The New-Jersey gazette — Burlington [N.J.], 1784-12-27 00:00:00, page 1

From the Maryland Gazette of December 2, 1784.
To the GENERAL ASSEMBLY of MARY
LAND.
HAVING, for many years, devoted much of
my attention to the consideration of publick
affairs, I may be allowed to suppose that 1
better difeern what will be beneficial or in
jurious to the state, than the greater part of mankind,
whose contemplation and fludies are seldom diverted
from their private pursuits. I feel an irresistible im
pulse to disclose my sentiments on every occasion,
which l esteem deeply interesting to the publick. But,
as I possess not the honour of a feat in the great nati
onal council, I have no better way of communicating
my ideas, than by availing myfelf of the liberty of
the press. To the weight of personal influence, to the
extreme force and elegance of language, to the almost
magick power of adion and speech, 1 have nothing to
oppose, but what appears to myfelf to be plain lolid
reasoning ; and if my arguments have not the utmost
intrinfick weight, I muff fail in the attempt, and per
haps forfeit some part of the little reputation I have
acquired, by always pursuing the dictates of an unbi
ased judgment. However, as I never meanly courted
the favour of one great man, or dreaded the displea
sure of another, as I am proud of defpiling mere and
popular applause, I shall proceed under every discou
ragement to make some remarks on a recent motion in
the house of delegates for another emission of bills of
credit.
That an emission should at this time be thought the
primary object of the legislature, I confefs astonished
me. I did not imagine the experience we have had,
would have left a single man of reflection ignorant of
a science, which might be easily attained, without un
common talents or an extraordinary depth of pene
tration. But this is not the firft time I have been de
ceived in my estimates of mankind. For my present
mistake I account in this manner—When we have
long meditated on a fubjed, and formed what we fan
cy unerring conclusions, we are too apt to suppose
that every rational being must entertain the fame ideas.
For the benefit of those who have never reflected mucii
on the fubjeft, to disclose the plain uncontrovertible
principle of the science of paper money, and to save
myfelf the trouble of inventing different phrases, to
express the fame thing, I present some extracts from
an essay published about a twelve-month ago. It is
now scarcely extant, because it was published in a
news-paper. It nevertheless had some influence with
the members of the late house of delegates. A pro
ject for paper money was conceived at the last feflions;
happily it was Rifled in embryo. If the present scheme
can likewise be rendered abortive, the publick will
perhaps escape great and manifold mifchiefs, which I
think mutt be inevitable, if this monstrous conception
should proceed to a fafe birth, and be fuffered to at
tain the age of maturity.
" The main support of paper money is opinion;
which indeed is the grand foundation of all power in
government. It is unneceflary to recite those ill
judged ads of the legislature, which have destroyed
all confidence between individuals, and that faith
which men are naturally disposed to place in a govern
ment, constituted by themselves; but it may not be
improper to explain what is meant by opinion, when
applied to paper money—it is a firm belief, that paper
is equal to, and will answer all the purposes of specie.
If that opinion exists, the plan is smooth and easy;
that it does not exist at present, and that there should
be a certainty of its re-eihblilhinent, before we ven
ture on an expedient which has been so often before
productive of ruinous consequences, I think no disin
terested man will deny.
" If we reason from the success of paper money
under the old government, and thence form conclusi
ons in favour of the plan, a much juster inference
might be drawn from the prejudices occasioned by the
ill fate of the various recent emissions. But, fay the
advocates for the measure, how can you reason from
the prejudices of the people, when almost all orders
of men, even the merchants of Baltimore, are clamor
ous for an emission ? With me, this confederation has
NEW-JERSEY GAZETTE.
[Vol. VIII.]
TRENTON: Printed by ISAAC COLLIN S, Printer to the State.
MONDA Y, December 27, 1784.
not the least weight to demonftfate the existence of
opinions. 1 can account for the wishes of these men.
A dishonest debtor may entertain the fond hopes of
another tender law, or another association. An ho
nest man may suppose, that by introducing an abun
dance of money, he will be enabled with more case
to discharge his debt. Interest may be so strong a bias
on the moss upright man, as to make him willing to
try all experiments. The people find themselves un
easy from the weight of taxes, and would undoubt
edly be extremely well pleased to be furnifhed with
the means of paying, with as much ease, as when red
money, which they procured at the rate of two for
one, was taken at par. As for the merchants, who
have experienced the gains arising from the fluctuation
of paper to be the most profitable part of their busi
ness : as for those who would be willing to give thir
ty, forty, or fifty per cent, for the use of money for
one year, I am not furprized if the plan has their
warmest approbation, and if they even consent to bor
row it from the state as specie. To come to the point
at once.—ls there a planter or farmer, who would
fell the whole of his crop, at the present price, for this
paper? Is there a gentleman, who has just placed his
specie at interest, with good security, who would be
willing to tak 1 it? Would a merchant take it for an
adhrtment of laleable goods, at the current price ?—
If these questions mud: be answered in the negative,
the Legislature should adopt some very effeaual mea
sures to supply the want of opinion, if they exped
bills of credit to serve as a circulating medium, to
comply with the just requisitions of Congiefs, and, in
every refpeft, to be equal to gold and silver.
" I believe the wit of man can devise no method for
the support of paper, where opinion fails, except by
creating uses and demands do talk of ample funds
for their redemption at a distant day, betrays a total
ignorance of the lubjeCt. The truth is, that bills of
credit, which have neither opinion nor demand for
their support, can be considered on no better footing
than the notes or obligations of a private person. Let
the wcalthieft, most reputable man in the state, pals
his bond for one hundred pounds, or any smaller fern,
payable in live years, and it would fell to very few
men for mote than one half; but only contrive, that
this bond shall fulfil every purpefe that specie can do,
and it will immediately be equal in value. It will be
just the fame with publick bills of credit, if the
debtor knows that he can, without injustice, discharge
therewith specie debts; if the merchant is fatisfied that
he can dispose of it in other Rates as specie; if go
vernment will receive it as such for taxes ; if it can
at any time be exchanged without difficulty for gold
and silver; then is it, to all intents and purposes, equal
to gold and silver. If there is a single material use
which it will not answer, then will a difference be
made between it and specie. The government may
provide, that it Ihall be taken for taxes and debts due
to the Rate; it may make it a legal tender between
individuals ; but as the payment of debts and taxes
does not comprehend the greatest uses of money, these
provisions will be found inadequate. By creating a
single demand, you might indeed make paper of any
value you please. for instance—the taxes to be
levied in any one year amount to one hundred and
twenty thousand pounds specie ; you afterwards emit
bills of credit to the amount of thirty thousand pounds,
and ordain, that one dollar shall discharge as much of
the tax as two silver dollars. Here then is a hot and
prefiing demand for sixty thousand pounds, to dis
charge one hundred and twenty thousand pounds spe
cie, and there is but just hJf enough to answer it ful
ly; there will be a competition among the purchafeis,
and, probably, about twelve Killing's and fix-pence
specie may be had for a dollar bill. I do not 'learn
that such a plan of emission as this is in contemplation.
Ido not thinkthe Rate could afford to adopt it. It
must nevertheless be a scheme somewhat similar at this
time, which can make paper equal or superior to spe
cie. Io make it exactly equal, would require a ni
city of political calculation, not to be found in more
than one man belonging to the Rate.
" An attention to the history of red money will
illustrate every position. In the campaign of 1781, the
community was destitute of a proper circulating me
THE
dium, and the state wanted the means of carrying on
the war. The sum of two hundred thousand pounds
was directed to be issued in bills of credit, redeem
able within four years; (it is needless to mention
how they came into the hands of the people, and how
long it was before the whole were emitted.) British
property, to the amount of a much greater sum, was
appropriated for their redemption, and great part of
it immediately fold ; private property was likewise
mortgaged ; to crown all, there was a general associ
ation, and men pledged their sacred honour to receive
them as specie. Was it possible for a plan so well
concerted to fail ? To the eternal disgrace of the peo
ple of Maryland, and more particularly the merchants
of Baltimore, some men will exclaim, it did fail.—
But I fay, neither the people nor the merchants were
to blame; it was impcffible for it to succeed ; opinion
was wanting, and the Legislature did not create uses
and demands to supply the defed. Notwithstanding
every provision they had made, it scarcely puffed as
specie at all between individuals. Some few creditors
indeed, who could not violate so recent and solemn an
engagement, received it with reindance. A few mer
chants, of more than common pubhck spirit, fold goods
for it at the old price ; others, more prudently, cither
raised the price, or Lid up their most faleablc mer
chandize ; and the farmers and planters generally
would not fell their commodities at all. After a very
little time, the fgners of the association confideied
themselves as absolved from them engagement ; there
was then but one immediate uie for the bills, and that
was to pay for the confifcated property already fold
for their redemption ; and no body would touch them,
except a very few speculators, who calculated on the
piefent value of money, payable at a future day, or
those who wanted to iell them to the purchasers of
the confifcated property, or the purchasers themselves.
'lhis demand fixed the,price for a little time at two
for one, and at that rate they passed, sometimes as a
medium of barter; the uncertainty of the rate, at
which they might be received at the treasury, un
doubtedly having influenced the price. The memo
rable dissent of the senate soon took away the only
immediate certain use, and they instantly ceased to
circulate. Another use was created—a dollar in these
bins was to go as far in the payment of taxes as a
bushel of wheat, the price of which was between four
and five frillings ; or twenty (hillings would difcl ar?e
as much as too lbs. of tobacco, the price of which
was between twelve (hillings and fix-pence and fifteen
(hillings. The price then of the bills being regulated
by the demands of the people, who would not pecu
late but for advantage, they were again fold at no
higher rate than two for one. As the time for col
lecting the tax approached, or, as wheat and tobacco
rose in value, they also rose, and were sometimes fold
at the rate of three for two. 1 hey are now taken bv
the treasurer at par, and, as there is a very inconfc
derable sum in the hands of the people compared with
the demand, they have at length attained a value
within ten per cent, equal to that of specie.
" 1 he principles heie laid down were more briefly
explained by a writer two years ago; they were con
sidered, by some very profound politicians, as the crude
notions , and wild dreams of a visionary projector. I
have, in this essay, endeavoured to be as full and dif
tind as possible; and I flatter myfelf, that experience
hath set its leal to every one of my pofiticns. Bv
some discerning men, 1 may probably be thought too
prolix, and to have laboured to demonstrate felf-evi
dent truths ; but if other gentlemen of referable ta
lents and reputation have proposed a paper emission;
if a majority of the people are clamorous for the mea
sure; and if the assembly are already deliberating on
the proposition, I conceived it my duty, as well as my
right, to offer my opinion. A little reading, with a
great deal of reflection, has given me some insight
into the nature of publick credit ; and, without vanity
(for I have gained nothing by the science) I have ne
ver materially erred in my productions, refpeding that
amazing variety of paper money, with which this flare
has amused and cajoled its citizens; it has enriched
men without merit or industry ; and impoverished men
without a fault. During the war it might be necessa
ry; but it is, at this time, the business of a wife aid
[Numb. 346.]