These extraordinary measures tended to increase rather than diminish the evil. The bills still continued to depreciate rapidly, and some more effectual remedy, than tender and regulating laws, was necessary. In 1779, congress attempted to establish a fund for sinking the bills then in circulation, by calling on the states to pay their quotas of fifteen millions of dollars for that year, and six millions annually for the eighteen succeeding years.

These calls upon the states were made in vain; little was paid into the public treasury; and new bills were issued, which swelled the amount in September, 1779, to one hundred and sixty millions. At this time, congress thought it necessary, to declare that the issues, on no account, should exceed two hundred millions. Nor did they then despair of their ultimate redemption at par. In a circular address to their constituents, they with apparent sincerity and zeal, endeavored to prove, that the United States had the ability, as well as disposition eventually to redeem their bills. After stating the probable future resources of the country, from an increase of population, a vast increase of agricultural productions, the avails of the western lands, &c., they say, “whoever examines the force of these and similar observations, must smile at the ignorance of those, who doubt the ability of the United States, to redeem the bills." They indignantly repelled the idea of a violation of the plighted faith of the nation.

"The pride of America," they observed, “revolts at the idea; her citizens know for what purpose these emissions were made, and have repeatedly plighted their faith for the redemption of them; they are to be found in every man's possession, and every man is interested in their being redeemed; they must therefore entertain a high opinion of American credulity, who suppose the people capable of believing, on due reflection, that all America will, against the faith, the honor, and the interest of all America, be ever prevailed upon to countenance, support, or permit so ruinous, so disgraceful a measure."

While every one must applaud the spirit of these observations; few, we believe, will not regret to find in the same address, remarks on the supposed advantages of paper money, calcula

ed to make them doubt at least, whether congress were not trifling with the public, on so interesting and important a subject.

"Let it be remembered," they remarked, "that paper money is the only kind of money, which cannot make unto itself wings and fly away.' It remains with us, it will not forsake us, it is always ready and at hand for the purpose of commerce or taxes, and every industrious man can find it."*

The continued failures of the states to comply with the requisitions made upon them, and the increasing wants of the country, increased the issues, (notwithstanding the resolution of congress to the contrary,) to more than three hundred millions; and the idea of redeeming the bills at their nominal value, was at length abandoned. In March, 1780, the states were required to bring them in at forty for one. The bills when brought in were to be cancelled, and new ones to issue in lieu of them, not exceeding one twentieth part of their nominal amount. The new bills were to be redeemable in six years, to bear an interest of five per cent., to be issued on the credit of the individual states, and their payment guarantied by the United States.

The new system of finance was equally unavailing. The old bills were not brought in, and of course few new ones issued. The general treasury was empty, the army without pay or clothing, and often without provisions. The states were called upon for supplies in specific articles. To keep the army together, congress were obliged to raise money, by drawing bills on their ministers in Europe, without any assurance of their payment.

The continental bills, at last, became of so little value, that they ceased to circulate; and in the course of the year 1780, quietly died in the hands of the possessors.

In addition to this, the campaign of 1780, was unfortunate for America. The cities of Charleston and Savannah were taken, and the states of South Carolina and Georgia, were in possession of the enemy. In this situation, congress had no other means of providing for the next campaign, but foreign loans. To obtain these, they, on the 22d of November, addressed a letter to their

* Journals of Congress, vol. 5, pp. 262, 266.

ally the king of France, stating their embarrassments, and declaring that a foreign loan of, at least, twenty-five millions of livres, was indispensably necessary, for a vigorous prosecution of the war.* * Dr. Franklin was specially instructed, " to employ his unremitted and utmost abilities," to procure the aids required. At no time since the campaign of 1776, had the affairs of the United States worn so gloomy an aspect, as at the close of this year. General Washington, in a circular letter to the governors of the states, in October, says, "our finances are in an alarming state of derangement. The public credit is almost arrived at its last stage. The people begin to be dissatisfied with the feeble mode of conducting the war, and with the ineffectual burdens imposed on them, which, though light in comparison with what other nations feel, are from their novelty heavy to them. They lose their confidence in government apace."t

The absolute necessity of obtaining foreign loans, induced congress, in December, 1780, to send a special minister to France. Col. John Laurens, one of the aids of general Washington, and son of Henry Laurens, then a prisoner in the tower of London, was selected for this important mission.

He repaired to Paris, in the winter of 1781. Before his arrival, in consequence of the letter of congress and the solicitations of Dr. Franklin, promises of assistance had been made by the French court. The delay, however, in fulfilling these promises, ill accorded with the high and ardent feelings of the young American envoy. Knowing the pressing wants of his country, and the necessity of immediate aid, if afforded at all, after a delay of more than two months, he determined at the next levee day, to present in person, a memorial to the king, though directly contrary to the forms of court.

In conversation with Vergennes, on the morning of the day, on which he intended to present his memorial to the king, he expostulated with him, on delaying the promised aid, in such warm and bold language, that the minister replied. "Col. Lau

*Note 15. Governor Trumbull's Papers.

rens, you are so recently from the head quarters of the American army, that you forget you are no longer delivering the orders of the commander in chief, but addressing the minister of a monarch, who has every disposition to favor your country." "Favor, Sir!" rejoined Laurens, "the respect which I owe my country will not admit the term-say the object of my mission is of mutual interest to our respective nations, and I subscribe the obligations; but as the most conclusive argument I can address to your excellency, the sword which I now carry, in defense of France, as well as of my own country, unless the succor I solicit is speedily accorded, I may be compelled to draw against France, as a British subject."

He presented his memorial to the king, on the same day. It was graciously received, and no doubt, was the means of hastening the promised succors.*

The king gave the United States, by way of subsidy, six millions of livres, and furnished a further sum, by way of loan.

Applications for loans in Holland had hitherto been unsuccessful. The Hollanders either distrusted the security, or were unwilling to incur the resentment of Great Britain, by lending the Americans money, to enable them to carry on the war.

His most christian majesty had, through his minister at the Hague, offered his assistance to the Americans in procuring loans in that country, but without effect. The king of France now engaged to become himself accountable for the sums which might be furnished. In consequence of this, and the exertions of Mr. Adams, a loan of ten millions of livres was obtained in Holland. The demands upon the French treasury from America, induced Vergennes to inform congress, that they must not expect future pecuniary aid from France. In a letter of the 11th of May, 1781, he said, he thought it his duty "freely and openly to declare, that the moment is come, not to spend the time in expectation, deliberation and useless exhortations: that though he would wish to avoid every disagreeable intimation, friendship

* See an account of this transaction given by Major Jackson, secretary to Laurens, in No. 2, of the American Quarterly Review, p. 426.

and common interest obliged France to speak without reserve and with perfect sincerity: that the king has done, on this occasion, what he can do no more: that congress, if well informed of the situation of his majesty's affairs, would be sensible that an exertion like the present cannot be repeated; and that the court would feel the deepest concern, if it was under the disagreeable but indispensable necessity of refusing the demands of an ally whose case is now become his own."*

While congress were soliciting foreign aid, they felt the neces sity of a more complete and efficient arrangement of their civil departments at home. In January, 1781, they established an office for the department of foreign affairs, at the head of which was placed a person to be styled, "secretary of foreign affairs." In February following, they also determined to appoint a superintendant of finance, and secretaries of war and marine. The office of superintendant of finance was at that time, particularly necessary. This officer was directed to examine into the public debts, the public expenditures and the public revenue-to digest and report plans for improving and regulating the finances, and for establishing order and economy in the expenditures of the public money-to direct the execution of all plans, which should be adopted by congress respecting revenue and expenditures to superintend and control the settlement of all public accounts-to direct and control all persons employed in procuring supplies for the public service, and in the expenditures of public money to obtain accounts of all the specific supplies furnished be the several states-to compel the payment of all monies due to the United States, and in his official character, or in such manner as the laws of the states might direct, to prosecute, in behalf of the United States, for all delinquencies repecting the public revenue and expenditures. Robert Morriss, an eminent merchant of Philadelphia, was soon after appointed to this important office, and in the course of the year, Robert R. Livingston was made secretary of foreign affairs, and Benjamin Lincoln secretary of war. To aid the finanical operations of the country.

* Secret Journals of Congress, vol. 3, p. 37.