Revolution on $33,000 a day Part 2 (Ep12)
This is the second episode in our three-part series on the financing and supply logistics of the American Revolution. In the first episode, we asked, “Who paid for all this stuff and how did it get to where it was needed?” We described how the Continental Congress funded the war at the start, and did so well enough to permit the military and diplomatic successes of 1777 and 1778. We introduced Philadelphia financier and merchant Robert Morris, one of the richest men in America, who played a key role in both the Continental Congress and the Pennsylvania Assembly in the administration of the war’s supply efforts. But, two years into the war, the wheels started to fall off financially, and Robert Morris’ help was even more urgently needed. This episode covers the period from the second half of 1788 to the Spring of 1781, during which time the Continental dollar and the Pennsylvania currency both depreciated. Congress faced mounting deficits, the populace was hurting from monetary inflation, the soldiers were unpaid, and unrest erupted. This episode ends at a point in 1781 when financial and monetary crises hit both the Continental Congress and the Pennsylvania Assembly. The Continental Congress responded by creating the new role of Superintendent of Finance and named Robert Morris to that position.
Timestamps for major events/discussions:
[01:45] – Recapping the description of the Continental dollar from the last episode
[04:46] – Introducing Pelatiah Webster
[08:23] – The creation of the committee on “ways and means”
[10:10] – Congress makes the Continental dollar legal tender
[21:08] – The Continental dollar ceases to function as a medium of exchange
[25:14] – Political turmoil in the Continental Congress after the Occupation
[28:04] – Political turmoil in the Pennsylvania Assembly post-occupation
[29:42] – Monetary inflation post-occupation
[33:54] – The Fort Wilson Riot
[40:16] – Spain joins the war against Great Britain
[44:59] – The Pennsylvania Line Mutiny
[47:17] – Congress creates the position of Superintendent of Finance
[51:58] – Robert Morris formally accepts the position of Superintendent of Finance
Books to read:
· The Continental Dollar: How the American Revolution was Financed with Paper Money. by Farley Grubb (University of Chicago Press, 2023)
· Robert Morris: Financier of the Revolution, by Charles Rappleye (Simon & Schuster, 2010)
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