The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1863-11-03
For tie Western D,m0e"At.
THE CURRENCY.

Mr.. Error. The financial condition OF the
country is the matter of greatest interrst 10 the
Confederaev at the present moment: ne :niet
evir-the one now being seriously felt by all our
neonIe ia the great abundance Of money. or rather
rs Snfoderate Treasury notes which have for some
time mast taken the place of all other kinds of cur
rancv People are beginning to sec what they
could not believe in times of peace, that too much
money is rather a curse to a country than bless
ing Many, however, still suppose that if this re-
dundance consisted in gold and silver instead of pa
per, the case would be different But in this they
are mistaken, at least in great degree
Whenever the supply of any marketable article
land such are gold and silver) exceeds the demand,
1T must sink in its comparative vae with other ar
tcles mot abundant) just in proportion to such
excess
Several articles have appeared in the papers late
ly suggesting remedies for the evil with which we
are afflicted in regard to currency. The most
practicable in my opinion that has met my eye,
is that referred to by your correspondent "Cataw-
ba." published in last weeks issue of the Demo
crat.) If the bonds he proposes to have issued
placed at points convenient for the people to
see, have no doubt that large amounts would soon
be taken. fnot taken readily, tax upon Treasu-
ny notes would likely stimulate to Investments
But this plan, as all others have met WITH seem to
contemplate supply of the currency by the Gov
eminent hereafter heretofore, and thus the same
unlimited supply would produce the same redun-
dance again. Now take it that the currency can
not be restored to healthy condition. SO long as
Government issue is used for our chief circulating
medium as great part of the present trouble arises
froza a want of confidence on the part of our pro-
ducing population in the paper issued by Govern
ment And want of confidence is the natural con-
sequence of excessive issues, whether by individuals
or governments, especially where provision is
made held for redemption. l would therefore
suggest plan to follow the one referred to by
"Catawba."
with capital say Of fifty millions. with privilege
to issue two for one. Let the Legislature of each
State (Which chooses to do SOY adopt the charter
and accept of such portion of it may neces-
sary and convenient for the business of her people
The proportion Of each State in the stock to be set
tied by some rule so as to make an equitable dis
tribution of it amongst all the States Or the States
might join in chartering such institution should
Congress decline to do. In either event each
State government should have the right to take
such proportion of the stock assigned to it by the
Legislature say one-thrd. and her people or cor
poratons to take the remainder to be paid in such
funds the charter required. and which should be
uniform in all the States. The institution to be
managed by the indicidual Proprietors alone so as
to exclude all political influence; but equiva
lent for such exclusion the losses in business. by
defaulting officers, should be charged upon the
stock of the individual stockholders. The institu
ton to issue post notes until the close of the
war, and lend them to the Government at the rate
of or 5 per cent. interest," and to meet her debts
they should fail due, the Government should levy
sufficient tax, payable at different seasons of the
year in different sections might be most cnnvcn-
lent for the people. This borrowing. collecting
taxes, and paying up her notes. would go far to
make the circulation equal i'll every part of the
country, and by keeping it always active would
keep it also healthy: This would be currency
that would be more likely to command and retain
the confidence Of the people than the in
for whatever may be said to the contrary, it is
nevertheless true that the great bulk of people.
when not biased by prejudice have confidence
in the notes of corporation managed by stockhol
ders whose interests largely involved, than in
the paper issues of any Government Whatever
You the truth of this remark illustrated every
day. Confederate notes probably better than
those of some suspended bank notes of the country,
yet the latter will buy three four times much
the former:
avoid going into the details of proper charter,
or the regulations for the management of such
concern as have suggested above, as these could
be readily settled should the principle be adopted.
l would say, however, that the Government should
be expected to keep its funds in the institution
branch of it would be located in every State, and
agencies in different parts of each This would make
it very convenient and efficient agency for the re-
cepts. transmi ssion aud disbursement of the pub
lio funds. BACOT