The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1910-11-08

ultra, a Doint there is a ne nl,s
in if the vol1n mhere depreciation sets
Co,tnlel causes which inan me 81
ina 80 IHtdl paper money was ~ ene
o. oils Of credit by the s4a + iSso-
North the means emnjovad -
~ Of iCalollna to obviata tha ~
on the "nnS paper money was to dral-
had TO lIehtal treasury. This also
Of the S ttc' OF maintaining the valno
- accept the C~ontinrnta na"S refused
no "hlch had the effect Of iea
tbi.@ VaIue, which was tho oon-
1"lna as depreciation. same
birttiol d was the first one IF +bo
inst;t' states to set the examnla o -
the daiiaaa q system Of taxation. ana
nas+lT 7a1es OF North Carolina ear
well the tollingnded to Governor cas-
49,. onaI similar action be takan -
~ state. The raising Of 10 in4nr -
II me a office c~ertifcafae fron
p0t cent to 6 per cent in 1777 Wa
y me double purpose OF fncreasino
TO ehues OF the government ana
Dit"ute the amount of paDer in cir
culauon at the same time,
On tbs subject Of depreciation COW
S[ess' IN May of 1879, sent ONT an
9ooIeSS 10 the inhabitants of thn
onlteo States in which particular al
eelitlon was directed to this important
ildt'er' The sum Of $4,000. 900 was
cailed Tor, which, if suoplied. would
enable the Continental GoZarnme w. -
assure the public creditors that there
"culd be no further emissions Tho
currency hal deprecated to such an
tNleht that the feeling prevailed that
the only remedy was to stop the press
dhu sCl!clt loans in Europe.
In 1871 the effects of too reouan+
emissions had been felt so keenIy bv
the officers and men in the army that
the states were called upon to suppl1
Whatever deficiencies there were in the
amounts paid to the soldiers. TO this
request North Carolina readily &C
ceueu' ana a law was passed which
made provision for the relief Of the
troops of the Continental line from
that State. The following year, upon
the recommendation of Congress-, the
law making ape money a legal ten
der in North Carolina was repealed.
by this time one hard dollar passed
current at the rate of / to 500, Cont
mental currency, and the ratio 10
North Carolina State currency was /
to 900. This State was one of the most
Incorporate of the thirteen in emit.
ting paper money during the Revolu-
ton. For this reason the action OF
the General Assembly of 1855 is in
leresting- The action taken at that
time, as expressed in the resolution Ct
that body, was as follows:
because the emission of q further
sum of paper money, whenever the
necessities of the idle and the profit
gate may require it, must tnjure the
credit Of the State. promote dissipa-
ton, and encourage the dishonest tc
run further in debt in hope that SINH
lar necessities may again produce SINH
lar emissions. Because, should the
confidence of the people be wanting
in the uppor of this money, the
channel Of III commerce. already toe
much diverted from our own ports,
will be entirely directed to that of the
n~eighboring States TO the increase Of
their national Importance and the
dirninutiOn Of our own"
The evils of the system were recOS-
nized. and a hostile feeling against any
kttempt which might be made to re-
peat an unhappy experience is plainly
evident.
AS we have said, the issue of paper
money by the states affected the value
of the Continental currency, and it is
equally true that the emission of bills
of credit, loan office certificates, lot
terry tickets, etc, in behalf Of the Con-
tinent also had its effect upon the cur
rency OF the States. One was int1u-
enced by the other. Perhaps the
strongest influence which the Cont
rental CONGRESS exercised over the
states during the Revolution was
trough the lnStrumentalMy OF paper
money. Throuoh this means Congress
actually controlled in a large measure
not ONLY the activities of North caro-
lima, but Of all the States, as they were
deDendent almost entirely upon the
continental treasury to supply the
means for carrying on the war. Con
gress directed in what way the money
~rac 70 he spent and for what pur-
noses. But when the expense OF any
undertaking was borne by the State
it could act only in an advisory ca
Dacity. The powers which 1t possesseo
were by no means extensive Jul ouCn
-+bov wore their very existence was
eerionslv threatened during the war
bv two causes. The first was the or,
eanization of State governments ana
the second was the depreclatlon OF
the State and especially the Coht'-
Tn 1777 some of the delegates were
~an Of eminent ability. They recoS-