USA > New Jersey > A civil and political history of New Jersey: embracing a compendious history of the state, from its early discover and settlement by Europeans, brought down to the present time > Part 43
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Committees were again appointed in the two houses to take into consideration the propriety of instructing the delegates in Congress to sign and ratify the articles as they stood, and on the 25th of September they reported that, in their opinion, it was not expe- dient under existing circumstances to give such authority or in- struction, which report was agreed to. Before further action was taken upon the subject the houses rose and the session terminated.
A new legislature was elected at the time prescribed by law, and convened at Trenton on the 27th of October, 1778. The organiza- tion of the houses was effected by the appointment of the former officers, and William Livingston was chosen again.to the office of Governor. The subject of the articles of confederation was taken up by the new bodies, a letter having been written by Congress urging renewed attention thereto. The houses resolved themselves into committees of the whole and acted jointly upon the subject, and the joint committee finally resolved and reported "that not- withstanding this committee veiw with concern the terms of the articles of confederation between the several States; and notwith- standing the objections lately stated and sent to Congress on the part of this State, are founded in justice and equity, and several of them of the most essential moment to the interest thereof; yet. maturely considering the urgent necessity of acceding to the con- federacy; that every separate and detached State interest ought to be postponed to the public good; and firmly relying that the can- dor and justice of the several States will, in due time, remove the inequality which now subsists; it is therefore the opinion of this committee that the delegates representing this State in Congress be immediately instructed to subscribe the said articles, that the same may become conclusive on the part of this State, and obli- gatory thereon." This report was agreed to by the houses on the 14th of November, and instructions were given to the delegates in Congress in accordance therewith.9
In the midst of the various circumstances that had occurred of
' Beside furnishing instructions to the delegates, a special act on the subject was passed, entitled " an act to authorize and empower the delegates of the State of New Jersey in Congress, to subscribe and ratify the articles of confed- eration and perpetual union between the several States,"
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an encouraging character, much and increasing difficulty was ex- perienced by the States in regard to their financial concerns, on which account their operations were greatly impeded. To this subject the attention of the legislature of New Jersey was particu- larly turned. At their first sitting, an act was passed for raising the sum of one hundred thousand pounds, by taxation, for dis- charging the debts and defraying the expenses of the State. But during the next sitting, in April, 1779, it was perceived that far more ample provision was required to meet the demands of the time. The troops of the State continued to be in a most destitute condition ; a representation and remonstrance from the officers was presented, setting forth their grievances with respect to their pay, subsistence, and clothing, and asking redress.10 In the case of one individual (Gen. Maxwell,) who presented a separate appeal, a tone of complaint almost reaching to reproof and reproach was assumed.11 As already noticed, the legislature had been anxious that some general provision for the payment of the troops in the Continental service, should be made by Congress, under the belief that this was the most proper and advantageous mode. To the applications just noticed, it was therefore replied, that provision had been made as far as was consistent previous to an applica- tion to Congress, but that if no provision should be made by that body after a proper representation to them, it would then be the duty of the State to provide for their quota of the troops, in the
10 During the recess of the Legislature, the necessities of the troops were so urgent that certain individuals were induced to interpose. William Livingston, the Governor, John Cooper, Andrew Sinnickson, Joseph Holmes, Robert Morris, Peter Tallman, Abraham Van Neste, Silas Condict, and William C. Houston, requested the Treasurer of the State to furnish to the Commissioner of Clothing any sum not exceeding seven thousand pounds, to be used for purchasing cloth- ing, and became responsible for its restoration to the treasury in case no pro- vision for the purpose should be made by the Legislature. The Legislature afterwards approved the appropriation.
" A resolution was offered in the Assembly, that the letter of Gen. Maxwell contained indecent and undeserved reflections upon the House, and that the same be transmitted to Congress with a proper expression of the disapprobation and displeasure of the Legislature. But the resolution was not carried.
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best manner they were able to devise. A full representation to Congress was accordingly made upon the subject. 12
12 "The representation and petition of the State of New Jersey sheweth, That we are fully convinced the circumstances of the times render a further provision for the subsistence and comfort of the army of the United States indispensably necessary, but are of opinion the mode adopted to effect this purpose, is very improper, and will be productive of injurious consequences. The several States are each forming a separate plan of supplying their own troops with such neces- saries as they think most advisable; nearly at the prices current when the army was established; and stipulating in their favor such other privileges and advan- tages as may, in a considerable degree, make good the contract under which they entered the service at the commencement of the war. These regulations, various, unequally advantageous, and formed upon different principles, must, in their practice and operation, produce discontents, murmurings, and perhaps still worse effects. Further, whilst cach State thus supports a system of its own, the whole expense is greatly and unnecessarily increased; for although it be paid by the States separately, and not out of the Continental treasury, it is still. a general expense, and the wages which each State must pay in purchasing for, and issuing to their respective troops would be double or treble their proportion of the sum which would procure the whole purchased and issued to the army at large, if provision were made by Congress; we would also suggest the ex- ceeding difficulty under which this State must labor in carrying their part of . this divided mode of supply into execution. The means of importation are not- in our power, and purchases on the Continent must be made at a distance, and under every disadvantage. To the Congress these things would be more prac- ticable. In many cases only a greater quantity of the same articles would be necessary; and they might be procured in the same line, in which the army is now supplied. Every expense which may be necessary for the comfort and supply of those who devote themselves to the public service, we are willing, to the utmost of our proportion to defray, but mean not to recommend, or even approve in the slightest degree, any kind of establishment, or particular emolu- ments for life. These, to say nothing more, were no part of the original con- tract, and cannot be demanded on any equitable principles. By a resolution of Congress of the 15th of March last, a certain description of officers and bodies mentioned, are to be reckoned as parts of the quotas of the States to which they belonged, and to be credited accordingly. Within this description are troops who were commissioned or enlisted in this State who are now at different and .. distant places. . If we are credited with these, it will by them be expected that we provide for them; and if this be not done, the officers will resign and the . privates desert; but to do this seems impracticable upon any particular State system ; and If possible, the expenditure occurring in the transportation of sepa-
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But in addition to measures for supplying the immediate de- mands of the period, it was necessary. also that something should ยท be done to sustain and restore the credit of the general currency. Although the first issues had not been redeemed, Congress had been compelled to resort to nevy emissions, and at this time the amount exceeded one hundred millions,; the depreciation of the . bills .- in consequence, was rapidly increasing; they now would scarcely pass for one-fourth of their nominal value. Whether an. "earlier resort to measures for the redemption of these bills by tax- ation, would have prevented the decline, and maintained. their value, is doubtful, unless there could also have been a limitation of issue ; but it had.became apparent that some measure must be speedily adopted, with a view to redemption, to prevent complete . and immediate failure. In November, 1777, Congress had recom- ".mended to the several States to raise by taxes the suni of five millions of dollars for the succeeding year, the sums raised by each to be placed to the credit of the States on account of the whole amount of public debt apportioned to the States respectively, and ... a still larger requisition was made in January, 1779. These re- . quisitions were considered by the legislature of New Jersey, in committee of the whole 'on the state of the commonwealth, and on the 3d of May the committee reported a resolution that the sum of one million of pounds should be levied by tax within the State, and paid into the treasury by the first of December next ensuing. Of this amount, the sum of one hundred and one thousand two hundred and fifty pounds was required under the first requisition of Congress, and the sum of three hundred thousand pounds under , the second ; the remainder was reserved for other appropriations. 13
rate supplies to so many different posts, would be out of all proportion to the value of the articles supplied. For these reasons, with many others, with which we think it unnecessary to detain Congress, we earnestly entreat that they would adopt a mode of making such further provision for the army as they may think just and adequate; a mode which by comprehending the whole, will re- move all danger of partial distinctions; which will be less difficult and less ex- pensive than the one excepted against; and which will produce that satisfaction without which the service can never be generally agreeable to those engaged in if, or fully beneficial to the nation." boles, vol. 5.
13 On the 31st of May a communication was received containing a further
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The resolution was agreed to by the houses, and. an enactment directing the mode of levying, and collecting the amount, was passed. A resolution was also reported to the houses, and which was likewise confirmed by an enactment, that all bills of credit emitted by the State whilst the same was a colony, should be called out of circulation by the 1st of January next ensuing, in the payment of taxes, or in exchange for Continental money. . By the recall of these bills, an appearance of a kind of opposition in interest and action between the General and State government was removed; and the exchange for Continental money, tended to sus- tain the credit of the latter, and to enlarge its sphere of circulation. With the same view, (to sustain the credit of the currency,) an at- tempt was made to effect a regulation and limitation of prices. It was supposed that extortionate demands were made for the neces- sary articles of life, and that the evil might, and should be re- strained by direct legislative interference. An act had been passed by the legislature for regulating and limiting the price of labor, and of sundry articles of produce, manufacture, and trade, and to prevent forestalling and engrossing ; but as this act could only ap- ply throughout the State, it had failed in its effect, and its opera- tion was therefore suspended by the legislature. But an opinion prevailed that such regulations were required, and that if extended and properly observed, they would aid materially in relieving the existing difficulty and distress. Petitions were presented to the legislature, praying that means might be used to procure a regula- tion of prices throughout the country. On the 10th of June, a resolution was agreed to in the Assembly, that as the depreciation of the Continental bills appeared to threaten the most alarming evils, a representation should be made to Congress upon the subject, and'on the expediency of adopting a general regulation and limi- tation of prices throughout the United States. Council not con- curring at the time, this measure was not immediately carried out, but at the next sitting of the legislature, the movement was renewed, and on the 20th of September it was resolved that application
requisition of Congress to the State, for the sum of two millions four hundred thousand dollars, for the service of the year. But it was resolved that no larger sum should be raised than had before been proposed.
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should be made to Congress requesting and urging them to adopt and recommend to the States some general plan for limiting and determining prices; and that a circular upon the same subject should also be directed to the legislatures of the several States. 14
. 14 In the address to Congress, it was said, "that amidst the promising pros- pects of an happy issue of the present war, and of the establishment of the .glorious freedom and independence of these United States, we feel the most painful anxiety from the state of the Continental finances, which threatens not , only embarrassment, but ruin to the public measures, that in a crisis so alarm- ing, it becomes us not to consume time in useless murmurings, but to engage in devising means to remedy the evil and avert the mischief. If we calculate for a year to come, from the events of a few months past, the increase of prices, and public debts, must appear alarming; the latter perhaps will exceed the reach of common computation, and the former rise to the utter destruction of our paper currency. To prevent evils so truly deplorable, we conceive that every possible exertion ought to be made; and that nothing short of a regulation of prices generally adopted and effectually carried out, will prove sufficient. The im- practability of such a measure has been strongly represented by interested per- SONS, but if practicable in one State, it is also in another, and throughout the Union, and that it is practicable in one State has been tested and proved in this. If other States had come into this regulation, and had persevered therein, affairs would probably have worn a different aspect. If your honorable body take the natter up, and form a general system or plan of regulation, and recommend it to the several States, in terms as forcible as the necessity of the case will bear, we apprehend that it will, without delay, take place in the fullest and amplest manner. Multitudes in the several States.formerly opposed to the measures are now anxious to see it take place; they are convinced that taxation without a regulation of prices will be more likely to increase than to diminish the disease. Every vender, they say, will raise upon the articles he has for sale, in order the better to enable him to pay his tax, and thus prices will go on rising, our money depreciating, and our debt increasing, until we become a ruined people. With regard to the mode of regulating, we would observe, that if prices be fixed at any certain standard not to descend, we fear it will answer no valuable purpose. Those who wish to break through the regulation have only to withhold what they have for sale, and the business will be done; the scarcity will soon compel the public to yield to their avarice; nor will they run any risk in withholding, the chance will be altogether in their favor. But if prices are reduced by mode- rate and regular graduations, and at certain and short periods, the case will be different; this will operate like a falling market, it will induce the people to ex- hibit what they have to spare, in order to avoid the loss that might be incurred by delay."
The circular to the other States represented the urgent danger from the de-
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The several measures that were adopted might have served for a time to sustain the credit of the currency, could further emissions have been avoided, but this was not found practicable, and in the month of September the amount had risen to one hundred and. sixty millions .. At that time Congress thought it necessary to declare, that the issues in no account, should exceed two hundred .. millions. . But even this resolution could not long be maintained, .. and the year 1779 drew towards its close, presenting nothing de- cisive in the military fortunes of the country, but with the prospect of deep embarrassment in its financial concerns. -
By the legislature which was elected at the usual time, and which convened on the 27th of October, 1.779, the objects- which had occupied the former body were further pursued: During the
preciation of the Continental bills, and that of the many schemes of relief. a general regulation and limitation of prices, was thought most likely to have the desired effect; that loans could only prove useful as a temporary expedient, and . taxation was slow, and its effects would require time to be sufficiently felt. That many and great struggles had been made to arrest the evil that was threatened, all which had fallen short of their object, because of their partial operation. A general application to Congress,was recommended, but that if such an application did not appear eligible, or if when made it should not be pro- ductive of the desired effect, the State was ready to join with others in any other measure that might be thoughit suited to the end proposed. Nearly at the same time, and probably quite independent of the movement in New Jersey, a mieet- ing upon the same subject was held at Hartford, composed of delegates from the eastern States as far as New York, and they recommended that another meeting should be held at Philadelphia, consisting of delegates from all the States as far south as Virginia, in the ensuing January. But in November Congress recom- mended a general limitation of prices throughout the States, by their own action. The legislature of New Jersey still resolved upon the appointment of delegates to the meeting in Philadelphia, and Silas Condict and Thomas Fennimore were appointed. These Commissioners afterwards reported that they had attended the Convention, and after wanting near three weeks and no Commissioners ap- pearing from Massachusetts, Rhode Island, or Virginia, and a majority present being of opinion that they could not properly act unless all the States mentioned in the recommendation were represented, they were obliged to. return without doing any thing to answer the object of their appointment, but that afterwards, as they were informed, Communissioners front Massachusetts and Rhode Island had attended, and that seven States being represented they had adjourned to meet at Philadelphia in April. What further action took place is not known.
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pendency of the measures that had been adopted for procuring a general regulation of prices, it was thought necessary that new . enactments upon the subject should be made by the State. Accor- dingly, laws were passed to prevent engrossing, forestalling, and enhancing the prices of produce, manufactures, and merchandize within the State, and for limiting the prices of various articles, and to prevent the necessaries of life from being withheld. 15 Nearly at the same time Congress made new calls upon the States for the redemption of the Continental bills. Resolutions of . Congress were laid before the legislature of New Jersey, recommending to the Tegislatures of the several States, to raise their respective . quotas of fifteen millions of dollars, to be paid into the Continental treasury by monthly instalments, from the first day of February, to the first of October ensuing, and six millions were to be paid annually for the eighteen succeeding years; and the idea of any failure in the redemption of all the engagements of the government, was still strongly resisted. In compliance with the requisition, the houses entered upon the consideration of the amount necessary to be raised for the year, and it was resolved on the 20th of November, that the sum of nine millions of dollars should be raised by the ensuing October. 16 Requisitions were also made upon the State in a different manner. The Governor transmitted a resolution of Congress, calling- upon the State for a supply of . provisions for the use of the army, and a letter was also laid be- fore the houses from the Commander-in-Chief, stating the alarm- ing situation of the army, and earnestly requesting supplies. These calls were answered; large supplies were furnished, under the sanction of the State, but by engagements which provided for
13 A motion was made to suspend the operation of some of the. provisions of these laws, until similar provisions should be adopted by the neighboring States, but the motion was not agreed to. The laws however were afterwards.sus- pended in part. .
"The enormous sums ordered to be levied and raised. at this period, are to be considered according to the value of the currency at the time. The nominal 'expenditures are also to be judged by the same standard. The bill for the-supe port of the government passed at this time, gave seven thousand pounds per annum to the Governor, five thousand to the Chief Justice, and to the other officers proportionally, and these salaries were afterwards still farther increased.
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payment from the Continental treasury. These various demands, . and especially the latter, proved a cause of no little embarrassment to the people. They had parted at this time, and on similar occa- sions, with a large portion of their produce to the Continental Agents, and were principally paid in certificates which were not available for their purposes, and thus they were rendered unable to meet the requisitions of the State authorities for the payment of taxes. Much difficulty was experienced in consequence. Petitions were presented to the legislature praying that some means might be devised for the payment of the certificates they had received, or that these certificates might be made a lawful tender in the payment of taxes. By a resolution of the 1st of March, the legis- lative bodies determined that an application should be made to Congress, stating the facts of the case, and asking relief, and a full representation.was accordingly made.17 But, little more was done
17 It was represented in the address, "that from the position and operations of the enemy since they possessed themselves of the harbor and city of New York, and the adjacent Islands, a very considerable proportion of the labour and time of the inhabitants of New Jersey have been employed in militia service, and in transporting the supplies of the army; and for the last two years almost the whole surplus of the produce and manufactures of the States, beyond a bare subsistence for the inhabitants, has been necessarily purchased or taken, for the use of the United States. That the greater part of these late and extensive supplies re- main unpaid for; that very large suins are due from the United States to the inhabitants of this State for transportation, and also, that from a real or pre- tended want of money, to satisfy these contracts, the. Continental Agents have given certificates to the inhabitants for their respective demands. The want of money due on these certificates is so much more severely felt by the State, in- asmuch as in addition to its sufferings in common with the other States of the Union, from the effects of the war, the inhabitants have been distressed in an especial manner, by a great part of the military operations centering in the State; and also from being unprovided with the means of trade, large sums are constantly drawn from the State for procuring clothing and articles of subsis- tance for the troops, and ammunition for the militia, whereby the State is de- . prived of its proportional quantity of the circulating medium. The legislature of the State, ever desirous of testifying their most ready compliance with the requisitions of. Congress, as far as the circumstances of the State warranted, cheerfully adopted the extensive tax, lately recommended by them, with the expectation of thereby supporting the sinking credit of the Continental currency, as well as adding spirit and vigour to the operations of the war; relying that
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