The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-02-27
THE CONTINENTAL CURRENCY


Hon. John Davis, M. c., of Kansas,
one of the ablest and most studious
men in the Populist ranks, has ex-
humed some interes ting facts in rela-
tion to the continental currency of
1776. These issues are constantly
pointed to by the gold-bugs, as evi-
dence that there is no safety in paper
money. We make some Interesting
extracts from Mr.. Davis's article. We
copy from the American Nonconfor-
mist: ~,
LET us now examine that much de-
rlded money known as the old "Con-
tinental currency" which gave us
our American liberty. The old con-
federation possessed none of the con-
dltions requisite for the success of pa
per money. 1t was not a sovereign
government, and it did not collect
revenues. 1t could neither confer the
quality of legal tender, nor receive it's
issues in the payment of taxes, as it
collected no taxes. The bills were
over-issued by the Congress, because
their only resource for money was to
print bills and ask or order men to
take them. The notes were poorly
executed and easily counterfeited.
And they were counterfeited in ship
load quantities by the British govern
ment. The whole story is fully and
truthfully told in Bolles' "Financial
History of the United States''
Q774-89), Vol. |: PIP. 1908, as follows:
"Counterfeiting, however, was not
confined solely to individuals. The
British government also embarked in
the business. General Howe abetted
and patronized those who were en-
gagged in making and pushing these
spurious issues into circulation. In
the same papers which published
British official documents and procla-
nations might be found ADVERTISE
ments like the following:
persons going into the other colo
MES may be supplied with any number
Of counterfeited Congress notes for
the price Of the paper per ream. They
are so neatly and exactly executed
that there is no risk in getting them
off, it being almost impossible to dis
cover that they are not genuine. This
has been proved by bills of a large
amount which have been successfully
circulated"
"a ship-load of counterfeit Contin-
entail money! says Phillips. coming
from Great Britain, was captured by
an American privateer. Persons ac-
companying an English flag of truce
are known to have largely made use
of the opportunity for disseminating
the fraudulent notes; emissaries from
New York endeavored to obtain
paper from the mills similar to that
used by Congress for its emissions
Many in Great Britain and else
where believed that if Continental
paper money could be destroyed, the
Americans would be obliged to sub
nit from lack Of funds to maintain
their cause. This is why the British
government promoted so extensively
the business of counterfeiting. But
General Clinton wrote truthfully in
January, 1880: Every day teaches
me the futility OF calculations found
ed on its failure" In his letter he
said:
No experiments suggested by
your lordshiD, no assistance that could be
drd,Cn from the po,rel of gold, or the arts
OF counterfeiting have been left un-
attempted. But still the currency
like the widow cruise of oil, has not
failed the Congress. My hopes on this
head, l must acknowledge, were much
higher twelve months since than to-
day. With the appearance of an
enormous quantity, still it is all the
debt which the people have to strug-
gle with. and in this view, and when
compared with that of other nations,
it shrlnks into a very inconsiderable
sum. l shall, nevertheless,
my lord, continue assidu0us in the ap-
plication of those means intrusted to
my care; II they cannot work its de-
struction, yetthey can embarrass gov
ernment. and make the carrying on
OF the war more precarious. burden
some, and less energetic"
1t must be remembered that the
continental currency was a revolu-
tionary money. There were none of
the conditions necessary for the sue