Show II I I Ii i I. I l I. I j I I t I I I I I I I i I i I I I I I I I I I I I I I I I JUST r-JUST JUST HIST HISTORY RY 1 T I By ALBERT F. F PHILIPS PHILIPS i I There was wa one time in the history history history his his- tory of the countr country that the money which it issued in the form torm of ot notes was of or so little value alue that 1000 In I paper currency was waR necessary to I obtain a ft gold dollar dolIar and then the note issue baue disappeared This was the issue authorized by the second session of or the continental congress Congress had borrowed to the extent ex cx- cx tent of Its ability and the paper currency which it had authorized was based of course on no substantial sub sub- security until as stated its bills lost all all all' their nominal worth In different states the same s thing had been done and the re result result re- re sult suit was that at that time the fi financial financial tl fi- situation of the country burdened as It was with war and andI with its commerce cut at off was un unI unusually unusually un- un usually grave So that in 1780 with no po money with which to purchase purchase purchase pur pur- chase supplies that Issued by the government based upon nothing but buta butI a promise lse that promise made matte by byI byno byno no substantial authority had lost all Its worth so that Washington was forced to levy forced contributiOns contributions contributions to feed teed his men as they had no pay and no prospect of or any to toI come CONTINENTAL MONEY The issue of ot paper currency continental money on the order of congress congress' was begun In 1775 and was continued until 1779 This money was as itt Iii its nature bills bills' of or credit and is its value necessarily fluctuated ted with the fortunes of the government which promised r re redemption re- re The amount issued agI aggregated aggregated ag ag- ag- ag around At AtI first this money circulated at par parI with gold but this depreciated depredated and andIn andIn In two years was depressed to half halt the value alue of at gold In n 1779 It was reduced to one oie its r face ce value alue and afterwards to one one-forti I eth sliding down the like the German mark in th the past few i years year Congress then ordered the note bought up at the mar market et value replacing them with a new issue at atI atthe atthe the rate of ot 21 and to bear interest at 5 per cent The rhe old notes sunk as low as 1000 to one and they fi finally nally disappeared The rhe debt and poverty in the United Unit Unit- ed States after the continental continent l currency currency currency cur cur- curI I rency had run Its course to worthlessness worthlessness worthlessness worth- worth was unusually great History History History His His- tory records that Debt In those I days w was s treated worse than crime is In In these days Debtors no matter matter matter mat mat- ter how innocent of dishonesty were I often orten Imprisoned hopelessly for I I years and most of the prisons of or the thel time were in a horrible condition 11 I IThe The rhe heartlessness of creditors was one of ot the causes causes of the outbreak i of Shays Shay's rebellion that occurred I in Massachusetts in 1786 so named from Its principal leader which was I an attempt to stop proceedings against dc delinquent debtors by I breaking up the sittings of the courts while another object of the insurgents was to force a new is issue issue issue is- is sue o of fictitious money in the form of irredeemable notes The Insurgents insurgents g gents could not be made to see that such fictitious money had been the whole source of the their r trO trouble It was alleged by them that the money had been made worth worthless ess by conspiracies against it and that laws which could impel every person person person per per- son to tal take It was the one thing that that would auld make It good The question was made a campaign Issue is issue issue Is- Is I sue and seven states were carried by those who believed in the fictitious tic ftc notes i and nd the result was the making makina of money by printing punting presses The country at that time had no coinage of its own no real money and this was true of the country although ough congress ss h had d in 1775 approved approved approved ap ap- ap- ap proved a plan for coinage which was devised bY bv Governor Morris who wh was assistant to Robert Mor Morris Morus Mor Mor- I ris us In the of fi finance finance finance fi- fi nance from which came the present present pres present ent coinage However there was no mint then t to coin money and none was was' established until after I congress of the confederation had passed Into history It lt It was early In the second section section sec eec tion of ot the tho first firt congress that Alexander lexander Hamilton s secretary c et ry of f I the trea treasury treasury- ury recommenced in order to restore public confidence the federal l government should fund and pay the he d debt bt of the confederation tion of the states amounting to and the domestic debt of at and also pay the unpaid debt of the states This plan was favored red by Connecticut Massachusetts New Jersey New NewYork NewYork York and South Carolina Virginia the plan for tor the payment of the state debt and andas was as sustained by Georgia Maryland and New Hampshire Then North Carolina went to the he aid ld of the latter states and with the influence that the state commanded defeated the them I m measure asure However in 1790 the matter was waR revived and passed by byc I I II c congress ngi-ess the adoption of ot the plan I being brought about by a combination combination combi combi- nation It lt was sas said of its friends I and those who located the capital In Washington and on the Potomac river The amount authorized to tobe tobe tobe be assumed by the government in liquidating the state debt was 21 but the amount actually was Wll less than that I amount I |