A first book in American history with European beginnings . years it kepthim in intimate touch with Washington and cemented thefriendship between them. DEPRECIATION OF THE CURRENCY The affairs of the Government, after the close of thewar, were in a disheartening condition. The soldiers wereunpaid. Congress had no power to raise money by taxa-tion, had not even the power to protect the lives andproperty of the citizens. Commerce was at a low states, jealous of each other, fell to quarreling andbickering. The only way in which Congress was allowed to raisemoney for its many debts was by
A first book in American history with European beginnings . years it kepthim in intimate touch with Washington and cemented thefriendship between them. DEPRECIATION OF THE CURRENCY The affairs of the Government, after the close of thewar, were in a disheartening condition. The soldiers wereunpaid. Congress had no power to raise money by taxa-tion, had not even the power to protect the lives andproperty of the citizens. Commerce was at a low states, jealous of each other, fell to quarreling andbickering. The only way in which Congress was allowed to raisemoney for its many debts was by making requisitions onthe states. These requisitions were paid grudgingly by 260 ALEXANDER HAMILTON some of the states; by others not at all. And Congresshad no power to enforce payment. The distress of the country was great. Almost everyone was in debt. Between 1775 and 1780 the ContinentalCongress had issued paper money to the amount of about$200,000,000. But it is not enough merely to print paperand call it money. People will not accept it as money at. Continental Bills. its face value unless it represents gold or silver—some-thing of value which can be had in exchange for this printedpaper. Because there was no gold or silver behind thepaper money of Congress, it rapidly fell in value until, in1780, a man had to pay forty dollars in paper money forwhat would cost one dollar in gold or silver. And laterin the South it cost one thousand of Congresss paperdollars to buy one gold dollars worth of goods. This 261 A FIRST BOOK IN AMERICAN HISTORY depreciated paper money gave rise to the expression notworth a continental. Besides the worthless paper money issued by Congress,there was also the paper money issued by most of thestates. This added to the confusion. As there was noGovernment mint, practically the only coins in use, besidesa few pennies, were foreign coins. It was not always easyto be sure what these foreign coins were worth, and anymoderately cautious man had to keep
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