In 1745, after a successful campaign against
Louisburg and the taking of that fortress, two million pounds of paper
money were issued, which step decreased its value. When liquidation
occurred these paper pounds were not worth 10 per cent. of their face
value.
The War of Independence obliged Congress to issue three million of paper
dollars. This amount increased to $160,000,000, so that Congress
declared, in 1779, that it would not issue more than $200,000,000.
Notwithstanding this guaranty, notwithstanding the forced and legal
rating conferred by this enactment, notwithstanding the war spirit, it
depreciated; and in 1779 it was necessary to decree that, disregarding
its normal value, it should be taken at its face. In 1780 it was no
longer taken for customs dues. In 1781 it had no rating and was not even
taken at 1 per cent. of its face value.
Between 1776 and 1780 the issue of paper money increased to $359,000,000.
BANK OF NORTH AMERICA.--In 1781 Mr. Morris, Treasurer, persuaded
Congress to form a bank (the Bank of North America) with a capital of
$10,000,000, of which $400,000 should be turned over to help the
national finances.
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