The Portland daily press., 1878-05-27
MONDAY MORNING, MAY "a.

which might have circulated without deprecia-
ton, no room was left for doubt by the close of
1776 that the limit had been passed. Depre-
citation, that unmistakable sign of excess. had
already proceeded so far that the bills stood at
80 per cent discount
The worst feature of the situation was that
the States. despite remonstrance and entreaty,
continued also to emit bills of credit. The
Continental Congress could not tax the people;
the States wouli not. In most of the States
scarcely an effort was made from first to last
to meet the charge of the war manfully by
assessment and contribution. With public mo-
rality deeply perverted by the colonial experi-
ence of paper money, with the false start of
1855, and with the apprehension on the part
OF each that its neghbors would take advan-
tage OF any forbearance it might exercise to fill
the channels OF circulation with their bills, the
States fell without struggle into the wretched
policy of constantly increasing issues of con.
stantly depreciating paper
1t seems to be pretty clear" says Mr..
Shuekers, THAT the issues of continental bills
OF credit were materially in excess of the ennis
sions authorized by Congress-" Finances,
etc., of the Revolution, p. 110.]
In tie face OF premium on silver of more
than 100 per cent, Congress resolved that the
nominal value of gold aud silver had been
raised, just as in England during the Bullion
Controversy, the government declared that the
bank-note had not fallen, but the guinea had
risen in value. Efforts were made to suppress
the tell-tale premium; and those were de-
nounced as enemies of liberty who recognized
specie price, as distinguished from paper
price OF commodities. In spite of all, however,
the depreciation went on through 1777, as the
emissions continued. The authorized issues of
the year were S13000000. The situation was
now complicated by the fact that the British
authorities began to disseminate couDterfeits of
the continental money, as they subsequently
did IN respect to the assgnants of revolutionary
France. Extensive counterfeiting also went
W. ind hn toto
disregarding the entreaties of Congress
TO undertake in earnest the taxation of
their citizens, in place of resort to
further issues: More attention was paid to the
recommendation by Congress, in November
1777, OF laws to limit prices, and to authorize
supplies to be seized in the hands of "forestall-
ers" and ''engrossers.' Many of the States
passed stringent laws to repress the premium
Oh silver and to restrain spectators from FORE
stalling and engrossing the market with view
to secure the anticipated rise of prices due to
continued initiation. Public meetings were
held TO denounte speculation, and mob-laws
were not infrequently resorted to against the
holders Of goods, with the sama popular ap-
plause which had greeted the destruction of
the stamped paper in 1765. All such measures.
however, were powerless to keep the credit of
the Continental paper. AS prices rose, the
necessities of the government increased. The
emissions authorized during 1878 amounted to
$63 SOC, 600.
In December of that ear Congress, in pub
Ac duuIcoss T6p6litu tu6 lQS1QuatlOQ
that the bills of credit would be allowed to sink
in the hands of the holders and in September
following issued second address of the same
purport.
'We should pay an i'll compliment to the
understanding and honor of every true Ameri-
can, were we to adduce many arguments to
show the baseness or bad policy of violating our
national faith, or omittiLg to pursue the meas
ures necessary to preserve it, A bankrupt, faith
less republic would be q novelty in the political
AND annaar mott ixo
q common prostitute among chaste and
respectable matrons. Apprised of
these consequences, knowing the value Of ma
tional character and impressed with due sense
is impossible that America should think with
out horror of such an execrable deed"
The emissions of 1879 amounted to $40 600
600 OF the coin value according to Mr. Jeffer-
The course of depreciation during the year
was as follows:
Jan. IA. .;;;"....."I:s June and IT,. ...2O:1
Feb, ; and lA,..."": 1O:1 Sept. 1l,.........24I
May Nov iia 20, IS. 81
On the 18th of March, 1880, Congress swal-
lowed all its brave words about public faith
and the honor of republIcs and authorized
silver to be received for paper at the rate of
LAO. All bills brought in were to be destroyed,
Certificates not to exceed In nominal value
one-twentieth of the bills thus DESTROYED were
to be reissued, redeemable in specie after six
years, bearing interest at five per cent. Funds
were to be established by the individual States
for their reduction, the faith of the United
States being pledged as an additional securi-
~. Six-tenths of these bills were to be de.
hvered to the States, in due proportions: four
tenths to be reserved for the use of Congress-
Such was the end of the "ContinentaI Cur
rency." The new certificates never acquired
to any considerable extent the character of
money, and soon sank to one.eigth their nom
inal value, SO that the account of holder of
$3.50 in Continental paper money may be thus
stated: $500 multiplied by one-fortieth equal
S8 in certificates. So at .125 equal 81 in silver.
So poorly was the security offered by Con-
gress esteemed by the people that the greater
part of the original issue was not brought in
for redemption in the new certificates SIT con.
tinued," says Mr.. Jefferson, stto circulate and
to depreciate till the end of 1880, when it had
fallen to IS: 1, and the money circulated from
the French army being, by that time, sensible
In all the States Horth of the Potomac, the
paper ceased its circulation altogether in those
States. In Virginia and North Carolina it
continued year longer, within which time it
fell to 1000: l. and then expired, as it had done
In the other States, without single groan, I"
Or. as DR.. Ramsay more POLITICALLY expresses
1t, Like an aged nan expiring by the decays
of nature, without sign or groan, it gently
fell asleep in the hands of its last possessors. -