Richmond Whig. [volume] (Richmond, Va.) 1862-1865, 1863-02-07

tes derive from that issue are more than eounterbal
anced by the injury which they 40 ofted snStain from
the "perilous uses Of such paper. Their business
would thus become far safer and upon the whole more
profitable. Should this plan become practicable and
be deemed eligible il would enable the Confederacy on
the one hand to borrow ei5OOoo0oo without interest
and for indefinite period, whilst the States, on the
other could use this issue to establish far better and
safer currency than they have ever had in bank paper
But without adyerng further the capacities Of this
scheme of finance for future developments it il enough
TO say that if this bill operates there Is
hope it may, great good must result TO the county
Much will be effected if the progressive eIpansionof
the currency can be prevented, sill more if il
can be reduced within safe and reAsonA-
BILE limits. When prices increase rapidly, not from
any change in the relation Of demand and supply bat
FROM progressive expansion n the circulating medium
which measures IL and the government il running in
debt largely for supplies furnished At these prices is
easy to that this process must end in national bank
rupcy History has told this tale often that would
be superauous to repeat it, Justice TO the public cred
tor and the people all demand that should do What
is necessary correct the depreciation in our cur
rency, which must become fearful if adequate
remedy be not applied to the evil A scheme which
will from circulation the great of notes Is.
sued in the past and provide for the future that after
six months have elapsed, a. many or nearly many
notes will be funded in Q month as may be issued
~
effected nothing more. For 4 currency fixed in
its volume and preserving constant relation specie al
though equal TO il in value, would enable individuals
and governments to adjust their contracts upon some
steady standard of value. Still better would be TO
reduce the currency TO something like its true value
and to preserve that equilibrium. To do this would
increase the real value o. the bond in the hands of the
public CREDITOR II paid sir per cent in medium worth
much specie, his interest would be worth three
times much q if paid in currency worth only one
third much in specie. In the hrst case on hundred
door bond having twenty years TO run he would have
received the end Of thatame principal and inter-
est t22O the other supposition he would have re-
ceVed during the same period but $40. Reckoning,
therefore, according 10 actual or specie value the bond
would be worth much in the first than in the
second Ii has been said that if the quantity of treas
ury notes in circulation be reduced the bond will fall a.
the note increases in value Measured treasury notes
this may be the case bur if measured by specie both
the bond aud the note increase in value has been
shown The interest Of the government in this reduc
ton is still more manifest If great quantity of -four
meal and other supplies must be purchased annually
for the army and navy. When you double Il .
currency, other things being equal, you double
the of your debt and the interest payable upon
it. and if the increase in currency is to be progressive,
no national credit bear up under such weight
That individual citizens have deep interest in preserv
ing something like the level of the currency Of the
world in that of the country, is proposition too plain
TO be argued.
1t is true, however, that the return from an inflated
currency to the proper standard is eIhausting PRO
cess If il be not gradual That this will be gradual
enough and that severe pressure eau occur under
the proposed scheme, is in every way probable. A
large amount Of currency issued prior the first De
cember 1862 will be Withdrawn by degrees from the
circulation until the first Of July 1868. BY that time,
the Secretary estimates that there will be than
5000 Oo6 of issues, and in addition to al this
there will be issued monthly thrt! five or forty mil
lions Of notes.
If there should be great demand for money, they
will not be funded until the pressure passes away The
notes fundable in skies wall become convertible into
fours aud this process will continue until the currency
is gradually constituted of these last The call certh
Gates Into which many of them will be converted when
they become plentiful, will be reserved fund from
which such notes be supplied If any sudden de-
mand should spring up.
There is some pausibity in the suggestion, that the
law which denies the holder OF notes the right to
fund them after the first July, 1863 is breach of the
promise upon which the public creditor relied when be
took them. The pledge being that he might convert
them into eight per bond. at any time before they
were payable as provided by law. But when the cir
Of the case are properly considered,
il will be found that some measure which attzins
the ends TO which this bill looks is indispensable 70
performance Of the contract. The chief
things which made the note valuable in his eyes we're,
trst that the principal to be paid six months after
peace secondly, that he might fund this note in bond
bearing eight per cent interest," If he chose TO do so
thirdly, that the interest should be paid promised
him.
Ii we succeed in efecting what Is proposed BY this
bill shall preserve the ability of the Government 10
pay as promed; we shall give to the public creditor
ample time fund his note in eight per cent bond
and when funded We will pay the interest in = medium
Of value much enhanced a. will make il worth pro-
badly twice as much as il Il present. On the other
nd he n ils
rate il is easy to see that it will become deprecated
and consequently that the public debt will grow to be
20 large that his chances for the ultimate payment OF
the note or bond will be small aud that the interest on
the bond into which he may convert his note will be
paid in u worthless medium. The emergency is press
ing and We cannot take the of all the public cred
tors IN time for efficient action IL Is case in which We
must Judge for them well for ourselves. Can any
man doubt but that they would choose have done
between the real alternatives which presented for
our action.
For a these considerations and in view of the press.
ing emergency in which placed, the committee
have reported the accompanying bill, which they re-
commend for the adoption OF the Senate. That bill Is
designed TO furnish the Secretary Of the Treasury with
the means to carry the Government, so far as that
can be effected by the issue of treasury notes. but under
such limitations and provisions may reduce the
amount of these notes IN circulation TO the sum OF
sl7j 100000.
To effect these objects, they first authorize the
monthly issue of S5OOOOO0 in such notes, aud this is
DONE because the Secretary of the Treasury is
peced 90 put forth 5000 10000 in the year, but TO
cover the maximum amount which may be required in
any mouth.
Next in order to curtai the circulation, they
provide for the funding of all treasury notes
bearing no interest, and issued before the
ls Of December 1852 of all call certificates represent
ing those notes. aud Of all treasury bearing 100
per cent interest by the first of July 1868 To do this
they take from the first class the privilege of being
fun liable or receivable in payment of public after
that day, and lhey convert the second aud third
,lases into six per bonds il not funded before that
period They then require oil notes issued TO be j.
sued within ten days the passage of the act which
are fundabe in per cent bonds TO be so funded
On or before that date aerward. be findsble
10 four per cent. bonds The new issues under the b
A. proposed are be fundabe in six per cent bonds
within six months from the first day Of the month of
heir ISSUE but afterwards TO be convertible only into
four per cent bonds.
The object being to stimulate iunding within the six
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