The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-12

Southern States. II is the annual report of Mr.
Memminger, the rebel Secretary Of the Trea-
sury, giving an account of the financial
condition of. the confcderacy, and propos-
ing remedies fer the present and future evils
of an inflated currency very like our own. In
fact, it seems that the money affairs of the Con-
federates have passed through nearly the same
process as the finances of the federal govern
ment. The available resources of the rebels
can bear no comparison with the means at the
disposal of our government. Heretofore we have
been left comparatively in the dark about the
finances of the South; but in the statement OF
Mr.. Memminger we have now a full expose of
its monetary affairs. AS the solution Of the
great question involved in the war m ainly de-
ponds upon the relative financial endurance of
the two belligerents, this official report is State
paper of the very highest Importance.
1t embraces q period of little over ten
months-from the 18th of February to the 3lst
of December. At the former date there was
deficit of S26,439,572. At tho latter date
this deficit been paid off. nd also S41,7 27,-
1922 of the floating debt, while after denraying
the current expenditure the Treasury had a
surplus ON hand Of $l4, 444, 1897, of which two
and half millions were in gold and the balance
in Understanding Treasury notes. The expep-
diture for the ten months and ten DAYS embraced
in the rebel Treasurer report was SS75, 2444l3,
averaging sS,33s, 764 per week; or, in round num-
bers, about eight millions and one-third. AT the
lowest estimate, as laid before Congress, our
Il. 80 r+oo
and half, which is more than double that Of
the rebels. But it is well known to be twenty
one millions per week.
The receipts of the Confederate Treasury are
stated to be: from taxes SIT 1882 ,079 from Trea-
sury notes and loans Sd34 1851 PAP, and from
miscellaneous sources s6,l72,5S3. The total
revenue was thus $457 1856, 7O4, which was not
only sufficient for the current expenditure, but
to pay s6s,le6.s94 Of the public debt and
leave, as we have stated, a balance of Sl4,-
100000 in the hands Of the Treasurer. In
five months SIT ,422, $50 of Treasury notes
were funded, being an average of three and
half millions per month. During the same pc
Rod the interest bearing Treasury notes in
creased from 1922, 1884, 900 TO $109, 476 400. This
large increase of Treasury notes disposed of by
the government 'afords," as Mr.. Memminger
thinks, satisfactory evidence that the issue Of
them was judicious measure" But what of the
future?
1t will be seen that the public debt of the
confederacy; from the commencement to the
3lst ofDecember. 1862, amounts to S443.41 IL ,3O7
To this must be added the estimates till July
(S29o,493,7l3) and the undrawn appropria-
tions (ssl $40 ,9l3>, making together, after de-
Quoting the balance Of $l4, 444 1897 in the Trea-
sury, the sum of 1857 929,2 29 to be raised in
some shape or other. The total debt ON the LIST
Of July would thus amount to 1901 SAG, $50
one-third less titan our own war debit The
Confederate currency has expanded to
about four hundred and twenty millions,
including one hundred and nine and . half mil
lions Understanding Treasury notes. or more
than one-fourth Of the whole. This Mr. Mem
minger holds to be thrice as great as it ought to
be, and that it must be reduced by two-thirls
in order to save the conIederacy from financial
ruin. The currency Of the States now in the
confederacy is estimated to have been, before
the war, one hundred millions. The natural
increase required in consequence of the war is
estimated at fifty per cent, making the whole
currency now needed one hundred aud City
millions. All that is in circulation above this
amount is redundant, and is the cause OF depre-
ciation-a depreciation which, even without any
new additions to the circulation, will he con-
tinually increasing rs time advances, by an in
evitabie law, whose full operation does not
take effect upon the currency at the time of cx.
pansion, but afterwards. But If the issues are
double the depreciation will be doubled and
thus tue depreciation will increase till Ccnfede-
rate money is as worthless as the old CONT
mental notes and the French assignats, Our own
money has deprecated SO that dollar in gold is
worth dollar and sixty cents in paper. A gold
dollar is worth two dollars and twenty five cents
in Confederate money. AS n test of the pre-
sent depreciation, Mr.. Memmingcr states that
prices are inflated to thrice their ordinary
amount. But how is the evil to be remclied,
The rebel government, like our own, must have
money. The loan system and interest bearing
Treasury notes worked we'll to certain extent,
having been sold to tho amount Of twenty mil
lions and half per month, which would be
amply sufficient for an ordinary war; but not
half enough for such a gigantic war as the
present.
To raise the needed money, therefore, aud at
the same time prevent the expansion of the
currency, is the problem which Mr. Memminger
proposes to solve by tho three following
methods
LIST. A limitation upon the privilege OF fund
ing the notes issued prior to the lst Of Decem.
Der last.
I'd. A war tax upon real estate and income.
Sd. A guarantee by tho several States.
Such are the plans Of the Confederate finan-
ciers But 'the best laid plans of men and mice
aft gang aglee;'' and when Secretary Memmin.
ger makes his next report he will have, per.
haps, very different story to tell from tina,