The vast quantity of bills unavoidably emitted before the establishment of regular governments possessing sufficient energy to enforce the collection of taxes, or to provide for their redemption, and before the governments of Europe were sufficiently confident of their stability to afford them aid or credit, was assigned by congress as the principal cause of that depreciation which had taken place in the continental currency.  The United States were now, they said, under different circumstances.  Their independence was secure; their civil governments were established and vigorous; and the spirit of their citizens ardent for exertion.  The government being thus rendered competent to the object, it was necessary to reduce the quantity of paper in circulation, and to appropriate funds that should ensure the punctual redemption of the bills.

For these purposes, the several states were required to continue to bring into the continental treasury, monthly, from February to April inclusive, their full quotas of fifteen millions of dollars.  In complying with this requisition, one Spanish milled dollar was to be received in lieu of forty dollars of the paper currency.

The bills so brought in were not to be reissued, but destroyed; and other bills, not to exceed one dollar for every twenty received in discharge of taxes, were to be emitted.

These bills were to be redeemable within six years, and were to bear an interest of five per centum per annum, to be paid at the time of their redemption in specie, or, at the election of the holder, annually, in bills of exchange drawn by the United States on their commissioners in Europe, at four shillings and six pence sterling for each dollar.  They were to be issued in ascertained proportions on the funds of the several states, with a collateral security on the part of the government, to pay the quota of any particular state, which the events of the war might render incapable of complying with its own engagements.  The bills were to be deposited in the continental loan-offices of the several states, and were to be signed only as the money then in circulation should be brought in by taxes or otherwise.  After being signed, six-tenths of them were to be delivered to the states on whose funds they were to be issued, and the remaining four-tenths to be retained for the use of the continent.

The operation of this scheme of finance was necessarily suspended by the same causes which suspended that for requiring specific articles.  It depended on the sanction and co-operation of the several state legislatures, many of which were yet to convene.

As it would be impracticable to maintain the value of the money about to be emitted, should the states continue to issue bills of credit, they were earnestly requested to suspend future emissions, and to call the current paper out of circulation.  But the time for this measure was not yet arrived, and many of the states continued the use of the press till late in the following year.