Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1875-10-08
Continental Money.

When the Continental Congress began to
feel in sore need of funds it adopted the
deyice, so dear to the ignorant heart, of
f'making money" One patriotic member
declared that he would never consent to tax
the people as long as he could "get cart
load of money by simply going to the print
ing Office for it. Ignorance like this gave
birth to the Continental currency. The
Congress solemnly resolved that the staff it
had had printed :t'ought to pass current in
all payments and dealings, and be deemed
equal in value to the Spanish milled dol
lars" The currency did what it ought to
for nearly eighteen months. Until $14,
900, 900 had been issued there was no great
depreciation. Prices rose, but only 8 tride.
Early in 1777, however, this limit was
passed; $4,000 more was printed of,
and the whole volume Of the currency sank
66 per cent. below par This shrinkage
must be something of a puzzle to imitation
lists of to-day, for all the conditions which
they deem necessary to be observed in is
suing paper were true of our forefathers'
rag-money. The Continental bills were
based on the faith and resources of the
country. Congress, early in 1777, called
public attention to the fact that the eOple
were "beund to redeem the currency ac-
cording to the full value expressed in the
respective bills" Moreover, the State Legis
latures passed laws inflicting penalties and
forfeitures upon persons who sold anything
for these bills without taking them at par,
and they were solemnly declared to be
ga lawful tender" for all debts. Never
theless, they went steadily down. Au-
gust Is, 1777, an issue Of $1,090,OO0
enabled the authorities to buy $780,
900 worth of good. November 7,
1777, an issue of the same amonnt passed
current for only $250,000 in cash. By
April, 1779, one gold dollar was worth six
in paper. The military successes of that
year and the aid given by France caused a
tiny appreciation. In November, 177S,
Congress got nearly $1,700, 900 worth of
ammunition for only SO, 900, 900 in paper.
This showed depreciation of only SO per
cent. But in May of 1779, $40, 900, 900 of
new paper brought only $416,0 in cash.
Twenty. four dollar bills were worth only
one real dollar. In November matters
were still worse. An issue of 5000 900
brought less than $3.50, 600 in cash. A
year from this dale, the paper dollar, based
on the faith and resources of the whole
country, was worth just one cent. In May,
1881, it was worth cne-ffth Of cent
These figures are taken from table COM
piled by Thomas Jefferson. A writer in
the Philadelphia Packet, in 1850, says: 81
had money enough to buy a hogshead of
sugar sold it again and got good deal
more money than It cost me; yet what
sold it for when I went to market again
would buy but tierce. l sold that, too,
for great deal of profit, yet the whole of
what sold it for would afterwards buy
but barrel. have now more money
than l ever had, and yet am not 80 rich
as i0hen I had less. 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
something"
Sound doctrine, that. What was wanted
then and is wanted now is cheap goods,
not cheap money.