Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1863-09-18
TILE CURRENCY.
o the Editors ofMe Enquirer :

To the Editors 9fMe Enquirer:
GENTLEMEN The currency of II country,
whether Gold and Silver, or paner or mixed
that is, paper always convertible ut the option
Of the holder into gold or silver-has for several
centuries been subject of much discussion.--
The bullion, or hard monicd class, have ever
looked upon the introduction of paper, as Il cir
culatng medium. ~ a dangerous Innovation,
and ono leading directly To an Imitation of
prices, while, at the same time, not one dollar
Of real wealth in the aggregate - added ~ the
country. 1t may be, and probably is true, that
a mirel currency is oi.cn more convenient
than a purely metallic one; and yet the history
Of cur own country for the past sky years,
touching this subject, isanything hut favorable
10 such Il currency. The banking Institutions
of the country during that period have been in
Il state o.: suspension nearly one-th!rd Ui TIC
time. or twenty years.
With these preliminary remarks NcSsrS.
Editors, will YOU allow one Il small space in
YOUR columns, to discuss tie subject Of the cur
rency, who has no old political ur personal
grievances 70 bias lis Judgment 10 "Amkcr
gnawinc at his vitals which seeks relief in
hnrling its pent up poison in the direction OF
Richmond, under cover Of Il long letter. os:cn-
shlv discussing the currency Of the Conied-
eracv: but It's real aim and aniinus Was 80
clearly indicated in another direction, that
whathe really said touching the currency,
was, to say the least, a secondary consideration
in the mindiof the writer.
The volume Of the circulating medium
of country, whether it be. gold and
silver exclusively, or all paper, ~ a
mixed currency, regulates and controls, 10 a
great extent. the prices charged and paid, for
all commodities produced from the carta-
such as wheat. corn, hay, horses, cattle de-
all real wealth. s7rnging as il does from tue
cultivation and production OF the s'il. 1t is
here we must look for the "baromCtcr" mGi-
eating healthy state fthc currency.
The manufacturer. the merchant, the me-
chanic. the citizen, the banker and the conf
mcrcial plan are but the creations Of, and APP
pendaceS TO, the successful cultivation Of the
soil. With n circulating medium, sa,r in the
Confederate States p'Uely meia!ir, OF: two hun.
bred million dollars, prices Of farm, produce
command a given prlce-Say wheat, 81 per
bushel: flour, from s. to Sc per DBL: and
other products in the same proportion. Now.
double tile column Of circulation in kind, and
prices Immediately advance, although not
to the same extent that mixed or pure
" paper currency thus doubled would
produce. The reason is obvious: There
being no distrust touching the sOundncss
of the former in the public mind, while the
latter can only be kept aAoat by nublic conf
dcnce in its convertibility into coin, # mix
ed currency. and all experience goes to show
that every decade Of years has, witnessed in
this country great imitation Of paper OYER
and above the means in coin with wh;eh TO re-
deem it. Prices Of all commodities keen pace
with the general distrust touching the sound
explosion takes place, the paper bubble has col
lapSed. Such a currency is more to he dis
trusted, because it promises to pay in coin on
demand when presented, than is the "Ccnfed-
crate" paper currency, based, us it IS IN the
rlighted faith of the confederate Govern
mant" and people, "rccicvahlc in payment of
all dues, except export dues" ''fundahle in
Confederate Suites stock bearing eight per
cont. interest"
How is it, then, that the paper thus protect
cd by the plighted faith Of the Confederate
States has declined in value in tho public csti-
nation within ninety days nearly or quite
eight hundred per cent? What has happened
within that period that its value should be
less to-day than it was in the middle of June:
Has there been IN over issue of hundreds #
millions since the former period? No: the
vtumne is understood TO he less at the present
than then. What causes, then, have been atwork
which have rendered Confederate paper little
better than was tie odd Continental
money or paper Immediately after the close
of the revolution. or that Of tho French AS
signats in 1900? The former was made worth
loss from the fact that countcrfniting during
the war Of the genuine issues was so extern
sivc that it was found THAI more than three
fourths of all the paper in circulation was Of
that class.
The latter ceased to represent anything val
liable on the overthrow and downfall Of the
government which issued them. How stands
this matter touching the Confederate currency?
Is or has it been. alarmi2gly countcriaited
Where is the proof that such is the fact? Has
the public lost confidence in the ability Gf the
Confederate States sustaining their position
1t has maintained for nearly three years Il dc
facto Government against the combined ar
mics Of the Fast. North and West, numbering
more than million Of men. with a powerful
navy hlocsading every port in the Confedera
CIV, and pronounced cfscfuGl by "Lord Pal
merston" and Lord John Russell - vet, at
this very point. notwithstanding the assertion
of the "noble Lords" it may readily be dis
covered that the depreciation Of the Con'ed-
crate currency has been greatly owing to the
fact that the blocL'dde is not and never has
been etfactual. Ten or fifteen large steamers
ut one time loaded down with merchandise in
one Confederate port, would seem 10 indicate.
at least. that the ''noblc Lnrds' were Slightly
in the fog when they ,ciispcrcl in the Qurcn's
ear, The bIockdde Of the Southern ports is
cfec.u0l."
The importations into the Conrcderacy ha""
been large during the past two years. and the
volume is increasing daily. Ourexports have
been, as compared with imports. Il mere item.
The excess Of imports is paid for in go'd; but
how is it paid in goldf The goods imported.
it is said, are sold for Confederate paper; all
true, but not one dollar Of it goes outside the
limits of the Confederacy: it is converted into
gold through the medium of an accommoda-
ting broker. For ten or twelve dollars in
Confederate paper he pays the importer one
dollar in gold, and even at this enormous dis
count the importer finds his vocation extreme
II profitable for he sells his goods at fabulous
prires, payable in Confederate currency
This operation fixes the price of Confederate
paper. aud cannot be resisted rs long as the
importer and broker are permitted to deter |
mine its value. The price of food and every
article Of clothing-evcrythng, in fine, that
is eaten, or 1cora, or HScl by the community, |
keeps pace with the value fixed for. Conicle !
ate paper by the importer and broker. Is
here no remedy for such Il state 81
hinss If there be none, the North
'rn invaders may withdraw their ar:
nies from our SOIL with perfect confidence that
he Confederate States will. within Two years
more, conquer themselves. That there is rem
dy. is. to the mind of the writer OF, this article
S clear as any other proposition that might be
ubmitted requiring an immediate solution
Let the Confederate authorties-let the States