best adapted to the condition, circumstances and equal mode of levying taxes in such colony, in four annual payments; the first to be made on or before the last of November, 1779, before which time it was hoped the contest might be brought to a conclusion. On the 29th of November following, an estimate having been formed of the publick expenses already arisen, and which might accrue in the defence of America, to the 10th of June, 1776, Congress resolved to emit a further sum of three millions of dollars, to be redeemed as the former, by four annual payments, the first to be made on or before the last day of November, 1783. It was at the same time resolved, that the proportion or quota of each respective state should be determined according to the number of inhabitants of all ages, including negroes and mulattoes in each colony; and for this purpose it was recommended to the several assemblies, &c. to ascertain by the most impartial means in their power the number of inhabitants in each respective colony, and make returns thereof to Congress as soon as possible.

At this time a hope was still entertained that an accommodation would take place, and that hostilities would soon cease. But having received advice, in the winter following, that Great Britain had contracted for a large body of Hessians, and other German mercenaries, which were to be sent over to subdue America, Congress found it necessary to make suitable preparations, which consequently increased the expense; and therefore, on the 17th of February, they ordered four millions of dollars to be emitted on the same security

as the former sums; and on the 9th of May following, emitted five millions more on the like security.

The powerful fleet and army sent against America in the summer of 1776, and the professed design of Great Britain to subdue by force, or to bring the colonies to unconditional submission, obliged Congress to declare Independence, and to call in the aid of militia, and consequently increased the expense; and therefore, on the 22d July, they emitted five millions more.

But as it was foreseen that such repeated issues of bills of credit would increase the quantity to too great a degree, and consequently occasion their depreciation, it was resolved on the third of October following to borrow five millions of dollars; and in November, a lottery was set on foot for raising a further sum on loan.

As the governments of the several states were not yet sufficiently organized and in vigour, and as the expenses of arraying and equipping the militia were great, and the resources from commerce cut off, it was not thought proper to proceed to taxation. And as neither loans nor the lottery were sufficiently productive, necessity compelled to further emissions of bills of credit. By this means the paper currency being multiplied, began to depreciate. It was therefore resolved on the 10th of September, 1777, to prepare an earnest recommendation to the states to proceed to taxation. The invasion of Pennsylvania, and the removal of Congress from Philadelphia, prevented this from being done as soon as might have been wished; but on the 22d of November, 1777, it was recommended to the states to raise by taxes, for the service of the year 1778, the sum of five millions of dollars, and

to pay the same into the publick treasury in four quarterly payments. Previous to this it had been resolved to borrow larger sums; and to encourage the money holders to lend, it was agreed to pay the interest by bills of exchange drawn on our commissioners in France.

Unfortunately the tax failed, and the sums obtained from loans were greatly inadequate to the expenditure: consequently more money was emitted; and notwithstanding the favourable turn in our affairs in 1778, depreciation increased with amazing rapidity.

At the close of the year, 1778, the sums emitted and borrowed amounted to about one hundred and eight millions. Congress, anxious to put a stop to any farther emissions, and to provide a fund for redeeming what was issued, called upon the states on the first of January, 1779, to pay into the continental treasury their respective quotas of fifteen millions of dollars for the service of that year, and of six millions annually, from and after the year 1779, as a fund for sinking the emissions and loans to the 31st of December, 1778; and on the 21st of May following, in addition to the above, on account of the great depreciation of the paper, the states were called on to furnish for the service of the year 1779, their respective quotas of fortyfive millions-the whole to be paid into the continental treasury before the first of January, 1780. A compliance with these requisitions would not only have answered the necessary exigencies of the year, but would have arrested depreciation in its progress. But as these were not complied with in due time, and as the demands of the publick were pressing and constant,

the prospect of future taxes served only as a stimulus to urge those who had in their possession the supplies and necessaries wanted, to enhance the price, in order to pay their taxes with greater ease: while at the same time the publick treasury, receiving no recruit from taxes, was from time to time replenished with new emissions; and from these causes combined, depreciation, instead of receiving a check, proceeded with redoubled vigour.

As the failure of the states was attributed to their not having received the requisitions in due time, Congress resolved in future to remedy that defect; and therefore, early in the fall of 1779, took into consideration the means of providing for the ensuing year; and on the 6th of October, accommodating themselves to the depreciation as it then stood, and still flattering themselves that the taxes already called for, if duly collected, would stop it where it was, and answer demands on the publick till February following, they called upon the states to pay into the publick treasury on the first day of February, 1780, and on the first day of each succeeding month, to the first of October inclusive, their respective quotas of fifteen millions.

It should be observed that on the first of September, 1779, the sum emitted and in circulation amounted to one hundred and fifty-nine millions nine hundred and forty-eight thousand eight hundred and eighty dollars; and as there was a general outcry on account of the depreciation and the floods of money emitted, Congress resolved that they would on no account whatever emit more bills of credit than to make the whole amount of such bills two hundred millions. And as

forty millions fifty-one thousand one hundred and twenty dollars remained to complete the two hundred millions, they on the 3d of the same month resolved that they would emit such part only of the said forty millions fifty-one thousand one hundred and twenty dollars as should be absolutely necessary for the publick exigencies, before adequate supplies could be otherwise obtained, relying for such supplies on the exertions of the several states.

This was represented to the states in an address dated the 13th September; and they were earnestly entreated not to leave Congress without supplies, nor to let in that flood of evils which would follow from such a neglect. Notwithstanding this earnest address and representation, Congress were compelled by necessity to issue the remainder of the two hundred millions; and the army was in such extremity for want of provisions, that the commander in chief was reduced to the sad alternative, either to suffer it to disband, or to collect supplies by military force. He preferred the latter, and the inhabitants of New York and New Jersey, though they felt the injury, saw the necessity, and patiently submitted.

To prevent the like evils in future, Congress, on the 25th of February, 1780, called on the states forthwith to procure their respective quotas of supplies in enumerated articles for the ensuing campaign. And as by the continual depreciation of the continental currency, the community was suffering great injustice, the publick finances were deranged, and the necessary dispositions for the defence of the commonwealth much impeded and perplexed, they on the 18th of