1794 – Emerging Revolutionary War Era

Emerging Revolutionary War welcomes back guest historian Eric Olsen. Eric is a historian with the National Park Service at Morristown National Historical Park. Click here to learn more about this site.

Visitors always want to know, “How much did “that” cost back then?” We used to tell them because of inflation and the conversion from pounds to dollars it was really hard to give a definitive answer. It is even harder to figure during the American Revolution when the value of the dollars changed dramatically just over the course of a few months. There are all sorts of fancy conversion sites on the internet today but since math was not my strong point, I don’t know how accurate they are.

One book tried another approach to explain 18^th century vs. modern prices. “A person today, purchasing the same product made the same way out of materials made the same way, will pay roughly the same percentage of their wages for the product as a person of equal economic status in the past would have. For comparison, at the present time [1997 book] an average shop rate runs thirty-five dollars an hour for labor. If you make ten dollars an hour, this costs you three and a half hours of work, and the same ratio applied to a craftsman making thirty pounds a year or two pence per hour.” Makes sense but seems a bit too complicated.

However, I did find one primary source that can give a clue to the relative value of items. It comes from Theophile Cazenove, a Dutchman who traveled through New Jersey and Pennsylvania in 1794 looking for investment opportunities for Dutch bankers. At his various stops in Morris County, Cazenove recorded the prices of farms, livestock, and even labor.

Sometimes the prices were in pounds, other times they were in dollars. When he included both prices for one item, I did some very simple math and found that it took eight shillings to make one dollar, and that $2.50 equaled one pound. According to the online conversion applications, one pound in 1790 equaled 167.58 pounds today. One dollar in 1790 equaled 32.20 dollars in today’s money.

But without doing any math or conversions if we look at the prices Cazenove listed we can see what items were more expense than other ones. From that we can also assume the more expensive items were more highly valued.

Keep in mind, on the local level in 18^th century America, it was not a cash driven economy. Specie, Hard Money or coins, made of valuable metals such as silver and gold were in short supply in North America and used infrequently. Paper Money was rarely used, appearing briefly during periods of war when armies needed a large source of money to buy goods and services.

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On this date in history…

On November 19, 1794, John Jay, representing George Washington’s administration, affixed his signature to a document bearing his name in history. The Jay Treaty. Although the official name of the pact was “The Treaty of Amity, Commerce, and Navigation, Between His Britannic Majesty and the United States of America.”

The treaty’s aim was to resolve outstanding issues from the conclusion of the American Revolutionary War and facilitate economic trade. Although some of the clauses were not fulfilled completely and another war, the War of 1812, erupted because of it, the treaty did serve a purpose. The agreement ushered in a decade of trade between the two countries and gave the fledgling nation a chance to gain footing, a major concern for George Washington, as first president. The treaty also cemented the promise that Great Britain would vacate the forts in the Northwest Territory and agreed to arbitration on the boundary between Canada and the United States and the pre-American Revolutionary War debt.

Yet, the treaty was divisive. Even Jay remarked that he could find his way in the dead of night by the illumination of his own effigy. The treaty angered the French as that country was amid its revolutionary throes, and bitterly divided the nation. Out of it came the separation into two political parties, the Federalists, who supported the treaty, and the Democratic-Republicans who stood opposed to it.

The treaty was ratified by the Senate on June 24, 1795, with an exact two-thirds majority, 20 to 10 along with being passed by William Pitt the Younger, prime minister of Great Britain and his government, and took effect on February 29, 1796.

Historian Joseph Ellis wrote that the Jay Treaty was “a shrewd bargain for the United States” and “a precocious preview of the Monroe Doctrine.” As one of Washington’s most fervent wishes, the treaty “postponed war with England until America was economically and politically more capable of fighting one.”

Emerging Revolutionary War Era

Tag: 1794

On this date…The Jay Treaty