The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1862-01-15
&irb1nunh 4ispafftl.
"WEDNESDAY lORMIN0. JAN. Is. lSs9.
FROM NORFOLK.
foUR OWN CoRREsPoNDENr.1

n ssts n, NoARoLK. Jan. Il, 1882.
News from the North and from the Faro
pean world. received in this city within afsw
days, 10 Of acharacter very cheering to the
prospects ofcur Government. No one who
daily reads the extracts from Federal news.
papers can fail to rec that the day Of our in.
dependence is not far distant, and that, be-
fore many months roll away, the dark clouds
Of war will 6s lifted from our Southern land.
The question now seems to be narrowing
down to one Of finance alone. Victorious ON
every field, our chivalric volunteers have
sho wn the enemy 1t il folly to cope With
them unless with odds Of half dozen to one
In his fayor-and can such an army be main
tanned against US The maxim of war
"TAat nation ecnqusrs which has the long.
est purse ''--is likely to prove true In the
present struggle between large and fAnati-
cal Government and the comparatively lew,
but earnest and deter mined, people Of the
South. In battle between soldiers sf .ea aai
courage and daslng, victory goes With
the heaviest battalions; but in the gen
eral conduct of war, that nation con-
quers, csttris Parribns, which can best
afford the enormous outlay and expense.
A country which derives lts revenue tlom
wealthy; while that dependent upoA Iis
IN an utaclukes, and UPON export and in port
duties, can only derive an Income when l.s
commerce ana tTade Win Io1elgn nations is
unin teri u pied by the vlclssituues OF war. mo
Government can carry Oh waI and pay ia ape
cle all its vast expenditures, tut usI n- We
go me basis OF Credit upon WhicH 4 iseue Its
bonds OF VblIguIlOns " pay some 1utUre
oate. The issuing VI Don0s, notes, or bills ol
credit, when baseo upon the value OF some
necessary PRODUCTION Of the SOIL, IN sAe
South-upUn cotton, rice, sugar, apu to-
Dacco-is u matter Of great goOu DVtn to the
Government anu the people, PROVIDED II Is
not carried 100 lar. IAe i-soihk VI bon ds, u
the Northern Government has done, Daseo
upon probable pr0nts OF = future duty upon
imports, is pernAcious evil, and Will lneVi-
tADiy result IN q great uni.nClal Crisis. His
tory has given us some gUoo lessons upon
this su bject.
During the American revolution, when it
becRme necessary, owing TO the scatciEy OF
gold and silver, " provide some circulating
medium tor pubic convenience, con tlnen tai
money was issued to the amount OF two hun.
dre.. millions. AT first lhe plan worked al :
mlrabiy, aud the colonies derived material
advantage from their bits OF credit, which
soon came into general use. The result was
that specie was almost entirely driven from
circulation but 50 long as The people had
confidence Ill the paper issue, 1t aid Us we'll
for all domestic purposss. so Tar so good /;
but when the paper substituted for specie
was increased hey ond The usual amount OF
specie IN the country it began 10 deprecIHte
in value. Of course this deprecIailcn ln-
creased With the amount OF paper issued,
until at last it became SO low in public esti
nation that one hundred paper dollars would
hardly buy one OF silver. Sui this paper cur
rency continued the circulating medium from
l775 TO 1871, and was almost entirely used in
domestic trade. When peace was declared
the continental paper money tell below
nothing, and the State found themselves in u
PROSTATE condition that might have been
avoided had the paper issue been limited to
the actual necessities Of the times.
The Federal Government has fallen into
precisely the same error, and is piedging its
bonds with the utmost prodigality, to carry
on ruinous and vindictive war Every day
records It's progress towards the "high cid
panic'' called for by the New York Tribune
more than twelve months ago, and the peo-
pie themselves see financial crisis approach.
ing that will throw the great Mississippi
bubble" in the shade. The banks refuse to
take the Government "promise to pay" a. .
basis for banking; the bonds are sold in th0
market at a discount of four per cent. capi-
talists have no confidence in the faith Of the
Government, and are investing their money
in gold and foreign exchange preparatory to
moving it out of the country; and the peo-
pie are accusing each other of conspiracy to
defeat the financial schemes of the Secretary
Of the Treasury. Every possible dollar has
been drawn from the banks, and they have
lent the Government already more than the
amount of their capital. The weekly bank
statement, in New York, for the week ending
december 2s, shows the following condi.
ton: