The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1863-09-11
The Rebel Currency.


The Georgia Constitmionalist contains
remarkable letter from Hon. ROBERT
TooMBs, upon the currency OF the rebel
States, from which we extract the follow
ing:
AT the beginning of this struggle we
had large national resources and unequal
ed public credit. We borrowed gold at
par for our bonds. Wealth laid it's treas
ures at our feet, and poverty itself claim
ed it as privilege to augment our resour-
ces with its mite Folly has mainly con-
tributed to dry up this living fountain of
public supply. The first great error was
in attempting to carry on a great and ex-
pensive war solely on credit, without tax
alton. This is the first attempt of the
kind ever made by a civilized people.
The result of the experiment will hardly
invite its repetition. During the first year
Of its existence the present Congress nei-
ther levied nor collected a single cent of
taxes, and postponed the collection of those
levied for the second year to period ia
tally too late to support our currency.
The second error naturally resulted from
the first, and consummated the destruc-
ton of public credit. This depreciation
soon began to manifest itself in the rise of
commodities; yet the government I'M
wisely continued daily, by forced circula-
ton to add to this excess, increase depre-
Citations, and enhance the prices of all
commodities which it is compelled to pur-
chase, and it is thus exhausting the ma
tional resources in the ratio of geometrical
progression. This ruinous policy would
have long since run it's course, but for the
fact that law, inclination, and, above all,
the ardent, sincere, honest (but mistakenly
patriotism of the people have been invok
ed to uphold it; but the principle being
radically wrong, no human power can up
hold il long, and, in spite of all these
powerful props, our national currency is
deprecated more than one thousand per
cent. below gold and silver, and four hun
dred per cent below suspended bank notes.
Prices and payments are rapidly adj
.justing themselves to memorable facts.
The consequences are truly frightful
Let US pursue them little further Let US
suppose that we have five hundred mil
lions of currency now in circulation, worth
fifty millions of standard bullion The
issue of an additional five hundred millions
of such currency will not add single dol
lar to its value. A thousand million will
be worth no more than five hundred mil
lion were before the latest issue-to wit,
fifty millions of bullion. The addition has
only deprecated the whole currency by
one-half, and this depreciation will invari-
ably exhibit itself in the rise of commodi-
ties for which it may be exchanged The
government, therefore, if it expends the
additional issue in commodities, loses
first, the whole amount of the deprecia-
ton existing at the beginning of the issue,
also all the additional depreciation pro-
duced by its daily expenditure. Its note
holders lose one half the value of their
notes. 1t will therefore follow that if the
market price of wheat is eight dollars per
bushel under the issue of the five hundred
millions of Treasury notes, it will be six
teen dollars per bushel under the issue of
q thousand millions, and sixteen dollars
will be worth no more than eight dollars,
and will exchange for no other commodi-
ties. A capitalist lends his money to the
government, and finds that his first half
Yearly dividend he receives in payment
United States Treasury notes-notes worth
one third in money what they were when
he made the loan. Yet the government
wonders why the people will not buy its
bonds. Investments in gold for the last six
months have been the safest and among
the best in the Confederate States They
have paid one hundred per cent. per month
ON the original investments in Treasury
notes. Can l say more to expose the
boundless folly of our present financial sys-
tenn? The history of the currency of our
enemies since the beginning of this war is
humliating to u.s. Neither had foreign
credentials: both had powerful and estab-