Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1861-12-12


currency. The magnitude OF this danger cannot be
ovsr-estimated Already at discount Of thirty to
forty Psr cent, grave fears are beginning to dis
turb the public mind but even this is but a pre-
moni7on Of an impending crash, which shall bring
our currency and finances into utter confusion and
ruin. Surely to avert such danger, were worthy
an effort, eHen though tho sacrifice were such an
one Hs to test the patriotism of every one to the
core. -rl s7 ~
No one doubts the valor Of cur troops. No
one-few at least doubt the ability o,
the South to maintain ITSELF and eome on. victo-i
Gus from the present struggle so far a. depend,
upon the mere fighting qualities Of our army It's
not upon the weakness of these that our enemy
hopes for success. Bat The hope is. that eur lnan
css will give way. That though we have the mer
to do the work Of successfully defending our caus
yet that must ultimately fail for want Of mears
to sustain the army. Men without food and cloth
ing, and arms are powerless Where are we to
Gnd the means Of providing sll thsse? Our coasts
are at least so far blockaded that we cannot ex.
change our surplus products for either gold o
The necessary arms munition, and other thing
needful to the prosecution Of the war.
assume, therefore, without further remark
that this war must be conducted SO far az its fnan
ces are concerned, upon credit; and that thi'
credit Is expressed by the paper Issues or promiss
70 pay of the Confederate States individual States
Banks, and other corporations having authority to
create such issues.
If this authority were confined to a single body
animated BY the sole desire, whether from i seres
)r patriotism of maintaining unimpaired the rels
tive value Of Its issues compared with the ordi
aary and necessary commodities of trade, there
would be less reason for the grave approximations
hat now ill the breast Of every intelligent states
man and patriot This however is imprscticable
md it remains only, therefore, for each to follow
he beat dictates of its own judgment, and for eael
% assume voluntarily such sacrifices az patriotism
Snd the love of country may inspire.
Paper Issues have long been, and will perhsps
oRtiBue to be the dernier resort of weak govern
nents in & crisis like that through which we ar
now passing. Capital is always sensitive to TIT
,e&st approach Of danger, and credit even more so
In times like these gold shrinks iDstnctively as il
-sre, back into the most -secuFe and unsearchsb,
.iding places and nothing but the strongest temp
alton can bring it to light Arbitrary measure,
oily brighten it still further back into its dark re
as. When the foreign trade, by means of viii t
| ne our depleted circulation is replenished is Gu
this tendency TO boarding is greatly augmented
Under such circumstances those who hold 1t wi
either lend or sell the precious metal except al
DE most exorbitant rates such indeed as would Ii
title tine bankrupt a young nation like ours, sti
ruggling in the frat throes Of its xistence
Our war then, however just, must, repeat b.
( conducted 90 far as depends upon its finances up
n credit, which cisd.t is represented by paper is
Ies These if it were practicable to keep within
roper limits, woud al swer noat purposes Of our
| 'Oms currency as well ss coin. But what a :
hose limits! Ordinarily they th0se lshich Esqk
the SqaiU0Isnt Of c1in. The relative proportion
impossible to ascertain by any rule Of figures
spending as it does upon causes which are al
EEys variable and ever changing, such az the de
! asnds Of foreign trade where our paper will nc
circulate, public confidence in the copverhbiity
md security Of these Lsper prOmIses,-snd Other
;Iuses nos necessary to be enumerated at Presert
But when coin has been boarded or exported, to 5
,srge extent, and the means Of replenishing are
absolutely cut eff II IS no longer practlc Iole t.
preserve this Quilibrjum between paper issues snc
,on without serious disaster 20 sli the peculiary
lntereSts of the country.
There Is then, no absolute ruie by which to meas
Ire, ascertain, OF ADJUST the amount or extent tt
which paper credit may be safely employed
ubstirute for eon Whics nature itself has limited
It can ohly be dpproziu1'ed.
Making proper ailo vance for any deficiency o
! ,upply, and Of increased misunderstanding 8,
veil - may be whatever other causes may bav,
4 - -. l..
If price, know Of no better or ssfer rule, thougl
! admit 1t to be exceedingly imperfect one, OF
ccount Of the difficulty of making tina application
han, tia! tie supply Of paper issues shaH Be so l,niso
Is 10 eheoa any adU1nee in prices Of tie ordiq con-
aOdRits Of trade beyond that hch mag be fairly a.tr
+Itobe TO osAeT EEL Enorn causes
Unfortunately thetemptstion to over-ssues and th,
iif1culsy Of ourtaiment are great, that in emer
EencieG like the present, We may search in vain to
ind in ali history single instance in which the issues
rave not exceeded the limits of prudence. We are
q, prone to latter ourselves with the idea that the
GrgeF the amount Of currency, and the higher the
prices Of what We produce, the greater the bless.
| ng.
In arbitrary governments or wherever there has
been . large AMI Furthermore accumulation of
tebt the shoulders of the producing part Of the
population. this might be true to partial extent III
| efeTenes to these. But the creditor class must
u8er to Just the extent that the deb,or class are
'enehttsd 1t would then be but another and more
.diouS and far more dangerous and disastrous sys>
en- Of bankrupt Law, since it ia but the substitu-
| ION Of public debt for that Of individuals
Take . single cass-A. borroWs of B. ten thou
and dollars, payable in sixty days. He invests the
whole amount in wheat at seventy five cents Ter
IuShel. Being the debtor, he is, of course. tie
IoneIter man of the NO and entitled to the sympathy
and protection Of legislator, ldgs and jury. as
against the unrelenting ShylOck who insists on
,syment under the absurd pretext that he needs
he money himself. He takes advantage of the
avs delay, gamers his wheat in some secure
place until paper issues rave become so abundant,
chat he readily exchanges his wheat with the Gov
srnment for twenty thousand dollars in Treasury
aotes BE has tlus been enabled to ex9nerats
himself from debt and pocket ten thousand dollars
B. has at last COS hil ten thousand back agaiu
without loss. for he was getting interest all the
A ia tan nd doIlpr nj n5 M