Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1863-04-30

Oeg!Gnrg 10 aoae-tDc absorption OF currency Tor the
eight per cent bonds has become visible, that Dor
rowers cannot procure money from many of the banks
which obliged to retain funds with which to paw
their deposltors The consequences to be expected.
a Stringent money market ant abatement OF the
prices which have preva led. Ifthe eect of this
absorption should be great at the present moment
when the reduction of the currency is manifest BY
the voluntary action of ctzaps, what will it be
when the tax bill is passed, and the withdrawal of
rency forced in the payment Of taxes? That specu-
lat0rs and imprudent men may be ruined by sudden
collapse in prices is evident, and the former will have
no s. mi athy whatever. The volume of currency has
at no time exceeded 10000 900. Of this it may be
safe to calculate that l00,000000 now Withdrawn
and funded The tax bill is varlOnsy estimated as pro-
ductive OF from 200 to 4OOOOOO00 of revenue. Take
!; at the lowest figure and what will be the effect of the
withdrawal of 200,000,000, half the remaining
repcy! Inevitably, a most astounding depression in
the price ofevery commodity. There s mistaken i'm
preston that this withdrawal will be only temporary,
and that the fund will reach their previous channels
through the disbursements of the Government and that
the volume will still be increased by tn addition OF 5O
100000 monthly. The Government has right to
reissue the Treasury Notes which they take an They
cannot issue deprecated currency and these notes would
clearly be less In value because the period during which
they could be funded would be much shorter than that
OF the 7ew Treasury Notes of April g. Therefore, it
must be borne in mind that the money withdrawn from
circulation for taxes only be replaced gradually by
the dsbursing officers and that from the period of it's
absorption six or eight months must eapse before the
volume caa posi- be 80 great And this also upon
the superstition that more bonds shall be sold. BY
law, the Secretary of the Treasury is directed to fund
notes. as to endeavor to keep only 175,0OO00o in
circulation. Whether he will display the genius neces-
sary, is yet to be developed With money in plenty,
prices necessarily inflated. With stringent mon
ey market, they must invariably collapse. Upon all
these facts there the additional of the eagerness
with which the Confederate loan was sought after in
Europe, at 90 cents upon the dollar and the premium
paid making it from "a to 95 cents The reaction must
soon commence and when the of the failure Of the
iron clad fleet before Charleston reaches them the
nanciers OF Europe must feel still greater confidence
in Confederate credit 1t may take ninety days to full
" develop the appreciation of our ,ncy, but
sert the opinion that in comparatively short period
the change will be marked and gratifying. Besides the
values placed upon various articles only fictitious
Because few in Richmond have established prices
upon the god silver, sterling exchange in their pos
session far in advance of it's value it is no
1icaton that the value Of currency should be de-
preciated. True, the prices extend from Richmond to
the Eo Grande quickly as the TELEGRAPH convey
The news of fresh enhancement. A few foreigners in
Richmond get frightened AID make a rush for gold
willing to pay anything for it. Forthwith the price
goes up 300 per cent in four days. and probably $l0,
300 in gold would the entire sales but the price
established everywhere else throughout the Coaeara