Daily Richmond Whig. [volume] (Richmond, Va.) 1861-1862, 1862-01-17
THE FINANCIAL EMBARR ASSAENT OF THE YAM
KEE GOVERNMENT, BANKS AND PEOPLE

land, has been ordered to Mercer county"
THE FINANCIAL EMBARR AssMENT OF THE YAM
KEE GOVERNMENT, BANKS AND PEOPLE.
circular prepared in New York aad sont over to
Europe the first of the year. having for its subject the
financial condition Of the United States It conaited the
following leading statement upon the suspension Of the
banks:
The financial crisis impending at the issue of our two
previous circulars eliminated by suspension Of spe-
Gle PAYMENTS by the banks Of the cities of New York
Boston and Philadelphia the Both inst; ByA singular
improvdence Government allowed itself to dependent
on their contributions TO meet its daily expenditures
aud eq1ently compelled 10 follow their example
and suspend payment its demand notes. although the
interest is bouds and probably all It's obligations
TO mature will UNIQUE sionably be promptly met.
TIE suspension caused not by any lack Of capital
ir the country but for the of policy or scheme of
finance adequate 70 the emergency The country never
presented substantial evidence Of wealth than at
the present moment We have taken frequent occasion
TO set these FORTH and have contributed some
thing we believe, to advance the credit Of Govern
ment both at home and abroad But the policy that has
been stes div pursued ny Government from what motive
will tqIre has directly tended 10 precipate the
crisis and leave it without means while those of the
country have been really untouched. TIE remedy is per-
fecty obvious and simple-which is TO ADOPT policy
which, by drawing upon the of tue people, shall
s-N~1'
its credit
For the calender year which closed yesterday we pre-.
sume the current expenditures Of Government were
$500 600 900 Its which derived from lands
and Import duties, did not prob IDLY exceed il reach,
S3j 900 GOO one-tenh the expenditures. To ma Ike
40 the deficit loans resored TO- the greater por.
ZION of them being made in the city of New York. The
expenditures bang largely made in distant portions Of
the country the balance OF Indebtedness the close Of
the year turned against the city, that the payments
-. L. i'll IL.
them no other alternative but to discontinue their ad-
vanoes, means OF retaining the specie still remain
ing in their vaults.
At the close OF the last week the amount held by the
banks was S29S57 III This soon will be reduced BY
the amount OF So 500 0OO which they agreed advance
for the purpose OF enabling the Treasury meet spe.
Gle the January interest upon the liabilities Of Govern
meat Ii pom the third $50 600 O00 the banks will have
paid S5 900 900 making their total advances S25 00O
600 OF this amount the Government has returned say
sSs 900 OOO being proceeds of sales outside the banks
and has agreed to account for 900 pro-
ceeds Of such sales.
We take il for granted that the banks will 20 no fur.
Their upon the agreement Of the l9;h OF August 1t is
neither for the terest Of the Government nor the pub
lie that thew should. Il is clearly that the al.
lance between them and Government both unbus-
nesske and unfortunate it has in effect converted
their capital into Government bonds which not mon
ey- capital should lose the attribute of money
while il led Government, long all its wants were
supplied TO put of the adoption OF any plan or system
OF finance necessary TO produce even s expenditures
upon peace footing upon the enlarged scale which the
rebellion rendered iuevitAbl
The Srraug cement a most mprovident for both
parties and both equally interested in bringing il
10 an early termination. The aid OF the banks should
ouy have been avAlsd of TO meet present emergency
When this was pissed, the advances made by them
should have been returned aud the expenditures OF the
Government met BY the people, either in long loans or
oy taxation Of one kind or another. For this reason
sc have for time past advocated suspension Of
specie payments the Necessary step the adoption OF
u permanent and al, qlAie policy.
Such policy should be system Of taxation, which,
with customs revenues will yield annually (say) $3.50
600 600 to $500 900 900. Customs may ne m,de to
produce probably 100000 600 or 500 600 900. We are
then Left tic various modes OF Internal taxation, such
property and income tax, stamps, and excise tax
duties England raises IN all $3.50 900 900 anu.
aiy We can ceTtlrly raise one.hali this amount with
a. much Ease she raises the whole. We have Gu
equal pOpuaon, aud 10 many respects superior Ie-
sources. W doub the ability OF people to pay
such tax
It, collection, far as Government is concerned
could be anticipated b. demand Treasury notes. watch
by being made receivable IL payment OF such tax would
readily taken by the government creditors al til
redeemed, pass current ~ money. Government could
hus al once be Tlced in fuuGs TO the amount of the
probable from all sources for the year LIS credit
nay in this way be fully re-esabished that il may
continue negotiate loans TO amount sufficient, with
its revenue derived from t4Iton, 10 meet all wants
The paas suggested alternatives 10 that stated up.
pear 20 ia 70 be- not oDy inadequate 10 the emergency
Du as likely 10 prove disastrous in their results Tue
one 10 which Mr. Secretary Chase nchBes-that OF FreS
Blinking tassd Government boads would, II reader
I'd obligatory force the banks of the country into gen.
eral Liquidation instead Of creating II ef.
Optional with the public will avail himself OF it,
IS 10 one is going TO purchase Government bonds u
condition OF issuing circulation, when the SINE thing
can BE- done now pader Safe lave, without any such
deposit
flc bank uols q the New England States, which are
wholysuasecnTgd p6ss throughout the cOu1ry at a,ess
rate OF discount than those Of this State which
ply secured Toe guaranty Of deposit OF United States
stocks Tor all Tie bills isyuei BY the former would not
add ia the slightest degree to their snyency They
abundantly secured by admirable sem OF bank
ing They equivalent TO gold which certainly all
the pubic d.mand.
Tie great dlnger resulting from Mr. Chases scheme IA
that Congress viii time i; which could just
nos be better employed
TIE Suspension BY the banks operated great relief
70 the public mind. Prices the Stock Exchange
very Tapidly-Ibe advance days previous being in
many instances az great and per cent. Gold
never more abundant than at the present moment |.
will probably command for the future any premium
The C CT of the suspension will be to correct vicious
system OF national finance, which an incubus upon
the operations OF business aud trade longer to be
borne
We have no doubt that this system viii be followed BY
fully adeq the crisis although much precious
time may be lost upon mp:acLcablo schemes and in
petiments which always Incident TO new experience.
As IMPORTANT ARRIVAL The Houston Telegraph of
tho lst last. learns from good authority that
ha4 arrived in Texts port within the past week. under
l,ish colOrs bringing 80 tons poEder large
amount OF Il po-der 200 600 army caps 5000 can
non primers aud cons der,hls amount of cofee dry
goods, bagging rop', etc CoilfWbMs Enquirer.
DIED,
EeA- Vile at o'clock the morning the 9th anuary
BROUREsBSuUGH PEELPs " he late Jefferson
PhP e coyog,Sn KY and grsad'on Of The late Judge wm