Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1863-09-24
Our Finances.


.v in such shape as will serve both to relieve the COM
nuity of plethora of treasury notes, and 10 suppy1
he Government with the snews of for the farther
prosecution of this struggle for independence some
method must speedily be devised to secure the ABOVE
ends else the people must continue to endure Inc evils
resulting from inflated currency and the machinery
of Government be stopped for want OF fuel The ol8-
esters of the ct summer, in the f. Id, pale into nsg-
nfc ice at the contemplation OF so dire calamity as
the last mentioned Then let statesmen and others
address themselves vigorously and at once to The task
of considering the ways and means, and agltate the
matter in the forum and by means OF the press.
We are awareof treading upon delicate ground III at
tempting so intricate theme the areana OF which are
presumed to be only within the grasp; OF elant IN
te!ecs-but hope that Lilliputan will be pard'ned
bis presumption in thus contributing his mate to the
general veal.
According to The report of the Register of the Treas
ury the whole amount Of Treasury notes issued by the
Cover nmcnt since it went into operation Is 1914 OOO
600 Of this $126 900 600 has been funded and $780,,
GOO 600 cancelled by the tax and postefhce his
leaves GOO 900 outstanding for the purpose OF CIR
cu!aon and domestic exchange, exclusive OF S!Zo'-
100000 il interest bearing notes, which the Register
reoards as PORTION of the funded debt, to De added 10
Treasury notes funded and not as part OF the paw
100000 outstanding circulation. But the Register
makes very pal pabe error IN statlng inc amount re-
naming GU standing 900 OOO, Wnlch as5erton
is proved as follows 1926 900 funded ard cancel
led notes deducted from tie whole amount Issued
1924 OOO OOO-leaves balance of $398,OOOOOO, TO
which must be ad!td $l25 100000 interest bearing
Treasury notes, and we have total OF Sozo ooO wv
General currency notes outstanding 9th August 1868,
which amount very nearly approxlmates hat represent
cd hg MIR, Memniinger, w: $523, l144O6 oustaad-
ing subject to deduction Of SIC, l34 600 estimated on
hand for cancellation. This taVes the actual amount
of Treasury notes of all kinds outstanding on tie 9Th
August, 1868, 1852 979.896.
UDon the assumption that Dir. Memninger does not
Indicate whether be regards the interest bearing notes
as part Of the general currency notes. Tie hchnono
Examiner III article Oh the finances makes mistake
of 1925 by adding the amount OF interest bear
no Treasury NOES to the correct balance $4l2,9iU-
900 and thus represents the amount OF "out standing
Government paper in form fit to be as currency as IT
tie over 1911 O0OOUO BY careful comparison OF the
Secretary and Register, that paper will perceive that
| Mr. Memmnger has included the amount c. interest
barring notes in his statement of the balance of out
ding general currency, and that there need
| for the Treasurer to Indicate SO papabe fact
We have then as medium Of exchange tor the COM
nodjtjes of life for population of about ten million
souls the vast sum of $453 100000 Assuming that
| the Conftc!efacy could bear $l5O000000 we have
redundancy amounting to 100000 900, which must
be Withdrawn very soon, but not by any radical meas
ures such as compulsory undng, or by depriving the
notes of their capacity currency. which plans are
urged by the L chmond Examiner. The adoption OF
the latter meas ue would be almost as bad as repudla
| ton for ttldeIs among whom are soldiers Govern
ment EN- ooyees and others, receiving fixed incomes,
would su1r Indeed the adoption OF any such sweep
ing scheme to reduce the currency would be fraught
with great evil to all holders rich we'll poor, but
the would Suer mOSt, 1Or inc Ony alterna I've
left TIN m would be either to wait or 20 part with their
earnings al n ruinous discount to the few lucky one3
who tor consderaC can afford to hold until that IN
finite time rolls nrouLd"six months after treaty
| of peace"
| We maintain that the faith of the Government is
involved in any act tending to deprive its issues of the
virtue of curl ency-t issued its promises to pay with
the implicit if not expressed, understanding that they
were 10 serve circulating medium until tEelr re-
tiemDtjon We trust that financial schemes will
lao OIL Government
into csrepute its faith into question. Our lives our
fortunes ana sacred honor, now depend upon the
integrity OF our Government, aud the maintenance OIL
its tschue0n untarnshedand let us see to 1t that the
Republic receives no detment by the adoption of any
rash measures, calculated to blast our hopes, so near
the Mount sgah OF independence. There are men IN
the COnedelacy who would pull down our glorious po-
ca fabric TO gratiy their pique and to promote their
selfish ends. Let lovers OF their cOuntry own down
all such attempts, and expose the aacy OF arguments
upon which opinions adverse to our interests may be
grounded.
But the vital question u.s. how is the currency to be
reduced? The Examiner says compulsory funding
is the only cure lett to the Government" In reply,
we would urge that the Government has already tried
compulsory tuauing by reducing the promised rate OF
interest given time to per cent, thus depreclat-
inc The value Of those notes unfu0ded but the result
ia that only $l2G 900 600 have been funded, though
holders lad ample warning to fund in time to secure ill.,
veetEnents in eight per cents We might reason from
this result that the above amount the plus or
|
Iaiop and domestic exchange" and that the country
can bear an issue of 1923 600 900 as circulation.
Assuming this to be SO, it cannot be denied that the
large Of currency has oduccd the present in
faon of prices lit would be the same II the country
was as much inundated with the precious mees as 1t
IS with paper, and even though the country bear
so large circulation must be made for future ls
sues for the support OF our Government, by withdraw
ing at least $500 100000 1t is not so certap wheth-
er this would corresponding decline in
prices for th3 Government would be constantly max
Ing new issues which would take the place Of the old
issues Withdrawn, thereby keeping up present prices
But if no greater effort is made to fund the paper now
out it s probable that in two years OF warfare
prices CT commodities will have doubled their present
point and should the war continue longer, in the
course of few years it will take bushel of shnplas-
our first revolution. Total reputation would very
likely be the consequence Of extraordinary an is
sue.
Bat supposing the funding of the notes to be more
rapid than the lew issues of the Government, which
must be tie 1t proper adopted, then
prices must 90 down. which will relieve non-cOmbaants
at home, the Government in the supply of its commits
sarat and ruin enemies, the SPECTATORS 1t seems
to US that the policy of the Government is to issue
and fund by Offering great inducements as it goes along
and not delay Offering such inducements until its issues
become so large that it will be able to pay the
interest much less the principal of its debt for pri
ces become Inflated by the enormous paper currency
outstanding, the Government will have to issue more
notes for the purchase of the necessary supplies for the
support of its army and navy, which supplies become
enhanced in value II proportion to the issue CT notes.
But if the currency is kept within moderate bounds,
the Government being the largest purchaser will buy
of starvation, Reputation and subjugaon.
To withdraw the surplus currency, would suggest