The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-10-29
THE FINANCIAL REEUIsIoy At THE SOUTH.

The Panic Among the Cotton Planters
for the Political Division of the South
Secretary Memmingcr Reviewed, Sc.
From the Richmond Wing, Oct "a.
THE FINANCIAL QUESTION.
II we understand correctly the proposition FOR buying
the cotton and tobacco crops with Treasury notes. Mr..
Mcmminger wholly msapprehends il. He looks upon h
scheme for the Organization OF labor"as sort Of
socialist project, by which government undertakes -
provide for tho wants OF hglftless anAworlhess
minity, for and In consideration onothng This
total msconcepton OF the procct and Of the deep and
devoted spirit of patriotism which prompts 1t on the
part Of the people. It's object to briAg the vast
sources Of the country lying dormant and inert,
into vigorous action to repcl the public enemy and make
good Independence. No land more abounds in AN
the substantial materials for comfort and Independence,
and when the markets OF the world open, in the es
Of wealth. But under existing circumstances they
are Of little avail The o'tas or Representatives Of udIas
aodting ap,oag 10 supply this deficiency and
ourselves from Tshipg in the midst Of abundance,
is the end proposed by this scheme. But Mr.. Mcmmu-
ger tells that this scheme instead Of aiding the 60
vcrnment, will emharrass IL that the government will
have 10 raise two hundred millions to prosecute the war;
that to raise additional hundred millions for the relief
OF the planting interest will be additional burden, 10
that amount, on the resources Of tho government II
this We're 50, his conclusion would be right, and the
scheme would at DO rejected. But his error pro-
ceeds from the faacy OF regarding the people Of the ON
fedcrate States and the thereof separate
independent and anagonstic entities. The idea found
ca on the projection 10 se map makers phrase) OF
the old Yankee system at Washington, and should not be
Tolerated for moment in tho new republic Of the
the Confederate government Is indebted to the,
people, whose creature II s, and who have
Aasred million Of Treasury mites By ne gore equsa
Int 10 The IdymM # so much specie ty the government
1ey may css The people asoaey but they sox The gou
men, nohingb the paper 0hict they printed Tksy-
do a2Ieir Interest and II the article for which they
given be inrinsicay valuable the sovency and ultimate
redemption insured, at the time that the COM
munty IL relieved by timely and judcious Of il
credit But, says Mr. Nemminger, this one hundred
millions Of Treasury notes will come In competition with
the two hundred millions, necessary for tho and
deprecidte the plue of the eos and enhance the price Of
whatever government wishes buy To prevent this
result Mr.. NJ. wthhoids the hundred millions but sug
gesis that planters get the amount OF paper money
from the banks as though this fapcr money would not
initiate prices quite as much rs the same amount Of any
other sort Of paper money ~ preen the country from
being flooded Nth This sorthess paper money! hch IN the
end ,ciN seomp the banks and scatter ruin yough the land,
Is enc great reason Nth us for desiring pepper currency
ohich ,ciU possess insic rdue sThe suspension Of
specie payments throughout the entire confedeacy says
Mr.. NJ relieves each bank from calls on coin, l.
those institutions that already have out tonr to one may
throw out much as they choose there no check upon
them whatever. This unfos terrible future for tho
country "Thc proposal is that, at time when we are
called upon TO raise this large sum $500 coo 0O0 for the
support Of government, shall raise further sum Of
800 coo 0C0 FOR the benefit OF the planting INTEREST,"
THE Treasury notes bear interest and only cost tho
government the paper they printed ON. They
supposed TO be represented by cotton bales and hogs
beads Of tobaccol "For il must be observed, FIRST,
that the government receives no benefit whatever
from this advance lis IL Of benefit to the free
government Of a free people, that it's citizens are
deprived by state of blockade and war? That the
government derive pecunary benefit is its fault
as we shall show hereafterl "Ihe money is paid to-
each individual planter and in exchange the
receives only his bond or note IL the cotton be pur
chased the government receives only certain bales OK
cotton" This than the government gets BY the
produce loan; for, while the planter in that gets nothing
tho government gets nothing "That t. say the gov
ernment pays out money which is needful 70 its very
existence (s notes without nterest), and receives
in exchange planters notes produce which IL does not
need and cannot in any way mako use Of" Is tbs
er4lpess Of ins9Seiesey euei,es 20 mach disrsa.
and altrm in he country. We believe that the
cotton and tobacco crols, in the hands Of .
would in spite Of tho blockade and war be
of boundless credit and irresistible strength.
Those articles in demand M the civil
lied world. Suppose our government six months ago,
had had in warehouse and insured 500 900 worth Of
tobacco and ctton bought at eight and ten cents they
could by proper energy have had credit that amount
In London and coast might at this moment be tho
roughly guarded by steel plated steamers The same
result, by the same means, might still be Effected per
haJs in time to anticipate the inroads which the enemy
mediate against We know theyare making immense
preparations to burn our cities and ravagc our river
shores by Of iron eascd vessels and yet far
advised our authorities making prcpara-
tions to meet them. su Le poor boast for Mr. Mcns-
,angcr, that he has expended Jtx ty mit0ns, for e
~an Of fc,c additional millions cities sdeaTosd dM
land dssoJatsd Mr.. Mcmmnger suggests serious
objections the possession transporatto. and manage
ment Of the crops by the government" We do not
understand that the scheme proposes TO throw
these abors the government Let the crops be
10 warehouses; ana insured ny uS panser ior twelve
months the certificate Of the inspector sad the policy Of
be forwarded to the Treasury Department
few additional clerks 10 register these would be,
the only increase Of patronage involved ia the proceed
ing Epen foe hundred agents ,scs ress~ed, the scheme
aooud be less obnoroas than that tchscA las forth foe
thousand collectors and N quest Of petty
tar, chieh may Title other end o = retm6Nye the
officers and AdrTdss the people Virginia, though interest
Cd in this scheme Is to less amount THAI the States 10
the south of The cotton States, ,cAch produce JNs
single CROP reduced 10 vvy panfa condition They
sell their coton-they not permitted to de-
ipr IN readiness for ale The squenoe is that they
will, for the means Of subsistence, be a. tie nrty 1 the
tsurers. If this were all, they, wen we, would
make shift to weather the Storm bit ne safety of the
rI , Is a. a n senys Py aspag . nto
blockade, ach under Eiser discasas, instead q erl.
you'd be blessings.