Richmond Whig. [volume] (Richmond, Va.) 1862-1865, 1863-02-09
The Finances.

The Finances
The following communication from practical man Of
business is perhaps worth more than all the reports and
speeches of the politicians put together 1t suggests
remedy exactly opposite that Of others for the evil
be cured Instead of forcing the funding Of the per
notes BY certain day it would repeal that clause
This would enhance the value of those notes and at
ouss drive them out of circulation money, and TO
that extent the volume OF currency the result
s5ich all parties desire. 10 other words, the effect,
which Mr. Menminger seeks by dPr,eiatiEg the notes
ftndable in per bonds is to be attained by aT
grscatpg these notes. This latter mode is preferable
aud the result sought is more certain:
b 70 he Editor Of tie Wig:
Several bills have been recently presented for the
consideration of Congress having for their object the
reduction Of the volume of the currency. The bill
pissed by Congress during the last session, creating
currency, flndable only in per bonds,
VIII eec,ually reduce the volume of currency by dri
wing out OF circulation all the treasury notes issued pri
or to the % December 1862, which are fundable in
eight per cent bonds; provided Congress will withdraw
10, notice limiting the time in which the old may
be funded in eight per cent bonds to the 22d April
SOB. The notice should be withdrawn for two reasons
Fst because il violates the contract made with every
Bote-bodsr for every has printed it the fact
that the holder may fund it in bond bearing eight per
cent interest but it does not bear upon its face the
condition that he may only do 50 Within limited time
Aul again the time thus allowed for funding s275,-
JJlOJJ is too short ifused the are through
olt the ConiederAcy; not more than oue-haf will be
funded and the other half will remain to swell the vol.
Of currency. But suppose the notice should be
withdrawn; let what will then become of the
old notes. The notes, issued since "a December
last, being fundible only in per boads are
OF less value tina the old notes which fundabe in
eight per cent. boads and it is a well known fact that
Noes Of least value vii always circulate, TO the excu-
sol Of those Of greater value. There il always dis
position with every note-hodrr to pay away first the
least valuable notes. Thus is that the old notes are
already becoming scarce in Richmond aud the Brokers
compelled to Offer premium for them in order to
obtain them in sufficient amounts to supply the demand
for the bonds.
Phe increased confidence Of the people in Tue estab.
hshment Of our Government Ia, great Increased the
denlnd for Confederate per boud. al this de-
uand only be supplied by Obtaining the Cd notes.
the new being fundable in per cen;. bonds
purchaser applying to a broker now, TO obtain per
cent, bonds is told that he must pay premium for the
bonds ii he wishes 70 make payment in currency
or he get them pr If he has the Old currency
The purchaser probably expects pay with Ls check
having his funds in bluk deposited there perhaps by
him in old notes. lie goes to the bank aud demands
the Old notes. and is told that the bank pays checks
only in curreucN aud that they receiving now from
their depolitors mostly uoss aud Ouy pay
what they receive and he will probably receive from
yhem in payment OF his check few Old notes mixed in
wish the new But that docs enable hun to get the
bonds at par, and he /, compelled to pay the broker
premium which enables the broker 10 olcr premium
for the notes aud it becomes generally known
that the old notes will command premium the holders
'Ell no longer pay them away deposit them in bank
even small amounts but will sell TO the brokers' and
the brokers will establish agencies throughout the Con-
fsderacy buy up the notes which however they could
Do, if the notice limiting the time for funding the
notes to 2sud April should remain in force for by the
time the agencies would be well established the 22nd
April would be at hand when the notes could only BE-
funded in per cent bonds and besides the small pre-.
MUM that the notes would command in short a time
woli n0t be asu;ient induesment for them to incur
the expense aud risk of collecting them But if the
notice should be withdrawn spectators too, would
quickly perceive nducement to collect aud hold the
uo,es bonds for the premium Of IL or Is per cent
WHICH they would probably command in to months;
aud thus there E0uld be large class of persons dealing
ia toe notes. heh Of course would no longer be Cir
culatiug medium aud the volume of currency thus re-
ar,si woald cersanl have the effect to reduce prices
- Sat IL viii bs-lscessary to keep within bounds the
Volume Of the nsr currency Of which large amount
XII have been isuei BY July next. Let Congress them
that the currency shall be fundAbls in
Yer cent bonds aer IOctober next This notice they
rave right to give the notes bear upon their face
oa the obligation to permit them be funded in stocks
OF bonds Of the Confederate States But if the act I'M
derwhieh The notes issued, gives the holder
the right invest them Al time in per cent bonds
chen Congress should direct the issue of the present
rency to cease on tie lst July next and order new
currency to be issued from that date, fundabe in
per cent bonds which is low rate Of interest
as should be paid. The notes now known as the new
currency would then be flndable in seven per cent.
bonds As dLg as any OF them could be toaad. So soon