The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-01-16

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cisive victories over them this year AM
next They are doomed, and nothing can
them. The conservative movement will
tinue its triumphant course till a complete
final end Is made Of the pestilent faction v
is waxing fat upon the ruin Of the country
The Eiaanciai Condition OF
.... ............... South.
The Confederate Congress assembled on
day last at Richmond, and the journals of
city, In announcing the fact, call the attic
OF that body to the necessity of prompt
decisive action upon the finances of the S
which are now in the most deplorable G
ton. Let us see how this is. 49,
We published day or two ago from the
mond Enquirer, an instructive article, undo
caption of "The Issue of Irredeemable Cont
ate Notes." which. taken in connection wit
financial statement derived from rebel so
which we published on Monday last, des
the attention of the country and the 60
mcnt 1t appears that, greatly as our curr
is deprecated, that of the COnfederates
worse. By the latest quotations from
mond gold is selling at 2l0, while
lis it has reached $50. Prices of commo
are inflated with us. But what are they
South? AT Galveston, just before its reca
by Magruder, floar was $50 per barrel
meps boots $25 per pair, and the conditi
the people there is described il lett
destitute and deplorable.' At Richr
within week, molasses sold at $ll per g.
This shows the great depreciation of their
money. In addition to the scarcity Of the
saries of life Ns-.-..s,
The total expenditure Of the Confed'
government was, in August last, $S47, 27s
Of this only $74,36l $50 was then funded.
balance is consequently outstanding 10
shape of notes and temporary loans. To ]
ary l . sum of sos, 1904 was req,
The plan suggested in September last
the issue of interest bearing notes and DEF
on call, as these were withdrawn from cir
ton and held as investments, and did not
ciate the currency by excessive imitation.
in the Richmond Enquirer of the 9th in
"the evil Of a superabundant Treasury issu
described to be so great that it "must be
pressed" 1t says the proper amount Of m
needed for circulation IL ascertained Il
$l50,0O0,000 But the effort to conduct
war for the last eighteen months by Tres
notes has so increased the circulation IS
preciate the currency and increase prices
ruinous degree. As q financial scheme
Enquirer pronounces its failure only que
of time. The public sentiment has made
notes legal tender, and driven out of
ence the circulation Of the local banks.
they are deprecated, owing partly to
excessive issue and partly to the uncerts
of the success of the confederacy, the
the States of Alabama, South Carolina and
ginia have guaranteed the Confederate DO
What is needed, the RichqQnd paper argue
to reduce the currency to $3.50, O0O, 900,
never to let it exceed that amount, which m
be effected by compelling its exchange Al
rate of two dollars in bonds and one dolla
nov .sses fes three dollars q the issue no.
As matters stand, the Enquirer Contends
The Confederate States have revived the Ere
assignat system, and its results will prov
disastrous in the confederacy as in France.
Is led to the conclusion that the only mod
supporting . war is direct taxation, by wi
not only the interest will be punctually I
upon the bonds and Treasury notes, but a 8
ing fund will be created to liquidate the p
cipal by degrees. This is what the Bri
Parliament did by the advice Of Pitt,
enabled the government to get through v
long war with complete success. Taxation /,
prevent the issues Of Confederate paper Il
depreciatng in the market, and thus sustain
credit of the government. But such is
critical condition Of the Confederate fnan
owing to the contrary system, that the Ri
mond Examiner says that, though the succ
Of the blockade has operated severely upon
Southern people, it has proved the salvation
the finances Of the confederacy; for, had tn
been no blockade, the money Of the COVE
ment, being brought in contact with other {
rency, would have lost all value, from
quantity OF it in circulation, and the COME
rates would have failed In the war FROM
failure Of their finances. But for
blockade mary Of their people would be
moralized and the currency utterly destroy
There is great deal Of truth and reason
these representations, and the blockade, !
everything else, has its two sides. Certain 4
tha, 1t has had a wonderful effect In develops
the manufactures Of the South.
But the practical conclusion drawn by
Richmond papers Is that immense taxation Is
cessary, and they cali for a direc. tax Of fr
slO0,0oo,O00 TO sl5o,0o0,o0o. They say
never in the history Of the country were
affairs In better condition to bear the burd'
Of heavy taxation. Agriculture, trade and C
merce never were so prosperous, and ev,
article Of domestic production can bear SIN
tax. They add:--.whsat, corn, pork, b,
oats, hay, wosl, fodder and straw are selling
prices never before paid in this country. c
ton when sold brings treble ito usual price, .
when not sold il daily advancing in val
Manufactures Of every kind, under the mps