The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1862-12-09
From the Raleigh Standard.
OUR FINANCES.


contained in this letter are worthy of serious con-
sderation, as we'll on account of their sonndness
and the clearness with which they are expressed
as because of the source from which they emanate
NOVEMBER 10, 1862.
My Dear Sr:-You ask my views on the
financial condition of eur country. Money is al
necessary to carry on war as men, who bear the
burthen of this war. In respect to money, gov
ernment can raise money in three ways-by taxes
! loans, and pronsissory Lotes, to pass currency
1t was not deemed prudent to resort to the first
mode, except to limited extent; the process oi
collecting taxes was too slow for the emergency.
What is the result? The currency has become
inflated, and the value of Confederate notes, not
withstandng the stays intended to brace it, has
deprecated, so that, by reason of the depreciation
combined with shameful spirit Of extorton and
speculation, it now takes 81 to answer the pur-
1 pose that ST did before the war. How does this
| operate the community? Those who depend
on money income find it necessary to expend
four times much before-their estates have
in fact been reduced to one-half, and should the
war last another year, and the government con-
tinue to issue notes, their estates will be reduced
| to one-fourth For instance a man having an
estate of $50 900 at interest, receiving ST 800,
and used to expend 81 500 year; so he felt COM
Portable, and all was we'll Now he is obliged to
| expend $4,000 year; his entire income is con-
sumed and his capital encroached on $4,000
But this is not all-his capital has deprecated
one half! On the other hand, the planters and
manufacturers sell their products for 81 instead of
81; little -four, grain, cotton yarn, pays for
sugar and sa, and they can barter for anything at
relative prices; their income is increased four
times, expenses remain the same, and the value of
their estates is enhanced two for For in
stance, man having estate of $50 600 in land
and negroes, makes 500 bushels Of wheat, 800
of corn, and 5000 lbs. pork to sell-at old prices,
in wheat 81, corn so cents, pork S5, his income
| was 81 800; he expended the whole, being con-
tent with the increase Of his negroes, aud the
gradual accumulation from that source. But now
he sells wheat at SIS, corn So, pork $40, and
realizes in all $500; so his income is increased
So, 600, expenses the same, and the value of his
| land and negroes enhanced two for one,-the man
is actually making money by the war.
Thus, it is plain to demonstration the burthen
of the war is borne by those whose estates consist
in money at interest, stocks, salaries, and all
| who receive money for their labor. The soldier
who fights battles finds his pay reduced four
to one, and $40 sent to support his wife and
children counts but 81, and the effect of issuing
so large an amount of Confederate and State notes,
| has been to take from them their entire income
| and one-half of the capital; not by direct tax
or loan from individuals, but indirectly as loan
without interest from the whole class-for, when
the government issues its "promises to pay the
! bearer" it in effect comes from those whom
the loss falls and the is carried at their
expense, and the misfortune is, this is the most
helpless class of the COMMUNICATIONS, orphans
and those who are mostly too old for the active
employment of capital, and if the notes
redeemed, payment will not be made to those of
whom the indirect loan made, but to the
''bearer" or those to whom they obliged to
pass the notes at the rate of four to one.
On the other hand, planters and manufacturers
so far from having felt the PRESSURE are getting
rich by the war This is grievous wrong. Men,
for the protection of whose negroes the war is
waged, get rich-those who have no negroes be-
come poor; the burthen should at least be borne
equally. What is the remedy? Remove the
cause Of the evil--reduce the imitation of the
rency How? BY loans as far as practicable, and
by direct taxes. Unless this be done, those
whom the whole weight now rests must sink un-
der it, or struggle to get rid of it by investing in
land and negroes; in fact, capital is now seeking
that channel-hence the extraordinary prices of
negroes in spite of the emancipation proclamation.
Merchants, carpenters, school-teachers and others
are struggling to get rid of the burthen, by de-
manding higher prices-but high prices will les
sen the demand, and in the end their customers
will be reduced to those who can barter grain,
meat, or the materials for clothing These rehec-
tions by pursuing the train of of thought, lead to
these conclusions
1st. 1t will satisfy those who have money at
command, that interest as well patriotism, calls
on them to lend to the government one-haf OF
their estates-f not all; the war can then be
carried on without the runous consequences to
them which now presses so hard. Should it be
aid-"That will be to risk all on the event of the
war" The reply is true-but is not all now risk
ed on the event of the war Suppose the South
is subjugated. of what value will be your Confed
crate notes OF your bank bills? The Confederacy
extinct, the funds of the banks confscated, ell
will be gone anyhow; whereas, should the Solth
be successful-if you invest in government loans,
you have good stock with remuneratlng Interest !;
but if you withhold your funds, and the Govern
ment is forced to issue more notes, at the end OF
successful war you have deprecated paper, not
worth, in all human probability, ope-tenth of its
nominal value; these alternatives efe ofered-hold
your funds and sink quietly inte insovency-take
the risk of investing in land ard negroes at prices
which. by your struggles viii run up to fabulous
prices or listen to the dictates OF interest and pa
triotism, and lend to thegovernment.
ID 1t will satisfy those who own land and ne
groes. or factories that fairness well as inter-
est and patriotism, call on them to lend to the
government one-half of their profits, if not all. Is
it fair that the burthen of war in defence of oar
common ecsIntry should be borne alone by other
classes of the communi y? Is it not wrong that
YOU shsuid make money out of var commenced
for tie rrotection of your slaves while those who