{198} LETTER XVII

Depreciated Paper Money—Stagnation in Trade—Produce cheap—Labourers and Mechanics in want of Employment—The Poor and Poor’s Rates—Appropriations for the Expenses of the State of Indiana, for the year 1820—Objects and Rates of Taxation—County Taxes—A rude style of Improvement—The progress of New Settlements—Lands about to be Forfeited to the Government for non-payment of the price.

Jeffersonville, (Indiana,) May 4, 1820.

The accounts given in my last letter of the depredations committed by bankers, will make you suppose that affairsare much deranged here. Bankruptcy is now a sin prohibited by law. In the Eastern States, and in Europe, our condition must be viewed as universal insolvency. Who, it may be asked, would give credit to a people whose laws tolerate the violation of contracts? Mutual credit and confidence are almost torn up by the roots. It is said that in China, knaves are openly commended in courts of law for the adroitness of their management. In the interior of the United States, law has removed the necessity of being either acute or honest.

The money in circulation is puzzling to traders, and more particularly to strangers; for besides the multiplicity of banks, and the diversity in supposed value, fluctuations are so frequent, and so great, that no man who holds it in his possession can be safe {199} for a day. The merchant, when asked the price of an article, instead of making a direct answer, usually puts the question, “What sort of money have you got?” Supposing that a number of bills are shown, and one or more are accepted of, it is not till then, that the price of the goods is declared; and an additional price is uniformly laid on, to compensate for the supposed defect in the quality of the money. Trade is stagnated—produce cheap—and merchants find it difficult to lay in assortments of foreign manufactures. I have lately heard, that if a lady purchases a dress in the city of Cincinnati, she has to call at almost all the shops in town, before she can procure trimmings of the suitable colours. It is only about three years ago, that an English traveller[119]asserted, that in Cincinnati “English goodsabound in as great profusion as in Cheapside.”—Merchants in Cincinnati, as elsewhere, have got into debt, by buying property, or by building houses, but are now secure in the possession. Such people, notwithstanding complain of the badness of the times, finding that the trade of buying without paying cannot be continued. Those who have not already secured an independence for life, may soon be willing to have trade and fair dealing as formerly. Property laws deprive creditors of the debts now due to them; but they cannot force them to give credit as they were wont to do.

Agriculture languishes—farmers cannot find profit in hiring labourers. The increase of produce in the United States is greater than any increase of consumpt that may be pointed out elsewhere. To increase the quantity of provisions, then, without enlarging the numbers of those who eat them, will be only diminishing the price farther. {200} Land in these circumstances can be of no value to the capitalist who would employ his funds in farming. The spare capital of farmers is here chiefly laid out in the purchase of lands.

Labourers and mechanics are in want of employment. I think that I have seen upwards of 1500 men in quest of work within eleven months past, and many of these declared, that they had no money. Newspapers and private letters agree in stating, that wages are so low as eighteen and three-fourth cents (about ten-pence) per day, with board, at Philadelphia, and some other places. Great numbers of strangers lately camped in the open field near Baltimore, depending on the contributions of the charitable for subsistence. You have no doubt heard of emigrants returning to Europe without finding the prospect of a livelihood in America. Some who have come out to thispart of the country do not succeed well. Labourers’ wages are at present a dollar and an eighth part per day. Board costs them two three-fourths or three dollars per week, and washing three-fourths of a dollar for a dozen of pieces. On these terms, it is plain that they cannot live two days by the labour of one, with the other deductions which are to be taken from their wages. Clothing, for example, will cost about three times its price in Britain: and the poor labourer is almost certain of being paid in depreciated money; perhaps from thirty to fifty per cent, under par. I have seen several men turned out of boarding houses, where their money would not be taken. They had no other resource left but to lodge in the woods, without any covering except their clothes. They set fire to a decayed log, spread some boards alongside of it for a bed, laid a block of timber across for a pillow, and pursued their labour by day as {201} usual. A still greater misfortune than being paid with bad money is to be guarded against, namely, that of not being paid at all. Public improvements are frequently executed by subscription, and subscribers do not in every case consider themselves dishonoured by non-payment of the sum they engage for. I could point out an interesting work, where a tenth part of the amount on the subscription book cannot now be realized. The treasurer of a company so circumstanced, has only to tell undertakers or labourers, that he cannot pay them. I have heard of a treasurer who applied the funds entrusted to him to his own use, and who refused to give any satisfaction for his conduct. It is understood that persons who are agents for others, frequently exchange the money put into their hands for worse bills, and reserve the premium obtained for themselves. Employers are also in the habit of deceiving theirworkmen, by telling them that it is not convenient to pay wages in money, and that they run accounts with the storekeeper, the tailor, and the shoemaker, and that from them they may have all the necessaries they want very cheap. The workman who consents to this mode of payment, procures orders from the employer, on one or more of these citizens, and is charged a higher price for the goods than the employer actually pays for them. This is calledpaying in trade.

You have often heard that extreme poverty does not exist in the United States. For some time after my arrival in the country supposed to be exempt from abject misery, I never heard the term poor, (a word, by the by, not often used,) without imagining that it applied to a class in moderate circumstances, who had it not in their power to live in {202} fine houses, indulge in foreign luxuries, and wear expensive clothing; and on seeing a person whose external appearance would have denoted a beggar in Britain, I concluded that the unfortunate must have been improvident or dissipated, or perhaps possessed of both of these qualities. My conjectures may have on two or three occasions been just, as people of a depressed appearance are very rarely to be seen, but I now see the propriety of divesting myself of such a hasty and ungenerous opinion. Last winter a Cincinnati newspaper advertised a place where old clothes were received for the poor, and another where cast shoes were collected for children who could not, for want of them, attend Sunday schools. The charitable measure of supplying the poor with public meals, has lately been resorted to at Baltimore; but there is reason to believe, that most of the people who are relieved in this way, are Europeans recently come into America. In the western country, poor ratesare raised in the form of a county tax. They are, however, so moderate as to be scarcely felt. Contracts for boarding the permanently poor are advertised, and let to the lowest bidder, who has a right to employ the pauper in any light work suited to the age or ability of the object of charity. They are said to be well treated. This sort of public exposure must create a repugnance against becoming a pauper. In the Eastern States, work houses are established. It is to be wished that those who follow this plan will not lose sight of the example of England. The operations of bankers, and the recent decline in trade, have been effective causes of poverty; and it seems probable that the introduction of manufacturing industry, and a reduction of base paper, would soon give effectual relief.

{203} It is not from the number of benevolent institutions, nor from the low condition of some families, nor from the insolvency of individuals, that I draw the conclusion that poverty prevails to a greater extent than I at first imagined. The appropriations for defraying the expenses of the State, together with the ways and means, and the deficiencies in payments, are highly illustrative. I shall transcribe two documents.

An actfor making appropriations for the year one thousandeight hundred and twenty.Approved January 22, 1820.Sec. I.Be it enacted by the General Assembly of the State of Indiana, That the following sums be, and they are hereby appropriated for the following purposes; to wit, for defraying the expenses of the present General Assembly, including pay to the members thereof, secretaries, clerks, door-keepers, sergeants at arms, stationary, ink, ink-stands, fuel, printing, binding, and distributing the laws and journals, making marginal notes and indices to the same, together with all other just and necessary expenses, the sum of eight thousand five hundred dollars.DollarsFor the executive department,2200For the judiciary department,4900For the interest on the public debt,3000For defraying the contingent expenses of the government, for the year 1820,800For the military department, including the salary of the adjutant-general,400For defraying the premiums on wolf scalps unsatisfied,500For defraying warrants not yet presented in the judiciary department,875——12675——

An actfor making appropriations for the year one thousandeight hundred and twenty.Approved January 22, 1820.

Sec. I.Be it enacted by the General Assembly of the State of Indiana, That the following sums be, and they are hereby appropriated for the following purposes; to wit, for defraying the expenses of the present General Assembly, including pay to the members thereof, secretaries, clerks, door-keepers, sergeants at arms, stationary, ink, ink-stands, fuel, printing, binding, and distributing the laws and journals, making marginal notes and indices to the same, together with all other just and necessary expenses, the sum of eight thousand five hundred dollars.

Dollars

To make up the deficiency between the above expenses and the sum appropriated, a separate act authorizes the governor to borrow four thousand {204} dollars on the credit of the State. The following extract from an act, shows the sources of revenue.

Be it enacted by the General Assembly of the State of Indiana.That there shall be levied a tax for State purposes, on the following objects of taxation, and after the following rates, to wit, For every hundred acres of first rate land subject to taxation, the sum of one dollar. On every hundred acres of second rate land, the sum of eighty-seven and a half cents. On every hundred acres of third rate land, the sum of sixty-two and a half cents; and in that proportion for a greater or less quantity. And on all Bank Stock actually paid in at the rate, twenty-five cents for every hundred dollars.

The expenses of the government of the State for last year was 11,70190½/100dollars. Receipts of bad money prevented payment of the interest of the debt. On the 4th day of December, 1819, there were arrears of taxes due for the years 1817 and 1818, amounting to 499134/100dollars.

It is worthy of notice, that among the objects of taxation quoted, that on bank stock is by the act limited to“stock actually paid in.” A most decided proof of the preponderance of the banking interest, in exempting the villanous associations from an equal share of taxation; and, at the same time, countenancing an evasion of the security pledged by bankers to the people. The receipts of bad money, noticed in last paragraph, disclose a wickedness or a weakness on the part of the Assembly which is altogether contemptible.

The following are the rates of taxes to be paid for county purposes: For every horse, mule, or ass,not exceeding371/2cents. For every horse kept for covering; once the rate at which he stands for the season. Every tavern, not less than ten, nor more than twenty-five dollars. For every ferry, not less than five, nor more than twenty dollars. {205} Town lots in proportion to their value, (exclusive of improvements thereon,) not exceeding fifty cents on every hundred dollars. A tax of fifty cents to the clerks of the several circuit courts, at the issuing of each writ ofcapias ad respondendum. A tax of fifty cents on each certificate of magistracy, with the county seal attached thereto. A tax on every pleasure carriage with two wheels, of one dollar. A tax on every pleasure carriage with four wheels, of one dollar and twenty-five cents. A tax on every silver watch, twenty-five cents. And a tax on each gold watch, of fifty cents.

Town taxes for defraying the expense of digging wells, forming streets, &c. are regulated by a committee of the inhabitants. The objects of taxation in a town in this State were published last year. Among these, a very moderate impost on bachelors and male dogs was mentioned.

Rich country signifies fertility of soil, and not the opulence of its inhabitants.—It would be vain to search for arich district, according to the European acceptation of the term. Almost every object bespeaks a want of capital. Fine houses are brick ones of two stories high, covered with shingles, and frequently unfinished within; and where the work is completed, it is usually in a bad style; the windows often broken; and the adjoining grounds perhaps studded with the stumps of trees, overgrown with rank weeds, or rutted by hogs. The inferior buildings, as stables, barns, (and negro huts in slave States,) are unseemly log cabins, frequently standing in front of the mansion; the whole having more the appearance of a ruin than the abodes of a people having taste for elegant improvements. Gardening is performed in the most slovenly manner imaginable; the plough {206} being in more general use than the spade. Labouring utensils are constructed without the application of the joiner’s plane. Iron is either sparingly used in their formation, or altogether dispensed with.

All who have paid attention to the progress of new settlements, agree in stating, that the first possession of the woods in America, was taken by a class of hunters, commonly called backwoodsmen. These, in some instances, purchased the soil from the government, and in others, placed themselves on the public lands without permission. Many of them, indeed, settled new territories before the ground was surveyed, and before public sales commenced. Formerly pre-emption rights were given to these squatters; but the irregularities and complicacy that the practice introduced into the business of the land-office, have caused its being given up, and squatters are now obliged to make way for regular purchasers. The improvements of a backwoodsman are usually confined to building a rude log cabin, clearing and fencing a smallpiece of ground for raising Indian corn. A horse, a cow, a few hogs, and some poultry, comprise his live-stock; and his farther operations are performed with his rifle. The formation of a settlement in his neighbourhood is hurtful to the success of his favourite pursuit, and is the signal for his removing into more remote parts of the wilderness. In the case of his owning the land on which he has settled, he is contented to sell it at a low price, and his establishment, though trifling, adds much to the comfort of his successor. The next class of settlers differ from the former in having considerably less dependence on the killing of game, in remaining in the midst of a growing population, and in devoting themselves more to agriculture. A man {207} of this class proceeds on a small capital; he either enlarges the clearings begun in the woods by his backwoodsmen predecessor, or establishes himself on a new site. On his arrival in a settlement, the neighbours unite in assisting him to erect a cabin for the reception of his family. Some of them cut down the trees, others drag them to the spot with oxen, and the rest build up the logs. In this way a house is commonly reared in one day. For this well-timed assistance no immediate payment is made, and he acquits himself by working to his neighbours. It is not in his power to hire labourers, and must depend therefore on his own exertions. If his family is numerous and industrious, his progress is greatly accelerated. He does not clear away the forests by dint of labour, but girdles the trees.[120]By the second summer after this operation is performed, the foliage is completely destroyed, and his crops are not injured by the shade. He plants an orchard, which thrives and bears abundantlyunder every sort of neglect. His live-stock soon becomes much more numerous than that of his back-wood predecessor; but, as his cattle have to shift for themselves in the woods, where grass is scanty, they are small and lean. He does not sow grass seeds to succeed his crops, so that his land, which ought to be pasturage, is overgrown with weeds. The neglect of sowing grass-seeds deprives him of hay; and he has no fodder laid up for the winter except the blades of Indian corn, which are much withered, and do not appear to be nutritious food. The poor animals are forced to range the forests in winter, where they can scarcely procure any thing which is green, except {208} the buds of underwood on which they browse.—Trees are sometimes cut down that the cattle may eat the buds. Want of shelter in the winter completes the sum of misery. Hogs suffer famine during the droughts of summer, and the frosts and snows of winter; but they become fat by feeding on the acorns and beech nuts which strow the ground in autumn. Horses are not exempted from their share in these common sufferings, with the addition of labour, which most of them are not very able to undergo. This second rate class of farmers are to be seen in the markets of towns, retailing vegetables, fruits, poultry, and dairy produce. One of them came lately into this place on horseback, with ten pounds of butter to sell; but as he could not obtain a price to his mind, he crossed the river to Louisville market. In going and returning he must have paid twenty-five cents to the ferryman—a considerable expense, when it is considered that he had travelled twelve miles with his little cargo. Another, who lives at the distance of eight miles from this place, brought a barrel of whisky, containing about thirty-three gallons. He employed neither horse norvehicle in the transportation, but rolled the cask along the road, which, by the by, is none of the smoothest. Incidents of this kind may, perhaps, cause you to suppose that the condition of the second rate settler is similar to that of subtenants in the north of Scotland, or in Ireland; but the high price of labour in America explains the apparent parity. Men perform offices for themselves that, in Britain, would be done by hiring others. The American farmer, it must be observed, is commonly the proprietor of the land he occupies; and, in thehauteurof independence, is not surpassed by the proudest freeholders of Britain. The settler of the grade under consideration, is only able to bring a {209} small portion of his land into cultivation, his success, therefore, does not so much depend on the quantity of produce which he raises, as on the gradual increase in the value of his property. When the neighbourhood becomes more populous, he in general has it in his power to sell his property at a high price, and to remove to a new settlement, where he can purchase a more extensive tract of land, or commence farming on a larger scale than formerly. The next occupier is a capitalist, who immediately builds a larger barn than the former, and then a brick or a frame house. He either pulls down the dwelling of his predecessor, or converts it into a stable. He erects better fences, and enlarges the quantity of cultivated land; sows down pasture fields, introduces an improved stock of horses, cattle, sheep, and these probably of the Merino breed. He fattens cattle for the market, and perhaps erects a flour-mill, or a saw-mill, or a distillery. Farmers of this description are frequently partners in the banks; members of the State assembly, or of Congress, or Justices of the Peace. The condition of the people has necessarily somerelation to the age and prosperity of the settlements in which they live. In Pennsylvania, for instance the most extensive farmers are prevalent. In the earliest settled parts of Ohio and Kentucky, the first and second rate farmers are most numerous, and are mixed together. In Indiana, backwoodsmen and second rate settlers predominate. The three conditions of settlers described, are not to be understood as uniformly distinct; for there are intermediate stages, from which individuals of one class pass, as it were, into another. The first invaders of the forest frequently become farmers of the second order; and there are examples of individuals acting their parts in all the three gradations.

{210} In the district of Jeffersonville, there has been an apparent interruption of the prosperity of the settlers. Upwards of two hundred quarter sections of land are by law forfeited to the government, for non-payment of part of the purchase money due more than a year ago. A year’s indulgence was granted by Congress, but unless farther accommodation is immediately allowed, the lands will soon be offered a second time for sale. Settlers seeing the danger of losing their possessions, are now offering to transfer their rights for less sums than have already been paid; it being still in the power of purchasers to retain the lands on paying up the arrears due in the land office. This marks the difficulty that individuals at present have, in procuring small sums of money, in this particular district.

FOOTNOTES:[119]Fearon.—Flint.Comment by Ed.Henry Bradshaw Fearon, a London surgeon born about 1770, was sent to the United States by an association of English families to investigate suitable sites for their residence. He found little that pleased him, as appears from his account,Sketches in America(London, 1818).[120]The process of cutting the bark round trees, to destroy their growth, is called girdling, or deadening.—Flint.

[119]Fearon.—Flint.Comment by Ed.Henry Bradshaw Fearon, a London surgeon born about 1770, was sent to the United States by an association of English families to investigate suitable sites for their residence. He found little that pleased him, as appears from his account,Sketches in America(London, 1818).

[119]Fearon.—Flint.

Comment by Ed.Henry Bradshaw Fearon, a London surgeon born about 1770, was sent to the United States by an association of English families to investigate suitable sites for their residence. He found little that pleased him, as appears from his account,Sketches in America(London, 1818).

[120]The process of cutting the bark round trees, to destroy their growth, is called girdling, or deadening.—Flint.

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