USA > Rhode Island > History of Rhode Island > Part 22
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In Providence, only one person voted, and he in the negative.
251
LARGE ISSUES OF PAPER MONEY.
In Warwick, and Greenwich, the Federalists, or friends of the Constitution, entered a protest against the alteration of the mode of decision, as illegal and unprecedented. In Bristol and Little Compton, there was a majority in favor of the Constitu- tion. The other towns generally gave their voice against it ; and not until compelled by the action of the General Govern- ment, did Rhode Island come into the Union.
The union was not effected until 1790, and until, by Acts of Congress, the commercial relations of Rhode Island were placed on a footing with foreign commerce, exacting foreign duties and tonnage from our vessels.
In January, 1790, an Act passed in General Assembly, for calling a Convention of the State, which met in Newport the following March, when the Constitution was agreed to, and the State came into the Confederacy.
The paper money system was formerly, if not now, a matter of party controversy. Governors were elected or turned out of office, as the different interests happened to prevail. The commercial interest was invariably opposed to the system, as it tended greatly to embarrass trade, and by its depreciation, and constant fluctuation, great injustice grew out of the sys- tem. Many took advantage of the laws, making it a tender at par, to pay debts in depreciated money ; and creditors, who had parted with their gold and silver, were compelled to receive these shin-plasters, in return for their debts.
In 1710, the Colony of Rhode Island commenced the issue of paper money, to defray the public expenditure of the war, for that year, and after that period, new emissions were made from time to time, as circumstances required. Sometimes paper was issued to replenish the treasury, sometimes to loan the people on mortgage, until the increasing amount issued, caused it almost constantly to depreciate in current value ; and as the money depreciated in value, the emissions were increased, until about 1749, when the General Assembly were restricted by Parliament from making any more, except under certain limitations.
The various emissions, from time to time, were, at the time for which they were issued expired, called in and sunk, they gene- rally being made redeemable in some given time. It has been estimated that in 1748, there was in circulation in this State, in
1
252
HISTORY OF RHODE ISLAND.
what was called old tenor, £500,000. By a report of a Com- mittee to the General Assembly, in 1749, they made the out- standing bills, at that time, £320,444 2s. 3 1-2d. By a report of a Committee to the General Assembly, in 1764, in answer to the inquiry of the Lords Commissioners of Trade, it appears there was then in circulation, £30,000, in bills issued to carry on the war, equal to £30,000 sterling ; about two-thirds of which sum must be called in and sunk in a year from that time, after which, they say, £13,000 only of the bills issued to defray the expense of the war, will be in circulation, and these, with the small remainder of old tenor bills that shall be outstanding, will come to a final end in 1767.
By an Act of Assembly, Sept. 1770, the circulation of the old tenor bills was prohibited. They were to be brought into the treasury and exchanged for treasury notes, at the rate of £8, old tenor, for one dollar. In May, 1775, the State having voted to raise troops, issued £20,000, in bills, on interest, at two-and- a-half per cent, and made them a tender for all debts, 6s. 9d, to the silver ounce.
In August of this year, the continental bills, of which there were beginning to be large emissions by Congress, were made a tender at 6s. per dollar. Emissions of paper were now fre- quently made by the Colony, and those persons who should undervalue the bills, were declared enemies to the public weal, and every possible exertion was made during the Revolutionary war, to sustain their credit and keep up their value.
In 1776, a Committee of the New England States recom- # mended them to emit no more bills of credit, unless absolutely necessary ; but to tax or borrow, and if they did emit money, to issue bills on interest at four per cent. The General Assembly approved this plan, and ordered £40,000 to be hired, in notes payable in two years. In 1777, they ordered £50,000 lawful money to be hired, and notes given on interest for the same at four per cent.
These notes were at first made a legal tender, but was subse- quently repealed, and all contracts were to be made in specie. In 1778 and 1782, acts were passed for consolidating the paper money, and ordering all notes and bills to be brought into the treasury, andinterest calculated at six per cent from June, 1778, when they were struck out of circulation, and new notes given on interest.
253
MONEY DIFFICULTIES.
On the return of peace in 1783, there was very little gold and sil- ver in circulation, and nothing to supply its place as a circulating medium. It was customary for the merchants to pay the mechan- ics and laborers in their employ, in tea, sugar, coffee, &c., which
. they were obliged to take to market, and exchange with the farmers for provisions. And so difficult was it to raise money, that the farmers suffered greatly in having cattle taken from them and sold for payment of taxes.
This State, from its local situation, was exposed, during the war, to the frequent incursions of the enemy. These incursions were repelled chiefly by the military of Rhode Island, under the direction, and at the expense, (in the first instance,) of the State ; by reason of which, Rhode Island incurred a much larger debt than perhaps any of her sister States, in proportion to her esti- mated rate in the valuation of the United States.
A Committee appointed by the General Assembly, to inquire into the 'state of the public securities, due from the State, re- ported a debt of £153,047 15s.93d., of which £106,976 11s. 32d., was on interest at 6 per cent., for treasury notes issued for sol- diers' wages, depreciation of soldiers' wages, debts due for con- fiscated estates, for money loaned, &c., &c .; £46,071 4s. 6d. of which was on interest at 4 per cent., and was for debts due from Government, in 1777.
In May, 1786, the paper money party having prevailed, and chosen their candidate for Governor, &c., an act was passed for emitting £100,000, lawful money, in bills of credit, and making the same a legal tender at par, for the payment of debts. The 6 per cent. debt was consolidated by a scale of depreciation to real money, at 6s. per dollar, and by an act of Assembly was to be paid in the paper emission of 1786, at its nominal value, although that had already depreciated to 48s. for a dollar. It was pro- posed to consolidate the 4 per cent. debt, at 40s. for one dollar, and payable in the same emission at its nominal value.
In October, 1789, the value of bills emitted in 1786, was made fifteen paper dollars for one of silver. But gold and silver being very scarce, and considering the impracticability of discharging debts in specie, it was enacted that real estate of not less value than £40, and personal property within the State, might be substituted, in the payment of debts, under certain restric- tions. The Governor in his Message to the General Assembly, in October, 1791, speaking of the State debt, says :
254
HISTORY OF RHODE ISLAND.
" This debt was wholly incurred during the late war, in the common defence of the nation."
After peace took place, as it was found by experience imprac- ticable to discharge it in the ordinary mode of taxes, in gold and silver, recourse was had to paper money; this was issued in 1786. The holders of State securities were required to receive it in payment on penalty of forfeiting the whole amount of their respective demands. Owing to the unhappy divisions that pre- vailed, it suffered an unusual depreciation, but payments in paper were made to nearly the amount of £79,000, and securi- ties to the amount of about £48,000, were lodged in the Gen- eral Treasury, in consequence of the requisition of the Legisla- ture from bringing them in for the paper money. The specie value of the payments thus made in paper, was only about one- sixth part, or perhaps less, of the nominal value, from the great depreciation of the paper money. And finally, at the rate of about 15 for 1, it became indispensably necessary for the Legis- lature to interpose ; and as an appreciation of the paper at par, in the greatly depreciated state, would have been productive of as much, or perhaps more injustice, than its depreciation, the Legislature had no alternative but to arrest it as it was ; to re- peal the tender, and declare that it should finally be redeemed at the rate of 15 for 1. And an act for this purpose, was passed October, 1789.
In August, last year, Congress assumed $21,500,000 of the debt of the several States, including in the assumption $200,000 of the debt of this State ; and as the sum assumed is charged by the United States to the State from which it is assumed, if the Legislature had not interposed, those who did not com- ply with the requisition for receiving the paper money, would have received the whole benefit of this assumption, and a reali- zation of the greatest part of their securities; while those who did comply would not only lose five-sixths of their demands, but must have contributed their full proportion to the paying the whole amount of the securities, which had been confiscated as before mentioned.
In obedience to acts of the General Assembly of this State, of January and June of 1795, making provision for the transfer of the stock of the United States, belonging to this State, to the individual creditors thereof, the General Treasurer reported as
255
MONEY DIFFICULTIES.
due for certificates issued for various kinds of debts incurred during the revolution, and for consolidating the paper money, and securities issued for paper money, and for sinking the 4 per cent. notes, and including notes issued previous to the Revolu- tion, &c., the sum of £503,594 76, of which five-sixths, or $419,662 30, was issuable in certificates for funded stock of the United States, and one-sixth, or $83,932 46, in State cer- tificates unprovided for.
In February, 1803, the General Treasurer reported the above $83,932 46, together with additional claims brought in, and allowed by the State from time to time, making in all a regis- tered State debt of $163,163 71, which debt was afterward from time to time reduced, until June, 1804. By his report it appeared there was a balance of principal and interest then due of $120,949 04, and in a subsequent report in 1807, he reported $10,680 14 more of said balance as paid. But a large pro- portion of said balance remains to this day unpaid.
The debt we conceive to be a just one, and the payment should no longer be delayed to lawful claimants. These securi- ties were received in good faith, and a portion of the demand paid, which was a virtual acknowledgment of the debt ; and no apology can be offered in thus withholding the balance from the heirs of those who labored and toiled in their country's service. The idea of repudiation, which in later years has become far too common, both with the General and State Governments, should receive the withering rebuke of every friend of his country. It is unjust and cruel, and has no other justification than that might overcomes right.
In 1784, the General Assembly passed an act, authorizing the manumission of negroes, mulattoes, &c., and provided that no persons, negroes or mulattoes, born in the State after the 1st day of the year 1784, shall be slaves for life. The Assembly also repealed the clause contained in an act passed in 1774, per- mitting slaves brought from Africa to the West Indies, on board any vessel belonging to this their Colony, and that could not be disposed of in the West Indies, to be brought to this State ; and provided that in future no negro or mulatto be brought into this State, to be sold or disposed of as a slave.
In 1787, the Legislature of Rhode Island passed an act to prevent the slave-trade from being carried on from this State,
256
HISTORY OF RHODE ISLAND.
and for the encouragement of the abolition of slavery altogether within its jurisdiction.
We have already alluded to this subject in another part of this work, and have shown that the motive for manumitting the slaves of Rhode Island, was simply that their owners had become convinced that they were no longer profitable, but a bur- den upon them. It was not that there existed more moral purity in Rhode Island, a greater disregard of pecuniary advantage, than was to be found in slaveholding States, that influenced them to this course, but rather that it would be for their inter- est to do away with a system which entailed far more misery than good.
To the honor of Newport, it has never joined in a crusade against the South, but admitted that the institutions of the South was a matter which belonged exclusively to themselves ; and any interference with their domestic concerns, was illegal, unconstitutional, and subversive of that Union, which it should be the bounden duty of every American to sustain and to per- petuate.
A class of men have lately sprung up who have made the dis- covery, that the laws of Congress conflict with the " higher law," and that this being the case the former should be trampled under foot, while the latter should govern man, (only, however, in this particular.) Now, who are these " Simon-pures ?" Will it be found on examination that their general conduct is shaped after the moral law of God ? In this one point they make use of the " higher law," to effect their own selfish purposes, without the least regard to the principles involved in that law, which if rightfully understood and faithfully executed, would afford scope sufficient for the exercise of their philanthropy, in reliev- ing the wretched and the oppressed at their own doors, without turning aside to hunt out evils existing in slaveholding States. That is a question which exclusively belongs to themselves, and with which we of the North have no right to interfere.
The prophetic warning of the " Father of his Country," the immortal Washington, should be regarded with the deepest in- terest by every true patriot at the present critical moment, when attempts are making by a class of reckless, unprincipled men, to distract, and divide the Union, the labor of ages :
" The unity of government, which constitutes you one people,
257
FALLACY OF ABOLITIONISM.
is also dear to you. It is justly so ; for it is a main pillar in the edifice of your real independence-the support of your tran- quillity at home, your peace abroad, of your prosperity, of that very liberty which you so highly prize. But as it is easy to foresee that, from different causes and from different quarters, much pains will be taken, many artifices employed, to weaken in your minds the conviction of this truth, as this is the point in your political fortress against which the batteries of internal and external enemies, will be most constantly and actively, though often covertly and insidiously directed, it is of infinite moment that you should properly estimate the immense value of your National Union, to your collective and individual hap- piness ; that you should cherish a cordial, habitual, and immove- able attachment to it; accustoming yourselves to think and speak of it as of the palladium of your political safety and pros- perity, watching for its preservation with jealous anxiety, dis- countenancing whatever may suggest even a suspicion that it can in any event be abandoned ; and indignantly frowning upon the first dawning of every attempt to alienate any portion of our country from the rest, and to enfeeble the sacred ties which now link together the various parts."
After the reader has reflected calmly on the sentiments so feelingly uttered by the sainted Washington, he must be horror- struck on witnessing the gross outrages, the intrigue, and the duplicity which is practised by political demagogues to effect some sinister purpose. With a self-complacency " from the sub- lime to the ridiculous," they will justify their acts of abomina- tion, and still boast of their patriotism and love of country, even while the blush of conscious guilt should mantle their cheek But with an effrontery which defies any appeal to reason or jus- tice, they will arrogantly lay claim to bonesty of intention, when it is self-evident that not a particle of generosity, nobleness, or patriotism, is to be found in the elements which go to make up their character. When such sentiments are unblushingly made, so repugnant to liberty and the rights of the Confederacy, viz., let the Union be dissolved, they should meet with a simulta- neous burst of indignation from every patriot's bosom.
Newport, after having recovered in some degree from the losses incurred in the Revolution, began to push her foreign and domestic commerce. She still had many enterprising merchants
258
HISTORY OF RHODE ISLAND,
left, of whom were Gibbs & Channing, who were large ship- owners. The Mount Hope, of 600 tons, which at that day was one of the largest class of ships, followed the East India trade, and made many successful voyages.
The East India, West India, and Russia trade, were prose- cuted with vigor, and the docks and wharves indicated a de- gree of commercial prosperity highly gratifying to the inhabi- tants. Now was again heard the music of the "ye-heave-ho," from the active tars who were loading and unloading the num- erous vessels at the wharves.
Christopher and George Champlin, were merchants of dis- tinction, as were also Peleg Clarke, Caleb Gardner, Thomas Dennis, on the Point, Stephen T. Northum, who at one period owned ten sail, Audley Clarke, Christopher Fowler, Price & Easton, Earle & Allston, Robert Robinson, Rhodes & Cahoone, Bowen & Ennis, Simon Newton, John Coggeshall, and Gov. Simeon Martin. These were all engaged in foreign commerce, with many others whom we have not enumerated. There was as much enterprise in Newport, at this period, considering her capital, as that of any commercial place in the country. In 1820, the tonnage was estimated at 10,950 tons.
There was also a sugar-refinery, and seven distilleries in full blast, which gave constant employment to mechanics and labor- ers, many of whom were enabled from their savings to build houses, and at the same time to live comfortable.
There was also a line of New York packets, with splendid cabins, handsomely furnished for that day, which did a very profitable business. Commanders and owners-Edward Pe- terson, Nicholas Webster, Stephen Cahoone, two Blisses, Ad- ams, John Cahoone (afterwards commander of the Revenue Cutter Vigilant,) &c. Bannister's Wharf, which was then their depôt, exhibited a degree of activity which some now living can remember with satisfaction and pleasure.
There were some five or six packets which ran daily between Newport and Providence. Commanders-Gardner, Heath, Bliven, Northup, Pratt, &c. The honor of bringing the Gover- nor to election, when a Federalist or Whig, devolved on Cap- tain James Gardner, who took great pride in rendering every attention to his passengers. Bannister's Wharf was also the head quarters of these packets. At the head of the wharf was
259
THE COFFEE-HOUSE.
Godfrey Wenwood's bake-house, noted for the superior qual- ity of bread and butter-biscuit with which it supplied the nu- merous packets, and many of the families of the town.
In Thames-street, fronting the wharf, was the Coffee-House, then kept by "Uncle Tom Townsend," as he was familiarly called, which was liberally patronized. On the south side there was a brick walk, enclosed with a light fence, which was a fine promenade; here merchants, masters of vessels, &c., resorted to hear the news, and discuss the affairs of the nation.
The Misses Duncan, from Scotland, kept a toy shop, the only one in the place. It was considered quite a curiosity at that day. It stood where Brownell's tin-shop now stands. Forts Adams, Wolcott, and Rose Island, were garrisoned, and the officers, when in town, assembled at Townsend's Corner, for by that cognomen was it known, until superseded by the name of Pelham-street. Then was heard from Fort Wolcott the beat of the reveille, warbling its sweetest notes along the shore, by those inimitable and graceful performers, the Hoopers, Mulli- gin, &c.
The town at this period was on the increase; many houses were built on the hill and in other sections of the town ; and old English hospitality seemed about to revive. The female por- tion, at this period, were highly beautiful and accomplished. The celebration of Washington's birth-day by a ball in the even- ing, was then got up in taste, and was graced by the élite and fashion of Newport, which exhibited traces of the elegance of person and the refinement of manners which preeminently char- acterized the past. But alas, those days of splendor have fled -fled. In olden time, one of the most pleasant and gratifying amusements was a ride on the Island to Congdon's or Cornell's, speak for coffee, take a turn round the Square or to the Bridge, and return back in time to enjoy the splendid repast furnished by " mine host." It was no unusual thing to meet there a company of twenty or thirty carriages from Newport, including Sam Place's hack, which was in constant requisition in sum- mer; and even at this late period, we remember with delight Aunt Hannah Cornell's " shovel cakes," floating with new made butter, plum-cake, dried beef, etc., sufficient to satisfy the most delicate appetite, all furnished for the small sum of twenty-five cents. Mr. Congdon amassed a sufficiency to purchase him a
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260
HISTORY OF RHODE ISLAND.
farm in Connecticut, where he afterwards removed. The house formerly kept by him has been taken down, and a new one now supplies its place. Moses Lawton, Esq., is the present proprie- tor, but the old associations have nearly vanished by the change.
"Our early days ! How often back We turn on life's bewildering track, To where o'er hill and valley plays The sunlight of our early days."
The Spanish brig Minerva, Angel Cifuenter master, bound to Bristol, R. I., was wrecked on Brenton's Reef, on the night of the 24th of December, 1810. The vessel was totally lost. Three pipes of rum and eight casks of Catalonia wine were saved, as appears from the Custom House entries.
This event occurred in one of the most violent storms on re- cord. It blew a perfect hurricane, accompanied with a driving snow-storm, which rendered it impossible to afford the brig and crew the least assistance. It was truly solemn to hear the min- ute guns, which continued their mournful sound as long as the brig held together. Soon, however, the sound ceased, and the crew were submerged in the briny deep. Ten perished, includ- ing every officer, and nine were saved. The shore was covered with the fragments of the wreck, and its contents. There was a large amount of specie on board, which was never recovered, though attempts were made with the diving bell, but without success. Three of the bodies of those who perished were re- covered, viz., Captain, mate, and cook, and were buried near by, on the Castle Hill farm.
But no sooner had Newport begun to prosper than the politi- cal horizon began to be darkened, and war with Great Britain seemed inevitable. Not being satisfied with having received some severe chastisement, she was determined to invade our rights by impressing American seamen, and by this and other acts of hostility to drive us to take up arms in defence of our sacred liberties, which our forefathers had fought, bled, and died to acquire. These acts were done in violation of treaties entered into by the respective governments. Great Britain has been justly chargeable with aiming to subvert and to overthrow every government which was founded on the principles of lib-
261
DECLARATION OF WAR.
erty and the rights of man. This country stood forth, a beacon light, to shame and confound the principles of monarchical forms of government, and she vainly flattered herself that by dividing the North and South, she might yet effect the subjugation of these United States. But if, when we were short of three mil- lions of people, and without military resources, we could drive them from our shores, what possibility existed of their success ? Only, as has been before observed, by dividing the Union. Let Great Britain not imagine, for a moment, that the elements of character which go to make up this confederacy can ever be divided, when a foreign enemy attempts to invade our shores. There may be differences of opinion among ourselves, but when the third party attempts to use their influence, it will be like the quarrels of man and wife-both will fall upon her, and drive her to destruction.
There are redeeming traits of character in this nation, which do not exist elsewhere ; and the nations of Europe do not per- fectly understand our political institutions. Hence, when con- troversy-it may be, angry controversy-exists in our national councils, as has been the case of late, they stand ready to be- lieve that the speedy overthrow of this Union is at hand. When we consider, however, that the principles of our republic originated with men of sterling virtue, of noble patriotism, we have reason to believe that the God of heaven will preserve it from every unhallowed touch, and render this nation an instru- ment in His hands in the accomplishment of His purposes, in the redemption of the world from a despotism which now holds so large a portion of the great brotherhood of mankind, in its , iron grasp.
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