Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1861-12-11
- VI
For the Standard.
GOVERNMENT ,,'l F1NANc { IS. LOAN

80 !EAFfss t2sFf ~ ipff5 jH5l=l'$;x,. ],
GOVERNMENT FIN CES-PRODUCE LOAN.
Mr. Ep1roR:-L was somewhat surprised whenI
saw the position taken by Secretary Memminger,
in regard to the government purchasing the cotton
CROP He hrst opposes it upon constitutional
grounds, but seems to admit that Congress has the
right to authorize it we are yet under 2rovis-
ional government He says the government has no
right to loan money. The purchase of the cotton
crop by the government is so far from loaning
money it is actually borrowing from the planters
the entire crop Of cotton. 1t pays for it in treasury
notes bearing no interest which is in my view Of
the matter, much better than borrowing money at
eight per cent, to be paid semiannualy; for it is
beyond question of doubt that the cotton can be
converted into money at far distant day. In the
next breath he says he prefers that the government
make an advance of five cents per pound and taking
q lien on the cotton to secure the payment Of it.
This is clearly loanlng money. In the next place
he seems to think that such large issue of treasury
notes would cause depreciation in their value and
initiate the prices Of necessary articles to supply the
demands of the government Now, if the govern
ment issues its notes upon the faith and credit Of
the government alone they may depreciate, bu: if
1t issues upon the faith and credit of dollar for dol
lar in cotton as basis they never can. And have
yet to learn when there was the first govern
ment that had too much money when they were
engaged in righteous war IN defence of their rights
and liberties 1t is the supply and the demand that
govern prices. Why is salt, pork, and goods Of all
kinds so high? 1t is not because money is SO plen
ty, but because the demand is greater than the
supply. Why will the price Of corn and rice rule
so low? Because the supply will be greater than
the demand. He says no power is granted to any
department to enter into so stupendous project
for the relief Of any interest 7
Now, Mr.. Editor contend that it is the govern
lnent that receives the great benefit in this trans
action. 1t enables it to negotiate a loan of about
two hundred millions of dollars, on which it pays
no interest 1t gives the country good currency;
it enables planters to pay their taxes and contrib
ute largely to the support Of the war, which they
cannot do without some such policy is adopted
For the planters have no means of getting hold of
the treasury notes nor specie to pay their taxes,
and to defray their necessary expenses without
they can effect sale of their cotton and it is we'll
known that the present cotton crop cannot be sold
at anything like fair remuneratng prices so long as
the blockade is kept up. The wealth of govern
ment depends upon the wealth of the governed.
Labor is wealth. if its products properly used
but IT labOrer receives reward for his labor he
has tendency to impoversh rather than to enrich
his country. How many of the planters are there,
who have abored to make crop of cotton, with
the expectation of buying their meat for their
slaves, to pay their taxes, and support their fami-
their slaves suffer, their property be sacrificed to
pay their taxes and their families left in cramped
| condition, which makes them poor indeed. The
larger number of slaves man has the poorer he is.
For the want Of proper legislation We are made
! wretchedly poor; but by prudent legislation we
| may be made the richest and most independent ma
| ton known to the world. Our resources are mex
haustible. We have no need of offering our bonds
| in any foreign markets Give the planters the ne
! To <bo;v
farming operations successfully and they can sustain
the government in prosecuting the war successfully.
| There arc two main Slnews war. They are men
| and money. We have now the best army in The
| field ever known to the world-patriotic, brave and
we'll disciplined. Bonaparte nor Wellington could
not have boosted of their superlors in their pamest
days Adopt my policy, and We have the money.
| Now, Mr. Editor, l showed you IN a former COM
| muncation, that the government could make nett
profit by buying the entire crop of cotton of two hun
dred millions of dollars (my calculations were in
round numbers) by selling it at twenty cents Cot
| ton is now worth twenty fve cents both in old and
new England, and cent or two would carry it to
either market, but some say it will not do to extor-
ton on England and France; We might give offence
Them if this is too high price, say fifteen cents
do not think England and France would get very
mad at that price; then the government would make
| nett profit of one hundred millions of dollars.
|
our doing honest and legal act for our own pre-
servation; we make no discrimination, consequently
none could take offence Fifteen cents is not an ex-
brilliant price, but, suppose the government pays
ten cents and sells at ten cents Mr. Memmnger saws
the government would make nothing. This theory
would hold good in ordinary transactions, but not
IN this. l think have shown you in this commu.
nicaton the great good to be derived by negotiating
the loan without interest, giving us good circua.
md 81,
taxes and sustain the government, besides it would
add millions upon millions to the wealth of the
country. Large portions Of the amount paid to the
planter in treasury notes would 60 back to the gov
eminent in the way Of taxes and the balance applied
to the carrying their farming operations so as 70
enable them to support the government Mr. Mem.
minger suggests the buying of the corn crop if he
buys the cotton. This object to for two reasons,
first corn cannot be held for any length of time,
and might fall on the hands Of the government with
heavy loss the second is we could not make a
monopoly of it. as the United States could sup.
ply the demand but the world could not supply the
deficit in cotton without our aid The corn grove,
convert his corn into pork and feed the soldiers
while we expect to open the blockade with cotton
and give them market abroad. respectfully sug
gest that bonds for the respective amounts subscr
bed in the cotton oan be issued bearing per cent
interest payable within ten or twenty years. By do
of their crop in treasury notes, would give them all
the facilities they could ask for. am satisfied that
the cotton cannot be sold at fair price during the
blockade, consequently the subscription would dc
neither much good; and if the government attempts
to force sale at the time specified in the contract
planter, and without some such policy is adopted,
do not see how we are to carry on the war. Car
it would eause'a great specified on the partof the
we bear up under SO oppressive tax without giving
the planter any money to pay-will it not lead t.
much embarrassment and a great depreciation ano
sacrifice of propertya
Politicians may talk about political science, but
We had better establish permanent government
before we talk about the best mode cf administer
ing one. 1t would 5e source of great qualification
to every true-hearted Southerner to know that WI
could carry on this war without depressing and dis
tressing the people.
Mr. Editor, I am pleased to zee the favorable view
taken Of my policy by the Editor Of the Raleigh
Register, and the correspondent, I" Roanoke o
iJorth Hampton" am in hopes they will do the
duty and bring their influence to bear in its favor