The New York herald., 1863-01-26

After delaying long possible, Congress saccumoea
70 necessity aud tho 18th Of February. lIIo Tour mt
hons OF notes issued and were ioi 10 support tnen
Tho hoped for pssoo not arrive but neither did the
predicted depreciation 1t was soon found that the new
edce Of stood well without the aid o. tax
alton with t. sanguine politicians took heart, and dc.
clared that the sete financial theories Of the Old World
were too narrow for the dcstines the free ntegert
population OF tho New World. specie basis, they said.
had been found unnecessary. Equally needless , was .
thusasrn CT emancipation from the CALLING tyran.
ny of governmental systems borrowed from teudal
Europe AS to these new political ideas. they
found expression the 4th OF July l1Ts the Decara
18Th Of August following, when Ave millions OF pa
per money issued, swelling the amount In circula
ton TO tourteon millions or dollars
The delight Of the people q the of their
hcreatng machinery was about this time abruptly
chilled From some unknown cause the mystic wand Of
the magician was losing It's power AT the very moment
when all had passed away the spectre OF
depreciation appeared. #I,
Now 1t so happened that series Of military reverses
occurred about the same time and such disasters
known TO dcpress the value OF interest bearing
had temporarily lost value from the same cause What
we isrvsntly hope easily believed The fuctuating VA
Ss Sson y ss
which 30 much had been expected was bockaded lay
parayz and pOweress in Narragansett Bay Washing
ton, after the affairs at Fatbush and Valley Forge
was In full retreat across Now Jersey, and beyond
tho Delaware. Clearly tho mischief was due TO these
caused the decline in the government paper and all that
wanted 10 stop the evil and restore the Continental
psp Il oon s
fui theory was put TO the test. Tho tide OF battle
turned Glorious victories crowned with laurel wreahs
the heroes OF the Revolution The whole country rang
with triumphant notes Of rejoicing at the news from
Trenton and Prnceton from Bennington and Saratoga
Acting the belief that decisive successes could undo
the mischief sustained by the public credit Congress-
the goth May l777 determined 70 issue I've millions
pesrsd that no one would take the paper currency at
Victories had power 10 check depreciation. The Ave
millions Of paper were worth no moro 70 the treasury
Thus rudey ana suddenly was the magic spell broken
and from the shock tnus given TO the paper currency u
issue increased the dspreoacn began to be- suspected
tho loss In tho value Of the paper was caused by it's
known to be tho true one, attracted yet but little
attention. Public opinion absolutely persisted 10 still
| attributing the evil 70 want OF military success.
But. as the depreciation did not keep pace with the
fortunes Of the war, and marched with steady step
eated the tories began be charged with the
dscredtng the paper money and severe laws wore with
ptess rgor in force to check such traitorous
tices. Counterfeors came In for share OF the blame,
and the penalty Of death denounced against thcm
The alterng patriotism OF the people also accused
and committees Of safety, armed with despotc powers,
entrusted with the task dealing with the refrac
tory persons who had branded themselves with nfamy
and become enemies TO their country by dsparagng and
| dscredtng the Continental money.
All was, however. In vain. Depreciation the evil
genius Of the republic had laid his hand its currency
and refused release from his palsying grasp Every
successive issue increased the gu Of currency and lower
cd its value compared with coin We need not
this portion OF the history further Congress at length
alarmed at the consequences they lose the
OF paper money altogether made vigorous en0r 10 stop
the downward Of depreciation The cause they
saw that more had becfR issued than the normal
quantity required for the business Of the people They
therefore, in September, 17I0, determined that the
amount aoat should any time two hundred
millions of dollars, to which they were then nearly
arrived Although they knew that twenty dollars Of
thoy then emitting would buy more for their
army than silver dollar would buy yet they thought
1t would be worth while to submit to the sacrifice of nine
out Of twenty dollars II they could thereby stop fur
her depreciation They thefof published address
their constituents, in which thcy renewed their declara
tions that this paper money should be redeemed dollar
for dollar They entered into long statistical arguments
prove that the states able to fulfil this engage.
mcnt Liberty they said would be cheapy purchased at
this price These conservative efforts however failed OF
their purpose. Fdcs descensus Aren In the following
spring Continental money had fallen till forty dollars
were worth but one dollar in coin.
The next experiment was not more successful. law
passed TO require all the Continental bills to bc
brought at their present value Of forty for New
bills equivalent TO gold ard sver were to be given in
exchange The circulation would thus have been reduced
to FIVE millions which IL believed not too
large and therefore in danger Of leading to de-
Very little OF the money, however, was brought in !.
continued circulate and deprecate till the end Of $780,
when il had fallen to Ave for onc At this time the
money circulated from the Frcnch army and by
OF the loan Holland France and Spain sens
Bile oil the States north OF the Potomac. Hence the
paper became too unpopular for Dealers refused
to II for their goods. In Virginia and North Carolina
II continued year longer. But It's value fell 10 900 for
one and then EXPIRED as in tho ether States without
grOan.
The following table contains the ocial statement laid
before Congress OF the various issues with their respect
third column gives the number OF paper dollars which
were equivalent to one dollar in specie
CONTINENTAL M0NKy ISSUED DURING
WAR Or ISDKpnyDEc1, WITH TEE RATE OF Irs DErRK
Nm TTr Y r.