Daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1859-1865, 1862-10-01
The Rebel Currency-An Interesting
Chapter in Finance.
From the New York Times.

From tho New York Times.
a further issue of Treasury notes hav-
ing, on the 18th inst, being authorized by
the rebel Congress, as a means of carrying
on the war and replenishing their exhaust
ed exchequer, it may be of some interest
to review the present condition of the
Southern currency, and to compare 1t with
that existing in the peaceful and prosperous
year proceeding the rebellion.
In 1860 the currency of the Southern
States was in a very sound condition, and
amounted to about SLIGO, 900, 900, half of
which consisted of bank notes and half of
specie. After the fall of Fort Sumter gold
began to disappear from circulation in the
South, and the banks, yielding to the pres
sure for currency, increased their issues,
which at present are estimated at over
500, 900, 900.
On the 9th March, 1861. the FIRST issue
of the Confederate Treasury notes was in
augurated by an act of the rebel Congress.
The sum was small, amounting only to
s., 02l, 900. One month later, on the 18th
April, further issue took place. 1t con-
sisted of Interest Notes, of which $22,-
799, 800 have teen emitted. Apparently,
however, from the coupons attached, or
from some other cause, this batch of notes,
being unfit for currency, were not very pop
t.
cient rapidity. Hence on the 10th My,
another issue was made of ordinary Treas
ury notes, amounting to $l7,347, s55. Up
to this time little or no depreciation seems
to have taken place. But on the 18th Au-
gust a much larger emission of notes was
determined on, which ut once deranged the
currency, the amount sent forth being no
less than Sl67, 764,6l5. Besides these
four issues of paper money, n quantity of
one and two dollar Confederate notes was
struck off, amounting to Ss46,000
From these figures, we see that at the
present time the aggregate amount of Con-
tederate notes in circulation is $2l0, 49,
$50, and the whole of paper money in the
three hundred and ten millions of dol
lars.
Thus the stream of the circulation in the
rebel States is swollen to nearly double its
normal dimensions, while it is deprecated
to one-half of its nominal value by the
sure action of that relentless law which
governs all paper currency.
This law is one of the most important
in the science of national finance The
honor of its discovery has, by some of our
perhaps too partial countrymen, been
clnimed for John Adams, who, eighty
years ago, thus expoundedit. The amount
of ordinary commerce, "externap and
internal, of country may be computed
at fixed snm. A certain sum of money
is necessary to circulate among the society
in order to carry on their business. This
precise sum is discoverabIe by calcula-
ton, and reducible to certainty. You
may emit paper or any other currency for
this purpose until youreach this rule and
it will not depreciate and no power or
act of legislation hitherto invented can
prevent it. In the case of paper, if you
go on emitting forever, the whole mass
will be worth no more than that was
which was emitted within the rule. Had
Mr.. Adams foreseen the pasthuctuatious
and actual position of the rebel currency,
he could not more truly have described
them. For we have first the issue of
500 of paper money for every $50 that
are needed; and, secondly, as the inevita-
BILE consequence, the depreciation of this
money till 500 of paper are only worth
$50 of specie. 1t was in accordance with
this same law that in Europe the paper
money of England became Deprecated
20 per cent, IN 1872, % per cent in 1873,
and 25 per cent. in 1874; while in this
country the 200 millions of Continental
money, issued from I775 to 1879, brought
exactly $36, 367,7l9 into the Treasury of
our infant Republic.
In view of these facts, we can easily
trace out the effects of the new issue of
Treasury notes by the rebel authorities.
Further depreciation is inevitable, with
all its attendant disasters, disappoint-
ments, and widespread misery. It is as
if, by sickening and unheard-of refine
ment of Roman cruelty, gladiator, worn
to skeleton by starvation, were to be
bled to fainting, and then condemned to
meet a foe with whom the full energy of
his most robust strength was too weak to
cope. - a.si5
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