The New-Jersey gazette — Burlington [N.J.], 1779-04-14 00:00:00, page 1

[No. IV.]
Mr. Collins,
JN my last number I have laboured to make evi
dent to my fellow-citizens, that the present de
preciation of our currency was the only efficient
cause of our national calamities and disorders.
* According to my declared intention, lam now
-to offer my thoughts on the remedy proper to be
prescribed for its cure.
The cure is felf-evident — Its credit mus be fapport
ed, and its value ruifed. —An author in the Pennsyl
vania Packet of the 16th Feb. last, has justly observ
ed, that the credit and the value of money are dif
tincl things. I have before shewed how the value of
money is to be ascertained —Its credit reits on diffe
rent foundations. That of gold and filvei is its being
without more alloy than the lan s and customs of na
tions allow, and having full weight: That of bank
notes in England, which pass as their paper currency,
depends upon the fufficiency of the bank from whence
they are emitted, to repay them in gold or silver when
demanded. The credit of our paper currency, as it
is emitted on a national debt, depends upon that
debt being duly paid, and so the emitted money funk
or destroyed: The credit of our loan-certificates de
pends upon that of our paper currency.—The reason
for fufpeding the credit of our currency can only arise
from the probability that our nation quill not be able to
Jink it, or not be faithful to its engagements. Had
England succeeded in their attempt to subdue us, in
human probability the money would have been loft,
together with whatever is valuable and dear to us in
this world. In the commencement of the war, while
victory, to appearance, hung in fufpence, tories and
timid whigs had some pretext for their suspicion of
this credit. But according to present circumstances,
England seems to be in more danger of being subdu
ed than America. As to the ability and the pledged
Jaitb of this nation, none will pretend to futpect but
fiich as are influenced by principles of enmity, and
with a view to embarrass, as much as possibly they
can our national affairs. I suppose such perlons
would not fufped the credit of an English bank-note,
tho' it really is a thousand times more precarious than
our money.' The bank, on which its credit depends,
can never answer all its demands, in case the nation
fails- and that owes an hundred and forty-five mjlii
ons of pounds sterling more than the whole amount
of their gold and lilver currency. Some of their own
friends affirm, they owe twice as much to the United
Provinces as the whole amount of their circulating
cash. And what kind of fecurit, or credit can such
notes have ?—I take it then for granted, that the cre
dit of our money is at present as well eftabliihed as that
of any nation; and its depreciation cannot proceed
from that cause. And thus no remedy is necttiary
for the better eftabifhment of its credit.
It is then only the funk value of the money requires
a remedy. The Pennsylvania author, before recited,
asserts, that our money is depreciated on fame articles
ten, on others twenty, others thirty. Supposing then
we fhculd take it at the medium, twenty for one ; and
J am apprehehfive this will be neai the mattci at the
present day. How long it win remain there, no one
can tell. I shall proceed, in my further animadver
sions, on the supposition, that twenty for one is the
medium of its present value. From what I have be
fore observed, it is manifeft, that the prejent true va
lue of money evidences what real property its pofleffor
is entitled to receive for it. In the commencement
of the war a continental dollar was worth a Spanish
milled dollar, or its value; and it was the intention
of Congress it Ihould remain so. But through errors
in government ; fraud, villainy, ano necefyary jej-ae
fence in our citizens, the value has, by degrees, been
reduced to twenty for one. Whatever individuals
may have fullered by this reduction, here they are.
Their money is worth no more. They can get no
more for it. ' This undoubtedly is a great, injurious,
and defruaive national evil; which requires a speedy
and efficacious remedy. And the only one is, that
which will bring its value to its old /landard with the moJI
juflice and equity to individuals, and the leap oppreffioOT
and ruin to the community at large. But, hie labor
hie opus est; here is the difficulty. I have before
observed, that our national debt is the fund on which
our money and bank-notes are emitted. Now this
debt is a real thing, it is real property and real services
for which it has been incurred. The money, as firft
emitted, was a true evidence of the value of these
properties and services received ; but the money be
ing now, by the common content of the nation, (for
so it passes) reduced to twenty for one, it is no long
er a true evidence of the national debt. Suppose the
nation was now to pay what they owe by barter;
give property for property, and service for service; it is
NEW-JERSEY GAZETTE.
[Vol. ll.]
WED NESD A Y, April 14, 1779.
evident that they, in such case, must give twenty dol
lars tor the fame property and service they had for
01^ at the original value. Consequently, if w.e sup
pose the nominal national debt to be an hundred and
sixty millions of dollars, at their present value, then
eight millions of dollars, at their original value, would
purchase a fufficiency of properly and service tc an
swer the whole. So that the true conclusion from
the premises is, that the .depredators of our currency
have, by an exalt inverft proportion, reduced our na
tionaldebt as the depreciation has increased. lam con
fident if this nation was to borrow eight millions of
Spanilh milled dollars, and distribute them in just
proportion to individuals for all the monies and bank
notes which have been emitted, that these eight
millions would purchase as much real property or
service as the whole of t)e other. And if my con
fidence is well founded, 'then another confcquence
would be inconteftible ; namely, that the individuals,
by giving twenty for one, 'would not have loft one far
thing by such exchange. Permit me to e ucidate this
by a familiar similitude: Suppose a man exchanges
twenty fliillings in copper for one pound in gold or
silver, does that man lofc one farthing by such ex-,
change, tho' he gives twenty for one? Will not that
one pound purchase as much as the twenty fhiltings?
I confefs, if money had retained its original value our
national debt would have been much greater than
eight millions: Or if Congress was to purchase pro
perty and fervicesdufficiett to answer that which they
have had for the national debt, at the present value
of money, that the total amount would be vastly
more than an hundred and lixty millions. I there
fore fay, that the depredators have reduced our national
debt by exact inverse proportion. In faft, it has been
a voluntary paying of our national debt, though un
known to them who did if. To make this evident,
let us suppose J. fold to-day real property for a dol
lar original value; a little~wb.de after he applies to £.
for the fame, or property of equal value: If A. then
gives B. one-sixth more than the dollar he received
for it, (from whatever motive this may arise) he con
tents to lose or link one-sixth : And if from inch ex
ample a general rule and practice is deduced, then
the nation, by common coafent, has funk that one
fixth in paying their national debt. —Thus have de
preciators proceeded ; and, by an unaccountable in
fatuation, have voluntarily paid the national debt,
till in fact and reality it is brought down to a mere
trifle. My readers will be pleated to observe, that 1
speak of our national debt is exclusive of our foreign
debt ; which has been contacted for hard money,
and therefore muftbe paid for in that, or the amount
of it in produce. In this critical lituation of afiairs
our civil government have an opportunity cither of
effectually ruining this country, tor which the depre
ciators have calculated thrir conduct, or seizing the
opportunity which their mfconduht has afforded, to
render their country infinite service any rate,
the present fluctuation of our currency mult be re
medied, and reduced to afixed standard, or the na
tion cannot exist. This isa felf-evident proposition.
I take for granted that the community will cordially
agree that it ought to be reduced to its former value.
What I have thus far argued, opens to us the way
which is to be pursued so bringing the value of our
currency to that standard.
In order to prosecute r.y design in this important
matter, I lay down, as a fundamental rule in good
policy, That the national abt ought not to be increased
more than absolute nectfo requires. I suppose none
will dare presume openlyb undertake the defence of
the contrary. —1 also obfeve, that as our currency
and loan-certificates fern as the only medium for
trade, the community hau it among them, ejiimatcd
at its present value : Th farmer, mechanic^ and
tradesman, as well as th/merchant, quarter-matter,
commitl'ary, and their deputies, each his ihare ; pur
suant to their reipedtive miciples, opportunities, and
agency of acquiring it. xllb that monies entrusted
to bodies politick or otics, for the use and benefit
of churches and feminariliof learning ; and that was
laid out before the deviation had taken place to
any considerable degreejor the maintenance of su
perannuated persons, w^ws and orphans, from its
interest and income, canhive had no other agency in
the depreciation than wp hard necegity forced to be
taken from the principal,tr indispensably neceforyfup
port. I numbly conceiv,that in point of good policy,
equity and juflice, these pree important particulars
ought to take the lead -investigating the necehary
remedy for the diforder.l shall, at lead, endeavour
to square my thoughts (this fubjett by these rules,
and leave my candid fe Tv-citizens to judge of their
policy, equity and juflice.
It appears evident to e, that there are only three
T H E
2. If the tax for the recovery of the value is laid on
real property, t will encourage the vilefl of men in their
pernicious attempts to injure the fate : The other will
have the dir^l, contrary effect. If this be true, there
is no doubt which is to be preferred in point of good
P° h % " at jt is true > may appear evident, if we
consider that the very men who have acquired most
of the money, have, by their manner of acquiring,
depreciated it. Their view was either immoderate
gain at the expence of others, and in hopes that real
property, or in other words, chiefly the farmers
ihould be obliged to make good their money • or they
did it with a view to ruin our cause in this'conteft•
which is now the last hopeful resort of the tories. Now'
the plan Congress has resolved to pursue seems per
fectly to coincide with the former; because it is evi
dently calculated to oblige the farmer to make the
money good 111 the hands of those mifereants who have
amassed great sums of it. This would give a fandion
to their nefarious practice, and lay open the way for
then? again to pursue, on every similar occasion * to
the still greater embarraffinent than we are in at pre
sent.—And the plan requires so long a time to pro
duce the defined effect, that the tories are still fan
guinc in their hopes that our ruin will be compleated
before this remedy can effect the cure. The plan to
lay this tax on the mono itfelf, would evidently be
the reverse. for if these blood-fuckers were to bear
their proper proportion in reducing the money to its
original value, a greater number of them would fuf
kr more than gain : And as such are only actuated
by prospects of lucre, they would hereby be effectu
ally deterred from similar attempts in future. And
it is evident that it would, at one blow, overturn all
the remains of the tottering hopes of the tories.
"y' '"' plan would be exceeding dangerous to
tbe civil liberties of the people, as now eflablfhed on and
by their authority. The other would effectually secure
them. To prove this, let it be observed, that our
different ways to recover the loft value of our money
to its original : That is, by a tax in the u/'ual manner ;
or, on the money itfelf, in order to reduce the surplus
quantity; or, by borrowing a jufficient sum of foreign
powers to jubfirate in its room. Each require a can
did and thorough examination.
The Congress seem to have adopted the firft ; as is
evident fiom tlieir resolves of th& lecond of January
last. Though the wisdom, judgment and integrity
of that august body, the representatives of the United
Gates, demand our reverence and due refpeCt • yet
they leave die liberty to the free fubje&s of this'em
phe to examine their proceedings with candor, and
J cri f;"" %e their judgments and determinations by the
Jrr?cttfl rules oj good policy, equity andjujiice. On these
principles 1 proceed to examine the mean for the re
covery of the loft value of our money, recommended
)y Congiels to the different Rates, as contained in
their reloives for that purpose.—A late author, in a
p:ece published in Mr. Holt's Journal, No. 1811, un
der the lignature, A Real Farmer, has held forth the
lecond, namely, a tax on the money itfelf, in whofo
c\(r s nands it may be found, and thereby reduce
the money and loan-certificates to their original va
lue. I shall compare them in their refpedive natures
<ti 0 effects, in order that the preference may more
nearly appear from Inch contrails, and so cake both
methods under consideration at once. —Let us then
confider them,
1. With reipe& to found and good policy. They will
carry in this relation these unavoidable consequences
and tendencies with them.
I. If the tax is laid 011 real property, it will increase
the national debt by an exact inver fe proportion. The
true national debt is now about eight millions of dol
lars. It, pursuant to the resolves of Congress, taxes
on leal property ihould pay an hundred millions in
thirteen years, then the remainder is supposed to have
'" Y"' cr , va;ue - C^^WW the fmm
-6s luall have Sweated and laboured thirteen years to
increase the national debt from eight to thirty, by
paying an hundred millions.—The other scheme takes
the community at their own bargain. They them
selves iiave brought, by mutual consent, the value
down to twenty lor one : And if every individual gets
for his money the value he holds it at, what reason
has he to complain ? He exchanges only Shillings for
pounds. Now let every friend to his country • par
ticularly let every farmer, mechanick and tradesman
judge, whether they would choose to pay an hundred
millions of dollars in thirteen years, and then have
thirty millions more to pay (.after money shall be as
Icarce as it used to be) in five years more ? or give up
ch the money they have, and, receive one for twenty
when tney will be left able to buy as much for the
one as tor the twenty; apd then the whole debt of
the nation to be but eight millions?
[Numb. 71.]