 Section 7 of History of the United States, Part II. History of the United States, by Charles A. Beard, and Mary Ritter Beard, Part II. Section 7. The Finances of the Revolution When the revolution opened, there were thirteen little treasuries in America, but no common treasury, and from first to last the Congress was in the position of a beggar rather than a sovereign. Having no authority to lay and collect taxes directly, and knowing the hatred of the provincials for taxation, it resorted mainly to loans and paper money to finance the war. Quote, Do you think, boldly inquired one of the delegates, that I will consent to load my constituents with taxes when we can send to the printer and get a wagon load of money, one choir of which will pay for the whole?" Paper Money and Loans Acting on this curious but appealing political economy, Congress issued in June 1776 two million dollars in bills of credit to be redeemed by the states on the basis of their respective populations. Other issues followed in quick succession. In all, about two hundred and forty-one million dollars of continental paper was printed, to which the several states added nearly two hundred and ten million dollars of their own notes. Then came interest-bearing bonds in ever-increasing quantities. Several millions were also borrowed from France and small sums from Holland and Spain. In desperation a national lottery was held, producing meager results. The property of Tories was confiscated and sold, bringing in about sixteen million dollars. Begging letters were sent to the states, asking them to raise revenues for the continental treasury, but the states, burdened with their own affairs, gave little heed. Inflation and Depreciation This paper money flowed from the press, it rapidly declined in purchasing power, until in 1779 a dollar was worth only two or three cents in gold or silver. Attempts were made by Congress and the states to compel people to accept the notes at face value, but these were like attempts to make water flow uphill. Speculators collected at once to fatten on the calamities of the Republic. Attempts were made and lost, gambling on the prices of public securities, while the Patriot Army, half-clothed, was freezing at Valley Forge. Quote, speculation, speculation, engrossing, forestalling, exclaimed Washington, affored too many melancholy proofs of the decay of public virtue. Nothing I am convinced, but the depreciation of our currency, aided by stock-jobbing and party dissensions, has fed the hopes of the enemy." The Patriot Financiers To the efforts of Congress in financing the war were added the labors of private citizens. Hain Solomon, a merchant of Philadelphia, supplied members of Congress, including Madison, Jefferson and Monroe, and Army officers like Lee and Steuben, with money for their daily needs. All together he contributed the huge sum of half a million dollars to the American cause and died broken in purse, if not in spirit, a British prisoner of war. Another Philadelphia merchant, Robert Morris, won for himself the name of Patriot Financier, because he labored night and day to find the money to meet the bills which poured in upon the bankrupt government. When his own funds were exhausted, he borrowed from his friends. Experienced in the handling of merchandise, he created agencies at important points to distribute supplies to the troops, thus displaying administrative as well as financial talents. Women organized drives for money, contributed their plate and their jewels, and collected from door to door. The labors took worthless paper in return for their produce, and soldiers saw many a payday pass without yielding them a penny. Thus by the labors and sacrifices of citizens, the issuance of paper money, lotteries, the floating of loans, borrowings in Europe, and the impressment of supplies, the Congress staggered through the revolution like a popper who knows not how his next meal is to be secured, but is continuously relieved at a crisis by a kindly fate. The Diplomacy of the Revolution When the full measure of honor is given to the soldiers and sailors and their commanding officers, the civilians who managed finances and supplies, the writers who sustained the American spirit, and the women who did well their part, there yet remains the duty of recognizing the achievements of diplomacy. The importance of this field of activity was keenly appreciated by the leaders in the Continental Congress. They were fairly well versed in European history, they knew of the balance of power and the sympathies, interests, and prejudices of nations and their rulers. All this information they turned to good account, in opening relations with Continental countries and seeking money, supplies, and even military assistance. For the transaction of this delicate business they created a secret committee on foreign correspondence as early as 1775, and prepared to send agents abroad. American agents sent abroad. Having heard that France was inclining a friendly ear to the American cause, the Congress in March 1776 sent a commissioner to Paris, Silas Dean of Connecticut, often styled as the first American diplomat. Later in the year a form of treaty to be presented to foreign powers was drawn up, and Franklin, Arthur Lee, and Dean were selected as American representatives at the court of his most Christian majesty, the King of France. John Jay of New York was chosen minister to Spain in 1779. John Adams was sent to Holland the same year, and other agents were dispatched to Florence, Vienna, and Berlin. The representatives selected for St. Petersburg spent two fruitless years there, quote, ignored by the court, living in obscurity, and experiencing nothing but humiliation and failure, unquote. Frederick the Great, King of Prussia, expressed a desire to find in America a market for Silesian linens and woolens, but fearing England's command of the sea, he refused to give direct aid to the revolutionary cause. Early French interest. The great diplomatic triumph of the revolution was won at Paris, and Benjamin Franklin was the hero of the occasion, although many circumstances prepared the way for his success. Louis the 16th's foreign minister, Count de Vergen, before the arrival of any American representative, had brought to the attention of the King the opportunity offered by the outbreak of the war between England and her colonies. He showed him how France could redress her grievances, and, quote, reduce the power and greatness of England, unquote. The empire that in 1763 had forced upon her a humiliating peace, quote, at the price of our possessions, of our commerce, and our credit in the Indies, at the price of Canada, Louisiana, Isle Royale, Acadia, and Senegal, unquote. Equally successful in gaining the King's interest was a curious French adventurer, Omar Shea, a man of wealth, a lover of music, and the author of two popular plays, Figaro and the Barber of Seville. These two men had already urged upon the King secret aid for America, before Dean appeared on the scene. Shortly after his arrival they made confidential arrangements to furnish money, clothing, powder, and other supplies to the struggling colonies, although official requests for them were officially refused by the French government. Franklin at Paris When Franklin reached Paris he was received only in private by the King's minister, Virgin. The French people, however, made manifest their affection for the plain Republican in his full dress suit of spotted Manchester velvet. He was known among men of letters as an author, a scientist, and a philosopher of extraordinary ability. His poor Richard had thrice been translated into French, and was scattered in numerous editions throughout the kingdom. People of all ranks, ministers, ladies at court, philosophers, peasants, and stable boys knew of Franklin and wished him success in his mission. The Queen, Marie Antoinette, faded to lose her head in a revolution soon to follow, played with fire by encouraging our dear Republican. For the King of France, however, this was more serious business. England resented the presence of this traitor in Paris, and Louis had to be cautious about plunging into another war that might also end disastrously. Moreover the early period of Franklin's sojourn in Paris was a dark hour for the American Revolution. Franklin's brilliant exploit at Trenton on Christmas night, 1776, and the battle with Cornwallis at Princeton had been followed by the disaster at Brandywine, the loss of Philadelphia, the defeat at Germantown, and the retirement to Valley Forge for the winter of 1777-1778. New York City and Philadelphia, two strategic ports, were in British hands, the Hudson and Delaware Rivers were blocked, and General Burgoyne, with his British troops, was on his way down through the heart of northern New York, cutting New England off from the rest of the colonies. No wonder the King was cautious. Then the unexpected happened. Burgoyne hemmed in from all sides by the American forces, his flanks harried, his foraging parties beaten back, his supplies cut off, surrendered on October 17, 1777, to General Gates, who had superseded General Shuler, in time to receive the honor. Treaties of Alliance and Commerce, 1778. News of this victory, placed by historians among the fifteen decisive battles of the world, reached Franklin one night, early in December, while he and some friends sat gloomily at dinner. Beaumarchais, who was with him, grasped at once the meaning of the situation, and set off to the court at Versailles, with such haste that he upset his coach and dislocated his arm. The King and his ministers were at last convinced that the hour had come to aid the Revolution. Treaties of Commerce and Alliance were drawn up and signed in February 1778. The independence of the United States was recognized by France, and an alliance was formed to guarantee that independence. Combined military action was agreed upon, and Louis then formally declared war on England. Men who had a few short years before fought one another in the wilderness of Pennsylvania, war on the plains of Abraham, were now ranged side by side in a war on the empire that Pitt had erected, and that George III was pulling down. Spain and Holland involved. Within a few months Spain, remembering the steady decline of her sea power since the days of the Armada, and hoping to drive the British out of Gibraltar, once more joined the Concert of Nations against England. England, a member of a league of armed neutrals, formed in protest against British searches on the high seas, sent her fleet to unite with the forces of Spain, France, and America to prey upon British commerce. To all this trouble for England was added the danger of a possible revolt in Ireland, where the spirit of independence was flaming up. The British offered terms to America. Being the colonists about to be joined by France in a common war on the English empire, Lord North proposed, in February 1778, a renewal of negotiations. By solemn enactment Parliament declared its intention not to exercise the right of imposing taxes within the colonies, at the same time it authorized the opening of negotiations through commissioners to be sent to America. A truce was to be established, pardons granted, objectionable laws suspended, and the old imperial constitution, as it stood before the opening of hostilities, restored to full vigor. It was too late. Events had taken the affairs of America, out of the hands of British commissioners and diplomats. EFFECTS OF FRENCH AID The French alliance brought ships of war, large sums of gold and silver, loads of supplies, and a considerable body of trained soldiers to the aid of the Americans. Timely as was this help, it meant no sudden change in the fortunes of war. The British evacuated Philadelphia in the summer following the alliance, and Washington's troops were encouraged to come out of Valley Forge. They inflicted a heavy blow on the British at Monmouth, but the reasonable conduct of General Charles Lee prevented a triumph. The recovery of Philadelphia was offset by the treason of Benedict Arnold, the loss of Savannah and Charleston, 1780, and the defeat of Gates at Camden. The full effect of the French alliance was not felt until 1781, when Cornwallis went into Virginia and settled at Yorktown. Accompanied by French troops, Washington swept rapidly southward, and penned the British to the shore, while a powerful French fleet shot off their escape by sea. It was this movement, which certainly could not have been executed without French aid, that put an end to all chance of restoring British dominion in America. It was the surrender of Cornwallis at Yorktown that caused Lord North to pace the floor and cry out, quote, it is all over, it is all over, unquote. What might have been done without the French alliance lies hidden from mankind. What was accomplished with the help of French soldiers, sailors, officers, money and supplies is known to all the earth, quote, all the world agree, exultantly wrote Franklin from Paris to General Washington, that no expedition was ever better planned or better executed. It brightens the glory that must accompany your name to the latest posterity, unquote. Diplomacy as well as Marshall Valor had its reward. Section 8 of History of the United States, Part 2 by Charles and Mary Beard. Read by M. L. Cohen, Cleveland, Ohio, June 2007. A History of the United States, Part 2, Section 8. Peace at Last and Summary of the American Revolution. Peace at Last. British Opposition to the War In measuring the forces that led to the final discomforture of King George and Lord North, it is necessary to remember that from the beginning to the end the British Ministry at home faced a powerful, informed and relentless opposition. There were vigorous protests, first against the obnoxious acts which precipitated the unhappy quarrel, then against the way in which the war was waged, and finally against the futile struggle to retain a hold upon the American dominions. Among the members of parliament who thundered against the government were the first statesmen and orators of the land. William Pitt, Earl of Chatham, though he deplored the idea of American independence, denounced the government as the aggressor and rejoiced in American resistance. John Burke leveled his heavy batteries against every measure of coercion, and at last drove for a peace which, while giving independence to America, would work for reconciliation rather than estrangement. Charles James Fox gave the colonies his generous sympathy, and warmly championed their rights. Outside of the circle of statesmen, there were stout friends of the American cause like David Hume, the philosopher and historian, and Catherine Macaulay, an author of wide fame and Republican bold enough to encourage Washington in seeing it through. Against this powerful opposition, the government enlisted a whole army of scribes and journalists to pour out criticism on the Americans and their friends. Dr. Samuel Johnson, whom he employed in this business, was so savage that even the ministers had to tone down his pamphlets before printing them. Far more weighty was Edward Gibbon, who was in time to win fame as the historian of the decline and fall of the Roman Empire. He had at first opposed the government. But on being given a lucrative post, he used a sharp pen in its support, causing his friends to ridicule him in these lines. King George in a fright, lest Gibbon should write the story of England's disgrace, though no way so sure his pen to secure as to give the historian a place. Lord North yields. As time wore on, the events bore heavily on the side of the opponents of the government's measures. They had predicted the conquest was impossible, and they had urged the advantages of a peace which would in some measure restore the affections of the Americans. Every day's news confirmed their predictions and led support to their arguments. Moreover, the war which sprang out of an effort to relieve English burdens made those burdens heavier than ever. Military expenses were daily increasing. Trade with the colonies, the greatest single outlet for British goods and capitals, was paralyzed. The heavy debts due British merchants in America were not only unpaid, but postponed into an indefinite future. Ireland was on the verge of revolution. The French had a dangerous fleet on the high seas. In vain did a king assert in December 1781 that no difficulties would ever make him consent to a peace that meant American independence. Parliament knew better, and on February 27, 1782, in the House of Commons was carried an address to the throne against continuing the war. Burke, Fox, the younger pit, Barré, and other friends of the colonies voted in the affirmative. Lord North gave notice then that his ministry was at an end. The king moaned, necessity made me yield. In April 1782, Franklin received word from the English government that it was prepared to enter into negotiations leading to a settlement. This was embarrassing. In the Treaty of Alliance with France, the United States had promised that peace should be a joint affair agreed to by both nations in open conference. Finding France, however, opposed to some of their claims respecting boundaries and fisheries, the American commissioners conferred with the British agents at Paris without consulting the French minister. They actually signed a preliminary peace-trap before they informed him of their operations. When Verganes reproached him, Franklin replied that they, quote, had been guilty of neglecting by séance, good manners, but hoped that the great work would not be ruined by a single indiscretion, end quote. The Terms of Peace, 1783. The general settlement to Paris in 1783 was a triumph for America. England recognized the independence of the United States, naming each state specifically, and agreed to boundaries extending from the Atlantic to the Mississippi and from the Great Lakes to the Florida's. England held Canada, Newfoundland, and the West Indies intact, it gains in India and maintained her supremacy on the seas. Spain won Florida and Menorca, but not the coveted Gibraltar. France gained nothing important, saved the satisfaction of seeing England humbled and the colonies independent. The generous term secured by the American commission of Paris called for a surprise and gratitude in the United States and smoothed the way for renewal of commercial relations with the mother country. At the same time, they gave genuine anxiety to European diplomats, quote, this federal republic is born a pygmy, end quote, wrote the Spanish ambassador to his royal master, quote, a day will come when it will be a giant, even a colossus formidable to these countries. Liberty of conscience and a facility for establishing a new population on immense lands, as well as the advantages of the new government, will draw thither farmers and artisans from all the nations. In a few years we shall watch with grief the tyrannical existence of the same colossus, end quote, summary of the revolutionary period. The independence of the American colonies was foreseen by many European statesmen as they watched the growth of their population, wealth, and power, but no one could fix the hour of the great event. Until 1763, the American colonists lived fairly happily under British dominion. There were collisions from time to time, of course. Royal governors clashed with stiff-neck colonial legislatures. There were protests against the exercise of the king's veto power in specific cases. Nevertheless, on the whole the relations between America and the mother country were more amicable in 1763 than at any period under the Stuart regime which closed in 1688. The crash, when it came, was not deliberately willed by anyone. It was the product of a number of forces that happened to converge about 1763. Three years before, there had come to the throne George III, a young, proud, inexperienced, and stubborn king. For nearly 50 years as predecessors, Germans as they were in language and interest had allowed things to drift in England and America. George III decided that he would be king, in fact, as well as a name. About the same time, England bought to a close the long and costly French and Indian war and was staggering under a heavy burden of debt and taxes. The war had been fought partly in defense of the American colonies and nothing seemed more reasonable to English statesmen than the idea that the colonies should bear part of the cost of their own defense. At this juncture that came into prominence in royal councils, two men bent on taxing America and controlling their trade, Greenville and Townsend. The king was willing, the English taxpayers were thankful for any promise of release, and statesmen were found to undertake the experiment. England therefore set out upon a new course. She imposed taxes upon the colonists, regulated their trade, and set royal officers upon them to enforce the law. This action evoked protest from the colonists. They held a stamp-back Congress to declare their rights and petition for a redress of grievances. Some of the more restless spirits rioted in the streets, sacked the houses of the king's officers, and tore up the stamped paper. Frightened by the uprising, the English government drew back and repealed the stamp-back. Then it veered again and renewed its policies of interference. Interference again called forth American protests. Protests aroused show pre-retaliation. More British regulars were sent in to keep order. More irritating laws were passed by parliament. Riding again appeared. Tea was dumped in the harbor of Boston and seized in the harbor of Charleston. The British answer was more force. The response of the colonists was a continental Congress for defense. An unexpected and unintended clash of arms at Lexington and Concord in the spring of 1775, bought forth the king from England to proclamation. Quote, the Americans are rebels. End quote. The die was cast. The American revolution had begun. Washington was made commander-in-chief. Armies were raised. Money was borrowed. A huge volume of paper currency was issued, and foreign aid was summoned. Franklin applied his diplomatic arts at Paris. Until in 1778, he induced France to throw her sword into the balance. Three years later, Cornwallis surrendered Yorktown. In 1783, by the formal treaty of peace, George III acknowledged the independence of the United States. The new nation, endowed with an imperial domain stretching from the Atlantic Ocean to the Mississippi River, began its career among the sovereign powers of the earth. In the sphere of civil government, the results of the revolution were equally remarkable. Royal officers and royal authorities were driven from the former dominions. All power was declared to be in the people. All the colonies became states, each with its own constitution or plan of government. The 13 states were united in common bonds under the Articles of Confederation. A republic on a large scale was instituted. Thus there was begun an adventure in popular governments such as the world had never seen. Could it succeed? Or was it destined to break down and be supplanted by a monarchy? The fate of whole continents hung upon the answer. References J. Fisk, The American Revolution, Two Volumes H. Lodge, Life of Washington, Two Volumes W. Sumner, The Financier and the Finances of The American Revolution O. Trevelyan, The American Revolution, Four Volumes A sympathetic account by an English historian M. C. Tyler, Literary History of The American Revolution, Two Volumes C. H. Van Tyne, The American Revolution Perenn's American Nation Series and Perenn's and The Loyalists in The American Revolution Questions What was the non-importation agreement? By what body was it adopted? Why was it revolutionary in character? Two Contrast the work of the first and second continental congresses Three Why did efforts at conciliation fail? Four Trace the growth of the American independence from opinion to the sphere of action Five Why is the Declaration of Independence an immortal document? Six What was the effect of the revolution on colonial governments? A national union Seven Describe the contest between, quote, Patriots and, quote, Tories Eight What topics are considered, under, quote, military affairs? Discuss each in detail Nine Contrast the American forces with the British forces and show how the war was won Ten Compare the work of women in the Revolutionary War with their labors in the World War, 1917 to 18 Eleven How was the revolution financed? Twelve Why is diplomacy important in war? Describe the diplomatic triumph of the revolution Thirteen What was the nature of the opposition in England to the war? Fourteen Give the events connected with the peace settlement in terms of peace Research topics The spirit of America would draw Wilson history of the American people, volume two, pages 98 to 126 American rights Draw up a table showing all the principles laid down by American leaders in one The resolves of the First Continental Congress, McDonald, documentary source book, page 162 to 166 and two, Declaration of Causes and the Necessity of Taking Up Arms, McDonald, page 176 to 183 and three, the Declaration of Independence The Declaration of Independence, FISC, the American Revolution, volume one, page 147 to 197 Elson, history of the United States, pages 250 to 254 Diplomacy in the French Alliance, Hart, American history told by contemporaries, volume two, pages 574 to 590 FISC, volume two, pages 1 to 24, Calendar, Economic History of the United States, page 159 to 168 Elson, pages 275 to 280 Biographical Studies, Washington, Franklin, Samuel Adams, Patrick Henry Thomas Jefferson emphasizing the peculiar services of each The Tories, Hart, contemporaries, volume two, pages 470 to 480 Valley Forge, FISC, volume two, pages 25 to 49 The Battles of the Revolution, Elson, pages 235 to 317 An English View of the Revolution, Green, Short History of England, chapter 10, section 2 and finally, English Opinion and the Revolution Chevalion, the American Revolution, volume three, or part two, volume two, chapters 24 through 27 End, section eight, History of the United States, part two, and History of the United States, part two, by Charles A. and Mary Beard