Daily Richmond Whig. [volume] (Richmond, Va.) 1861-1862, 1862-02-28

We have no means OF driving back the invader which
does not pend 1cu.ivey upon our credit The Banks
and the plblic in the fe Of patriotic ZEAL have
agreed to receive and pay out the Treasury notes as eur
rsncy These now purchase property and pay some
debts They have become the money Of the Ooniedc-
rate Sta.esy But will they not depreciAte' II they
deprecate will not the bonds deprecates And II the
notes and the bends depreeae how are We to prose-
cute the war; The entire Bank circulation Of all the
United States in 1860 was but s2O7 l04 4s7 and Of
the savSholdng Safes including Delaware, Maryland,
Ksstucky and Missouri but $s7 lO7 Ols. The dis
bursemsnts Of the Federal Government are it is said
nearly or quite at the rate Of thousand millions Of
dollars per Anuum. What ours are We do lot know;
but they should in measure correspond with those
Of the euemy. II their army and their expenditures be
great, our army and expenses should be equal to
our defence II the eghtyseven millions Of dollars was
the entire circulation Of all our Banks before the war
when we bad an extensive foreign commerce and our
exports we're nearly or qllte four hundred millions Of
dollars per annum, how can We sustain currency OF
Treasury notes equal to the necessary disbursements Of
the Goverumentg It Is admitted that cannot do So
aud therefore Congress has wisely provided that these
notes may be converted into bonds But Il will be
at once that the bonds represent the notes. the value
Of the bonds will depend upon the value of the notes
l. not therefore, apparent that the only means of sus
tanning the value O the bonds to sustain the value Of
the notes. C4n this be done without an Increase OF
INK eapitals and bow can 1t be done BY increasing
Il!
When Bank lends its notes the notss Of the Gov
ernment It creates demand against the pubic tqusl
70 the sum of It's discounts. Thus IL the Bank leIds
one million os dollars in Bank notes in Treasury
notes. the Bank has demand against the public for one
million OF dollars-lo b. paid say, in sixty days. 10
the pAymeat OF this debt tie notes Of the Baik or OF
the Government sqaAl TO god for they will pay the
debt aud gold will DO no The effect Of Bank dis
counts therefore, il to create dtmIrd for lis issue
equal to its dscounts-not the Issues Of the Govern
ment II one million Of dollars be paid out for army
suppIOs, or in payment Of the troops the Government
has no demand the public eIcep; for taxes and the
inevitable Consequence is deprciAtOn-whsreAs, the
bank capital was 50 increased as to furnish ample
t, buid our railroads, and to establish fsctures Of
I,cn A1d s:eel and Of cotton and voollen fabrics to
supply the dem md for agriculture, com uerce and
f,etar = - the large public Expenditures will enable
TO d. AID the banks, durug the suspension were 81
required 10 redeem their circulation in Treasury noes
or 81 per cent bonds, the saec. would be to give
profsAbls employment 70 lSbor and enable him Who
labors to earn the means to pay his ta4es. Then,
If proper tax we're levied, payable in Treasury
notes, or in specie, the Joint operation Of the in
creased demand for Treasury notes, for the p,ymen
Of aHes and for payment Of the sums due the RInks
and for payment In purchase and movement Of connie
dilies Aad the payments for labor would aspre such
eoned tee in the value Of the public credit that ag'
sums in the hands OF prvAe persons would be funded
in tie public d,b' The operation would be thas Say
that the banks we're required redeem their circulation
ia bonds or Treasury nsesthI the issues we're twenty
millions, ard ten millions Of their circulation we're con
vsred into bouds-the deb! TO the banks would be Wen
{, millions, aud having retired ten millions Of their Cir
eaAtou, the pubic would have bgs ten millions Of bnk
mates to pay twenty millions Of debt. WOul lot the
public be compelled TO get ten millions OF bonds CT Trea-
sury notes TO pay the deb due to the banks And would
not the eject Of that demand be TO increase the value Of
the Bank notes the Treasury notes aud the bonds'
Aud as tho banks would receive siI per cent on the
bonds and ak per cent on their notes they would
prefer to fund the mfors thus paid to them and H.
sue their own notes for like sum- to be agin returned
to ID, for bonds Thu. the banks would be the &C Sc
agents Of the government in funding the public debt,
sld by doing PreVel, the depreciation Of Treasury
n1.es We are not without pIOJf Of this for the Balh
o. Eogllnd with ar average circulation Of ess than
hundred mirols enabled, during the freuOh war,
in thi, way 70 fuad IS 655 4I4 100 Of the public debt
Esgl.nd For will be that for every dollar brOugh,
back 70 the banks and exchanged for the bonds
lars woald be lguded 10 the public debt-one by tie
plbc aud by the bank II the bills are worth lees
than six per cent they will come 10 the banks and b
exchanged for bonds ard if money be worth than
81 per cent then the bonds will be converted into bills
through the agency Of the banks and ths process viii
prevent redundant currency by regulating the iaDd
ty By the rate Of nteres. aud the proc of undng the
surplus.
Hui We are tol that the inks organized in Virginia
on a dspOsite af State bonds reliLquishng th,ir
chNtSrs Add well they may if they are permitted ic
issue notes without. depOse Of bonds But the error
Of tts, system YES that the capital of the banks
locked up with the rreasprer-vhePeas ve propose 10
pace i, under the control Of the banks for the pGrpCse
OF rede,mng their circulation, not as the spscie is left
Nth the existing bInkj but 10 the hands Of trustees
pledged to i for thA. purpose Under the present
system the banks not to redeem cir issues
wa not would issue an irredeemabls pspe-Ne would
quire all the banks to redeem their Issues with bonds
or Treasury notes until all required pay in specie
That, uaeer the arrangement proposed the banks i
b. in much better condition 10 resume specS paymen
than under the present sysem appears in this that In
New YORK; uhero any Individual, or any number Of in
dviduls may orglnI banks Withou. linitato Of cap
ila the E3ue Of bank notes in much less than in Con
ne lieut. Massachusetts, Rhode Island, where the IT,
SUES are restricted b. Law, ard that in Sjod wbee
n,l tha act of lgl5 banking was fr,s and M Imita.