Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1861-11-29

tionably correct IN StatlnS tuat StCh AL e"pa'
sion will greatly increase the cost OF Inc WAL
and it follows, Of necessity, that the proposed
relief to the planters would unjustly transfer
that increased cost 10 Inc whole lax paying pop
ulation. Such is my cour,cnon OF inc dangers
to the Confederation, which Will lo!lo" Moln
the proposed mode OF relief to the planting
interest---tbat, although arr one Vi mat III
terest, had rather see the crop no" IN us
hands destroyed, than encounter lae OWLS
which AM sure will ensue from either p"r'
chase or an advance upon 1t by the treasury
II is wise for Government SO to administer us
finances as to aid the operations Oh those ic-
ultimately dealing in money; but emoarFaSs
ment must result when it becomes the Denk-
er's factor, or in any mode the agent Of class,
| and to this extent am forced 10 reject the
produce loan. .,,
II is plain that our government Will be c0ia
| nelled to issue its own notes, Tor tic supply q
;ts necess;tas JEnnssihlc their issue should be
OF general circulation. These notes Will not
circulate unless they have certain credit, and
that credit can only exist in the belief that Ill
timately, the county, by taxation Will ensure
their redemption.
The present crops Of cotton and tobacco are
most important elements Of our ability 20 Meet
that taxation-they are valuable in more ways
than one-their strength is now chained oy
the blockade-but they are tettered giants
and the instant their naaacleS are Removed,
they will :ct with giant strength Tor the coIti-
mon benefit, and will, in tie exercise OF that
strength, save US from, the most trying oil all
financial years, the first year Of peace
II is we'll worth some trouble on the part Of
the government to preserve this element Ct
safety-provided the object can be effected SO
as to avoid the danger vi iIerny crisis ure
! Of the most trying to which al intaHt alloF'
can DC exposed, | think this protection may
| be giyen-not cuiy So rs 10 avoid that danger
tu. in way to ensure more healthy tlnan-
! cal condition than thai which fear awaits
rs
NV intent ia this communication is to spg-
gest plan, when ! hope may produce those
results.
| Its as follows:
l. Let the Confederate Congress determine
the amount Of Treasury notes necessary 10 sup.
ply the country with a circulating medium. ]
have 20 means of forming an opinion Of that
amount, and, therefore, cifer none. But the OBJ
ject not being ITO make money plenty accor!-
ing to the usual expression, it is obvious that N
error of deficiency is less dangerous thar enc
OF excess. Let these notes be payable one
year (assumed to be safe periohj alter peace
Shall have been made, to bear no interest, and
be receivable in all payments to the Treasury {;
but, especially lei the faith Of the Government
be pledged neter IL increase the Issue nor ia
any uay to repeat the opcration. This pro-
vision is Of great Importance, and lis strict 90
servance is absolutely necessary to In. credit
of the notes, end 10 prevent dangerous ex.
vpsnSion.
2. Make it the duty o: the Secretary to de-
post these notes in such hunks as he may Sc
!ect to the credit of his Department, 10 BE-
drawn for, in his discretion, Us the cxIgeicics
of the Government may requTe-thoSe banks
agreeing to the following terms:
l. To use this deposit in making advances
upon cotton and tobacco; the advances to be al
their risk, and upon such terms Of pledges, insn.
t---,---<vgo, ~, o5 tnty --y -Srrc viii,
their dealers, excepting that these Shat, 30 il.
rectly for the benefit OF the bank. No charge
above such interest as they may lawfully re-
ceive, meaning thereby to authorize the bank
to require such assurances, pledges, cIc., &C.
cordiug, as the character OF the producer NAV
render it prudent and thereby 10 save much
expense to planters in good credit.
4. 10 make those advances upon Ike ter n5
of repayment within twelve months Ga time
again assu,ned) after the removal Of the block
ade--meaning thcraby to proven. .l.e creation
of an accommodation deht, and 10 provide tina!
the loon stall be only an a3rance, and to ,nd
when the necessity for it ceases
8. That the depoSitaries shall withdraw from
circulation an amount of their own issues
equal to that Of the treasury deposite, which
they may use for their own benefit; ard,
(. That they shall at stated periods make
such returns from their balance sheets - tic
Secretary as be may require.
Much observation has convinced Inc that the
best basis OF all financial operations is that
which is given By g,la and sirer-lueanns
thereby the ability TO convert every represcI
tation of money without Diff eul;y OF delay
into coin. There arc different opinions OF this
subject, and purposely waive any discussion
Of It; but lasist that, If We are to have
paper circulation, and necessity has no Law,
the plan submitted will render it rs safe as it
can be made Permit ,ne to state briefly the
reasons for this opinion. 1t connects the cir
culation ultimately with that portion of our
national wealth which is most convertible and
can be most readily used for its REDEMPTION.
The provision that the amount of c:rcula.
ton necessary being issued, no more shall oe
authorized, is plainly Indispensable; unless sc
are willing to incur the risk Of an unnatural
enhancement Of prices and a Consequent col -"
lapse, it is necessary, Us thereby ihe planters
will DO convinced that the relief afforded ;he,n !
can never be repeated-that it vas given
because of the peculiarly 0! their situation,
and the extinction CT all hopes OF lis repetition
is absolutely necessary to prevent them from
placing themselves in similar situation upon
the crops of the pext year.
The proposed iasuc bearing no interest, it,; |
circulation will DC entirely domestic, and ii
will grrcuslly accumulate i'll the hands Of resi- |
dent capitalists, who will Invest it in CGnicde.
ratio stocks, and thus it will be returned to the
Treasury as It's necessities NAV require, for | |
will not permit myself to doubt that the credit !
Of the Confederate States, if properly handled.
will DO fully equal to its exigencics; wcra il
otherwise, all speculation upon this Or any
other subject is useless, unless directed 10 OBJ
taining the hest terms Of submission.
This plan places the Treasury in funds
at different and distant points Of tho Confede
racy, the only delay being the time required
to prepare the notes; md need say nulhi;s
of the value Of promptness in payments to al
economical administration. |! enaGi.s large
and wealthy class not only to pay its taxc5,
but to provide those neccsSaries for rs depend!
snts which arc CT ANNA! GccarreHct and gives
it timely notice to prevent a recurrence OF
similar difficulty; saves largo debtor class
from the tender mercies Of th"sc vino wonll
toroe them to incur the expenses Of s!orasc
and insurance, aud then, as mas been broadly
stated, charge them comaission fully equal
~ the Confederate tex, ivr risk which is
merely nominal.
Blu. most important 0! iii he hoped 20:
benefits is that which will result from the obi.
,ation on the several dcpps:sarics to withdraw
rom circulation their OWL issue, 70 81 amount
,quul to that IT Treasury notes they may use
or their ovn profit. This is Of vital impor.
ance Without it we shall have an expanded
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