The Critical Period of American HistoryFiske, John
History
The Critical Period of American History
Fiske, John
United States -- History -- Confederation, 1783-1789
Impossible as Congress found it to fill the quotas of the army, the task
of raising a revenue by requisitions upon the states was even more
discouraging. Every state had its own war-debt, and several were
applicants for foreign loans not easy to obtain, so that none could
without the greatest difficulty raise a surplus to hand over to
Congress. The Continental rag-money had ceased to circulate by the end
of 1780, and our foreign credit was nearly ruined. The French government
began to complain of the heavy demands which the Americans made upon its
exchequer, and Vergennes, in sending over a new loan in the fall of
1782, warned Franklin that no more must be expected. To save American
credit from destruction, it was at least necessary that the interest on
the public debt should be paid. For this purpose Congress in 1781 asked
permission to levy a five per cent. duty on imports. The modest request
was the signal for a year of angry discussion. Again and again it was
asked, If taxes could thus be levied by any power outside the state, why
had we ever opposed the Stamp Act or the tea duties? The question was
indeed a serious one, and as an instance of reasoning from analogy
seemed plausible enough. After more than a year Massachusetts consented,
by a bare majority of two in the House and one in the Senate, reserving
to herself the right of appointing the collectors. The bill was then
vetoed by Governor Hancock, though one day too late, and so it was
saved. But Rhode Island flatly refused her consent, and so did Virginia,
though Madison earnestly pleaded the cause of the public credit. For
the current expenses of the government in that same year $9,000,000 were
needed. It was calculated that $4,000,000 might be raised by a loan, and
the other $5,000,000 were demanded of the states. At the end of the year
$422,000 had been collected, not a cent of which came from Georgia, the
Carolinas, or Delaware. Rhode Island, which paid $38,000, did the best
of all according to its resources. Of the Continental taxes assessed in
1783, only one-fifth part had been paid by the middle of 1785. And the
worst of it was that no one could point to a remedy for this state of
things, or assign any probable end to it.
[Sidenote: Dread of the army.]
[Sidenote: Supposed scheme for making Washington king.]
Public-domain text, read in full here on John Shaqi.
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