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[168]

Chapter 7:

People without a government.


August—December, 1778.

early in the year George the Third had been
Chap. VII.} 1778.
advised by Lord Amherst to withdraw the troops from Philadelphia, and, in the event of the junction of America with France, to evacuate New York and Rhode Island;1 but the depreciation of the currency, consequent on the helplessness of a people that had no government, revived the hope of subjugating them. The United States closed the campaign of 1778 before autumn, for want of money. Paper bills, emitted by congress on its pledge of the faith of each separate state, supported the war in its earliest
1775.
period. Their decline was hastened by the disasters that befell the American armies. Their value was further impaired by the ignoble stratagem of the
1776.
British ministers, under whose authority Lord Dunmore and others introduced into the circulation of Virginia and other states a large number of bills,

1 George III. to Lord North, 17 March, 1778. Letter 467.

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