The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1861-10-12
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SATURDAY MoRrrno orr T. lssf,

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SATURDAY MORNING.. OCT. IL, 1857.
pApER MosEYs-fn revolutionary tines,
specie quickly disappears from circulation
Those who have II, hoard it, and never bring
Il out ~ long a. the political troubles continue.
! = paper circulation, based upon the credit Of
the Government, necessarily supplies the va.
euum, and the fluctuations in the value Of the
new medium depend of course upon the pop
nlsr faith 10 the stability of the Government.
In Great Britain, for instance, the notes OF
the Bank Of England were made n lawful
tender by the act of lfa7, and continue to be
% fer twenty years, without depreciation, and
pie. The reason 10 obvious The people had
unbounded confidence in the stability Of the
Government, and its disposition TO act hon
eetly. In France, on the contrary, the assig-
@ats underwent woefnl depreciation, and
ruined everybody who dealt largely in them.
Again, the reason is obvious. The people had
no confidence in any one of the Governments
which were set up and pulled down at the
pleasure OF a mob. The Uaig, of yesterday
morning. contained an extract on the subject,
from LAMARTISEs history of the Girondsts.
We translate it, and commend it to the atten-
ton Of all whom 1t may concern, whom We
take to be every body in the Confederate
States:
"To supply the want of gold and silver,
which seemed to have suddenly eyaporate TED
the Constituent Assembly created paper
currency, under the name Of Assiyants. That
confidential money, If the people had thought
proper to understand and adopt IL, would
have answered every purpose of q metallic
currency. 1t would have multiplied trans
actions between private individuals, palo
the wages OF labor, discharged taxes, ana
represented the price OF land. n circulating
medium, let economists say what they will
has no other V iae than that OF the covenant
which crea tee ii and the credit which IL car
ries along with 1T. 1t is sufficient that the
proportion between the thing bought and the
represen Ia ton OF value which buys il, should
not be suddenly and arbitrarily changed by
adisorderiy expansion OF tina representation;
the actual anu true price OF everything set
ties down III conformity with that proper
ton. A law, and an honest ana wise law,
only, then, can create a circulating medium.
Let u medium THIS established be OF gold and
silver or of paper, ii is 4 matter of little I'M
portance, presided only the proportion be
religiously observed, aud that The people
also retain their confidence in the faith and
credit of the currency. A bill OF exchange, a
y.
other value than the signature OF the drawer,
supplies, in private transactions, the place OF
any given SUN. 1t has all the effect of gold
ana silver. 1t is nothing more than a cur
rency created by private individual, the
representative of the confidence reposed III
him. Why, then, may not Il State, VIII ich
represents The wealth and credit of al, issue
paper currency as inviolabls and as much
entitled to creuIt us that issued by private
citizens"
The assignats failed TO constitute a good
currency for variety of reasons, apart from
the established habits of the French people,
who had been accustomed to no other medium
than gold and silver, and had come, from
habit, to regard those metals not as
the representatives of value, ba. as pos.
sessing certain, absolute, intrinsic value of
their own, altogether disconnected with the
thing they We're intended 10 represent They
had, moreover, 10 confidence in the Govern
ment, or rather in the succession of Govern
ments BY which they Were issued They
knew them all to be composed of public plan
derers, who would be faithful to no engage
ment any longer than it suited their interest
or convenience TO be so. Had they been
ever 80 honest, and ever so well disposed to
comply with their obligations, they saw not
how it could possibly be done. There was
nothing upon which to base credit. Besides
all this the enemies of France took early and
astive measures to discredit this paper. Fo-
reign Governments at war with her, Were
accused of purchasing it in large quantities,
and throwing it upon the market. The French
soldiers carried it along with them into the
countries they invaded, and forced the inhabi.
tants TO take il at it's nominal value. Csurers
got hold of it, and employed it in anKrchasing
whatever was for sale The az a!Rs of the
Government bought it up, and used it in the
same manner; for there was a law linishing
with death any who objected to taking it at
par But, above all, there was no restriction
upon the Issue. Reams upon reams were
thrown upon the country, and OF course it
became valueless.
Now, it is very certain that our Government
will be compelled to create a paper circulation
OF some sort, if we are expected TO carry on
this war-and we hope there is no idea of
abandoning it. What that circulation may be,
we know not; but it is pretty evident that we
have not the specie We would suggest to
those who are rendered timid by the fate of
the French assigndts, that the cases are not
parallel. Proper restrictions could be laid
upon the power of circulating, so as to obvi-
ate the danger of depreciation by undue ex-
pansion. The new currency would have for
is basis the untold wealth of the whole
Southern country. The people would not
hesitate to take it, whatever shape it might
assume, because they have entire confidence
not only in the stability, but in the honesty of
the Government, and it's resolute determina-
ton to meet eve<y obligation that it may in
eur. We have no hesitation, then, in saying
that it is not only possible, but easy to supply
a medium which shall answer all our pur-
poses as long as we are isolated from the rest
of the world, and which will be redeemed with
gold and silver when the day shall have ar
rived that shall witness the rupture of the
blockade, and the resumption Of trade with
Europe. The Yankees can borrow money, it
seems, upon the faith of nothing at ALL for
their Government has nothing, and can offer
nothing as security. 1t is hard that we, with
all our wealth, cannot raise the sums which
our necessities require.
THE FEDERAL ARMY IN WESTERN VIR-
cIsIA.-The army of r osENcRANz lately en-
eamped on Sewell is believed to be about six
or seven thousand men. Bnt a small force,