CHAP. I. for the common benefit, would have been 1776. deemed highly criminal, and might have subjected the person who harboured it, to the very serious charge of hostility to American liberty. But to engage the different states to pledge themselves for the redemption of these bills at the time fixed by congress, was now thought a prop to their credit, not to be disregarded; and it was recommended to them to pass resolutions to that effect.

It was also earnestly recommended to them to commence, at an earlier period than had been at first proposed, the only plan which could afford effectual aid, and immediately to impose such taxes, as the present actual situation of the people would enable them to pay. They were assured that for all monies thus raised, ⚫ each state should receive a credit with the United States, in its quota of the public debt that had been apportioned on them. At the same time a further loan of two millions was voted.

On receiving these recommendations, laws were passed in the several states in conformity with the wishes of congress.

The commercial situation of the states from Maryland inclusive to the south, previous to the commencement of the war, rendered it indispensable to the objects of justice, that some provision should be made for cases not contem. plated in the resolutions of congress.

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1776.

The commerce of that extensive country had CHAP. I. been principally in the hands of British merchants, and almost exclusively carried on by British capital. In various parts of it, Amer. ican citizens had established a credit with British mercantile houses to a greater or less extent, according to which, goods were shipped to them, which they retailed also on credit. Annual remittances were made to a considerable amount, but there remained always due to the wholesale merchant from the retailer of his goods, a large sum which was in the hands of the planters, who generally preserved a credit equal to their crops. In consequence of the valuable staples possessed by those colonies, this credit was extensive, and these debts amounted to a very considerable sum, The British merchants, to whom they were ulti, mately payable, were now in Europe, and their agents had left the country.

To compel the American merchant by force of penal laws to receive the debt relied on to enable him to discharge that contracted by the original purchase of the goods, in an article which might become worthless; while his res. ponsibility remained, and his debt, unimpaired in value, was accumulating with interest; was deemed an injury to the American citizen, which justice ought to forbid any government to practise. At the same time, therefore, that laws were passed compelling the American to

CHAP. I. receive his debts in paper, he was authorized 1776. to pay those due from him into the public

treasury; and solemnly assured, that this act should discharge him, forever, from the claims of his creditor.

We shall perceive in the sequel, that this coercive system was incapable of producing the object for which it was adopted. The loans probably retarded for a time the progress of depreciation; but taxes not having been imposed early, or so heavily as the public exigences required, the value of the money, in spite of every effort to prevent it, sunk so low, that the denominations of the bills became equal to the loan office certificates, and they in a great degree came also into circulation. After this state of things, loans could no longer be of any utility.

When it is recollected that the parties to the present war had been members of the same empire; that no practical oppression had been generally experienced; but that the contest was a contest of principle, in which a claim was resisted, in its commencement, on the mere ground of right, the pressure of which had not been felt; it will readily be supposed that some contrariety of opinion must have prevailed in every stage of the controversy. In its origin, there were very few who took a decisive part in support of the claims of administration. The opposition was made by

1776.

the most active, energetic, and intelligent; and CHAP. I. being an opposition to taxation, the ultimate consequences of which were neither generally foreseen nor apprehended, was of course very popular; and those who would not then have been willing to encounter the difficulties and dangers afterwards experienced, either joined their countrymen, or suffered themselves to be borne along with the great mass, without inquiring what would be the future result of present measures.

conduct

disaffected.

As the contest assumed a more serious aspect, and became better understood, causes of irritation multiplied, and real injuries were sustained. The number of those who were deter- General mined, at every hazard, to maintain the prin- towards the ciple asserted by America, greatly increased; but the party disaffected to this opposition assumed a more distinct form, and, in many parts of the union, appeared in greater force than had been at first apprehended.

So soon as fears were entertained that the pen might be laid aside, and an appeal be made to the sword, many were found unwilling to encounter the danger and the hazards of the contest; and to be more disposed to admit the supremacy of the British parliament, and trust to their not abusing it, than to risk every thing in order to maintain a principle, not deemed by all of equal importance. These men, who were viewed with infinite contempt and detest

CHAP. I. ation, by those who believed that to submit to 1776. taxation unaccompained by representation was

the essence of slavery, were denominated tories; and were exposed to the resentment of their neighbours, who entertained the prevailing opinions.

The nominal government not having been yet changed, and all concurring in professions of allegiance to the British crown, even after hostilities had commenced; no pains or penalties could be ordained by law for persons of this description; but they were held up as enemies of the liberties to America, after which their condition was worse than if subjected to prosecution according to legal rules, for offences against established laws.

In many places, where their numbers were considerable, they manifested a disposition to take up arms, and to enforce their opinions by the sword. In North Carolina, they collected in a very formidable body, but were soon dispersed; and in New York, similar dispositions were manifested. Great numbers of the inhabitants of what was then termed Tryon county, were disaffected; and general Schuyler marched into the country at the head of a large body of militia, when a negotiation was entered into with sir John Johnson their leader, which terminated in a kind of capitulation, in which sir John, and the tories of his neighbourhood, agreed to surrender their arms, and stipulated