the war, mark him as one of the world's great military commanders.
43. FINANCES OF THE REVOLUTION (1775-1783).
[Sidenote: Resources.]
The successful termination of the war is the more remarkable because it
was fought by a government almost without means, and finally without
credit. The saddest part of the suffering at Valley Forge is that it was
unnecessary. There was always food and clothing in the country, but
Congress had no money to buy it. Congress had no power to lay taxes, and
the colonies, most of which were spending large sums on their own militia,
were not disposed to supply the general treasury. The pay of the
Continental troops and of the general officers, the furnishing of
equipments and stores, the support of foreign embassies, were burdens that
must be borne, and Congress must find the means.
[Sidenote: Continental currency.]
The most successful and the most disastrous resource was the issue of
paper-money. When, in June, 1775, it was proposed to meet the general
expenses by putting forth two millions in Continental notes, there was but
feeble objection. It was the only way of raising money which seemed to
cost nobody anything. In the course of a year four millions more followed.
Congress, with commendable foresight, called upon each colony to pay in a
sum sufficient to retire its proportion of the issue. Nothing was paid,
and the printing-press was again put in motion, until in January, 1779,
fifty millions were issued at a time. In November, 1779, the limit of two
hundred millions was reached. In order to float these notes the States
passed acts making them a legal tender; but at the same time they were
themselves issuing large sums in a similar currency. Counterfeits
abounded, but it soon became a matter of little difference whether a bill
was good or bad, since the best was worth so little. From the time of the
capture of New York by the British in 1776 the notes began to fall. In
1778 the news of the French alliance caused a little rise; but in 1781 the
bills fell to a point where a thousand dollars exchanged for one dollar in
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