Efforts to Redeem the Bills of Credit

For the want of money and credit, the campaign of 1778 was closed at the beginning of autumn, and the Congress felt the necessity of adopting some extraordinary efforts for redeeming the bills of credit. They taxed the several States; and in January, 1779, they called upon them, by a resolution, to "pay in their respective quotas of fifteen millions of dollars," for the current year, and "six millions of dollars annually, for eighteen years, from and after the year 1779, as a fund for sinking the emissions." All efforts were vain. Prices rose as the bills sunk in value, and every kind of trade was embarrassed. The Congress were sorely perplexed. Only about four million dollars had been obtained by loan from Europe, and present negotiations appeared futile. No French army was yet upon our soil; no French coin gladdened the eyes and hearts of the American soldiers, whose pay was much in arrears. A French fleet had, indeed, been upon our coast; but after mocking our hopes with broken promises of support in Rhode Island, had gone to the West Indies to fight battles for France. The Continental bills rapidly depreciated, and early in 1781, became worthless. I have before me an account rendered to Captain Allan McLane, in January, 1781, for merchandise purchased, in which appear the following items, among others: "I pair of boots, $600; 6 yds. chintz, $150 a yard, $900; I skein of thread, $10."

The Congress resumed their sessions in Philadelphia, at the beginning of July, 1778, and in August they began to devote two days each week to a consideration of financial matters. In September they issued fifteen million dollars in bills of credit. Their depreciation became more rapid as the year drew to a close, and the Congress saw no other resource than in loans or subsidies from Europe. They instructed Dr. Franklin to assure the French monarch that they "hoped protection from his power and magnanimity." This humiliating step was not approved by some of the members of Congress, because they were unwilling to have their country placed under the protection of any foreign power which was likely to be the protection of the lamb by the wolf. Eight States voted for the measure. Aid was hoped for from the Netherlands, and Henry Laurens was sent to the Hague to negotiate a loan.

The estimated expenses of the government of the United States for the year 1779 was over sixty million dollars in paper money, for which no adequate provision was made. A knowledge of these financial embarrassments gave the British ministry hopes of a speedy wreck of the cause of the republicans, and Germain prepared to carry on the war with relentless rigor. The Congress abandoned the wild scheme for the conquest of Canada; and they called Washington from his headquarters at Middlebrook to confer with them about the campaign for 1779. His troops were cantoned in a line of posts of observation, extending from the Delaware, by way of the Hudson Highlands, to the Connecticut line. It was resolved by the Congress and the commander-in-chief to act on the defensive only, except in retaliatory expeditions against the Indians and Tories. This policy was pursued in the north, and the chief efforts of the Americans were directed to the confinement of the British army to the seaboard, and chastising the Indian tribes.

The winter campaign opened at Savannah by Lieutenant-Colonel Campbell at the close of December, continued until late in the spring, and resulted in the complete subjugation of Georgia to British rule. The British authorities had planned this campaign with great care. Troops were to take possession of Savannah and subdue Georgia. Five thousand additional troops were to be landed at Charleston. The Indians in Florida and Alabama were to be brought upon the frontier settlements, and these were to be joined by warriors to be sent down from the northwest by the commandant at Detroit. A force sufficient to protect the Loyalists and restore government in North Carolina were to be landed on the banks of the Cape Fear River. Then by judicious operations in Virginia and Maryland, Germain confidently expected to bring all Americans below the Susquehanna River to allegiance to the British crown.

In the autumn of 1778, General Prevost, who was in command of some British regulars, Tories and Indians, in East Florida, sent from St. Augustine two expeditions into Florida. One of these made an extensive raid, carrying off negro slaves, grain, horses, and horned cattle; destroying crops and burning the village of Midway; the other appeared before the fort at Sunbury, and demanded its surrender. Colonel Mackintosh, the commander of the garrison, said, "Come and take it," when the invaders retreated. These incursions caused General Robert Howe to lead an expedition against St. Augustine. On the banks of the St. Mary's River, a malarious disease swept away a quarter of his men. After a little skirmishing, he led the survivors back to Savannah, and these composed the handful of dispirited men who confronted Campbell at Brewton's Hill. The expulsion of Howe from Savannah was soon followed by the arrival of Prevost, who came up from Florida, captured the fort at Sunbury on the way (January 9, 1779), and assumed the chief command of the British troops in the South. The combined forces of Prevost and Campbell numbered about three thousand men.