Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1862-11-03
SelrttG0 5fllstrllanp.
Government Paper Currency.


The New York Argus has an interesting and
instructive communication on the subject of
"American paper currency" touching the paper
issues Of the Government during the Revolution, |
and its depreciation and final practical repudia 1
ton That paper says the reader who has fancy /
for such inquiry. may find it worth while to con-
trast 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
a vast difference in the population and resources
of the country at the two periods and we are
able to carry a 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
eoualled a third or more than a third of our
present Indebtedness, but the ability to pay was
by no means in the same proportion. 1t 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 we swell the aggregate to an
amount leaving no 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. If 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 woLlddoubt
lo-s ,t- E,a ola vi
the interest if the debt was funded, would amount
to the enormous sum of nearly oDe hundred mil
lions per anuum. If, on the other hand, 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 ap-
prehend that our wisest fnanciers will prove une-
quail to solution of the question of the final
values of our Government currency.
1t is interesting to note the influence which the
election returns have upon the public credit.
Just before the October elections, when the
fnanciers of New York were impressed with
the conviction that the radicals going to
carry all the States. Treasury notes went down
to 63-or. rather, what is just the thing.
gold went up 10 1871. 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, 1870: and finally. when the
whole truth came home to the people, and the
announcement was made that the Democracy had
carried everything-COngress. State officers and
all-in the three great Central and Western
States, gold suddenly dropped to l26, fall of ii
per cent. under the influence of the election news
This is the natural and legitimate result of
such a verdict by the people 1t 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 COM
menced will 90 on until the Government is placed
in conservative hands, and 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 OF November, confirm the
decision of Indiana. Ohio and Pennsylvania, and
settle the question of radicalism forever, and we
shall wtnessa 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 we are indebted to that State of the
original " Thirteen" which has been so prolific IN
new inventions, new ideas, new-fangled notions
in divinity, laws, politics. and morals-Massa-
chusetts. The Provincial Government OF Mas
sachusetts in 1890 made the first issue of paper
money, under the denomination Of "bills Of cred
It," for the purpose of defrAying the expenses Of
an expedition to Canada. These bills when first
issued, were of less worth than specie; in New
England they were valued at six shillings for a
silver dollar i'm New York at eight shillinss and
in Penns ylvania at seven shiIlings and sixpence;
hence arose the different currencies in those prov
inces which exist even TO the present day IL
deprecated very rapidly, until forty five shilngs
came 10 be Of the value of one dollar, at which
it stood many years, and denominated "old
tenor Told tender).
This mode OF liquidating the public demands
and satisfying the claims OF private creditors was
inces, and among the rest New York. In l745,
Massachusetts, alone issued bills to the amount Of
between two and three million OF pounds, lawful
money; and in three years after. by depreciation,
El.l0O of these bills were only wOrthor equal to
fIOO sterling. Great Britain paid to that colony
fI50 900 sterling for expenses incurred by her in
the expedition against L0uisburg, in the last
mentioned year. with which she redeemed her
bills, at the of fifty sbiIliDgs per ounce of
silver.
When the troubles Of the Revolution com
menced, Congress having no other resources for
revenue, bad recourse 70 the system Of paper