Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1861-10-12
THE GevEnNmENr s1aouEft PUR6fEAsE
COTTON.


lhl9uK
auiste means for carrying the Government and the
people safety through the trying struggle that Is
now upon them. The inquiry is continually being
mede, how are we to raise money to pay our taxes5
The writer does not profess to have discovered the
true solution of this great problem but still thinks
the apparent obstacles may be overcome at the pro-
per time, If proper measures be employed to sc-
complsh the object. No one surely will complain
that the Confederate Congress has imposed q tax
upon U.S. this was obviously proper that all will
admit that it was right But there Is no complaint
in the country that the Government has not provld
ed this means for raising the money to pay the tax
that its financial policy is defective in this par
ticulsr.
Its policy may not be perfect; it may not be the
best that could have been adopted; but present de-
feets may yet be remedied. The discomfort is not
entirely wen founded since the requisite contribu
tons to the government must come from the private
resources Of the peOple-from their industry and
energy. The most the government can do is to en-
courage and stimulate industrial pursuits by salu-
tary laws; it cannot furnish the money, nor can it
make money abundant when il is not in the country,
and the meney-holders can do more towards sup
plying q circulating medium than the government
can do. Money was certainly very abundant in the
South before the war commenced. Our staple COM
modities found ready and profitable markets. and
industry in every shape yielded abundant returns.
Prosperity and plenty abounded throughout the
land. What, then, has become of the money? The
answer must be, that it is still here, or by far the
greater part Of it is; we know it has not been sent
off to any considerable extent. But still Il has dis
appeared; it has been withdrawn from its
usual channels Of circulation and why is 1t so !?
Manifesly it is because confidence in credit has been
paralyzed. Moneyed institutions and money hold
ers seem to have concluded that money cannot now
be safely put into circulation, although the real ba
sis of credit is not destroyed but its activity is but
temporarily suspended. Perhaps few sordd mi
sers are holding their money merely for the love Of
it, or for the ignoble purpose OF enriching them
selves from the calamities of others. 1t is hoped,
however, that but few are sctuated BY such miser-
ly motives.
We cannot, with certainty, arrive at the actual
amount of specie in the Confederate States but it IS
believed to be not ess than eighty and probably not
more than hundred millions of dollars. The most
of this is in the banks and if it is to be locked up
then it is useless both to the government and to the
people. How is this vast capital to be made avail
able and useful in aiding the government? The first
step is the suspension of the banks. Perhsps most
of them have already adopted this manifestly wise
policy, and those which have not must do so, and
the several States In which they are located must
Iegalize the suspension But suspension alone will
do but little expansion of eircnlation Is equally
necessary. Suspension under such circumstances
will not deprecIste the value of their notes, but
they would circulate as freely if redeemsble IN
specie The specie then in the country will consti
tute basis for a sound circulating medium of be-
tween two and three hundred millions of dollars
To this extent may the banks safely goj for it is
perfectly certain that when peace Is restored bust
ness Of all descriptions may Immediately revive,
and the banks will not be called on for specie to any
considerable extent 1t is only in anticipation of
monetary pressure that runs are made on the banks
but never when one is just passed.
Let it be supposed, then, that two hundred mil
lions will be required to be paid in taxes annually
to carry on the war, perhaps it may require &
greater SUM, still the money, or its equivalent as
circulating medium, is in the country. But in the
absence of any market for the products of the
country how the people to raise it TO pay their
taxes snd for the purchase Of the necessaries Of
life? As general rule good credit and remuner-
alive interest will open the money vaults and as the
government must depend upon the people for its
resources il is deeply interested in sustaining their
credit especially the credit of the planting classes
But sense of patriotism must also have its inhu-
enee and operate as the most powerful Indictment
in this crisis. Every one must see and feel that
struggle is going on, in the success Of whiehlis
involved not only his political liberty, but his rights
of property also This war is for the rights OF the
people and its bBTtkens must be borne by them. If
we fail, shall cease to be free people, and our
property, under one pretexE OF other, Will be taken
from us. Perhaps we shall be robbed of the whole
of it. but at least we shall be forced to pay the
amount that opr victors may expend In suoJqga Hng
Us.
We mast keep the important truth before Us that
our all is stRked tie issue; it is war in which
we must succeed, cost what IL may. Every one is,
therefore, deeply and personally interested in the
result. The man who has money Is personally in
teresteG in lending it to his neghbor on good plti-
mate security. He receives not only the interest,
but he derives an additional bepeAt from the aid it
gives the government and It Is moFeovsr, patriotic
use Of it. The bsnhs are vitality interested in Fi}-
ing the people to sspEsFt the government. ss their
very existence depends on SUP Success. IT we fall
the specie in the VAults will be the Elost aoVeted OBJ
ject Of the vctors. In aid Of such policy credit
ore mpst forbear for o time by common consent.
They must pot, cannot, expect their debtors TO fI-
GIL eDgsgemepts made under prosperous condition
of the resources of tGs cOyutry, And the people
of all classes, GRd Of al VOCATION w1St be content
with q stationary condition. 1t is 70 E5+e tG be
exsctng or to expect peeuniary gain from any a.
tcls of traffic We must all feel that it is EaW oRr
hiShsst duty to aid and sustain each other.
BRt IS TIE eireClsting medium must Of necessity
greatly exceed tie E4ao4Rs 70 be contribute! to the
support Of the goFeFnmelt. the supply may be aug
mented to an amount snfacient Cor tTessnt peces.
Bary purposes by means of products Of the eGln+ry.
To this md let the government buy the cotton crop,
OF sgeh prOport 81 as may be thought necessary,
say at ten cshiz p pound paying for 1t In treasury
notes which would eiScIlgye the more readily
being issued in payment Of an kFt.cle Fhich would
pirEsyely insure their redemption. WhsE Hl&r%et
shall be opa-ed the government can sell the eott6R
readily, and being 20 large holder may, to some
extent, control the market md realize profit on
its purchase. But suppose tbsFe ShLL be some
loss cz e, Eho would ultimately sustain the oss2
The Taxpayers, Of pogrse, as the deficiency would
be made up by the taxing power of the government
This seems to &c sure ana simple plan, no COM
plieated machinery viii be requisite IN Its ecc06;
plishmeRt. Tbs government can c5tabiish agencies
in any city port to which cotton is sent Ger ships
ment, and the comnisaion merchant to whom ths
cotton is sent sell to the government instead of
to individuals. Or if the government should not
like to accumulate Sc large quantity in 8 seaport
agencies may be ostabIahe2 st suitable points
throughout the country and the cOst tS the govern
ment cannot greatly exceed the eonimisSonpEid ~
individual purchasers.
The purchase of the cotton in this way 10 certain
II far better for the planter than the produce iaSa
syEtes 20 be paid in Confederate bonds, which are
not likely 20 beeoGe circulating medium, AMI it is
planter nor the Government can derive any present
benefit from the lean system; its effect mg5t be to
create 8 dead capital The government cannot sell
the cotton u the blockade continues nor can money
be borrowed on it and broIGht into the country
nor Gas the planter use as money the SSEds which
he receives foF Il under the loan system. Is peg
mAnent investment the bonds would be both sats
and profitable but the country u not generally in
condition to allow of such investments. The plant
ers, or By RF the greater part of them want active
means-they ave not N g situation TO place their
C Ipitai ia dormant condition They have sutN
scribed literally, It is trqe to s lesH, but in many
instances their credit, deRbt, will be crippled by
the operation.
In some instances it is to be feared that sHoscrip
tions to the losR nave been obtained under sort
of moral dpress ; hick was certainly not inteude
by the government And eensgre may have fallen
Epon some planters Yho we're really net IN cond
tGn TO subscribe their crops being already pledged
and the redemption Of the pledge being ndispe nss-
bic to the future edit which alone they depend
IL may ressonsb y be expected that the amount de-
liVered will fall short of the amoapt sEbscribed.-