The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1875-08-06
History Of the Continental Col'-
i'e9tCy.

public attention Tor the next twelve months
it may be well to recur to great and con-
elusive experiment that was tried by the
colonies during the Revolution. The story
forms one of the most Instructive chapters Of
, American history, and though too long TO
give IN detail we cannot forbeaT presenting
some of the salient points, which were sue
cinctlv given in a recent issue OF the Gin
cinnati CoDsmerciay. The war found the
United Colonies mOneyless. Congress had
not Il mill with which to carry on military
operations, as and American human nature
rebeled against taxation as strongly III
those daysas in our own, Congress yielded to
the temptation to issue paper instead of
negotiating a loan.
The first act for issuing paper money was
passed by that body on the 22d of June,
no. when it was resolved to issue "a sum
in bills of credit for the defenseOf America"
not to exceed two millions of Spanish
milled dollars, pledgin9 for their redemp-
ton the faith of the Confederated Colo
nies." It may almost provoke a smile to
reflect how long this petty amount would
have lasted to maintain an army against
the inexhaustibls resources of Great Brit>
ain yet it was thought by our fathers that
the debt thus created would be but small
and, with the faith of the colonies pledged
to redeem them, they foudly hoped The
notes would suffer no depreciation. But
depreciation almost Immediately followed.
In November, 1715, it was intmated in
/ Congress that certain inha abitants of Phila-
delphia, the very place where they were
sitting, were refusing the Continental bills.
/ No wonder, for at that very moment Con-
gress held under discussion the expediency
of issuing three millions more, which was
actually done within a week One project
for keeping the bills at par, proposed 10y
! DIR. Franklin, was that of letting them
bear interest, but this was overrued.-
Within six months after the first issue ten
millions of Continental paper dollars were
circulating throughout the States, whereas
the whole specie Of the colonies was origin
ally only twelve millions. But people de-
INJURED against taking the bills, and in
January, 1875, Congress adopted a pT cam
BILE and resolution declaring that any per-
son who should hereafter be so lost to all
virtue and regard for his country as to re-
fuse to receive such bills in payment shoIld
be deemed and treated as an enemy to- his
country, and precluded from I'LL trade or
intercourse with the inhabitants Of the col
ouies The Tories and British manufac
tured counterfeit bills by the wholesale and
threw them upon the country and though
in July, 11f6. $15, 900, 600 of the Continen-
tai currency was i'll circulation, swarm
of private issues of certificates and promises
to pay, in addition to the large amounts
issued by the separate colonies, contributed
to bring all paper money into still further
discredit and depreciation. in vain the
Legislature of the different colonies, bead
ed by Virginia, made the Continental bills
a legal tender for all debts, and refusal
of them an extinguishment of such debts.
In vain did the committees of safety full
inmate their denunciations against those
who refused to receive them. In vain did
the Journals TEEN with elaborate articles to
! prove the certain ultimate redemption of
the Continental bills.
1t is curious that one of the arguments
put forth in defence of this Continental
currency is precisely that most used by
modern inhationists. 1t estimated the
value Of the estates in America at that
time at $3, 2O0, 600 a year, and claimed that
as an individual has right to spend or run
in debt the exact amount of what he is
worth without injury to his creditors, so
may community" But arguments were
! no match for facts, and, in spite of protests,
the new currency deprecated. Robert
Morris wrote in December. 1916, 'that E250
| Continental money, 5000 2-3, is given
for a bill of exchange for el00 sterling,
two paper dollars for one of silver, S12 for
. hat, aud so on Things grew worse.
Commodities were not to be purchased ex-
eept with specie or the old bills of credit of
the colonies which there was thought to
be some likelihood might be redeemed.
( Tavern keepers took down their signs, and
| refused to entertain travellers who, for
the most part had nothing about them but
Continental money. Meanwhile Congress
and the Legislatures made matters worse
by installing the situation, and endeavor-
ing to prevent the rise of prices by lcgiSla-
tive enactments. Schemes for keeping up
the credit of the currency, for making pa
per equal to gold by declaration, for de-
neunciug the heaviest penalties against
recusant citizens who would not burn their
fingers with deprecated paper, were the
order of the day. They did not see that
doubling the amount of currency must in
/
article exposed for sale.
During the year 11f6 flood of Contin-
entail currency was poured out to the ag-
grcgate amount of %131, ,000 600. Its dis
credit grew SO great that though goods and
supplies were plenty. their owners would
not sell except for hard money, and General
( Washington wrote TO the President of Con-
cress 'that wagon load of money will
scarcely purchase wagon load of provis-
ions" The currency deprecated during
1919 from 50 for 81 to 80 for 81. Con-
gress was finally compelled by its almost
absolute worthlessness to look the question
squarely in the face. 1t resulted that they
passed an act March IS, 1880, to call in the
old Continental bills at the rate of forty for
one, and to replace them with new ones,
. bearing five per cent. interest, payable in
coin in six years. The currency fell from
even below the value thus fixed. In July,
1880, people took it at sixty for one, and
even later at seveEty-ive to eighty for one.
, The total issues of this bogus currency,
from 1775 to 1871, when it ceased to be
emitted were 1859, 547 900. On the 31st of
: May. 1881, the Continental bills wholly
ceased to circulate money. But they
we're afterwards bought on speculation at
f various prices from 400 for 1 up to 1000 for
7 /. Thus perished the Continental currency
, in the sixth year after it born. All
classes were glad to be rid of it, for it had
, come to be universally regarded as bubble.
1 1t had destroyed the fortunes of thousands,
t and went far to- destroy the morality of the
3 people. 1t was never redeemed, and the
5 enormous losses it entaiIed were suffered 10y
e the most patriotic classes, and by those
S least able to hear them. IhiS eXDerimert