Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1837-12-26

IN
DC Tecelred for payment Of ste tar and az
other payments in The Trsasaryn Before
the time when the taxes were Ia he collse
ted, the notes Of course deprecated, be
cause there was no demand for them; bn
"as me time of payment Of the tax ap
preached, the credit Of the notes vas rei
sed, and the Government allowing ~,
per cent. to those who paid their taxes II
notes, they became better than money -
The Government. encouraged by the res
toration d credit to the bills, aiterward.
issued others in charges of the Cid N
ment. They obtained good credit AN
time Of their being issued. The charge
of Government were paid in this name
from year to year. Whilst the sum wa
small, silver continued the measure, anC
bils continued their Values Thus, for
twenty years in Massachusetts, until the
year I'LL, the revenue of the Province
was collected in bills receivable in pay
meut Of the publicdues, which maintained
an equal value with specie. In this year
to defray the expenses Of second expe,
dltion TO Canada, these notes were greatly
multiplied; of course they fell Immediately
below par, and went on deprecating with
every additional issue, because the supply
exceeded the demand. More notes were
put INFO circulation than were needed for
the collection of the revenue, and for pay.
ments to the Treasury.
! Another instance Of the effects Of re-
ceivabillty in payment of the public dues,
may be seen in the continental money is
sued by the Confederation in our revou-
tionary war; for the coercive enactments
were futile in sustaining the paper. So
long as the issue was moderate, il sustain
ed its par value with gold and silver
Mr. Jefferson and Mr.. Payne testify, that
until the issue exceeded nine millions of
dollars, there was no depreciation. and
when forty-six millions were issued the
depreciation was but one per cent; but,
when it reached three hundred and fifty
seven millions, in the midst of a revolu-
ton, of course the depreciation became
several hundred per cent; and his depre-
citation would have taken place (although
not to the same, yet to an enormous ex-
tent If the issue had been gold and silver,
instead Of paper money. Three hundred
and fifty-seven millions Of specie was prob
ably forty times as much specie as was
then used in the country for the circula-
ton Of the products Gifts labor. The eff
! feet Of such an addition to the circulation
would be to make forty dollars buy what
one purchased before. Although, in rela-
ton 10 each Other, the products of labor
would remain the same in value-as mon
ey became cheaper, every thing would
nominally rise in value The great error
of our fathers was, in supposing that mon
ey of any kind could be multiplied indef-
nitely, without any regard to the great
principles of supply ard demand. $40
you think, gentlemen" said member of
Congress, shat will consent to load my
constituents with taxes when we can send
to our printer and get wagon load Of
money. one quire Of which will pay for
the whole7" Had they proportioned their
issues to the amount of taxes 10 be raised,
or limited themto the wants Of the crcu-
lation, the continental currency would ne
YER have materially deprecated. But
their situation was q peculiar one The
confederacy could not effect loans; and by
the articles of CONFEDERATION they could not
tax the people directly, Their only eXpe-
dents for CARRYING on the war were fight
ing and paper money, and they freely used
both
Great Britain, also, after the suspension
of specie payments by the Bank oil Eng
land. from 1897 TO 1923, exhibits another
strong instance Of the effect of receivablll-
ty in payment of the public dues: to sus-
tain paper issue. The notes OF the Bank
of England, during this period, were but
little more than Government bills recelva-
bic in payment Of the public dues to sus-
tain paper issue. The notes OF the BANK
of England, during this period, were but
little more than Government bulls receiV-
able in payment of the public dues. The
whole capital Of the bank, Of fl4,Oooooo,
had been borrowed by the Governments
and the bank had stopped paying specie
for it's notes. The notes, therefore, had
neither bank capital nor specie to support
them. The faith Of the Government ana
their receivability in payment ofthe pub
| lie dues, constituted almost their only ute
to credit; and for twenty-seven years mus
currency sustained that great people
through war for existence, with hall Of
Europe subsidized in the contest, whist
her commerce and her power advanced
hand iu hand to its present mighty con,
summation. All Of these instances are o.
past times. But we have before US now
in the Treasury drafts lately issued oy
the Secretary of the Treasury a strong
exemplfcation orthe effect Of recelyaolli-
" in payment Of the dues to the Govern
ment, in sustaining paper issue: hese
drafts are drawn upon the deposlte BANKS