Richmond Whig. [volume] (Richmond, Va.) 1862-1865, 1863-02-03
uNANCIAL .PRoHCT.

finance prosossdby the Secretary Of the Treasnry' BY
n, Hunter and by Nc. Baldwin, They all possess
-,,,.b mart Int doubt whether either Of them VIII
SolSe meet the exgencies Of the times They are
as far As they 60 butt may vel be questioned
they 20 far enough. tsS@
In view of the magnitude q the issue, great deloe
ration should be bestowed upon it. and Il should De
carefully surveyed in all its aspects and nom, every
standpoint
Without protesting to have any thorough knowledge
of the subject venture to throw out one ost"o sug
,es.ious in the hope that some one more competent
than myself may consider them Thoroughly, and
eliminate from them something that may be useful
One proposition Ia selfevident. We have too mueh
paper money in circulation. We have too many manu-
factories of paper money in operation To say nothing
of the banks which have ceased to issue, in great
measures We have the Confederate States the separate
States, the counties the cities and the sherG all with
their printing presses and clerks busy employed in put
ting forth paper money.
Steps should at once be taken to re3arge portions
Of the municipal and individual notes. and to prohibit
further issues. -
The issues BY the States are not large enough to do
much mischief, but they too should be gradually cur
tailed.
But the great evil lies with the Confederate States.
They have already issued near fsupshundred and fifty
millions, and are continuing to issue at the rate Of fifty
millions per month Currency Z the measure of values
Let ii consist of what it may-paPer silver or soldh
YOU increase its volume you will Increase prices in pro-
portion. IT. when the whole currency is one hundred
aud fifty millions, wheat worth dollar per bushel, it
is plain that when you the volume of this currency
-. ~ vyorfhf urnd dol.
lars and il you raise it. has been done, to near four
hundred and fifty miIliORs wheat will be-ss it is
worth three dollars per bushel and little more, to
cover the risk which the swelling food creates.
If go embarrassing the volume until next harvest
The aggregate will be eight hundred millions, aud
wheatwil be worth five or six dollars-and everything
else in proportion.
The country cannot stand this imitation of prices
The people cannot pay when things return to their nor
nal condition. debt contracted at these prices TO an
amount large enough to supply our armies The alter
native will be, bankruptcy or reputation
We must then, keep down the volume of the curren-
cy and keep up the credit of what remains in circua
ZION. Can this be done ?-snd if So howl
To reduce the volume Of the currency, would pro-
vide that all notes issued prior to LIST December, 1892
should be fundabe in eight per cent bonds, until 22d
Aprl-in seven per cent bonds until lst July-in six
per cent bonds until lst October-and that all nOt
funded at the last named date, should be presumed
paid or treated IS q uon-iuterest bearing debt.
This may be said to be harsh remedy, but it is
necessary one and necessity has law 1t is harsh
to say to man who has simple contract debt against
another, you sue in five years lose your debt
yet it part of the legislation of all States to have
such statutes Of limitation.
The Government would only be saying to the note
holders says to Individual creditors act promptly
you will lose your remedy which is substantially your
right for if you have remedy enforce right the
right is not worth much.
The worst that can be said of the measure is that it
is of effecting forced ioan-Or of inprsssing
he money of the capitalist, for public Now where
il the greater hardship in impressng the money of the
of substance than impressng the persons (by the
conscrpt law or the slaves horses, cattle, grain,
&C, of the of moderate means2
Let this system be adopted and will sweep out
OF circulation the $50 millions The new issue will fur
nish adequate currency, for all the business opera
tons Of the country. The effect of the reduction Of
the volume will be, to bring down prices in the same
ratio.
But mag be said that the increase in the volume Of
funded debt will diminish its market value. This is to
extent true. But it is better that the single
tele Of government bonds should be deprecated than
that the whole currency should be vitated the prices
Of all articles inflated fabulous rates. and the cost of
independence enhanced to render impossible
for the people to pay it,
But this depreciation may be- to great extent guard
ed against by three measures, lst tax bill such as
Mr.. Memmnger proposes, 2nd State guarantees of the
Government bonds, aud Srd the pledge of export
duty principal staples to pay the interest and
ultimately redeem the principal.
The two first propositions have been fully discussed
by the Secretary Ofthe Treasury. 1 will say nothing
in regard to them, but look for moment at the Srd
o5,the pledge OF the export duty.
The experience of the present war; has disclosed to
view important facts The world is dependent
on US for artices-coton and tobacco. They can
not obtain them, of the Quality elsewhere They
obliged to have them, at the enormous prices
they bringing in the markets of the North and
Europe. Cotton is worth rs cents in New York,
and much less in Europe Even at that price is
the cheapest material for clothing
Heretofore, we have been iooling away our inheri.
lance for of pottsge. By our individual coupe
tion with each other, have brought down the price
Of cotton in ordinary times to 6 or cents when we
could have obtained rs. The world profted, aud we
we're impoverished, By our folly. o. ~
So in regard to tobacco England has charged duty
equal about eleven hundred per the first cost
of our tobacco The duty manufactured tobacco if
rtcoleot arighc was twOfod, viz rs cents per pound
specific Duty aud per cent al valorea added France
made it subject Of monopoly, aad each of these two
natons has raised annual of about rs mil
lions Of dollars from it,
Why should this course of things contlnueS Why
Should We not profit by dear:bOught knowledge p
wny bEipternal and individual competition,
depreeia,e the value Of great staples aud let the
-nrIh r,rnRt L., n,r ma M az Madam