Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1862-10-28
DAILY SENTINEL.



ton That paper says the reader who has fancy
for such inquiry. may find it worth while 10 con
trsst the rapid depreciation Of the paper currency
issued by the Government during the Revolution.
with the similar downward movement Of value
for similar issues at the present time. There is
vast difference in the population and resources
of the country at the two periods. and We are
able to carry debt Of far greater magnitude now
than then: but the laws Of demand and supply,
the principles which ever control values. hold
good at all times and under all circumstances.
The debt or obligations of the Government at
the close of the Revolutionary war. probably
equalled a third er more than a third Of our
present Indebtedness. but the ability TO pay was
By no means in the same proportion. IL must be
recollected. however. that TO the obligations of
the General Government We must add for this
comparison the indebtedness of the several
States, and thus swell the aggregate to an
amount leaving mean comparison with the is
sues Of Continental currency.
The whole question Of the values of Govern
ment paper is one of time and amount. II the war
could cease with the close Of the present year.
and while the liabilities Of the Government are
within fifteen hundred or two thousand millions of
dollars. the resources Of the country would doubt
less be adequate 10 it, final redemption. although
the interest. if the debt funded, would amount
TO the enormous sum Of nearly one hundred mil
lions per annum. If, on the other hard, the war
shall be prolonged for one. two or three years at
an expenditure of two millions per day, or more
than seven hundred millions per annum, we APP
prehend that our wisest fnanciers will prove une
quail To solution of the question of the final
values Of our Government currency.
IL is interesting TO note the influence which the
election returns have upon the public credit.
just before the October elections, when the
hnancers of New York were impressed with
the conviction that the radicals were going to
carry all the States. Treasury notes went down
to bJ-or, rather, what is just the same thing,
gold went up to 1877. When the news began to
come in, and it was ascertained that the Demo
Gratis had made large gains in members Of Congress
gold went down to 1873. 100; and finally, when the
whole truth came home to the people, and the
announcement made that the Democracy had
carried erything-Congress. State officers and
all--in the three great Central and Western
States. gold suddenly dropped to l26, fall of II
per under the influence of the election news
This is the natural and legitimate result of
such a verdict by the people IL implies hope,
first, that the country may be saved and the Union
restored. thus giving value to the public securi-
ties; and second that the reaction thus CON-
menced will go on until the Government is placed
in conservative hands, and a sounder system of
finance substituted for the loose and extravagant
management which has characterized the present
Administration. Let the States which hold their
elections on the 4th oil November, confirm the
decision of Indiana, Ohio and Pennsylvania and
settle the question of radcalism forever, and we
shall Witness speedy restoration of confidence in
our securities, we'll a reasonable hope of the
salvation of the country.
AMERICAN PAPER CURRENCY.
Many have heard their fathers and grandfath
ers speak OF "Old tenor and of continental
money" and but few have seen specimens of
that worthless currency. For the first issue of
paper money are indebted TO that State of the
original Thirteen" which has been SO prolific in
new inventions, new ideas. new tangled notions
IN divinity, laws, politics. aud m0rals-Massa.
chusetts. The Provincial Government OF Mas
sachusetts in 1890 made the first issue of paper
money, under the denomination of "bis of cred
it," for the purpose of defraying the expenses of
an expedition to Canada. These bills. when first
issued, were oil less worth than specie; in New
England they were valued at six shillings for a
silver dollar, in New York at eight shillings, and
in Pennsy lvania at seven shllings and sxpence:
hence the different currencies in those prov
inces, which exist even to the present day. Ii
deprecated very rapidly until forty five shillings
came Ia be of the value of one dollar, at which
IL stood many years, and was denominated ''Old
tenor" (old tender).
This mode OF liqudating the public demands
aud satisfy the claims OF private creditors was
initiated. in many instances, by the other prov
inces. and among the rest New York. In las,
Massachusetts, alone issued bills TO the amount of
between two and three million of pounds, lawful
money; and in three years after. by depreciation,
FL .l0G of these bills were only worth equal TO
clio sterling Great Britain paid to that colony
EleO. 900 sterling for expenses incurred by her in
the expedition against Lousburg, in the last
mentioned year. with which she redeemed her
bills. at the rate of fifty shillings per ounce of
silver.
When the troubles of the Revolution com
menced, Congress having no other resources for
revenue. had recourse TO the system OF paper
money. and the provinces did the same to a large
amount
In l715. Congress issued bills of credit to the
amount OF $1,000 900: and to force their circula-
ton, and prevent their return for redemption, it
made them. by resolution. a lawful tender. and
declared refusal to receive them an extingush.
ment OF the debt for which they were offered for
payment. This a sort of forced loan and
Congress declared, January ii. l776, that "who-
ever should refuse to receive in payment Cont
mental bills, should be declared and teated as en-
emies TO their country, and be precluded from in
tercoursc with its inhabitants
Until the amount says Mr.. Jefferson) ex-
ceeded $1,000 900. the bills passed at their
nominal value. after which the depreciation was
great"
This Continental money formed almost the en-
tire circulating medium OF the country during the
Revolution, and accounts were kept in IT, but the
specie value also generally entered as fol
lows:
lib. June 5.-To cash paid Reuben Dean for
screw tor State seal, Cont1 go law TO los
4d-which Is a eleven 10 one August 80 IT'S,
the Provincial Congress of New York ordered an
emission of bills To the amount OF EI5 600. i'm
sums from ten 10 half dollar: and March ;,
lit. they ordered Sl31 900 more. August l3,
lI's they again resolved 20 issue bills OF credit
toi $500 900, IN sums fIom shilling dol
lars.
In the same Congress. May 2s. 1875, il was re-
solved that Thomas Harriet had violated the
resolutions Of Congress in refusing 10 receive
Continental bills IN payment. and that he be held
up To the public as an enemy 10 his country IL