Daily Democrat and news. [volume] (Davenport, Iowa) 1859-1864, 1863-01-31
DEMOCRAT & NEWS
Continental Currency.

OF tue Confederation. THIS sum had To-
creased at the close Of 1878, to one hun.
bred millions. During the fret wear it
was maintained At or near par. Before
the expiration Of the second, il had be
come deprecated to such degree that
Congress resorted TO some extraordina.
~ measures to stimulate and enforce
ito circulation. Among these adopted
in 1871, besides that Of making it a 10.
gal tender 10 satisfaction Of oil debts
both to tho public and individuals, was
the declaration that whoever should re-
fuse TO treat it as good ~ gold should
be deemed and held as an enemy Of bis
country, and IN act asslzng the price OF
oil articles necessary for the army, aud
authorizing commisssiies to take from
any individual any surplus above the
supplies required for the support Of his
family, at the rates fixed by Congress.
These measures rather increased than
disminishcd the evil. The credit of the
bills kept running down.
No taxes we're called for until near
the close Of l777, and the calls for pay
ment on the States met with but feeble
and partial responses. In 1870, Con-
gress made another effort to strengthen
the credit Of their issues by urgently re-
newing the call on the States to pay in
to the Federal Treasury the quotas ap-
po,tioned on them. But this, like 9th.
er calls, failed to bring tho desired
amount into the treasury. New bills
we're issued, aud 10 September 1879,
the amount had risen to one hundred
and sixty millions. At this time Con-
gress declared that the issue should
never exceed two hundred millions. In
= circular to their constituents they
expressed their entire confidence in the
ability and disposition of the country TO
redeem those issuos.
CHANGING At the growing population
and future resources OF the country, they
held that anybody who would pay at
tention TO such facts "must smile at the
ignorance Of those Who doubt the ability
Of the United States to redeem the
blls;" and they indignantly repelled the
idea that the plghted ia tn of the Gov.
ernment would be violated. We detach
some sentences from this circular, ~ .
further proof Of how remarkably events
talsity predictions.
"1he pride Of America" they contin-
ued, "Ievolts at the idea. Her citizens
know for what these emissions were
made, and have repeatedly rlighted their
faith for the redemption OF them. They
are to be found in every mans posses
sion, and every man IS interested in
their being redeemed. They must there
fore entertain high opinion of Amerl-
can creduity, who suppose the people
capable OF believing, on due reflection,
that all America will, against the faith,
the honor and the Interest Of all Ameri.
CO, be ever prevailed to countenance,
support or permit, SO rninous, 80 die
graceful measure"
PI,kin, to whose compilation NO are
indebted tor the foregoing, is halt in
clined to think that the authors. Of this
circular were tr.f'ng with the public,
and as lending countenance to this sus-
piciou quotes the following from the cir
cular:
"Let it be remembered that paper
money is the only kind Of money which
cannot make unto himself wings and fly
away 1t remains with us, il will not
forsake US it is always ready and At
band for the purpose Of commerce or
taxes, and every industrious man can
End it,"
Our own impression is that the above
wac intended ~ fair and grave state.
ment Of the actual advantages Of paper
money.
A failing Treasury, caused by the
failure OF the States to pay over the
contributions expected from them, pro-
duced straits, which made 1t impossible
to redeem the pledges or promises Of
Congress. Notwithstanding the resolu
tons not to increase the Issues beyond
5000, 100000, there was further ipha-
lion, so that finally the amount put out
exceeds $500, 100000.
In 1880, all hope Of redceming bills At
par was abandoned. In March OF that
year, the States wero called on TO send
them in At 40 for /, intending to issue
on it new bills redeemabe in six years
at per cent interest. But the scheme
failed.
Finally, in 1880, the continental cur
rensy was OF SO little value that it
ceased to circulate, and "quietly died in
the hands OF the posscssoIs."
In 1882, the Confederate Congress en-.
tertained propositions to redeem it, at
different valuations, such as one to forty,
one to seventy five, one to one hundred,
and one to one hundred and fifty, which
last was said to be the average depre-
citation a. the time the bills went out OF
circulation. Had either OF these propo.
sitiops carried, the holder Of those bills
might have had to give $50 in the old
bills for one dollar IN q new emission.