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 44
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by Congress, and perhaps no more could have been done, than to forward a resolution recommending the legislature to make pro- vision for the payment of the dues, and to charge the same to the account of the United States. .
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In the midst of these embarrassments new efforts and new sacri- fices were required, and were made. The campaign of 1779 had been entirely negative in its results; a kind of languor, (the con- sequence, it may be, of too much reliance upon the treaty with France,) had generally prevailed.18 But as the season for new operations approached, the Commander-in-Chief had represented the state of affairs to Congress, and the necessity of more vigorous "action. He stated that before the close of June, 1780, the term of service of nearly one-half the troops in his army would expire. In consequence, Congress transmitted a circular to the States re- quiring that they should furnish, for the ensuing campaign, on or before the 1st of April, their respective deficiencies of thirty-five thousand men. This circular was received by the legislature, and also a communication from the Commander-in-Chief, giving a statement of the number of troops in the service belonging to the State, the time of the expiration of their service, and the number of men required according to the resolution of Congress. Another resolution of Congress was also received, requiring the States
the money for which the inhabitants might exchange their produce, would enable them to discharge their respective assessments; but a large portion of the people declare that it is impossible for them to pay the amount without divesting them- selves of the necessaries of life, or receiving a part of the money due from the United States. Affected by the complaints and approaching distress of their constituents, the legislature are constrained to call the attention of Congress to their embarrassed situation, and to request that they will take such measures as they in their wisdom may devise to discharge the debts due to the people of the State, or such proportion thereof as will enable them to pay their taxes without distress to their families." 1
13 Although the events of the year 1779 had been but little satisfactory in a military point of view, an advantage had been gained in the union of Spain with France, in opposition to England. Spain, however, maintained for a time an almost neutral position toward the United States. Their independence was not acknowledged, and though Mr. Jay, the American Minister, was allowed to remain, he was not formally received. Yet indirect support was given, and the attitude of hostility toward England was not without its effect.
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to procure supplies for the ensuing campaign, in articles and quantities specified. Compliance with these requisitions was by no means easy under the circumstances existing at the time, yet the necessary measures were taken. An act was passed on the 6th of March for completing the quota of troops belonging to the State, and further regulations were also made for procuring pro- visions and other supplies for the army.
So far as the measures adopted by Congress and the States could reach, they were measurably successful ; but they failed to effect a change in the natural relation of things, in regard to monetary affairs ; the shadow could not be made to continue with- out the substance, by any enactment or efforts. Congress con- tinued the issue of new bills, and with every emission the value became less. The whole amount of Continental money at the open- ing of the year 1780, exceeded three hundred millions of dollars. The calls upon the States for the means of redeeming the bills were but very partially answered, because the means were not at command. The legislature of New Jersey, as has been seen, performed their duty in passing laws, and every endeavour was used to ensure the object in view ; special appropriations were made to meet particular demands as early as should be practicable, and the desire and design of the State to comply with every re- quisition, were shown in the fullest manner. But the condition of affairs was such that prompt and full compliance was not possi- ble. Specie had been drawn to other points, and even the de- preciated Continental bills which might have been used to an extent, were not in hand, certificates having been received in large amounts instead. Congress at length became satisfied that the amount of money emitted could not be redeemed at its nomi- nal value, and on the 20th of March, 1780, a resolution was passed recommending to the States a revisal of the laws called " tender acts." It was recommended that the Continental money should be taken in at the rate of forty for one, and even in this ratio the - redemption was to be made in other bills. A new issue was ad- vised, which was not to exceed one-twentieth part of the old in amount; and was to be made on the credit of the individual States ; the bills to be redeemable in specie in six years, and to bear an interest of five per cent. payable also in specie ; but four-tenths
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of the whole amount was to be subject to the order of Congress, and the whole to be guarantied by Congress.
Measures were adopted by the legislature for carrying the new plan into operation. On the 30th of May an enactment was made for establishing a fund for sinking and redeeming the bills of credit of the United States ; and soon afterwards another was passed to repeal the former act declaring the value of the Continental money, and to explain and amend the act making the same a legal tender. The bills were continued a lawful tender in the proportion above stated, and no further abatement was to be allowed in any con- tracts. Two hundred and twenty-five thousand pounds was au- thorized to be struck in the new bills. But this new scheme of finance, although it gave a momentary check to the tendencies of the time, brought no permanent relief. The credit of the new bills depreciated after a short time, so as to approach the level of the old, and hence the' exchange of the old money was scarcely desired ; and beside this, in New Jersey, the amount of Continental money to be exchanged was comparatively small, owing to the large sums held in certificates. The whole sum in new bills authorized by the legislature, was not issued, and the Continental money, both in New Jersey, and elsewhere, gradually perished in the hands of the holders. A crisis in the monetary affairs of the country was at hand. "Our financial concerns," said Washington, " are in an alarming state of derangement; the public credit is almost arrived at its last stage." The military operations of the season, too, were far from fortunate. The southern States, which at this period were the principal theatre of conflict, suffered extremely ; South Carolina and Georgia were almost reduced, their principal cities being taken and held by the enemy. In the north, nothing had occurred that could give much relief to the picture, whilst a deep and dark shade had been thrown upon it, by the treason of Arnold. 19
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.. 19 The attempt of Arnold to surrender West Point was made in September, 1780.
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CHAPTER XXIII.
FINANCIAL CRISIS .- SUCCESSES OF THE AMERICANS .- CLOSE OF THE WAR .- THE FEDERAL GOVERNMENT .- NEW STATE CONSTITUTION.
A new legislature convened in New Jersey in October, 1780. Governor Livingston was again re-elected to office. General de- pression existed at this period. The Continental money was scarce- ly available for any purpose, and was soon afterwards entirely with- drawn from circulation.1 'The credit of the bills lately issued was doubtful, and the large amount held by the people of the State in certificates, lay wholly useless in the hands of the holders. At the same time a considerable portion of the northern army was again stationed in the State, and continual demands were made for supplies, and the enemy being in force on the borders, unceas- ing vigilance as well as increased exertions were required, to pre- vent incursions. From these several circumstances the strength and resources of the State became greatly reduced; beside the de- ficiency in pecuniary means, there was an absolute scarcity of many articles of supplies. In no portion of the entire country did the pressure of the war fall more heavily than in New Jersey, and this was one of the darkest periods of the struggle. At this time too, a disposition was shown in some of the other States, or at least in one, to make a special appropriation of means which were claimed to belong to the country at large, and which were looked to as a means of final relief. Of this course New Jersey justly complained, and it was deemed proper, and was resolved that an
' An act was passed on the 2d of January, 1781, for ascertaining the value of the Continental money, in the payment of debts, and for taking the same out of circulation.
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appeal upon the subject should be made to Congress.2 But the State authorities applied themselves with earnestness, to devising measures for the removal of existing difficulties, and for sustaining the efforts of the country. A resolution of the 4th of November
2 " Representation and remonstrance of the Legislative Council and General Assembly of the State of New Jersey.
" That the Legislature of this State did, by their representation dated the 16th day of June, 1778, which was read in Congress, and entered on their journals on the 25th of the same month, make sundry objections to, and propose cor- respondent alterations in the articles of confederation proposed by Congress to the several States in Union. That though a majority of said States in Con- gress did not agree to the said alterations, nevertheless, urged by the then criti- cal state of public affairs, and particularly by the circular letter of Congress dated the 10th of July, of the same year, the Legislature did, by an act of the 20th of November following, an exemplification of which was read in Con- gress, and entered on the 25th of the same month, empower the delegates of the State to subscribe the said articles of confederation. That avoiding unne- cessary repetitions, they beg leave in the most earnest and explicit manner, to call the attention of Congress to these several records, as from them it is clearly understood in what confidence this State waived, for the time, their just pre- tensions, described in the sixth article of the representation before mentioned, and postponed every private consideration, to the happiness and perfection of the Union, well convinced that the time could not be far distant, when every partial and unfounded claim would be equitably and satisfactorily relinquished.
. That they saw with the utmost surprise, an office opened by the Common- wealth of Virginia, for the sale and disposal of lands, which, before and at the commencement of the present war, were confessedly vested in the crown of
. Great Britain, when on the plainest principles of the law of nations, of reason, - truth and justice, they are become, by the revolution, vested in Congress, for the use of the federal republic they represent. That it is the indispensable duty of the Legislature, in justification and defence of the rights of the people, to except and remonstrate in the most pointed terms, against the disposition of any property under the foregoing description, for the emolument of any State. That they acknowlege no tribunal but that of Congress competent to the re- dress of such a grievance as the setting up by any State, of an exclusive claim to any of the said lands, in whatever part of the Union they may be situated ; and they see with pleasure, in the proceedings of Congress of the 16th of Sep- tember and the 8th of October last, (this representation was made on the 29th of December, 1780,) the faithful and generous efforts made by that honorable body to compromise and adjust differences upon this subject, and have the full- est hopes that they will be effectual. That it is the habitual predilection of
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was received from Congress recommending to the States to raise their respective quotas of six millions of dollars, to be partly paid in specific articles, which were enumerated, and the remainder in specie, or in the State bills recently emitted. Accordingly, a law was passed for raising by assessments the sum of one hundred and fifty thousand pounds, in money and other supplies. The levies ordered for providing supplies were to be made according to the condition and means of the several parts of the country ; most rigid regulations were also adopted to prevent an illicit traffic in pro- visions, with the enemy.3 Every means was resorted to, to im- - prove and establish the public finances. In order to preserve the credit of the bills that had recently been issued by the State, a change was made in the law directing their exchange for old money,4 and a new emission of bills of credit was ordered amount- ing to thirty thousand pounds. The petitions to Congress asking that the certificates held by the people of the State should be re-
this State that all causes of complaint, jealousy, and contest, not only upon this, but upon every other subject, should subside under the conciliating influence of equity, moderation, and liberal affections, and that it may never become just to entertain a thought of resorting to other means. Confiding, therefore, in the
. watchful care, the wisdom, the justice and firmness of Congress, they assure
. themselves that the republic will be secured against detriment, and the rights of every State in the Union strictly maintained."
: $ Some of the inhabitants of the State, who were disaffected or cold to the American cause, and others who were tempted by the opportunity of obtaining money which could scarcely be elsewhere procured, continued to sell provisions to the enemy, whilst the American army was in the greatest want. A strong enactment was passed to prevent the practice.
4 The continued depreciation of the Continental money changed the relative value of the currencies, and an alteration of the law became necessary in order to prevent the new bills from being carried down by a fixed connexion with the old. Hence an enactment was made directing that the proportion between the State bills and the Continental money should be the same as between the latter and gold and silver, and the legislature resolved, " that they were determined to redeem at full value of gold or silver, all and every of the bills issued on the faith of the State." But notwithstanding this enactment and resolution, the State bills depreciated in value, and petitions were presented sctting forth the injury that was done by keeping them a legal tender, and hence on the 13th of June, 1781, the act making them a legal tender was repealed. In December, 1782, a resolution was adopted to take them out of circulation.
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deemed, or that they might be received in exchange for State bills, or used in the purchase of supplies for the army, not having been . successful, they were made receivable into the State treasury in payment of taxes, and much relief was thus given to the people. An arrangement was made with the troops in the Continental service, agreeing upon the amount of their dues according to a scale of depreciation which corresponded with the value of the currency at the several periods, and an enactment was made for securing the payment of the amount agreed upon. To ensure the enlistment of the forces required of the State, an act was passed "to raise a fund by loan for discharging the bounty to be paid to the troops. Provision was also made designed to secure the more pro- fitable use of confiscated estates.5
By these several measures, the State was enabled to maintain its position. The efforts made by the Continental government were also successful in bringing relief; upon the failure of the general currency, Congress was obliged to resort to other expedi- ents. As the means of the country were so far exhausted that adequate and seasonable returns, from any mode of demand upon the States, were not to be expected, recourse was had to loans from abroad. For this purpose application was made to the King of France. In November, 1780, a letter was addressed to his Majesty by Congress, in which they represented the embarrassed situation of affairs ; and Franklin, the American Minister, was in- structed to use his utmost endeavours to procure the necessary aid. In December, Congress were induced by the pressing neces-
sities of the period, to send a special Minister to France, and Col. John Laurens, one of the aids of General Washington, was ap- pointed. Before his arrival, promises of assistance had been given, but the earnestness of the new envoy excited to movements more answerable to the urgency of the occasion. A subsidy of six millions of livres was furnished by his Majesty, and an additional
5 The sales of the confiscated estates had been numerous, and the nominal amount of the proceeds large, yet as the receipts had mostly been in Continental money, which was constantly depreciating, the benefit to the State was much reduced. The present enactment provided for a temporary suspension of sales and for a special appropriation of the issues from the estates.
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sum by way of loan. Applications of a similar kind were made in Holland, and through the exertions of Adams, a loan of ten millions of livres was obtained in that country, the French King generously engaging to become responsible for the amount. Ap- plications for aid from Spain were not successful.6 For the better administration of public affairs, Congress also resolved upon the establishment of distinct departments. The department of Foreign Affairs was assigned to a particular officer, as were also those of War and the Marine, and an office was established for the general direction of the finances of the country. The latter place was given to Robert Morris, an eminent merchant and financier, who applied himself with the greatest diligence and energy to the dis- charge of his duties, and was thus enabled, together with an un- sparing use of his personal credit, to contribute in a great degree toward relieving the pressure of the time. Beside the aid received from abroad, the regulations that were made by Congress for reaching their domestic resources, were not wholly unavailing ; the demands for specific supplies were mostly complied with, as were also the requisitions for money, in such kinds and amounts as the "States were able to command. A resolution was also passed by Congress, recommending that authority should be given to that body to lay a duty of five per cent. ad valorem on goods imported.7 By these measures the government was enabled to conduct the country through the threatening crisis in its affairs, although the relief obtained was not in time to prevent the occurrence of much distress, and also of some disorder. In the course of the year 1780, great distress was experienced in the army from the want of proper supplies, and toward the close of the season the impatience
6 Spain would only grant assistance upon condition that the Americans would relinquish all claim to the navigation of the Mississippi, a demand which was positively refused.
" This movement is mentioned, not that it proved an availing measure of revenue at the time, but as marking the origin of a course of policy afterwards fully pursued. 'The resolution was adopted by Congress on the 3d of February, 1781, and on the 2d of June the Assembly of New Jersey passed an act " to enable the Congress of the United States to levy duties of five per cent. ad val- orem, on certain goods and merchandize imported into this State, and on prizes and prize goods, and for appropriating the same."
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of some of the troops broke out into actual revolt.8 Yet this evil was soon arrested, and the result of the exertions that have been noticed, was the eventful campaign of 1781.
The opening of this year presented a prospect by no means favorable to the American cause. The measures adopted by Con- gress and the States, for the removal of existing difficulties, were either in progress, or had not yet been productive of their full effects. The number of troops in the field was greatly below the demands that had been made, and those that had actually engaged were but very scantily and poorly provided for. The clothing and other articles of supplies that had been purchased abroad had not arrived, and the articles procured by levies in the States were not readily collected. But a gradual improvement in affairs took place. Washington, in conjunction with the forces from France, was enabled to threaten the army commanded by Clinton in New York, whilst Cornwallis was successfully resisted in the south. Somewhat apprehensive of an attack upon himself, and perhaps despairing of further successes at the south, the British Comman- der was desirous of a greater concentration of his forces, and ac-
& It required a high feeling of patriotism to sustain the army amidst the priva- tions they were obliged to undergo, and at this time when the pay and the sup- plies of the troops had so nearly failed, it is not surprising that some discontent should have been shown. In addition to the general causes of dissatisfaction, the troops of the Pennsylvania line had an especial cause of complaint. They had been enlisted for "three years, or during the war," and they conceived that their engagement was fulfilled at the close of the. three years, which terminated in 1780, whilst the officers insisted that they might still be detained, as the war yet continued. On the night of the Ist of January, a general revolt of this line took place, the soldiers declaring that they would march in a body to Congress and demand relief; but during their march, an accommodation was effected by which a number of the troops were allowed to depart, and the arrearages of pay secured to them. On the 20th of January a small part of the Jersey line (among whom however were inany foreigners) attempted a similar movement, but such measures were taken as brought them to speedy and full submission. These occurrences served not only to make known the difficulties that existed in the American army, but to exhibit the character of the enemy. They endeavoured to take advantage of the revolt, by making the most seductive offers to the troops, but though the latter were dissatisfied, they were not traitors, and indignantly rejected the proposals that were made to them.
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cordingly issued orders calling Cornwallis to a nearer point, directing that he should establish himself at Point Comfort, and thus secure an opportunity for a movement by sea, as occasion might offer, or require. Disliking the position selected by his . superior, Cornwallis fixed upon Yorktown, and in August fortified himself at that place. At this period, his Majesty of France, in addition to the aid already furnished to America, had despatched a fleet, commanded by the Count De Grasse, to the. American coast; and Washington finding that this force was to enter the Chesapeake, conceived the design of making a hasty movement from before New York, and advancing against Cornwallis, whose escape by sea would be prevented by De Grasse. This design was executed with such exactness that the French fleet and the American army reached the point of operation almost at the same time; and the movement was carried on with such celerity that Clinton, at New York, was not apprised of the attempt, until it was too late for any effectual measures to prevent it. Cornwallis, intercepted by sea and invested by land, after various unsuccess- full attempts at defence or escape was forced to surrender. On the 19th of October articles of capitulation were agreed upon, and the entire army was given up.
The capture of Cornwallis convinced the British nation that America was not to be subjugated, and a disposition toward an accommodation was soon afterwards shewn. Parliament convened on the 21st of November, 1781, and though the speech from the Throne, and the reply from the Houses, were still somewhat haughty and hostile in tone, yet soon afterwards an address was ยท moved by General Conway, in the House of Commons, which declared "that it was the opinion of this House that the farther prosecution of offensive war. on the Continent of North America for the purpose of reducing the revolted colonies to obedience by force, would be the means of weakening the efforts of this country .. against her European enemies, and tend, under the present cir- cumstances, dangerously to increase the mutual enmity so fatal to the interests both of Great Britain and America." This motion was carried, and an address in pursuance thereof was presented to the King. In reply, his Majesty assured the House that he should take "such measures as should appear to be most conducive to
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