Part 9 (2/2)

[Sidenote: Reasons for American success.]

The Revolutionary war was successful because the English underestimated the strength of the movement at the beginning, because the English commanders were incapable, and because in the later period, when the British were aroused, their strength was diverted by the dangerous European war. It was gained finally by the firmness and resolution of the people, and that resolution is typified in Was.h.i.+ngton. His patience and endurance, his ability to hold in check large forces with small armies imperfectly equipped, his power to keep the country up to the support of the war, mark him as one of the world's great military commanders.

43. FINANCES OF THE REVOLUTION (1775-1783).

[Sidenote: Resources.]

The successful termination of the war is the more remarkable because it was fought by a government almost without means, and finally without credit. The saddest part of the suffering at Valley Forge is that it was unnecessary. There was always food and clothing in the country, but Congress had no money to buy it. Congress had no power to lay taxes, and the colonies, most of which were spending large sums on their own militia, were not disposed to supply the general treasury. The pay of the Continental troops and of the general officers, the furnis.h.i.+ng of equipments and stores, the support of foreign emba.s.sies, were burdens that must be borne, and Congress must find the means.

[Sidenote: Continental currency.]

The most successful and the most disastrous resource was the issue of paper-money. When, in June, 1775, it was proposed to meet the general expenses by putting forth two millions in Continental notes, there was but feeble objection. It was the only way of raising money which seemed to cost n.o.body anything. In the course of a year four millions more followed.

Congress, with commendable foresight, called upon each colony to pay in a sum sufficient to retire its proportion of the issue. Nothing was paid, and the printing-press was again put in motion, until in January, 1779, fifty millions were issued at a time. In November, 1779, the limit of two hundred millions was reached. In order to float these notes the States pa.s.sed acts making them a legal tender; but at the same time they were themselves issuing large sums in a similar currency. Counterfeits abounded, but it soon became a matter of little difference whether a bill was good or bad, since the best was worth so little. From the time of the capture of New York by the British in 1776 the notes began to fall. In 1778 the news of the French alliance caused a little rise; but in 1781 the bills fell to a point where a thousand dollars exchanged for one dollar in specie, and a Philadelphia wag made out of the notes a blanket for his dog. The Continental currency was never redeemed, and was consequently a forced tax on those who were least able to pay, since every holder lost by its depreciation while in his hands.

[Sidenote: Loans.]

The absolutely necessary expenditures, without which no army could make head against the British, were from twenty to twenty-five million specie dollars each year. Of this the Continental bills furnished on an average some eight or ten millions. Another method of raising money was that of borrowing on funded loans. Great schemes were put forth. The United States were to borrow at four per cent; they were to borrow two millions; they were to borrow ten millions; they were to borrow twenty millions. The result was that in three years $181,000 was thus loaned, and up to the end of the war but $1,600,000,--hardly a hundredth part of the necessary means. Failing to raise money directly, recourse was bad to the so-called loan-office certificates. These were issued to creditors of the government, and bore interest. The greater part of the military supplies were paid for in this extravagant and demoralizing fas.h.i.+on, and in 1789 they had to be settled, with acc.u.mulated interest amounting to nearly fifty per cent. Better success was had in Europe. No private banker would lend money to a set of rebels not recognized by any government as independent, but the French and Spanish governments were willing to advance both money and stores. In this way the United States received about three million dollars.

[Sidenote: Requisitions.]

When it was evident that the domestic loan had failed, Congress called upon the States to furnish five millions of dollars, apportioned among them according to their importance. These requisitions were repeated at intervals during the Revolution, but always with the same effect. Not a fourth part of the sums asked for was paid by the States. A system of ”specific supplies” was adopted in 1778, by which the States were allowed to pay their quotas in kind. It added a new source of confusion, and brought no more revenue.

[Sidenote: Miscellaneous resources.]

Every device that the government could put into operation for raising money was eventually tried. A lottery brought considerable sums into the treasury, the supplies for the army were seized at Valley Forge and elsewhere, and paid for in certificates. Bills were drawn on foreign ministers for funds which it was hoped they might have in hand by the time the bills reached them, and the government bought, and sent abroad to meet its indebtedness, cargoes of tobacco and other products.

[Sidenote: Speculation.]

The financial burdens of the government were increased by a spirit of extravagance, speculation, and even of corruption. Was.h.i.+ngton wrote, ”Unless extortion, forestalling, and other practices which have ... become exceedingly prevalent can meet with proper checks, we must inevitably sink under such a load of acc.u.mulated oppressions.” The whole cost of the war is estimated at one hundred and thirty-five millions. Of this about one hundred millions had been raised through the Continental bills and other devices. About thirty-five millions remained as a national debt.

44. INTERNAL DIFFICULTIES (1775-1782).

[Sidenote: Weakness of Congress.]

That Congress was able to make no better provision for the finances was due to a decline in its prestige rather than to a lack of interest in the war. Some of the ablest members were drawn into military service, or sent on foreign missions. The committee system made it inefficient, and it was difficult to bring it to a decision upon the most important matters. In vain did Was.h.i.+ngton storm, and implore it to act quickly and intelligently on military matters of great moment. Its relations with the States changed as the war advanced. Dec. 7, 1776; Congress made Was.h.i.+ngton for a time almost a dictator. In 1779 the Virginia legislature formally denied that it was ”answerable to Congress for not agreeing with any of its recommendations.”

[Sidenote: The loyalists.]

To the frequent unfriendly relations with the States was added the constant conflict with the loyalists. Throughout the colonies the adherents to England or the sympathizers with the English government were under grave suspicion. Many of them left the country; some enlisted with the British, and returned to fight against their own land. A body of loyalists led the hostile Indians into the Wyoming valley to torture and to murder. The loyalists who remained at home were often the medium of communication with the British lines. Some of them, like Dr. Mather Byles of Boston, and George Watson of Plymouth, were allowed to remain on condition that they held their tongues. Was.h.i.+ngton was so exasperated with them that he termed them ”execrable parricides.” In every State the loyalists were feared and hated. When the British invaded the country, the loyalists joined them; when the British were repulsed, thousands of them were obliged to abandon their homes.

[Sidenote: Dissensions in States.]

The finances of the States were as much disturbed as those of the Union.

Their paper-money issues shared the same fate. Their debts, funded and unfunded, increased. They were hara.s.sed by internal divisions, even among the patriots. In Ma.s.sachusetts, Berks.h.i.+re County remained until 1780 practically independent, and the county convention did not scruple to declare to the General Court that there were ”other States which will, we doubt not, as bad as we are, gladly receive us.”

45. FORMATION OF A CONSt.i.tUTION (1776-1781).

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