The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1861-10-28
Our Currency.

From tbs I4ynehbrrg V;rsiniAn, Oct. -
There is evidently trouble ahead III this re-
gard. 1t Will arise from two sources. First
the want OF means 10 carry on the stuI,endous
struggle i'll which we are aged and, see
ordIy, the tiiIninuticn OF confidence thai will
ere long DC apparent, in our paper issues Not
that the banks will be unable to supply q
iar1e circulating medium, for in their pres
ent condition of immunity from the Cbiiga-
ton to pay specie, they c3n float their pa
per extensively, and be of great service TO the
community. With 4 very remote prospect of
being called upon TO same the REDEEM pTion
of their aper, they would be ineXcusa ule
We're they TO contract their operations and
thereby increase the public distress. whilst
the iiSpOSi ton - general III the business com
munity, out of abundant caution. 20 proceed
upon II cash basis, the Government, and
private operators on = large scale, must
push the credit system further than ever
II is useless, IN this condition Of affairs, TO
dream of conducting the business of the coun-
try upon Il cash basis. It cannot he done
As before ut!mateG, the banks being freed
from the apprehension OF "a run fdd no
impeachment in the way of afi0rGing the lar
gest accommodation 10 the people. And yet,
from this very source, some difficulty may
arise. The conviction, i it should become
general, that The banks are doing too much
and dealing III over issues, would at once be
fatal TO their standing. We have seen this ex-
empliiieG in some sort in the ease OF the Bank
Of Pi.tsyi ivaniA. a belief IS preyalent-We
co nUL SGF II > wen IDuuCHtt-Lllat llSL tfnH
had issued more paper than Its specie de e2csits
would Justify and il is therefore iNposs BILE
to restore its credit float its pa per freely
The same fate would await any other bank
in the Common wealth, If the impression
should obtain that it Was over issuing
Hence, whilst it IS The interest OF the banks to
retain their custom ers-We mi ght add sEst1iu
them il this season of depression, when pro-
perry has onIE'e nominal or fictitious value
and IG keep all their own paper il circuiatioa, ,
il is equally necessary that they suffer not
the taint Of suspicion 10 attach - their opa-
rauons They are restrained, therefore, from
Initiating Their currency unduly. 1t has been
posed, with Il view 10 meeting the extra
ordinary demands thatare up0a the country,
to invest the banks Wi til authority to increase
their issues and III this proposition, we dou ot
not, the stockholders in al those institutions
would cordlally concur. IL would be bonus
which no man who values the opportunity of
increasing his wealth, would ignore or de-
cline.
But would lhis be the best arrangement Tor
the people, WhO are - be heavily sur4sncd
with i4Xes to support the war Whist it
would gave them a currency which they Viii
much need, We cannot assume that 1t would
be the best or safest currency that could be
provided. There are strong reasons why the
Government, which must proceed upon
credit ii some form OF other, should afford us
the currency we need. Independently Of the
fact that Il currency which would be of uni
form value in all parts OF the country is 10
be preferred to one that has differing values
III different sections Of the land, the tax payers
should have the full benefit OF these paper
issues.
Ifthey are made By the banks, the people
are only benefited to the extent that they are
provided with the mems 20 conduct the bust
ness of the country, but they are not relieved
OF any portion OF the burthen of taxation,
whilst the stockholders of the banks reap all
the benefit OF the vast revenue which accrues
in the shape of interest upon their hoatin x
paper. Let The Governments issue this paper,
and, IL rot only serves Il better purpose III the
remotest parts of the Coniederacy, because
its value is uniform; but it saves 10 the people
"A large amount that would otherwise be wrun z
from them III the shape Of taxes. lit be neces-
sary, ior example, TO increase our paper Is sues,
10 the amount OF one hundred millions Of
dollars, the interest on this sum per anaun
will he six millions OF dollars. Ii the banks
make this issue, they realize the interest in
the shape OF profits; but ii the Government
thus increases the cifcui tting medium, il has
the benefit, and the people are relieved 10 the
extent OF six millions. that would otherwise
be drawn from them III taxes TO support the
Government. This fact is obvious We will
not attempt now 10 indicate what should be
the basis of a paper issue by the Govern
ment; but il it can have the credit TO borrow
money To conduct the war, it can issue paper
upon the same basis. 1t has no money, aad 4
lust have credit or abandon the struggle.
This is not even oebatab!e question The fiscal
agent we should prefer, as ~e hare intimated
upon several occasions, is a National Bank
Such an institution, In my Judgment, would
not only serve as Il great regulator OF the cur
rency of the country, aed save us from tho
evils that we are likely To suffer from n worth
less shin plaster currency, but it woaId carry
the Government through the war--being to
us what the Bank OF England, and the hank
of France each were to their respective gov
ernments, when those countries were en-
they could not have prosecuted but tog the