REPORT OF NEW JERSEY STATE MUSEUM. 15 



The rate of exchange for hard money in Philadelphia from January, 1777. 

 was l^^ and in May, 1781, was 500. On the 31st of May, 1781, the Con- 

 tinental bills ceased to circulate as money, but were afterwards bought on 

 speculation at various prices, from four hundred for one up to one thousand 

 for one. 



The value for Continental paper money was not the same in different 

 parts of the country. The exchange was, for example, December 25, 1779, 

 at thirty-five for one in New England, New York, the Carolinas and Geor- 

 gia, and at forty for one in Pennsylvania, New Jersey, Delaware, Maryland 

 and Virginia. As late as May, 1781, speculations were entered into at Phila- 

 delphia to purchase Continental money at two hundred and twenty-five for 

 one and sell it at Boston at seventy-five for one. 



It is worthy of remark that the depreciation of Continental money never 

 stopped the circulation of it. As long as it retained any value at all it passed 

 quick enough, and would purchase hard money or anything else as readily as 

 ever when the exchange was two hundred for one and when every hope or 

 even idea of its being ultimately redeemed at nominal value had entirely van- 

 ished. According to an estimate by the Register of the Treasury of 1790, the 

 issues of the Continental money amounted to $359,547,027.25 from 1775 to 

 1781, when the circulation ceased. 



The Continental money was in its true character a simple evidence of 

 debt due by the Government, when the Continental money was first issued. 

 .\n expression of doubt as to its value involved suspicion of disaffection to 

 the cause of the country. As the issue increased the prices of goods neces- 

 sarily rose, but this was attributed to combination of the merchants to raise 

 prices of their merchandise and to sink the value of Continental money. 

 They were called Tories, speculators and many other hard names, and their 

 stores were forcibly broken open and their goods sold at limited prices by 

 committees of the neighbors. 



On January 11, 1776, Congress resolved that whoever should refuse to 

 receive in payment Continental bills, should be declared and treated as an 

 enemy of his country and be precluded from intercourse with its inhabitants ; 

 in other words outlawed. 



Other various acts were passed from time to* time during the next five 

 years to force the people to take Continental money. Maay thousand fam- 

 ilies of full and easy fortunes were ruined by these fatal measures, and 

 the loss mostly fell on the Whigs, as it was in their hands when the paper 

 depreciated. 



The Tories, who had no confidence in it from the beginning, made it a rule 

 to part with it as soon as possible. Certain compulsory measures of the 

 Executive Council of Pennsylvania designed to support the credit of the 

 Continental money and of the State bills gave the fatal blow to the system 

 in May, 1781. 



C. J. Baxter, Ex-President of the Museum. 



When Dr. A. B. Poland, now City Superintendent of Newark 

 Public Schools, resigned as State Superintendent of New Jersey 



