Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1861-11-02

Has the Confederate Governments the SoR
stIsational Power make Advances oH
GsttOnt
EDTToRs APPEAL: Such power was alwsyi
denied by southern rights men TO the old Fedc
ral government, and certainly the power delega
tel 10 The Confederate States government Is no
less carefully guarded. Such power is not ez
pressly conferred, nor Is il necessary TO the e2
ereise Of any power that is conferred. Relic
measures ofthis kind always OF Questionabl,
policy, and doubtful success,) must originate no
with the Confederate bat the State gorsrHmsats
Ii relief IS to be given 10 the cotton growing in
terests. must It not also be extended to tobacco
wheat. sugar, nee, and all other agriculture
products And if this new policy talwsys here
toioTe rejected BY the South, be adopted, may
not our infant VsaAgfaet0riss appeal to Congress.
for relief9
But suppose the power Is conferred, would Il
be wise to exercise ii
The credit Of the government depends first on
the po,osT Of taraliOH, and the amount Of taxable
properly under its jurisdiction And secondly,
0 the exercise e this BO'eer For the PO,osr 70 Tar
gives no basis OF credit unless there is a certain
" that this power viii be exercised.
Il treasury notes are issued beyond the means
provided for theIr punctual payment, their value
viii sink in proportion 10 the excess issued Sound
credit can r-st on nothing but certainty of pay
ment; and certainty of payment can rest on
nothing but the iacs that certain and reliable
fund is provided.
This brings up the question, is cotton, not
convertible into money because Of The blockade,
basis on schiek M gOCerRmsnt can sustain he
credit Of an ISSUE Of paper designed 10 pass Eas
currency 1t is obvious that cotton in the hands
Of the planter IS as available for the purposes
Of credit as it would be in the hands OF the gov
eminent Il is defective IS a basis OF credit be-
cause it cannot be converted into money At the
discretion Of the holder And this defect attaches
10 il as much il the hands Of the government a.
ia the hands of the producer. II is clear, there
fore, that an issue Of paper based on COTTON
which cannot be Sold viii depreciats in value,
and the government credit viii be injured if not
destroyed by an over issue, and the planter
VII loose large per cent Of The real value of his
cotton by the depreciation Of the value Of the pa
per he receives ior il.
But the question is constantly put. how can
planters pay their taxes unless the government
viii make these advances This question i'm.
plies the necessity of the government adranciag
money 10 tax payers, 10 Be inn sdiatsiy handed
back an the sray Of tarss The absurdity Of this
viii be manifest by a simple statement Of It's
operation. A planter owes the government in
taxes say one Thousand dollars The govern
ment advances TO the planter the one thousand
dollars, and thea takes Immediately back, leaving
the relative condition Of the parties the same as
before the s1vancemeHt The g0rtTnaentha has got
bark is OaeH paper and he planter sill oires the
0HE thousand dollars
But it may be said that in this operation the
government has lien on the planters cotton
The ready answer j., that Jst0rs this the gov
eminent had lien for the thousand dollars taxes
on me planters 1ehoe estate aud has, by this pro
cess simply given up The lien Of the tax collector
for the uncertainty Of something Ike mortgage
on cotton. which may be destroyed or run of
-sAaNtat 2fANALlNp 81 r4f'0 AN 1Att-4-fo4l4l
credit TO the government; while, on thr con-
trary, by its complications between ihe public
finances and private interests, It introduces gen
er.l want Of confidence in public securities
The evident tendency Of the times IS toward an
over Issue Of paper currency. The banks have
suspended specie payments, and this suspension
being generally legaHzed, they are discounting
freely. The Confederate government, for the
purposes Of the war, is making large issues Of
bonds and treasury notes. There is, therefore,
no lack Of circulating medium. The danger il,
we will have more than can be sustained in
healthy credit.
The amount Of gold and silver in the Conled-
crate States IS probably as large as it ever has
been The blockade has cut Of shipments
abroad, and we are likely 10 retain fun share Of
specie among US, although, for time at least, it
VIII retire from public view. Still, the specie is
really n the country, and is likely to remain
here. In this condition Of things, we ought not
20 stimulate the issue Of large amounts OF paper
money. We ought to rely on the amount Of cir
cnlation furnished by our banks and such Con-
isierats securities as the government viii, in the
prosecution Of the war, be compelled 10 issue.
TO 20 beyond this viii end m general bankruptcy
and ruin u.