A lottery,—does not the word carry one back, a great many years back, to other times and other manners? The Articles of War were now on the table of Congress for revision, and in the second and third of those articles officers and soldiers had been earnestly recommended to attend divine service diligently, and to refrain, under grave penalties, from profane cursing or swearing. And here legislators deliberately set themselves to raise money by means which we have deliberately condemned as gambling. But years were yet to pass before statesmen, or the people rather, were brought to feel that the lottery-office and gaming-table stand side by side on the same broad highway.
No such thoughts troubled the minds of our forefathers, well stored as those minds were with human and divine lore; but, going to work without a scruple, they prepared an elaborate scheme and fixed the first of March for the day of drawing,—"or sooner, if sooner full." It was not full, however, nor was it full when the subject next came up. Tickets were sold; committees sat; Congress returned to the subject from time to time: but what with the incipient depreciation of the bills of credit, the rising prices of goods and provisions, and the incessant calls upon every purse for public and private purposes, the lottery failed to commend itself either to speculators or to the bulk of the people. Some good Whigs bought tickets from principle, and, like many of the good Whigs who took the bills of credit for the same reason, lost their money.
In the same November the Treasury was ordered to make every preparation for a new issue; and to meet the wants of the retail trade, it was resolved at the same time to issue five hundred thousand dollars in bills of two-thirds, one-third, one-sixth, and one-ninth of a dollar. Evident as it ought now to have been that nothing but taxation could relieve them, they still shrank from it. "Do you think, Gentlemen," said a member, "that I will consent to load my constituents with taxes, when we can send to our printer and get a wagon-load of money, one quire of which will pay for the whole?" It was so easy a way of making money that men seemed to be getting into the humor of it.
The campaign of '77, like the campaign of '76, was fought upon paper-money without any material depreciation. The bills could never be signed as fast as they were called for. But this could not last. The public mind was growing anxious. Extensive interests, in some cases whole fortunes, were becoming involved in the question of ultimate payment. The alarm gained upon Congress. Burgoyne, indeed, was conquered; but a more powerful, more insidious enemy, one to whom they themselves had opened the gate, was already within their works and fast making his way to the heart of the citadel. The depreciation had reached four for one, and there was but one way to prevent it from going lower. Congress deliberated anxiously. Thus far the public faith had supported the war. But, they reasoned, the quantity of the money for which this faith stood pledged already exceeded the demands of commerce, and hence its value was proportionably reduced. Add to this the arts of open and secret enemies, the avidity of professed friends, and the scarcity of foreign commodities, and it is easy to account for the depreciation. "The consequences were equally obvious and alarming,"—"depravity of morals, decay of public virtue, a precarious supply for the war, debasement of the public faith, injustice to individuals, and the destruction of the safety, honor, and independence of the United States." But "a reasonable and effectual remedy" was still within their reach, and therefore, "with mature deliberation and the most earnest solicitude," they recommended the raising by taxes on the different States, in proportion to their population, five millions of dollars in quarterly payments, for the service of 1778.
But having explained, justified, and recommended, the power of Congress ceased. Like the Confederation, it had no right of coercion, no machinery of its own for acting upon the States. And, unhappily, the States, pressed by their individual wants, feeling keenly their individual sacrifices and dangers, failed to see that the nearest road to relief lay through the odious portal of taxation. Had the mysterious words that Dante read on the gates of Hell been written on it, they could not have shrunk from it with a more instinctive feeling:—
"All hope abandon, ye who enter here!"
Some States paid, some did not pay. The sums that came in were wholly insufficient to relieve the actual pressure, and that pressure, unrelieved, grew daily more severe. They had tried the regulating of prices,—they had tried loans,—they had tried a lottery; and now they were forced back again to their earliest and most dangerous expedient, paper-money. New floods poured forth, and the parched earth drank them greedily up. One may almost fancy, as he looks at the tables, that he sees the shadowy form of sickly Credit tottering feebly forth to catch a gleam of sunshine, a breath of pure air, while myriads of little sprites, each bearing in his hand an emblazoned scroll with "Depreciation" written upon it in big yellow letters, dance merrily around him, thrusting the bitter record in his face, whichever way he turns, with gibes and taunts and demoniac laughter. But his course was almost ended: the grave was nigh, an unhonored grave; and as eager hands heaped the earth upon his faded form, a stern voice bade men remember that they who strayed from the path as he had done must sooner or later find a grave like his.
It was not without a desperate struggle that Congress saw the rapid decline and shameful death of its currency. The ground was fought manfully, foot by foot, inch by inch. The idea that money derived its value from acts of government seemed to have taken deep hold of their minds, and their policy was in perfect harmony with their belief. In January, 1776, they had solemnly resolved that everybody who refused to accept their bills, or did anything to obstruct the circulation of them, should, upon due conviction, "be deemed, published, and treated as an enemy of his country, and be precluded from all trade or intercourse with the inhabitants of these Colonies." And to enforce it there were Committees of Inspection, whose power seldom lay idle in their hands, whose eyes were never sealed in slumber. In this work, which seemed good in their eyes, the State Assemblies and Conventions and Committees of Safety joined heart and hand with Congress. Tender-laws were tried, and the relentless hunt of creditor after debtor became a flight of the recusant creditor from the debtor eager to wipe out his responsibility for gold or silver with a ream or two of paper. Limitation of prices was tried, and produced its natural results,—discontent, insufficient supplies, heavy losses. Threatening resolves were renewed, and fell powerless. It was hoped that some relief might come from the sales of confiscated property; but property changed hands, and the Treasury was none the better off: just as in France, a few years later, the whole landed property of the kingdom changed hands, and left the government assignats what it found them,—bits of waste-paper.
Meanwhile speculation ran riot. Every form of wastefulness and extravagance prevailed in town and country,—nowhere more than at Philadelphia, under the very eyes of Congress,—luxury of dress, luxury of equipage, luxury of the table. We are told of one entertainment at which eight hundred pounds were spent in pastry. As I read the private letters of those days, I sometimes feel as a man would feel who should be permitted to look down upon a foundering ship whose crew were preparing for death by breaking open the steward's room and drinking themselves into madness.
An earnest appeal was made to the States. The sober eloquence and profound statesmanship of John Jay were employed to bring the subject before the country in its true light and manifold bearings,—the state of the Treasury, the results of loans and of taxes, and the nature and amount of the obligations incurred. The natural value and wealth of the country were held to view as the foundations on which Congress had undertaken to build up a system of public finances, beginning with bills of Credit because there was no nation they could have borrowed of, coming next to loans, and thus "unavoidably creating a public debt: a debt of $159,948,880, in emissions,—$7,545,196-67/90, in money borrowed before the first of March, 1778, with the interest payable in France,—$26,188,909, money borrowed since the first of March, 1778, with interest due in America,—about $4,000,000, of money due abroad." The taxes had brought in only $3,027,560; so that all the money supplied to Congress by the people was but $36,701,665-67/90.