. Let Congrefynake a regular reduaibn of the prices
of goods monthly.
6th. Let the prices of grain and all inland commo lines
be also regulated, so as to hold a proper . proportion to
foreign articled.
I drill now elofe (bis address, with a few obfervatiens cri
what; I think, would be the probable effects of this of a
similar plan.
I fl. The file of the good's brought into the refpeaiv,
sea- ports throughout these States, would at ohce furnim
Congress with the Command of immenie sums of money,
which, together with the produce of taxes, would be more
than fufficient to purchase all the supplies of provisions and
other home commodities, which can possibly be wanted
for the me of the army, during the present campaign.
2d. By the limitation caprices, an inftahtaneous flop
would be put to all further depreciation of the money,
indeed Congress would bav^tin their power to appreciate
it in whatever degree they should judge mox advantageous.
3.1, As f.e encouragement to merchants, by being as
sured of a regular generous profit, weeid be vuy great,
large importations would be made, which, would have a
natural tendency to bring down priced
4th. The limitation of prices would in a great measure
prevent fraud and peculation in the fiaff departments.
50. The whole tribe of jobbers,(peculators, engreifers,
&c. &c. would at one fircke be annihilated.
6th. But the greatest advantage, which, I think, may
be derived from this or a similar plan, is that, if proper
methods are pursued, it will, by its efe&s, infallibly fe•
cure the money from all danger of future depreciation,
and at the fame time enable us°to raise a fufficient Turn to
carry on the tear with rigour.
All other expedients I have yet heard mention of, are
merely temporary—they extend no farther than to serve
the present turn—mere palliatives, not intended to work a
cure, but only to fiave off the fatal catafiropbe, the politi
cal death of our paper currency, to a more distant period.
For, in the firfl place, to suppose tls, as some have done,
capable of supporting the expenco of the' war from the
produce of tax^s alone, is certainly the he°, bt of absurdi
ty, when We confider that Great-Britain, France, ar^
Holland are at present largely in debt for former wars.
And in the next place, as toa foreign loan—The benefit
tefulting from this expedient finely, without any thing
farther being done, can never be lasting : For we cannot
reasonably expert to obtain an unlimited credit, either in
France or Holland, and whenever that shall be exhausted,
the difficulties refpeßing our finances, which at present
embarrass us, will again return upon us. ''
From hence then I shall venture to advance this pofiri
®n, the truth of which, I think, cannot be disputed,' that,
in order to be turniihed with money adequate to our cur
rent expence, and at the fame time to prevent depreciati
on in future,, it will be absolutely necessary to borrow at
home.
I could wilh that Congress and the public in general
were thoroughly convinced of the truth of this, as they
would then, I conceive, fee the necessity of adopting the
plan I here offer, or forfiething similar to it; the peculiar
advantage of which, I take to be this, that it will, in its
effects, enable us to borrow at bome, to whatever extent
may be peceffary : For by the limitation and gradual re
dufhon of prices, retailers would be confirrined to take
up with moderate profits. Indeed, none could engage in
trade with any profpefd of advantage, but futh as ate ex
pert in business, who are able to carry it oh extinfively,
and who can command a regular Ale. The erfed of this
is obvious, the far greater part of the community would
be incapable of employing Jheir money to advantage in
trade, and would therefore be under the necessity of Tender
ing it tothe public.'
But againftthis system of borrowing, it may be urged
as an unanswerable objection, that if the paper emitted by
Congress, must hereafter be redeemed for gold end friver,
at the rate of the nominal value thereof, it is evident the
public will pay one thousand per cent, (or what ever the
depreciation shall be) upon all money borrowed. And thus
we might possibly incur a debt too greatforany future tax
esto discharge: This argument has certainly great Weight'.
But on the contfary, Should Congress, to avoid this mif
chief, at once declare that ten paper dollars, for instance,
Ihould be equal to no more than onefilver dollar, thecofl
(For the Remainder fa tbe fourth Page,)