son, in trust for the United Colonies." was also resolved that "the provincial assemblies or conventions do each choose a treasurer for their respective colonies;" that each should take measures for sinking its proportion of the bills ordered; and each to pay its respective quota in four annual payments. In December following, when other issues of bills had been ordered, these pledges of a sort of national faith were renewed by Congress. It and settlement. Such was the germ of the Treasury Department of the Republic, as it appeared when the declaration of the independence of the colonies was made at midsummer, 1776. The colonies now having assumed a national character, imitated predecessors of the family of kingdoms and commonwealths by offering their government as a borrower in the markets of the world. In the autumn the Committee on Finance, or Board of Treasury, as it was now called, recommended the borrowing of "five hundred thousand dollars for the use of the United States." Congress, on the 3d of October, resolved to do it, at the rate of four per cent. a year; and for that purpose a loan-office was established in each State, with a commissioner for its management appointed by each State. Certificates were issued by the Treasury Department to the amount of five million dol lars, in sums of three hundred, four hundred, five hundred, six hundred, and one thousand dollars, in the following form: -9 A.D. - day of The respective States were recommended to annex such penalties, by law, to the crime of counterfeiting these certificates as were annexed to the crime of counterfeiting the Continental currency. Wise men clearly saw the vital defects of the loose system of government under which war was to be waged with a powerful enemy, and the precarious nature of the sources of supply of money-the "sinews of war"-for the Treasury, and indulged the most gloomy apprehensions. They were anxious for the establishment of a National Government. So early as the 21st of July Dr. Franklin, who, more than twenty years before, had framed a plan of government having many features in common with that established in 1789, submitted an outline of a confederation of the colonies under a federal head and in November following the clear"The United States of America acknowledge the sighted Massachusetts patriot, Joseph Hawley, to pay to the said receipt of dollars from, which they promise or bearer, on the day of wrote to Samuel Adams, in Congress, saying, in with interest annually, at the rate of four per view of the certainty that reconciliation with cent. per annum, agreeable to a resolution of the UnitGreat Britain on terms honorable to the col-ed States, passed the 3d day of October, 1776. Witonists was out of the question: "It is time for ness the hand of the Treasurer, this your body to fix on periodical annual elections -nay, to form into a parliament of two houses." Desires for an efficient government, thus expressed, were almost universal, and increased with the exigencies of the public service as the war went on. The subject of ways and means for waging the war pressed more and more heavily upon the attention of Congress, until it was apparent that some more efficient system of finance than had been employed should be adopted. Accordingly, on the 17th of February, 1776, a standing committee of five was appointed for superintending the Treasury. That committee was composed of James Duane, Thomas Nelson, Elbridge Gerry, Richard Smith, and Thomas Willing. They were invested with ample discretionary powers to provide for all the wants of the Treasury; and in April following a "Treasury-office of accounts" was instituted, to be kept in such place where Congress should from time to time be assembled and hold session. This office was under the direction of the standing committee for the Treasury. An auditor-general and a competent number of assistants and clerks were appointed, and Congress directed that "all accounts and claims against the United Colonies for service or supplies" should be presented at the Treasury-office; that "all contracts, securities, and obligations for the use and benefit of the United Colonies" should be lodged in that office; that "all assemblies, conventions, councils, committees of safety, commissaries, paymasters, and others intrusted with public moneys" should, when called upon by the Committee of the Treasury, produce their accounts, with vouchers, at the Treasury-office for adjustment Not long after the authorization of the loanoffices the Committee of Ways and Means, consisting of delegates Johnson, Hewes, Gerry, R. Morris, Ward, and Wythe, recommended another scheme for raising money. Congress approved it, and on the 1st of November, 1776, resolved "that a sum of money be raised, by way of lottery, for defraying the expenses of the next campaign, the lottery to be drawn in Philadelphia." The Committee of Ways and Means were ordered to prepare the plan of a lottery. They did so, reported it to Congress, and the following scheme was adopted: That it consist of one hundred thousand tickets, each ticket to be divided into four billets, and to be drawn in four classes. FIRST CLASS, at $10 each billet.. Deduction at 15 per cent. Prizes. $1,000,000 150,000 850,000 30 of 1 of $10,000.. $10,000 10,000 30,000 400 of 500. 200,000 20,000 of 20.. 400,000 Carried to the 4th Class... 500,000...... $1,700,000 3,000,000 15,000 of 65...... 1,300,000 $3,000,000 |tinental bills being worth only one hundred dol- 200,000 5,000,000 The failure of this, as well as other financial $5,000,000 schemes of the Continental Congress, was proThis lottery was intended to raise a sum of ductive of much hard feeling among holders of money, on loan, bearing an annual interest of promises; yet the patriotic people, with fortifour per cent. The adventurers in the first tude unparalleled, stood by their chosen repreclass who should draw more than twenty dol-sentatives at that perilous hour in whatever they lars, and so in the second and third classes who should draw more than thirty or forty dollars, were to receive either a Treasury bank-note, payable in five years, with an annual interest at four per cent., or the pre-emption of such billets in the next succeeding class. This was optional with the adventurers. Those who should not call for their prizes within six weeks after the end of the drawing were considered adventurers in the next succeeding class. The first day of the ensuing March (1777) was appointed as the time, and Philadelphia the place, for the first drawing of the lottery, but it was then found that few tickets had been sold. The drawing was postponed. Other postponements ensued for the same reason. The Continental currency was beginning to depreciate. It was nine per cent. below par on the day appointed for the first drawing of the lottery, and at the close of the year it was two hundred and twenty-five per cent. below parthree hundred and twenty-five dollars in Con undertook for the public good. There was no blighting Peace Faction working in secret to thwart their efforts. Their domestic enemies were the outspoken Tories, who had much in reason and conscience to excuse their acts. In the mean time Congress had been making overtures to foreign courts for political alliance and pecuniary assistance. In the spring of 1776 delegate Silas Deane, of Connecticut, was sent to France as an agent of the revolutionary government, with instructions to make the wants of Americans officially known to that court. Already the germ of our State Department had been planted by the appointment, at the close of November, 1775, of Benjamin Harrison, Dr. Franklin, Thomas Johnson, John Dickenson, and John Jay to be a committee for the purpose of carrying on foreign correspondence through friends of America in Europe. It was called the "Committee of Secret Correspondence." In the spring of 1777 the title was changed to that of "Committee of United States Pottery. T CLASS the FIRST HIS TICKET entitles the Bearer to receive fuch Prize as may be drawn against its Number, according to a Refolution of CONGRESS, passed at Philadelphia, November 18, N. 1776. D. Jackson CONTINENTAL LOTTERY TICKET. 御茶 66 Foreign Affairs," with Thomas Paine as secre- thur Lee were appointed diplomatic agents, tary. The business of foreign correspondence with instructions to proceed to France and newas carried on through committees until 1781, gotiate a commercial treaty with that governwhen, under the Articles of Confederation, a ment, and attempt to gain its recognition of Department of Foreign Affairs," answering the independence of the United States. The to our present Department of State, was estab- latter part of the mission was distasteful to Dr. lished, with Robert R. Livingston (afterward Franklin. "A virgin state," he wrote, "should Chancellor of the State of New York) at its possess a virgin character, and not go about head. suitoring for alliances, but wait with decent dignity for the application of others." The virgin state continued its suitorings, and won not only political alliances, but pecuniary aid. But that pecuniary aid was slow in coming. Meanwhile the war was rapidly exhausting the resources of the country. In the last month of 1776 its hopes were well-nigh extinguished. Washington and his dwindling army were flying for life across New Jersey before the flushed troops of Cornwallis. Very soon the pursued commander turned and struck his pursuer a stunning blow. To repeat it required money, wherewith to pay bounties to induce men to enlist and re-enlist. The money-chest of the army was empty, and the commander had no means for replenishing it. The public credit was excessively weak. Congress, in despe Arthur Lee, of Virginia, then living in London, and who for some time had been in confidential correspondence with the Secret Committee, had, at about the time of Deane's appointment, been instrumental in opening a way for the success of that commissioner's labors in a financial way. The good-natured French monarch, inspired by the sagacity of his able Ministers, had gladly seen the revolt of the American colonies against his traditional enemy, the crown of Great Britain, and was very willing to assist the insurgents, not out of love for their principles of action (for who ever heard of a Bourbon who believed that "all men were created equal, and were endowed with certain inalienable rights?"), but with a desire to damage that enemy. He sent a secret agent, named Beaumarchais, to Lee, in London, with the information that the King de-rate strait, authorized a new issue of bills of sired to send arms, ammunition, and specie to the struggling colonists, but in the most secret manner. A plan for the purpose was arranged so early as April, 1776, in which Beaumarchais, the agent of the King, was to play the part of a representative of a commercial house in conveying such supplies from the royal arsenals and treasury to the Continental Congress, and receiving in return, as a mask to the real character of the transaction, some tobacco. Beaumarchais and Lee corresponded in cipher, the former with the signature of "Roderique Hortales and Co.," and the latter as "Mary John-him. son." They perfected the arrangement. The plan was approved by the King at the beginning of May, who ordered his Treasurer to hold a million livres, or about two hundred thousand dollars, subject to the particular order of his Minister for Foreign Affairs. This amount was intended for the Americans. When Deane arrived, in July, he was satisfied with the transaction, and in August he ratified Lee's unofficial arrangement. Beaumarchais opened correspondence, as "Roderique Hortales and Co.," with the Secret Committee, and money and arins were sent, not as a loan, but as a gift, for which no repayment was expected. This was the first financial arrangement made by Congress with Europeans, and was eventually the source of more evil than good for the Ameri cans. credit to the amount of five million dollars. "Robert," said the man, "what security canst thou give?" "My note and my honor," was Morris's prompt reply. "Thou shalt have it," was the answer; and twelve hours afterward the generous merchant wrote to Washington, saying: "I was up early this morning to dispatch a supply of fifty thousand dollars to your Excellency," and told him to call for more if he wanted it. The bounties were paid. The army was strengthened. Cornwallis was soon defeated at Princeton, and driven out of New Jersey; and the sun of hope beamed out brightly from among the dark clouds that overshadowed the land. Congress now authorized its commissioners abroad to negotiate a loan in France of two The overtures of the French monarch en- million pounds sterling, at six per cent. per couraged Congress to seek aid from other Eu- annum. In the business of obtaining material ropean powers, and a political alliance with aid Dr. Franklin became chief actor. The othFrance, Spain, and Holland. For that pur-er two commissioners were almost ciphers. The pose a plan of action was drawn up and adopted by Congress on the 17th of September, 1776, and Dr. Franklin, Silas Deane, and Ar philosopher was chiefly instrumental in negotiating the treaty of alliance with France, early in 1778, which was followed by the sending of armies and navies to assist the struggling Amer- | ert Troup was appointed to fill that important icans. The character of the Treasury Department was very little changed from the close of 1776 until after the Articles of Confederation became the supreme law of the land. There were some new functions created and new officers appointed. For example, Francis Hopkinson was appointed a Treasurer of Loans in July, 1778, and in September following Congress, after hearing the report of a committee on the arrangement of the Treasury, resolved: "That a house be provided, at the city or place where Congress shall sit, wherein shall be held the several offices of the Treasury; that there shall be the following officers, to wit, controllers, auditors, treasurers, and two chambers of accounts; that each chamber of accounts consist of three commissioners and two clerks, to be appointed by Congress; that in the treasurer's office there be a treasurer, annually appointed, and one clerk appointed by the treasurer; that in the auditor's office there be an auditor annually appointed by Congress, and two clerks appointed by the auditor; that in the controller's office there be a controller annually appointed by Congress, and two clerks appointed by the controller; that the auditor, treasurer, and controller shall not be appointed unless by the votes of nine States, and they be accountable for the conduct of their clerks respectively." The specific duties of each officer were then prescribed. And it was on the same day, as we have observed, that Congress appointed a committee to devise a seal for the Treasury and Naval departments. This was done; and the seal-a delineation of which, the exact size of the original, is here given, drawn from an impression upon a document before the writer, dated March, 1782 was engraved and used. NIER THE CONTINENTAL TREASURY SEAL. This seal, as we have observed, is precisely the same in device and legend as the seal of our Treasury Department at this day. The piece of paper on which the seal is impressed, with its serrated and lozenge-shaped points, is also pictured. On the 13th of February, 1779, Congress resolved "that a Secretary of the Treasury be appointed;" but the choice was not made until near the close of the following May, when Rob office. From that time the method of managing the national finances was very similar to that of our Treasury Department now. At the close of the ensuing July there was a reorganization of the Treasury Board, when the principal supervising officers were made to consist of three commissioners not members of Congress, and two members of that body. The executive officers and their duties remained about the same. This order of things in the financial department of the government continued until early in 1781, when such was the depreciation of the paper-money that Congress recommended the repeal of all laws in the several States making bills of any sort a legal tender; and also made a requisition upon the States for money raised by them for carrying on the campaign that year, to be paid in coin. After much discussion it was also determined to abandon the old system of boards and committees in the management of the various departments of the government, and to put each under the control of a single head. A Superintendent of Finance, answering to our present Secretary of the Treasury, was accordingly chosen on the 20th of February, 1781, in the person of Robert Morris. He accepted it on condition that all transactions of his department should be in specie value, and that he should not be compelled to relinquish commercial arrangements he had entered into. He was also invested, a few months later, with the powers and duties of Agent of Marine, or Secretary of the Navy, as we have already observed. With the greatest industry, skill, and vigor he exercised the functions of his offices. Mr. Morris conceived the idea of a national bank as a means for facilitating the financial operations of the government; and three months after he was appointed Superintendent of Finance he laid before Congress (May 26, 1781) a plan for such an institution, contained in eighteen propositions, which embraced all the leading details of securities, management, and operations. The scheme was approved by Congress, and on the 31st of December following a bank was incorporated-the first in the United States-with the title of the Bank of North America. Its capital at first was $400,000, supplied from abroad and by Morris's particular friends. It was finally increased to $2,000,000. Its notes were made lawful tender in payment of all government dues, and were redeemable in specie on demand at the bank, which was established at Philadelphia, and was the pioneer and model of all its multitudinous successors in the Republic. Under the able management of its projector and others it contributed materially to the relief of the financial distress which weighed heavily upon the country after the downfall of the Continental money; and it gave a reliable currency to the people. It issued notes in denominations equal to the smallest coins in value, excepting the cent. In 1789 it had bills prepared of the nominal value of the ninetieth part of a dollar, or one penny Pennsylvania currency, of which a fac-simile is | place of his own whereon to lay his head, in here given. These were never issued. the Prune Street Jail in Philadelphia, a pris- Hath murder stained his hands with gore? God made the old man poor!" Three years after he left his prison Robert Morris died in poverty. Such was the fate of the man who laid the broad foundation on which Alexander Hamilton built so grandly the superstructure of our national financial system eighty years ago. Wearied with the cares and labors of public life, Mr. Morris gave notice, in the spring of 1784, of his intention to resign the office of Su found who was willing or competent to be his successor, Congress, late in May, passed an ordinance for "putting the Department of Finance into commission" again. The new Board of Finance was to consist of three commissioners, chosen for a service of three years, unless otherwise ordered by Congress. These were not appointed until early the following year, when John Lewis Gervais, Samuel Osgood, and Walter Livingston were elected. Morris had resigned on the 1st of November previous. In his efforts as Superintendent of Finance, to sustain the public credit, Morris strained the powers of the bank to the utmost, obtain-perintendent of Finance. There being no man ing from it advances to the amount of threefourths of its capital, or $300,000. In these operations his motives were misunderstood and his acts were misconstrued; and he was so assailed with reproaches, in and out of Congress, that his great heart nearly failed him at times. But his patriotism, sturdy as his will, caused him to persevere; and he bravely held his private fortune responsible for the integrity of his conduct and the skill and fidelity of his management. In the great struggle he issued his own notes to the amount of $1,400,000, and these passed freely at the value of specie, while the Continental money was nine hundred per cent. below par. By his skillful management he brought the annual expenditures of the goyernment down from $18,000,000 to $5,000,000; | of the Treasury. For this important post Alexand he kept the Continental army from starving and disbanding before its mighty work could be achieved. And so it was that that great and good man successfully carried his country through that terrible financial crisis when there appeared no other human arm competent to save. Only a few years later Robert Morris, the princely merchant and unselfish patriot, who was ever willing to spend and be spent for his country, and who was the equal with Washington in giving sustaining strength to the armies that achieved the independence of that country, might have been seen literally without a The Finance Department of the government was managed by commissioners from January, 1785, until the autumn of 1789, when Congress created a Treasury Department, with its head as a cabinet officer, bearing the title of Secretary ander Hamilton was called by Washington, the President having the right to make all cabinet appointments, "by and with the advice and consent of the Senate," of the then consolidated nation. At the ensuing session of Congress Hamilton submitted to that body his famous plan for reviving the public credit; and he soon perfected that scheme which has ever since been the method, substantially, of conducting the fiscal affairs of the Republic. The seal of the Treasury Department now in use was cut in cast steel, in 1849, by Edward Stabler, of Sandy Springs, Montgomery |