Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-10-31
The Paper Money of the Revolution.

The Paper Money of the Revolution.
General C. w. Darling, of New York,
has furnished us with the following in
teresting facts relating to paper cur
rency in the United States during the
revolutionary period, which have been
condensed by him from historical
records found at the Bibliotheque, in
Genevs, SGitz erland, bearing date 1894
Congress in I775 Issued bills to carry on
the war, as money then could neither
be borrowed nor raised by taxation. The
first emissions had no other effect upon
commerce than to drive the specie from
circulation, bur when the paper substi-
tuted for specie had, by repeated ennis.
siops, increased the sum in circulation
much beyond the usual sum OF specie,
the bills began to lose their value. From
the year 1875 to 1871 this depreciating
paper currency was almost the only me.
dunn OF trade. 1t supplied the place Of
specie, and enabled congress to support
numerous army, until the sum in cir
culation amounted to two hundred mil
lion dollars. In 1881 the merchants
and brokers in the southern States, APP
prehensive OF the approaching fate 0,
the currency, pushed immense qusnti'
ties OF il suddenly into New England,
made vast purchases of goods in BOs-
ton, and Immediately the bills vanished
from circulation. To attempt to fix the
value of money while streams of bills
were necessarily flowing from the
treasury of the United States, was as
ridiculous as an effort to dam up the cat
aracts of Niagara. Industry likewise
greatly suffered by the food Of money
| which had deluged the States; the price of
produce had risen in proportion to tbs
quantity of money in circulation and
the demand for the commodities OF the
| country. This made the acquisition of
money easy, and Incidence and luxury,
with their train Of desOlating cOnse-
! quences, spread themselves among Sll
descriptions of people. AS soon, how
ever, as hOstilities between Great Bri-
tain and America were suspended, the
scene was changed, and within two
years from the close OF the war search
ty Of money was The general cry. The
merchants found it impossible to collect
their debts and make punctual remit
! t9nces to their creditors in Great Britain,
and the consumers were driven to the
necessity of retrenching their superfiu-
tiles in living, and of returning to their
ancient habits Of Industry and ecOno,
my. The States then commenced to
emit bills of credit as a substitute fer
specie to supply the deficiency of me.
dium, notwithstanding the fact that the
sCoptinentsl bills afforded recent eX-
! ample of the i'll effects of such an expe-
dent. Pennsylvania first adopted this
system, and the faith of that wealthy
! State was pledged for the redemption of
| the whole issue at its nominal value,
yet the advantage of specie as medium
Of commerce., especially as an article OF
remittance to London, soon made a dii-
| ference Of ten per cent. between the
bills Of cIeiit and specie. North Caro-
| lima, South Carolina and Georgia had
recourse to the same eXpeGient to sup
! ply themselves with money, not reflect
ing that industry, frugality, and good
| commercial laws are the only
means of turning the balance
OF trade in favor of a country,
and that this balance is the only perma-
Bent source of so id wealth and ready
money. The bills they emitted expelled
almost sli tue circulating cash from the
| States, lost a great part OF their nomi'
| nal value, impoverished the merchants
and emhar ssed the planters. The
| State of Virginia tolerated base prac-
| tice among the inhabitants of cutting
| the coin to prevent it from leaving the
| State. A silver dollar was usually cut
in five pieces, and each piece passed for
| q quarter, 80 that the person who cut it
gained one fifth. Maryland escaped the
| calamity of paper currency. The house
OF delegates brought forward bill for
the emission of bills of credit to large
amount, but the senate firmly and sue
| cessfqlly resisted the perhicious scheme.
| New Jersey, being situated between two
of the largest CONNIE rcial cities in Amer
lea, was completely drained OF specie,
and this State also issued large sum in
bills of credit, which served to pay the
interest of the public debt; but the cur
rency deprecated as in the other States.
| Rhode Island exhibited a melancholy
| proof of that RIGHTEOUSNESS aud anarchy
which always follow relaxation of
moral principle. In rage f.r supply
ing the State with money, the Iegis.
latuTe passed an act for making one
hundred thousand p-unds in bills, 8
sum much more than sufficient for
8 medium of trade in that State.
| even without sny specie. A legal
! tender OF a most e8tls ordinary nature
was created, and an act passed ordain-
|
| take their bills for auy debt whatever,
jus tice Of peace, who should give
notice of it in the public papers, AID if
| the creditor did not appear to receive the
| money within sig months from the day
of the first notice, his debt should be for
feited. The inevitable consequence was
that their money rapidly deprecated,
! M n fl
dence was lost, and the State was
thrown into confusion at home, and ex-
ecrated abroad. Massachusetts had the
good fortune amid her political cslami-
ties to prevent an emission of bills of
credit. New Hampshire made no pa
per, but in the distresses which fol-
| lowed Der loss of business alter the war
| the legis lsture made horses, lumber, and
most articles of produces legal tender in
| the fulfillment of contracts. A similar
/ law prevailed in Massachusetts, and in
Connecticut it wag optional with the
creditor either to imprisOn the debtor or
take land on execution, ct price TO be
| fixed by three disinterested fTeeholders,
provided no other means ofpsyment ap-
| peared to satisfy the demand.
The fact, however, must not
be overlooked, that while the
NEST Furnishing commercial States in
tToduced a paper medium, to the great
/ injury of honest men, q bill for the
emission Of Paper in Connecticut awheIe
there was very little specie, could never
command more than One-eighth of the
votes Of the legislature TIE legislature
Of New York, Stat9 that had the least
necessity for making paper money, as
her commercial advantages always fur
nished her with specie sufficient for
medium, issued larger sum in bills OF
credit, which supported their value bet
ter than the currency Of any other state.
Still the paper raised the value OF specie,
and this difference of exchange between
paper and specie ever exposes commerce
to most Of the Inconvenience resulting
from a deprecated medium. such Is
the history of paper money IN the olde1
time-s miserable substitute Tor real
coin, in a country where the relns OF
government are too weak to compel the
fulfillmeut Of public engagements
Reformed Keyboard.
A correspondent writes to the Boston
ArInertiser. "a letter lately received
from Germany contains matter OF sur
sc;entIy general interest to warrant my
sondinS You an extract or two. We are
Ssst becoming 30 musical that proposed
radicsI reform Cor, at least, changel ID
eur household god, the piano. WIN a!.