Show f FINANCES or THE REVOLUTION TO 1753 1733 IN general from the ordinary school histories people gain the impression that the worst time of perplexity and tribulation for the people of the thirteen original states was during the war fought for their liberty But in that thought the critics say there is mistake mistake mistake mis mis- take for the critical time was not to begin until after the war when in the wretched state of affairs the un union ion of the states was to be preserved prosperity prosperity prosperity pros pros- restored and accumulated debts paid from empty treasuries In regard to the last named trouble the financial di distress tress of the people up to 1783 general facts and figures have been noted and learned but the details to a great extent overlooked yet if we examine examine examine ex ex- amine some of these details we will find them intensely interesting In order to become entangled in these financial distresses there must be a cause and one who had not thought of the items of expense in this war would be surprised at the enormous amount of money required The total number of soldiers enlisted in the army was over two hundred thousand and of those thirty-five thirty thousand thousand thousand and were clothed by the government during the entire war To be sure but few were ever uniformed but some kind of suits and shoes were required and in their hard marching required d often too Again man no matter where he is or what he is doing has a peculiar peculia peculiar characteristic charac charac- he he gets hungry and whether o on duty on the battlefield or not he must be fed He wants his three meals every very day no matter what happens happe s and andl l that desire of the whole army had to b be gratified by the government As a matter of course powder bullets guns cannons etc were required and ann these articles had to be at hand at all ll times and so was a matter of great expense Then the soldiers and civil officers had to be paid and this with rent due for several places and money for the printing of notices and other papers raises the expense to no small amount In short the cost of the food clothing pay of soldiers arms ammunition etc amounted to about about per month N Now ow before the war began the people peaple of the New England states were almost poor comparatively speaking Nearly all of the of-the the income which they obtained from their crops carrying trade and fisheries was put out to m meet et current expenses expenses expenses ex ex- of the year and very little saved for governmental purposes es Taxes were light A few individuals ha had l become wealthy But during durin the war these sources of or revenue were destroyed destroy d with the stopping of exports and imports and agriculture ag was seriously damaged During the war the states had great trouble to collect any taxes The people were willing enough out but as the taxes were light before the war when the farmers had money to pay them they felt the double and quadrupled expenses all the more now when their only sources of revenue were cut off So when requisitions were made on the states the people struggled hard to meet them but through lack of money and not of desire the moneys demanded were were seldom raised At t that time Congress was in a pre pre- Money had to be obtained to carry carryon on the war and all methods possible had to be involved to raise the required amount But unfortunately Congress had no power to levy taxes It could make requisitions on the states and the states could levy the taxes If 1 j the people paid all well and good but if if- they did not noc Congress positively could not make them So that although Congress vaguely recommended the states to tax and tried to stimulate zeal zealand zealand zealand and patriotism to pay it was not very successful The requisitions were enormous enormous enormous enor enor- but brought in little return The c states did the best they could however and much was collected in the way o oE of E specific articles in in different localities r which was neglected wasted spoiled i and lost Most o of the states might have done better if the systems of taxation I had been more perfect It is said that there was plenty of grain belonging to f the specific tax spoiling and ye yet at the same time the army was almost starving Another method of raising funds was to borrow money from American citizens citizens citizens citi citi- zens either through the appeals of Cant Congress Congress Con Can t gress or through Washington Some men in their nobleness of heart and for forthe i. i the love of their country devoted enormous enormous enor enor- r sums of money to the service of t. t the government Robert Morris was an ant f t excellent example of this type In 1779 79 he lent len t to the Board of Treasury 2500 l and it is said that was advanced advanced advanced ad ad- by this man for an outfit of Washington's army for the Yorktown campaign In fact at the end of the thes s war he was a poor man for he had given a. a up all to his country and did not receive receiver r one cent in return Franklin also donated donated donated do do- large sums of Jf money to the govern govern- ment Congress borrowed at one time from him Money was also 4 borrowed from Washington and much given by him It is said that he p paid id out of his private fortune and declined to take pay for his services t But as a matter of fact he did L. L keep a correct account of his expenses which amounted to more than his salary would have done At one time Congress established established a office loan-office system to borrow money for the payment of whish the states collectively would pledge their faith The Bank of North America was also established through which government government government govern govern- ment loans might be negotiated Money was also borrowed from foreign governments governments governments govern govern- ments and private citizens cf of governments governments governments govern govern- ments especially from France and Spain At one time was advanced advanced advanced ad ad- at at another from Spain alone and from France in 1776 Deane sent two hundred pieces of brass cannon with arms tents and accoutrements for thirty thousand men with ammunition in proportion and besides this thousands thousands thousands ands of dollars in various installments Foreign grants of uniforms arms and ammunition were also made by France and Spain Most of the stores sent however were wele of very poor quality Morris said that many of the goods were not only base but despicable from which statement we may judge that the feeling which prompted them to send such poor materials must have been other than true friendship Military stores were also given by magnanimous patriots who desired to help on the cause caus The army was often forced to make house to house collections collections for clothes weapons and provisions provisions provisions provi provi- and gifts were presented from the several farmers neighborhoods counties towns and states But sometimes contributions were forced when the states failed when called upon to send supplies of flour Indian corn com and other staples which it produced d. d On November 1775 Congress recommended the New England England England Eng Eng- land legislatures to empower generals to impress vehicles horses and vessels at ata ata ata a reasonable rate for transportation for forthe forthe forthe the army So in all states especially during the winter of 1776 when Wash Wash- I r f I r ington was at IvI Morristown rn town provisions clothing and vehicles were impressed much against the desire ot of th the people Some person writes that people were greatly incensed at the of their horses without pay and many took their vehicles to pieces to prevent their being taken away so abruptly by the government t. t Added to these various methods of raising money and other resources was that method of gaining wealth by paper money A foolish idea because of the great confusion of the period for there was no money to redeem the bills The act of Congress for issuing the paper and regulating it t was passed July 1775 and in August of the same year a aNew New York committee returned from Philadelphia with Continental paper money This is taken as the date of the first issue The whole amount issued in 1775 was in 1776 1 in 1777 in 1778 63 OO and in 1779 amounting altogether to N Now ow while this money lasted people were not economical because there was a fine but short show of prosperity followed by increased poverty and confusion These government government government govern govern- ment notes kept depreciating in value until March 1780 when Congress abandoned all hope of ever paying and by the end of 1780 the continental paper money had ceased to circulate alto alto- gether The colonies had pledged their faith for the redemption of paper and each one was to pay its quota in four annual installments viz on the last day of November 1779 1780 1781 1782 Each colony was to levy taxes payable in these bills or in gold and silver If in inthe inthe inthe the latter these bills were to be brought up and cancelled by punching a hole in l them and returned to the treasuries appointed by Congress then to be burned All silver and gold turned in inon inon inon on these quotas was to be held held to reo re re- o deem the notes and the quotas should tOld amount to the entire entire- issue Of the issued by Continental bills hills of credit the received into the state treasuries in payment of taxes at the rate of forty to one had been re replaced replaced replaced re- re placed by bills of new tenor to the amount of bearing interest at four per cent Massachusetts New Hampshire and Rhode Island redeemed their quotas of old paper Connecticut Delaware the Carolinas and Georgia had taken up none and the remaining states redeemed a part But besides the bills redeemed nearly were in the Federal treasury many more more bills were in the state treasuries and 70 in the hands of individuals This last there was no thought of redeeming redeeming redeeming re re- deeming at any rate under one hundred to one From the several points that have been mentioned one can readily see that the financial distress was wide wide- spread The he whole cost of the war amounted to were raised and the country remained in debt with an annual C interest of At home 10 were due borrowed on loan office certificates cert fi ates were due J to the army to the officers and on all other accounts including certificates for supplies and unsettled claims in old c currency Besides Besides Besides Be Be- sides this each state had its ow own ex ex- pense Each had a separate militia each issued issue paper money each borrowed J money and each had debts amounting t tto to enormous sums Is it not a wonder then that in spite of heavy debts and scattered republics our patriots had courage to face these perplexities and instead of lying down downin in despair were heroes in the strife for out of this chaos order was at last brought y Miss s Ray Riggs |