The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1862-01-02

This step vas not only justified by the necessity Of
seifdefense on the part Of the Confederate States, but
also by a desire TO aid the people Of Kentucky II
was never intended By the Con ederate Government
10 conquer OF coerce the people Of that State; but. on
the contrary, il was declared by our Generals that
they would Withdrew their troops If the Federal Gov
eminent would do 80 likewise.
Davis then speaks Of the difficulties attending mail
transportation, some Of which he declares could be
overcome only by time and the improved condition Of
the country by the restoration Of peace, others by
legislation.
The financial system has worked well so far, and
promises good results for the future, TO the extent
tina, by the Treasury notes issued by the Government
Il enabled TO borrow money without interest, thus
facilitating the conduct of war. This extent Is meas
urei 10y the field of circulation which these notes are
made TO occupy. The proportion Of the field thus &C.
cupied depends again upon the amount OF deCt for
which they are receivable. Obligations to the Con-
federate and State Government are payable In this
medium, but n large portion Of it may be circulated
at par. There Is every reason to believe that the Con
federacy notes are fast becoming such a medium.
The proposition that these notes shall be convertible
into Confederate stock, bearing 8 per cent. interest,
at pleasure Of the holders, insures them against depre-
citation below the value of that stock. No considerable
fall in value need be feared so long rs the interest shall
be punctually paid. Punctual payment Of interest
is secured by the Act passed last session imposing a
rate of taxation that must provide sufficient means Tor
that purpose.
FISANCIAL TROUBLES AT THE SoUTH-The Rich
mond Hhig, of the oath inst, discussing Mr.. Mem
minger's financial circular, gives this sorry picture
Of the condition Of the South
We believe that the cotton and tobacco crops, in
the hands Of a wise, energetic and enterprising gov
ernment, would. in spite of the blockade and war, be
sources Of boundless credit and Irresistible strength.
Those articles are in demand all over the civilized
world. Suppose our government six months ago,
had had In her warehouse and insured, S2OO,OOO.OVo
worth of tobacco and cotton, bought at eight and ten
cents. they could by proper energy, have had credit
20 that amount in London, and our coast might AT
this moment be thoroughly guarded by steel plated
sfaau The . ms result bV the same means, might
still be effected perhaps, in time to anticipate the IN
roads which the enemy mediate against US. We
know they are making immense preparations TO ourn
our cities and ravage our river shores by means OF
iron cased vessels and yet so FIR as we are advised,
our authorities are making no preparations to meet
them. II will be a poor boast for MIR. Memminger
that he has expended but fifty millions. II, for the
want Of a few additional millions, our cities are de-
stroyed and our land desOlated.
Mr.. Memminger suggests as serious onJectlons,
"a the posse sion, transportation and management OF
the crOps by the Government" We do not under
stand that the scheme proposes to throw these labors
on the Government. Let the crops be sent to ware
houses. and insured by the planter for twelve months,
the certificate of the Inspector and the policy OF IN
surance to be forwarded TO the Treasury Department.
A few additional clerks to register these would be the
only increase of patronage involved IN the proceed
ing. Even if FIVE hundred agents we're required the
scheme would be less obnoxious then that which has
sent forth FIVE or six thousand collectors and asses
sors in quest of a petty tx which may serve Mite
other end than to reimburse the officers and harass
the people. Virginia, though interested in this
scheme, is to n less amount than the States to the
south Of US. The Cotton States, which produce but
a single crop. are reduced to q very painful con-
dition. They c.nnot sell their cottOn-tbey are not
even permitted to deliver it in readiness for sale.
The consequence is that they will. for the means Of
subsistence, be at the mercy of the usurers. II this
were all, they, as well as we, would make a shit 10
weather the storm but the s&fety of the republic Is
at stake. The Secreiary's policy is playing into the
hands Of the enemy and aggravating the evils of the
blockade, which. under n wiser dispensation, instead
of evils, would be blessings.