The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1862-10-21
The Financial Condition Of the
Rebels.


hands at present. If there are statesmen
in its halls now is the occasion when the
public interest summons them to light,
The great subjects Of revenue and finance
are now before Congress The intellect
of the body is at a low ebb if the bill
now pending shall be the only one pro-
posed. A device so sorry and abortiye
as that Is hardly ft to be respectfully
considered by intelligent public men,
The bill proposes to require every citizen
to give the government ono-ffth OF his
gross income, and TO receive in acknow-
ledgment eight per cent bonds of the
government. This is neither tax nor
free loan. but embraces the worst features
Of both. OF all loans, those at eight per
cent. are the worst. Oh all taxes, twenty
per cent gross income is the most OPP
pressive.
Some incomes are all profit. Some
incomes do not afford ten per cent
profit In some cases capital is realized
and reinvested i'm few months. In other
cases il is q permanent investment, and
only its net profits are realized. A tax
on the gross income is in ono case tax
on capital and profits, in the other case a
tax on profits alone. A tax on gross an
nual receipts will impose q burthen ten
times as heavy on some persons as is
borne by others employing just as much
capital
This project is forced loan, and the
man is as shallow as the dupes for whom
he seeks if he expects it to be regarded
otherwise. Congress strikes heavier blOi0
at our credit than hepubic enemy when 1t
thus puts upon the statute books this eff
fective publication, that faith in our
credit is gone. Money abounds, seeking
investment in public securities. Virgin
ia six per cent. stocks are at Para point
TO which they have not attained for sew
eral years. North CAROLINA six per cent
stocks are twelve or fifteen per cent above
par. Money abOunds, seeking invest
ments in stocks, because at present
il can find no safe investment
in large business enterprises. In the
midst of this redundancy Congress
proposes an enactment which declares
want of confidence in Confederate stocks,
and thereby inevitably occasions the
want of confidence which exists only in
! the imagination of the timid minds that
purpose this strange scheme OF finance.
/ Force Confederate eight per cent. bonds
on those who only take them because the
| law compels il, and you throw upon the
market at once a horde of bondhOlders
looking for purchasers Of what they hold
! only because the law has forced it upon
them. How can the government go with
its six per cents into a market which it
will have already filled with eager and
excited statesmen of its own eight per
cents? When one class of the holders OF
public securities are thus in the market
looking for purchasers of the highest
grade OF Confederate securities, what
must be the effect upon those who hold
the lower class of those securities.
The government has committed tinan-
cial blunders enough to ruin its credit, if
the confidence of the public were not so
we'll supported as it is. This journal
urged without avail, the purchase Of cot
ton when il was seven cents per pound,
and of tobacco when il was one fourth
of IFS present price. Every pound OF
cotton now represents abroad sixty
cents worth Of specie, and in the hands
of the government would be equivalent to
the possession OF that much gold or sill
yer. The fact that the government held
this reserve, would support the credit
of its paper Intimately more than any Of
these shallow devices now pressed witt
an air Of wisdom.
The scheme just before Congress is as
oppressive as n tax, but without the adj
vantages. II the people were required
TO pay this amount of tax and did so, Il
would exhibit will and a purpose
which might give strength to our credit
But it is not q tax. 1t is q loan forced
upon people, who are supposed not e
want il. No one looks for serious taxa
ton in the midst of such war as this
1he producers ore az The army. Tie lOl0l
po,Ue, and enterprise Of The country is 40 On
great struggle. The cause for which W.
strive is the cause Of many generations
and they must pay their share Of III
cost To postpone taxation until sOcie
ty resumes its normal condition, anC
when il can employ the revenue power
in full strength is the acknowledged Law
of finance in such periods.
If indeed there be want Of conRdenc,
in the permanent value of COniederat,
securities il is easy TO restore il. Let i
be declared that we are ready at any
moment 10 call in our loans, and non,
will be presented. Stop the issue o
eight per cent. bonds Put out none bu
six per cent. stocks This plan has beer
tried and experience approves il. o
the bonds convertible at the pleasure o
q | L.. hn1n 4.
Q for conversion? We hear Of persons
every day trying 10 get these securities
in vain. They are absorbed and out o
the market. The debtor who is always
ready 10 pay az call is rarely called OF
TO pay. II is difficult TO estimate IN,
amount Of investment which would
seek six per cent. stock convertible a.
the will Of the holder into currency.
Confederate bond would then be as ~
much cash in the hands of its holder