Daily Richmond Whig. [volume] (Richmond, Va.) 1861-1862, 1862-02-19
RICHMOND WHIG.
PLAN FOR SUSTAINING TIE PUBLIC DEBT.

To The Eiitor Of the Wing:
ls All the disbursements Of the Confederate govern
men,to be made in Treasury notcs bearing Interest but
receivable at all times for publcdebt and convertible into
Bonds bearing five per cent interest," convertible again
into Treasury notes at the pleasure OF the holder and
payable at the pleasure Of the government
ID system Of free banking to be authorized by the
States bank to have ess than Eve hundred thousand
dollars hona 6de paid up capital.
srd Each bank to have the privilege Of increasing ia
capital; aud Of establishing branches and Of issuing bills
currency upon deposte OF the bonds Of the State
of the Confedsrate government, for equal to
half its paid up capital
4sh The b0nas thus deporitea ta ne pl,ced IN trust
with two trustees to be appointed By the Governor
and the other by the Bank who shall prepare and coun
tersgu all bills and in the bank shall At any time
fail or refuse to redeem their bills with specie or reasu
~ notes Of the State Con,dsrate government then
the trustees shall redeem them with the bonds upon the
depcsits Of which they we're issued
What the Of the public debt may be no one can
now cay. II is no. probable that Il will be less than
eight hundred millions OF dollars 1t will be in part the
price which and children must pay for our Inde
pendence. And be it less it must bo paid,
therefore assume this TO be the sum-
The interest on $500 900 900 at per cent will be $64
100000. We will require army of at least 10000
men to cost $50 100000. II estimate for Navy aud
all other expenditures but s26 900 900, will have
annual charge of sl20, 100000
The Report Of the Secretary Of the Treasury of March
26, $780, gives SIPS 1851, as the capital Of all the
Banks in the slave-holdng States with circulation Of
$751; and reserved fund Of only sSS sl2 l29 in
specie.
How much Of the sSOOOOO,CoO Of public debt will be
converted into bonds and how much will remain in the
shape of Treasury notes, bearing iHtsrs't will de-
pend upon the measures adopted by the Confederate
Government and the several States If the Confederate
Government continues to give bonds bearing eight per
cent per interest," payable in specie purchased at
premium Of forty per cent in exchange for bank
notes bearing no interest," then the banks will
bne to deprecate the value Of Treasury notes
rency and the whole public debt will be converted
in'o eight per cent. bohds.
II there be Confederate tax equal to the interest
the public debt payable only in Treasury notes or in
specie, and there be such system Of banking as
propose then the demand for Treasury notes, rhCut
inir to pay taxes aud to redeem the circulation ii
sued by the free banks will be than twice the sum
Of the current expenses OF the Government after peace
If these to be $4,000 OOO as stated then
may that sa4O 900 Of the $500 600 coo
will remain Treasury notes. This will nol only save
tho annual interest s24o 900 OOO but i, will reduce
the funded debt by that sum- leaving 1850 900 and
II we estimate the interest on this sum at Eve per cent
instead Of eight the annual charge for interest will be
bu. $2s, COO, 600 instead of S64, 100000
II We compound al annuity OF s6I 600 900 for fifty
years, a. eight per cent, it gives Us the
sum of $4054 9s7, $50
s2s OOO, 600 compounded at 5per cent,
gives but 1865, ,s69, ,s25
Making difference Of s2.OS6,l17755
which would be saved to the people of the Con.
federale States 10 ty years, h by substituting system
OF free banking a deposte OF Confederate and Stae
bends, reduce the interes. on the public debt
from eight to FIVE per cent, and the debt does not eI
ceed eight hundred millions Of dollars.
Dning the sixteen last years Of her French war Great
Britain borrowed s2lS7 1868 $40, at rate Of interest
which equivalent to s., ,6l7 s5S $780, at per cent,
aud yet Engand, with much less resources to sustain
her public credit has reduced the of interest on her
public debt three per cent. How was this dones 1t
was done by system of legislation which made the
public debt interest bearing fund readily eonvrtJle
into nonsy-thus making it at all times available, as
money its nominal value. The plan which We
propose would be more Efficient Of increasing
the value Of the public credit and reducing the rate OF
interest For il the interest the bonds we're reduced
to five per cent the INKS would receive FIVE per cent
much Of their capital 40 may bs invested In bonds
nd thavc oh hnt fvan tla
these bonds IL would give them per cent on the
capital investOdthus the public would be enabled
borrow money Ave per cent whilst the banks, who
loaned their credit to the public would receive ten per
cent upon capital invested in the public credit.
We have no sufficient data to estimate With precision
the sum now loaned BY private persons usurously or
otherwise. The report Of the Comptroller Of tho State
of Georgia shsws that while the entire capital Of the
Banks Of that State Is only about nine millions Of dol
lars the money aud solvent notes subject to taxation
IA the hands OF individuals 10 more than one hundred
and twelve millions OF dollars. II we assume the sum
thus held 10 Georgia Is but onetenth the sum thus held
In all the Confederate States have the sum Of one
thousand one hundred and twenty millions Of dollars
seeking investment large portion of which would flow
into the public securities which would become the bass
rate Of interest 50 low to render US financially iode
pendent Of England for cheap money to build rail-
roads, and also furnish cheap money to purchss, the
machinery with which TO manufacture cheap goods and
TO foster and develop cur agricultural, mining, manu-
featuring, and commercial resources We have in the
slaveholdng States territory capable Of sustaining
more than two hundred millions Of peoI,. 10 seventy
years more natural increase will be nearly one hun
dred millions; Of whom twenty-five millors will be
slaves capable Of producing more than twenty five mil
lions Of bales Of cotton. 10 proportion increase
our domestic manufactures will exports exceed our
,mports The demand for cotton and naval stores
is necessity with foreign nations and il wise
aud properly encourage our own home industry, the
balance Of trade will always be SO largely in favor
and that balance will be PAYABLE in gold, as to enable
banks to command specie funds 10 redeem all their