Winston
Platinum Member
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Which is why I said the inflation level was too low. But the fact that fifteen grand in today's dollars got you a square mile in 1785 and it's going to take something in the range of five million today is another conversation.
But again, you can't possibly believe it was common, to have $640 laying around in 1785. That was about ten years worth of work in New England, maybe six down south. And real incomes declined till the end of the century.
But your perception, that early America was fueled by small farmers who owned their land is a Thomas Jefferson fantasy. Early America was owned by land barons, like George Washington. Many, like both he and Aaron Burr, dreamed have having their very own kingdom.
The federal land sales of 1785 were conducted prior to the whiskey tax and prior to the government guaranteeing all federal and state issued continental scripts. Which means those scripts used to pay for that government land were virtually worthless. Bought for pennies on the dollars from the farmers who held them.
Now Jefferson, who authored the original act of 1784, wanted smaller parcels. So Congress shipped his ass off to France and got the deed done before he got back.
Again, the fact that the land (which was in addition to all of the grants already given) was bought up as fast as it was surveyed shows that the common people could indeed afford it.
You keep speaking of script, which was used almost exclusively by the Continental Congress to pay the military. It was indeed worthless, but not terribly relevant since most of the country was on hard currency, silver and gold coins.
That is stupid as hell. I am pretty sure Lamborginis sell as quick as they can make them. Does that mean the common people can afford them?
And the hard currency bit, hell, that makes it even less likely someone had a big sack of doubloons or a nice rock of gold to take to the state land office.
And the script part, just shows how little you know about early American history. Scripts were used by the Continental government and the state government. Let's say the North Carolina militia was mustering and they needed some food to feed the men. Well they would waltz in to your farm and grab them some cows, maybe some corn, and if you had any liquor, well they probably going to take it too. They would leave you a "script", noting what they took and promising that the state government in this case, or the federal government in the case of the Continental Army, would pay the agreed upon amount which was noted.
Now, after the war things were pretty tough. Like I said, real incomes declined all the way to the end of the century. Goods were scare, hard currency even more so. Those farmers, they had lost "capital" to the war effort and were holding paper instead. They needed food, sold that paper for pennies on the dollar because, well the federal government was broke and the state governments were more broke.
The paper was bought up by wealthy speculators like, yep--George Washington and Alexander Hamilton. So as soon as they bought up all the land they passed legislation that promised to pay full par for all that script. And to raise the funds to pay for it, they created the whiskey tax. Washington had to raise an army bigger than the one that won the War of Independence to put down the resulting revolt.