The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-09-10

The affected ignorance Of the Northern journals
as to the ability of the Southern Confederacy 10
support the present war; and prosecute it, if ne
cessary, through protracted struggle, to a sue
cessful termination, should astonish no one who
has observed how persistently they have attempted
to mislead and deceive the people Of the North as
to the true nature Of the present contest and the
spirit which animates, the principles which
support their opponents. The same vindicve
and malevolent feeling which induced them blind
~ to insist that the Southern army was not in a
condition 10 resist, and would make no deter
mined star against, the "Grand Army" Of the
North. still prompts them to delude their people
into the belief that the war must be q short one
because the South will be unable much longer TO
provide the means necessary for its prosecution.
To any one who has reflected upon the true finan-
cial position of the South, the fasehood must be
patent. We do not hesitate TO say that its coudi-
ton is at this moment much sounder than that of
the North, and that there is every prospect that
the Southern Confederacy will be able TO provide
means for protracted struggle with much less
inconvenience and on better terms than the Fede-
raj Government can possibly expect to do.
That the credit Of Republican Government is
the credit of its people, is simple axiom. No
Republican Government, so long az it maintains
its Republican institutions, can make extraordi-
nary loans or provide for ex extraordinary expenses,
without the approval and cooperation of the
people. Cabinets may plan and Congresses may
VOTE but it is the people after all who must pro-
vide. Confidence at home gives confidence
abroad; while the manifestation of distrust not
only affects domestic, but closes the door to
foreign negotiations Those leaders to whom
the people of the South have entrusted the
cate of their liberties, fully recognizing these
truths have made attempt to carry on the
war without the assistance of the people. They
have not pretended to deude them into the belief
that independence can be achieved other than by
extraordinary efforts, that be sustained
other than by extraordinary expenditures. They
have given them TO understand that ultimate sue
depends upon their cooperation, and they |
have called upon them in the beginning to come
forward with that aid without which all their de-
clarations are than ridiculous and all their
efforts worse than useless. They have acted as
wise Statesmen and not as scheming politicians
They have not applied to the capitalists, nor the
banks, nor the brokers to advance money for |
which they knew they could really pledge no ade-
quate security; but they have applied Immediately
to the people themselves to furnish the security
upon which the means could be raised. The appli-
cation, as might have been expected, has met with
a patriotic response. Not only has the necessary
security been furnished but in reality capital has
been provided. Most of our readers are no doubt
familiar with the details of what is called the cot
ton loan-although the subscriptions are not con-
fined exclusively TO this article Of produce Au-
thority was gived by an act Of the Southern Con-
gress for the issue of Confederate bonds to the
amount of $1,000 900, to be exchanged for cot
ton or other raw produce, manufactures or militia
~ stores The chief object of the act was to enable
the people to subscribe in material what they could
not subscribe in money, and the effect of it was,
that in a comparatively short time after its pas
sage, cotton, which is quite as much a representa-
tive of value as bullion or coin, was freely sub
scribed by individuals, to the amount of about
$50, 600 900, estimating it at moderate valua-
ton The whole amount has no doubt been since
taken, and accounts have reached us of men who
have not only subscribed literally to the present
oan but have pledged themselves to an annual |
subscription of a similar amount, during the con-
tinuance of the war. The next step of Congress
was to make this wealth available as currency
An act was accordingly passed for the issue of i
Treasury notes to the amount Of 500, 900, 900, ,
six months after the ratification of |
,eace, and receivable meanwhile for public dues.
md in lieu of the subscriptions of produce or
Material In other words, the Government has :
ssued a national currency, which has actual ma
eria as the basis of its value, and which is much
b,t la WIFI |
or it. than are the issues and Indebtedness of the
Northern banks by the specie and mercantile paper
low in their vaults. During the war, while there d
J no need of funds to pay for foreign importa- r
ons there is no necessity for the redemption of d
his currency; and Immediately after the war, it .
to be redeemed in specie from the sale of the d
otton held by the Government.
The banks whose cooperation was necessary :
o give complete success to this scheme, have not b
cen behind the people in their lberality, Mani $
sting their confidence in the stability of their ii
|overnment, they have endorsed its actions and tt
lrthered its plans. They have made this national t.
lrrency the medium of exchange throughout the q
hole country, with the exception of the State of
ouisiana which must await the action of its W
legislature to enter into the arrangement. The y,
aiding banks of different States have net only l
'nsented to receive these notes on deposit, but y,
ave agreed also to make no distinction between st
,eir own issues Notes of the different banks are vi
nus made to circulate freely through all the 70
tates' balances being settled through the medium ar
treasury notes. Money, therefore, is, in fact,
bundant; and SO far from there having been any
arrangement of currency produced by the revolu-
on of the South, it is, in reality in better CON-
ition than it was heretofore, when exchanges