Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1863-10-13
OUR FINANCES.

OUR FINANCES.
In our last issue we adverted to the !
present deprecated condition of our Cur.
rency, as being the question above all
Others save the failure of our, arms in
the field most fraught with danger to
our cause, and most urgently demand |
ing the serious consideration and prompt |
action o. orr Confederate and State 60
vernments. The opinion expressed thai
the excess in the volume OF the curren
ay. is the original and persistent canse
OF our financial difficulties, will not like
" meet with single dissentient voice. |
That the depreciation III the value of the |
currency is attributable directly to this |
cause alone, we donot think can be con-
fidentlv serted. We know that those
who write onfhe subject would tain at |
tribute no Importance to the want OF
confidence of our people in the ultimate
success of our cause, for fear of fostering
such a spirit by holding it up to the PEG
pie as an existent fact. But, although
they are right III the assumption that
the people with great unanimity conf
IDENTIFY believe IN our final success, YET
the human mind is prone to view the
events Ct the future as probabilities,
which seldom partake Of the nature of
what we term moral certaintles. The
views of the fs.dre too, are altogetEe
different according to the intelligence
and dis position off he Individual, wheth-
er he be the s.; gline enthusiast, who
can see alreadt people basking in The
sunshine OF prosperity, and peace and
pie ty, or the poor dupe OF his own dark
5ancies, who sees the evidence OF ruin,
and deso!ation and starvation staring
him III the lace at every turn. People
will calculate chances, and though the
cause to Which We refer has its effect in
making men prefer real estate or prop
erty of almost any kind to treasury notes
or Confede rate bonds, yet the most pro-
minent cause CT the depreciation ofthose
notes must be attributed to their redun-
dancy. But there is another cause OF
still greater moment and which now, be-
forehand, exerts ifs baneful influence in
its effects. The pc pile can't see how the
Government is to pay its debts save by
Reputation, word which is the en-
bodiment of so mcnstrous a heresy in ma
tional morals and national policy, that
even before it shows its hideous form IL
the noon day sun as national act, it ex
erts its influence for the production OF
evil. But more OF this anon.
There IS, however, another cause OF
the depreciation Of our currency which
is not often considered. 1t must be re-
membered that prior to the ar the
whole South was literally flooded with
products of Northern and European
manufactures, embracing the whole a
mount OF its imports, and requiring a
certain volume Of currency to effect the
exchanges in their distribution to the
farther limits Of the Confederacy. The
staples Of the South usually exported to
meet these demands exist at p-eseni
stored away Ia Its warehouses, and are
not changing hands as they do in times
when their is an outlet for them in for
eign trade. 1t follows, that even if the
volume of he currency had remained
tie same as at the beg rning ofthe war,i
would have deprec;aied in proportion to
the excess it bore to the necessities OF
trade under system OF blockade, ano
much more when the volume was fur
Their increased by the issue of treasury
notes. In addition to this fact the first
issues of these notes were distributed
through the States of Missouri, Arkan
sas, Kentucky, Tennessee, Louisiaaa,and
in fine all that portion of the Confede
racy now partially or wholly in the
hands Of the enemy. AS in our defen.
sive policy We gradually Withdrew our
forces from these regions, the currency
becoming use ess was also contracted
within narrower limits FIR efect;ng the
exchanges for less amount OF property
and fewer business transactions, where
by its excess was made still more man!
fest. We have thus adverted to t!
principal cluses OF the dep lorable fnall
cial condition into which the country
has been plunged. That it orig mated
in bad policy when we were enterifis
upon the war, will be generally conced
ed. Instead OF le7yiEg tax s;.ficien.
to meet the expenses OF the Governments
in the very commencement OF our strug-
&c, for fear PERHAPS of producing dis
content amongst some portions of our
people, or for other reasons, we have in
cured the responsibilities and dangers
OF a financial system, calculated to en-
barrass the wisest legislation. If an is
sue of treasury notes had then become
necessary, the Government had il in its
power to supply itself with an amount OF
specie at Tow rates sufficient to pay the
interest on corresponding issue Of It's
interest bearing bonds, which at that
time would have been in great demand
at much higher premium than any
other stocks in the market. From the
sale of these bonds large profits would
have leen realized, directly, owing to
the high premium at which they would
have sold, and if the investments thus
made had exceeded the issue oftreasury
notes, indirectly in the effect OF the cor
sequent check upon the prices OF those
articles necessary to carry on the war.
But different policy was adopted Il
The Government committed its first
great blunder in attempting to wage |
war upon credit system simply, and
that too by kind Of credit which in
expanding tie volume OF the currency