Note 235 — MEMOIR OF THE LIFE OF DAVID RITTENHOUSE; CONTINUED, FROM THE TIME OF HIS SETTLEMENT IN PHILADELPHIA.

According to Dr. Ramsay, “the depreciation began at different periods in different states; but, in general, about the middle of the year 1777, and progressively increased for three or four years.” In the first four or five months of 1780, it depreciated to 50 or 60 for one. “Its circulation,” continues Dr. Ramsay, “was afterwards partial; but, where it passed, it soon depreciated to 150 for one. In some few parts, it continued in circulation for the first four or five months of 1781; but in this latter period, many would not take it at any rate, and they who did, received it at a depreciation of several hundreds for one.”

Hist. Am. Revol.

In October, 1779, it was resolved by congress, that no further sum in this paper-money should be issued, on any account whatever, than would, when added to the sum then in circulation, amount to 200 millions of dollars. In their circular letter of the 13th of September preceding, addressed to their constituents, congress asserted the practicability of redeeming all the continental bills at par, with gold and silver; and rejected, with indignation, the supposition that the states would ever tarnish their credit by violating public faith. “These strong declarations in favour of the paper-currency,” says Dr. Ramsay, “deceived many to repose confidence in it, to their utter ruin.” In addition to the amount of many millions of dollars, in paper-emissions of the several states, congress, soon after, actually continued to issue their own paper, until it amounted in the whole to the enormous sum of 200 millions of dollars! That which was of little value before, now became of less, and soon afterwards good for nothing. The inevitable consequence was, that thousands of meritorious citizens were entirely ruined, and others greatly injured in their property.