The Portland daily press., 1875-10-06
Continental Currency.

If any man in his right mind imagines
that further issues of paper money, or paper
promises to pay are demanded by the bus-
ness of the country we should think that a
bit of Centennial Money" history would
prove certain cure for his madness. If
isn't efficacious there isn't any hope for him
and he may as well join the "red-mouthed
patriots" New York World epithet) of Bill
Allen and the Cincinnati Enquirer.
1t wasn't long before our forefathers in the
Centennial Congress began to be pressed for
money to carry on their contest with Great
Britain. As their necessity became more
and more pressing they resorted to the ''nak-
ing OF money" Even in that Congress of
patriots there were men no wiser than the
callow statesmen of to-day who bawl for a
further issue of paper money. 1t is said that
one member of that early Congress declared
he would never consent to tax the people so
long as he could ''get cart load of money by
simply going to the printing Office for it."
When the first issue of Continental currency
was made, the Congress authorizing it de-
clared that ''it ought to pass current in all
payments and dealings and be deemed equal
in value to the Spanish mlled dollars" For
a time the currency did its duty and there
was no great depreciation until $4,000, 1000
was issued. Prices rose only trife. Doubt
less business was quickened just as it was at
the Confederate x Roads" by Nasby's first
issue of paper money. Early in 1777 the
colonies were in need of money to fight the
good fight and Congress responded by print
ing-oress issue OF $5,OOO,OOO. This was too
much. The former sum was all of that
kind OF money the country could carry. The
result, however, was more disastrous than
one would naturally suppose, since the whole
issue was not only deprecated in the proper
ton of the $5,000,00O of addition to the S14,-
100000, but fell to 66 per cent below par.
The in1ationist of to-day while he is puzzling
over this shrinkage must remember that the
revolutionary rag-money was based upon the
"faith and resources of the country" In
deed, Congress early in TIT expressly de-
clared that the people "were bound to re-
deem the currency according to the full value
expressed IN the respective bills; and further
than that State Legislatures passed laws in
f1icting heavy penalties and even forfeitures
upon persons who sold anything for these
bills without taking them at par. In short,
Continental currency was declared to be a
"awful tender" for all debts. But this legisla-
ton was of no more avail than the ordinance
of the Confederate Roads, The bills steadi-
ly deprecated. August Is, 1777, an issue of
100000 enabled the authorities to pur-
chase $35O,OO0 worth of goods, but Novem-
ber similar issue only brought $250,000.
In April ITS gold dollar was worth six of
our forefathers' paper promises, but in May
ITO it took twenty-four paper dollars to pur-
chase one of gold. In November 1880 after
further issues, the paper dollar based upon
the faith and resources of the country" was
worth just one cent in the money of the
world while in May 1881, the Continenta,
dollar was worth but one-fifth of cent in
hard money. These figures are taken from a
table compiled by that Simon-pure Demo-
crat, Thomas Jefferson. Doubtless William
Allen whom an exchange remarks should re-
member that time in the Revolution when
he passed five dollar Continental bills for five
cent pieces, has forgotten this hard money
dogma with all the other genuine principles
of Jefferson whose name the sham Democra-
cy take in vain.
As an illustration of what the paper money
of our forefathers accomplished, we give the
following extract from letter to the Phila-
delphia Packet of 1880:
81 had money enough to buy hogshead of
sugar. sold it again and got good deal
more money than it cost me; yet what 1 sold
it for, when went to marSet again, would buy
but tierce. sold that, too, for great deal
of profit, yet the whole of what sold it for
would afterwards buy but barre have
now more money than ever had. and get am
not so rich as achen I had less. I am sure we
shall grow poorer and poorer unless we fall on
some method to lower prices, and then the
money we have to spare will be worth some
thing"