DEPRECIATION OF THE CURRENCY.—INTRODUCTION OF THE SPINNING-JENNY.—BITTER OPPOSITION TO THE FEDERAL UNION.—RHODE ISLAND FINALLY ACCEPTS THE CONSTITUTION.

The question of finance meets us at every turn, and in every phase bears fatal witness to the demoralizing effects of paper money unsustained by hard money capital. At the Spring election of 1786, the triumph of the paper money party was complete. A new bank was established of a hundred thousand pounds. And soon a Forcing Act became necessary to give the bills currency under heavy penalties. A complete stagnation of business presently followed. The old hostility between town and country revived. Commerce was suspended. Shops were closed. The farmers who had mortgaged their farms for the bills, found that they had got nothing but bits of paper in return for fruitful acres. To retaliate upon the tradesmen they refused to bring their produce to market. The necessaries of life fell short and much suffering ensued. In Providence a town meeting was held to devise a remedy, and it was resolved that the farmers should be left to make their own bargains, and that to relieve the immediate demand five hundred dollars should be borrowed and sent abroad to buy corn for the sufferers. At Newport an attempt was made to force the bills upon the grain dealers, which led to a riot. At a meeting in South Kingstown farmers were advised to break off their intercourse with the merchants.

A convention of the country towns of Providence County was held at Scituate and adjourned to meet the State convention at East Greenwich. Sixteen towns were represented and resolved “to support the acts of the General Assembly,” and enforce the penal acts in favor of paper money. Providence was represented by five of its best and most popular men, but they were powerless against the torrent.

When the question came before the Assembly a new Forcing Act was passed, in which the right to trial by jury was withheld and all the common forms of justice violated. The protest of the indignant minority was refused a place on the records; and pushing their recklessness to the utmost, the triumphant majority enacted that the arrears of Continental taxes might be paid in the new bills, and proposed a system by which all trade was to be carried on by a committee in the name of the State. This, however, was a step too far even for these wild schemers, and when the Force Act was brought to trial, it was condemned by a full bench as unconstitutional. But the Assembly persevered, summoned the judges to answer fofr their interference, and under the name of Test Act passed a new Forcing Act more outrageous than the last. It was something like a pause in this reckless career that the new act was referred to the towns for discussion. Only three towns accepted it. An attempt at conciliation failed.

The lowest deep of financial degredation was reached when the treasurer was ordered to pay one-fourth part of the State debt in the bills received for taxes. Never had party spirit assumed so dangerous a form. Among the bad doings of the Assembly was the resumption of the charter of Newport.

It was at this critical moment, when rents were paid in corn and trade seemed about to return to its original form of barter, that the first spinning-jenny in the United States was constructed by Daniel Jackson, of Providence, and the foundations of Rhode Island’s manufacturing prosperity securely laid. History is full of compensations.

We reach the beginning of a still greater struggle. The convention that was to transform the Confederation into a Union was to meet in May. Should Rhode Island be represented in it? Those who had faith in the Confederation, and there were many such, believed that with some amendments it might be made to answer all the purposes of a stable government. Those who were more impressed with its weakness called for a thorough and radical change. The first, who in the sequel were known as States Rights men, were also the advocates of paper money. The second, the Federalists of a later day, were in favor of hard money. The motion to send delegates was lost, and another step taken towards repudiation. “All holders of State securities were required to present them to the treasurer within six weeks and receive five shillings in the pound thereupon, or to forfeit that amount, and interest was to cease immediately upon the rising of the Assembly. The paper was now passing at the rate of six dollars in paper for one in silver.” Never had the honor of the State been so imperilled. Fortunately, though, the Assembly was divided, the courts were firm, and it was only by removing four judges out of five that a decision in favor of paper payments was obtained. Meanwhile the bills continued to fall, and soon reached eight for one. But the moral sense of the community was not altogether stifled. Some churches refused to receive as communicants men who paid their debts in paper.

But soon all questions became absorbed in the question of the acceptance or rejection of the Convention. In the Senate it was voted to send delegates, but the bill was lost in the House, whose action was defended by a State Rights letter, setting forth the doctrine of popular sovereignty and “the entire subserviency of the legislature to the public will.” None but the people could send delegates to a convention.

Meanwhile, the Convention, with Washington at its head, and Franklin, Hamilton and Madison among its working members, had reached the end of its arduous labors. The next step was to submit it to the people. The Assembly met and a bill was introduced for printing it for distribution, and appointing delegates as recommended by the Convention itself. The last was voted down by a large majority. The fruit was not yet ripe. But a resolve to print a thousand copies for distribution was agreed to, and thus the question was brought squarely before the people.

And now for three years it was the chief question in all public meetings, and was sure to come in either directly or indirectly wherever two or three met together for business or for pleasure. The merchants accepted it cheerfully, for they saw progress and development and protection in it. But it was opposed by the farmers, who saw in it a sacrifice of the rights of the State. Rhode Island had stood alone so long, had been so firm and self-reliant through the dark days of her long contest with Massachusetts and Connecticut, that she failed to see how completely the relations of the colonies to each other were changed, when from colonies they became states. There was no place for independent states in the domain occupied by a Federal Union.

The first to accept the Constitution was Delaware. Pennsylvania came next, and then New Jersey. The opening of 1788 was marked by the accession of Georgia. Connecticut followed close. In Massachusetts the contest was long and bitter. In June New Hampshire gave in her adherence.

We have seen in what a dark hour Rhode Island first turned her attention to cotton spinning. In this hour of even deeper gloom she first opened a direct trade with India. About the same time a rolling and a slitting-mill was established near Providence. Women of all classes met together to spin flax, and men of all classes took pride in wearing homespun. Nor was the promise of navigation less. Providence already counted a hundred and ten sail in her waters, exclusive of river craft. In spite of all her errors her faith in the future was unimpaired.

Meanwhile the contest continued. Town was arrayed against country, the States Rights men still holding the majority in the Assembly, although in Providence the Federalists were strongest. The tidings of New Hampshire’s acceptance was received with exultation. The Constitution was sure. In Providence it was resolved to unite the celebration of the Fourth of July with that of the completion of the National Union. The States Rights men took this for an intentional insult and marched upon the town. Nothing but the good sense of the leaders prevented a bloody collision. The rejoicings it was agreed, were for the Declaration of Independence, not for the Declaration of the Union. Then from five to six thousand people sat down in a tent a thousand feet long to feast upon a sumptuous banquet, the most attractive part of which was an ox roasted whole. On the very next day came tidings from Virginia. She also had accepted the Constitution. New York followed and then North Carolina, and the warmest enthusiasm welcomed each new declaration of acceptance. But a bitter party spirit still held Rhode Island back.

Thus month followed month. New assemblies and new town meetings came together and fought over the same ground. In all the other states of the old thirteen the Constitution had been accepted, and was in successful operation. It was clear that Rhode Island could not long preserve her insulation. She was already compelled to ask vital favors of the Union, and petition Congress to exempt her commerce from paying duties in Union ports. For a while Congress bore with her and granted her prayer. Slowly but surely the decisive day drew nigh. All the artifices of parliamentary tactics were brought into play. In the midst of intense excitement and by the casting vote of Governor Collins, it was decided on the Sabbath morning of January 17th, 1790, to call a convention. But even in the convention the friends of the Constitution were in a minority. The familiar ground was to be fought over again with no less bitterness than in the beginning. Loud murmurs came from Congress. Shall this little strip of land prevent us from completing a union so full of promise? Louder still were the murmurs from the seats of commerce—Providence and Newport. We will break away from these impracticable men and go into the Union alone with our ships and our spinning-jennies. A coalition ticket was formed. So great was the eager crowd, in which each man had his opinion, that the State House was found too small to hold them, and the convention was compelled to adjourn to the Second Baptist Church. It still took three days more before a vote was reached; and then, at five o’clock of Saturday afternoon, on the 29th of May, 1790, Rhode Island declared her adhesion to the Union.