FAILURE OF THE CONFEDERACY
Scarcely a failure of the Confederation Government can be found which does not lead in the last analysis to the financial situation both during and following the war. Suddenly plunged into the Revolutionary War, drained of ready money by the colonial system, possessed of no mines, mints, nor any resource for securing a medium of exchange except an undependable paper promise to pay, the people of the United States emerged from the war broken in purse and overwhelmed with debt. According to Jefferson's estimate made at the time, they owed at least sixty-eight millions of dollars. To this fruit of the war he added the four hundred millions of paper money issued by the Federal and State Governments, estimated, in its depreciated condition, at about seventy-two millions more of debt. The ragged Continental soldiers, frequently reduced to seven-tenths of a pound rations, their arrearages of wages paid in Continental currency worth four pence on the dollar, were now about to be discharged to return to their needy families carrying only paper promises of the United States to pay. These certificates could be disposed of only to brokers and that at ruinous rates. What was to become of a veteran who was disabled? Congress had already authorised the several States to look up needy soldiers of the Continental service and pay them five dollars a month, such sums to be deducted from the quotas assessed on the several States to meet the general expenses. Seven States only had complied, and in these the lists of needy ex-soldiers had been incompletely compiled.
Some soldiers held certificates entitling them to bounty lands in the back country under the acts of 1776 and 1780, but had no means of journeying thither. Small wonder that mutiny threatened.
"Can you consent to be the only sufferers by this revolution," asked the insurrectionary Newburg addresses, the work of those unwilling to see the army disbanded before being assured of receiving justice, "and, retiring from the field, grow old in poverty, wretchedness, and contempt? If you can—go—and carry with you the jest of Tories and the scorn of Whigs—the ridicule and, what is worse, the pity of the world. Go—starve —and be forgotten."
Eulogy has exhausted itself in praise of these Revolutionary veterans, who eventually permitted their ranks to be disbanded, instead of joining themselves together illegally to obtain justice, or subsisting themselves upon the country at large. Praise has not been withheld from their general, the Virginia soldier-farmer, who, instead of taking advantage of the dissatisfaction to put himself at the head of an insurrectionary force, chose rather to quiet rebellion and to inspire confidence by his hopefulness.
No sooner had the war ceased and the army melted away, than it was found that peace had its dangers no less than war. Released from the menace of war, the States felt no necessity for paying their respective quotas of expenses to the Central Government, as they had done in varying degrees since the beginning of hostilities. The year following the peace, they paid less than a million and a half of the eleven million asked in previous assessments. Three States, it was claimed, had paid comparatively nothing. Rhode Island and New Jersey, as if to add insult to injury, attempted to pay their quotas in their paper money, which was not received at par outside the States. Congress had no power of coercion. According to the second of the Articles, each State in the Confederation retained its sovereignty, freedom, and independence. Congress could only make impotent appeals. Governor Randolph, of Virginia, pictured the Congress as saying to his State: "May it please your high mightinesses of Virginia to pay your just proportionate quota of the national debt; we humbly supplicate that it may please you to comply with your federal duties. We implore, we beg your obedience."
[Illustration: A PETITION FROM CONGRESS TO THE STATES. Many such appeals were issued at different times, begging the States in the Confederation to give more power to the Central Government.]
The financial confusion was increased because of the lack of a circulating medium. A mongrel collection of coins could be found, passing at varying rates in the different States—English pounds, shillings and pence, Spanish dollars, joes, half-joes, pistoles and moidores, French guineas, carolins and chequins—but no United States coins. Even this money was soon drawn off to Europe, because British exporters demanded cash until the Revolutionary debts had been settled. That this cash would return to the States was unlikely if one judged from the first year of the peace, during which the United States purchased 1,700,000 pounds worth of goods in England and sent in return only 700,000 worth. In order to secure some kind of money to conduct business, seven of the States began to issue paper money. The troubles arising from a depreciated paper during the Revolution were neither ignored nor forgotten; but no other method presented itself. Congress had power to issue only "bills on the credit of the United States," which were not likely to be more acceptable than other kinds of paper.
The hopelessness of managing a bankrupt nation, no doubt, was largely responsible for the deterioration which the membership of Congress suffered. Names prominent at the inception of the rebellion had disappeared from the rolls, and mediocrity ruled. The members personally experienced the financial stringency in the failure of their State Legislatures to pay their salaries. Many were dependent upon the patriotic purse of Haym Salomon, "a Jew broker of Philadelphia," as Madison termed him. There should have been a higher standard of membership in the Confederation Congress than in later times, because it comprised not only the usual legislative functions of the nation, but the executive and judicial as well. The machinery itself was largely to blame. Like many of the devices, that governing the Congress was too strongly set against centralisation to allow free play of the parts. No delegate, for instance, was allowed to serve more than three years out of any six lest his influence grow too great or he become unduly attached to the central power. It frequently happened that good men were thus cast out of service just when their experience made them valuable. Certain States forbade a man to serve two consecutive terms in Congress. Madison was debarred by such a provision in 1784.
Delegates were appointed by the State Legislatures usually for a term of one year to begin with the session on the first Monday of the following November. The term would frequently expire when the State Legislature was not in session, and the State would thus go unrepresented for some time. If a delegate pleaded the emergency of the case and asked that the rule be waived, as those from Rhode Island did at one time, Congress refused to sanction such a palpable infraction of the Articles. Cases actually occurred where delegates elect did not arrive at the seat of Government until after the expiration of their term of appointment.