penalty was to be paid to the informer, and three-fourths to the State. For a second offence, in addition to the above penalties, the offending party was rendered liable to banishment from the State to any place the Committee might designate. The result was that shop and inn keepers took down their signs, and refused to expose their goods or premises for sale or use. It was the reign of anarchy as well as tyranny. That the nation did not speedily succumb, and its cause utterly collapse, was due to the fact, that the greater part of the people were cultivators of the soil, and in the possession of an abundance of fertile land, which, with very little labor, brought forth abundant crops. The bounty and forces of nature more than compensated for the poverty and weakness of man.

The total amount of notes issued in 1776 equalled $19,000,000; and, for 1775 and 1776, $25,000,000. To meet the increasing unwillingness on the part of the public or malcontents to receive them, the States established tariffs of prices, by which all goods were to be sold. The four New England States met, by their delegates, at Providence, on the 25th of January, 1777, and formed a tariff of prices, by which a bushel of wheat was made the equivalent of 7s. 6d. in notes; one of rye, 58.; a pound of wool, 28. ; a bushel of salt, from 108. to 128.; a gallon of rum, 68. 8d. ; a pound of raw cotton, 338.; and so on, through the whole list of articles ordinarily consumed. Congress immediately passed an approving vote, and recommended other States to follow the example; that the delegates from Virginia and other Middle States should meet at Yorktown, on the third Monday of the ensuing March, and those from the Southern States, at Charleston, on the first Monday of the ensuing May, to concert and adopt similar measures. Congress, at the same time, earnestly entreated the States to cease the issue of their own notes, and to forbid the circulation of those issued previous to April 19, 1775. These had been issued in immense amounts in nearly all of the States, and very seriously interfered with the operations of the Central Government. As the State Governments possessed the power of taxation, which the Central Government did not, their notes began to be preferred, and were hoarded in large amounts.1

1 As all government currencies are the same in kind, a sketch of that issued by the central one will suffice for all issued at the time. All were issued from

Meanwhile the embarrassments of the government were no little increased by the immense amount of spurious notes thrown into circulation,—a matter of very little difficulty, from the inartistic manner in which its own were printed or engraved. These counterfeits were held to be the tricks of the enemy. The results of the war, during the whole year of 1776, continued adverse, which greatly increased the confidence and influence of the Tories, who were especially numerous and powerful in the State of New York. Congress had still little other resource than its notes. In the latter part of 1776, Benjamin Franklin was sent to France, in the hope of securing the co-operation of that country. Although, for some time, he could not obtain any open recognition of the cause of the patriots, he was enabled to secure loans to the amount of 3,000,000 livres, which were expended chiefly in the purchase of arms and supplies, all of which safely reached their destination. In this way he was of great service, although he could do but little to relieve the pressure upon the Home Government. The cause of the patriots at the time was at its lowest ebb. France, though desirous of doing all in her power in their aid, was not willing to take any step likely to embroil her in war, till their success was better assured. This assurance came from the capture of Burgoyne, in the latter part of 1777. That was properly regarded as an achievement of the first magnitude; and her government, on the 6th of February, 1778, entered into a treaty of alliance and commerce with the United States; made their cause her own; dispatched powerful fleets, with considerable bodies of troops, to America; and from time to time made considerable loans of money.1 For the present, however, Congress had no other resource than its notes; and on the 26th of February, 1777, it made a further issue of $5,000,000; on the 27th of May, of the same year, an issue to an equal amount; on the 15th of August, one of $1,000,000; on the 7th of November, $1,000,000, and the the same necessity; all produced precisely the same results; and all, in great measure, met the same fate. Such of the State issues as were redeemed, were taken in at very low rates. Of the loss and suffering which were caused by them all, no pen or pencil can present any thing like an adequate picture.

1 The total amount of money borrowed by the United States from France, during the War of the Revolution, as recognized by the United States after the adoption of the Constitution, equalled 34,532,364 livres. The arrears of interest due up to the first day of January, 1790, equalled 8,967,912 livres; making a total of 43,500,276 livres, or $7,895,300.

same amount on the 3d of December, 1777: the total issue for the year being $13,000,000. The amount outstanding at the close of 1777 was $38,000,000. The value of the notes at that time was reduced in ratio of four to one. At the date last named, Congress made a requisition upon the States to the amount of $5,000,000.1 The amounts called for were not considered as the proper proportions for each State; but were made rather with reference to the present abilities of each, the territories of several of them being largely held by the enemy. The proceeds were to be put to the credit of their States, which were to be allowed interest at the rate of six per cent on their respective amounts, until the proper quotas were adjusted for each by the the final action of Congress. The excess of payments or contributions was to take the form of a debt against the government. If a deficit should be found against any State, this was to be made good by further requisitions. Congress again urged the withdrawal of the currencies of the States, and still invoked their aid in securing the circulation of the government notes, and in continuing the tariff regulating prices.

The year 1778 was comparatively an uneventful one. The nation, however, was greatly buoyed up by the success achieved at the close of the previous one, and attempted to make large loans in Europe, in the expectation of which its own financial affairs were greatly neglected. Congress again attempted, without success, to compel the States to take in their notes issued previous to the outbreak of the war. It still had little

1 The apportionment among the several States was as follows:

New Hampshire

Rhode Island and Providence Plantations

New York

Pennsylvania

Maryland

North Carolina

South Carolina

Virginia

Delaware

New Jersey

$200,000

100,000

200,000

620,000

520,000

250,000

500,000

800,000

60,000

270,000

600,000

820,000

60,000

Connecticut .

Massachusetts Bay

Georgia

other resource than its own; and on the 8th of January, 1778, was driven to issue $1,000,000, and $2,000,000 on the 22d of the same month. The winter of 1777-78 was passed by the army at Valley Forge in a condition of the greatest want and suffering. It was literally without food or clothing. As supplies could not be had for the notes of the government, commissaries were authorized to seize whatever they could lay their hands upon, paying therefor in government certificates. But even such harsh measures availed little in a country a prey alike to the enemy's troops and its own. As notes were still the only resource, these were issued, in the months of February, March, and April, 1778, to the extent of $10,500,000. At the end of April, their value had fallen as low as six to one of specie; the amount then outstanding equalling $51,000,000. In May came the news of the French alliance, in consequence of which the price of the notes rose to one-fourth their nominal value. Encouraged by the improved aspect of affairs, Congress, on the 8th of that month, issued an address to the nation, which was read in all the pulpits, as the best mode, at the time, of bringing it to the attention of the people. From this the following extracts are given:

"After the unremitting efforts of our enemies, we are stronger than before. Nor can the wicked emissaries, who so assiduously labor to promote their cause, point out any one reason to suppose that we shall not receive daily accessions of strength. They tell you, it is true, that your money is of no value, and your debts so enormous that they can never be paid. .

...

"Surely there is no man so absurd as to suppose that the least shadow of liberty can be preserved in a dependent connection with Britain. . . .

"And this mad, this impious system, they would lead you to adopt, because of the derangement of your finances.

"It becomes you deeply to reflect on this subject. Is there a country upon earth which hath such resources for the payment of her debts as America? such an extensive territory? so fertile, so blessed in its climate and productions? Surely there is none; neither is there any to which the wise Europeans will sooner confide their property. What, then, are the reasons that your money hath depreciated? Because no taxes have been imposed to carry on the war; because your commerce hath been interrupted by your enemy's fleet; because their armies have ravaged and desolated a part of your country; because their agents have villainously counterfeited your bills; because extortioners among you, inflamed with the lust of gain, have added to the price of every article of life; and because weak men have been artfully led to believe that

it is of no value. How is this dangerous disease to be remedied? Let those among you who have leisure and opportunity collect the money which individuals in their neighborhood are desirous of placing in the public funds. Let the several legislatures sink their respective issues; that so, there being but one kind of bills, there may be less danger of counterfeit. Refrain a little while from purchasing those things which are not absolutely necessary; so that those who have engrossed commodities may suffer (as they deservedly will) the loss of their ill-gotten hoards, by reason of the commerce with foreign nations, which fleets will protect."

The new alliance paved the way for considerable loans; a portion of which was used for the payment of interest on the certificates of indebtedness, which had now been issued in considerable amounts, in the purchase of supplies for the army. The tariff of prices was suspended; as it was believed that, through the aid of the French fleet, the foreign commerce of the country would revive, and that means for the future prosecution of the war could be provided largely by loans. The people were buoyed up for a time by a belief that the war was soon to be brought to a close. Congress, actuated by a similar feeling, made little or no attempt for the restoration of the finances. It still continued to meet the demands that were constantly made upon it by issues of notes; which, from April to January, 1779, equalled $50,500,000, making the whole amount outstanding at the close of that year $101,500,000. At that time, their value had fallen to about eight to one of coin. The military operations for the year were, on the whole, unfavorable. The French fleet came too late in the season to carry out those which had been planned in connection with it, and the war seemed as far from an end as ever. Despondency again succeeded to the hope which had been raised so high.1 Congress, in view of the situation, was at last forced to act, which it did by the appointment of a Committee, consisting of Robert Morris, Elbridge Gerry, Richard H. Lee, Francis

1 The following letter from William Hosmer to Governor Trumbull well illustrates the state of feeling at the time:

"I wish I could with truth assure your excellency that, in my view, our affairs are in a happy train; and that Congress has adopted wise and effectual measures to restore our wounded public credit, and to establish the United States, their liberty, union, and happiness, upon a solid and permanent foundation. I dare not do it while my heart is overwhelmed with the most melancholy presages. The idleness and captiousness of some gentlemen, maugre the wishes and endeavors of an honest and industrious majority, in my apprehension threaten the worst consequences." - Letters to Washington, vol. ii. p. 196.