At the Court of St. James, John Adams was having no better luck in
pressing the rights of the moribund Confederation. Notwithstanding the
explicit terms of the Treaty of 1783, British garrisons still held
strategic posts along the Great Lakes, exercising a strong influence
upon the Indians and guarding the interests of British fur traders. Such
a situation would have been intolerable to a self-respecting nation.
Smothering his pride, Adams mustered all the diplomacy which his nature
permitted and sought an explanation of this extraordinary conduct from
the ministers. He was finally told that he need not expect Great Britain
to relinquish the Western posts so long as the States continued to put
obstacles in the way of the collection of British debts.
A general reluctance to meet financial obligations was a deplorable
aspect of the depression to which American society had succumbed. In all
the States there was a more or less numerous class of debtors who were
convinced that the Government could help them out of all their
distresses. As the cause of all their woes was the scarcity of money,
why, let the Government manufacture money and so put an end to the
stringency. What Madison called "the general rage for paper money"
seized upon Rhode Island, New Jersey, Pennsylvania, the Carolinas, and
Georgia. Coupled with paper-money acts were others designed to alleviate
the distress of the unfortunate. Stay laws of one sort or another were
devised to keep the wolf, in the guise of the sheriff, from the door.
Legal-tender acts made cattle and produce equivalent to money when
offered in payment of debts. Nor was this legislation inspired
altogether by dishonest intent. Many believed with Luther Martin, of
Maryland, that there were times of great public distress and extreme
scarcity of specie when it was the duty of the Government to pass stay
laws and legal-tender acts, "to prevent the wealthy creditor and the
moneyed man from totally destroying the poor, though even industrious,
debtor."
No State suffered more from the paper-money aberration than Rhode
Island. Under pressure from the radical elements the legislature passed
an act for the emission of bills of credit which were to be issued to
any freeholder who would offer as security real estate of any sort to
double the amount of the loan. "Many from all parts of the State made
haste to avail themselves of their good fortune, and mortgaged fields
strewn thick with stones and covered with cedars and stunted pines for
sums such as could not have been obtained for the richest pastures." But
when they sought their creditors, not a merchant nor a shop-keeper could
be found. Nobody fished to have a just debt discharged in such currency.
Not to be thwarted in their purpose, the radicals then enacted a law
which threatened with a summary trial and a heavy fine any one who
refused to accept paper money in payment of debt.
Public-domain text, read in full here on John Shaqi.
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