Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1863-12-01
FINANCIAL RELIEF-THE Plan OF
THE SOU TIL CAROLINA BANKERS RE-
VIEWED.


THE sou TIL CAROLINA BANKERS RE-
VIEWED.
To the Editors of the Whag:
This plan of restoring the currency and fnan-
ces to sound and healthful CONDITION was intro
duced to the public with strong con.inendatory
notices by the press. / have read it with the
earnest hope that would find in it satisfacto-
ry solution of our pecuniary difficulties but am
sorry to be obliged to say, that think its adop-
ton would tend to aggravate rather than relieve
them. s
I+have no remarks to make on the subordinate
features, which relate to the callloan, the fulfil
ment Of the Government pledge in regard to the
i eight per cent Treasury notes which still remain
unfunded, &C.. but do desire to direct pubic
attention to the more important propositions
embodied in the scheme, and, briefly, to exam
inc their practical operation.
The propositions to which | refer are the fol-
lowing
/ ssThat a new loan of coupon bonds be made, to
the amount of one thousand million of dollars,
the bonds bearing six per cent interest 1.-THE cou-
/ mons payable annually In coin.
.sThat an act be passed laying tax OF sixty
millions of dollars, to be collected annually, du
4 ment of the interest on the above bonds
that the said tax shall De paid in coin, and that
conpons of the above bonds be received in the
payment Of this tax in lieu of CON-"
/ The third proposition provides for a rateable
distribution of these bonds among the States,
so that the people Of each State shall have an
opportunity of buying, at par, sufficient a.
i mount to enable them to settle their taxes
with the coupons.
4 The gist of the scheme is in the first and
second propositions above quoted.
The most pressing evil under which we Ia
Dor is deprecated currency. This deprecia-
ton has been produced mainly, by an over is
sue. We have three or four times as many
notes in circulation as are necessary Tor the
business of the country, and hence, they have
fallen in value. There is, in other words, too
great disparity between them and gold,
which is the recognised standard OF value
throughout the world.
The theory of the plan under consideration is,
that if bonds to the amount of one Thousand
I millions be used, bearing sn interest OF six Fer
cent, payable in coin, the people will buy them
with treasury notes, as 20 secure sufficient
amount If coupons to pay their share OF the tax
of sixty millions, which tax is payable only In
coin, or 10 coupons of these particular bonds
In this way. it is presumed the treasury notes
will be speedily absorbed. The plan contains
no provision tor cancelling any OF the notes, and
7 would, apparently, leave it discretionary with
the Secretary of the Treasury to reissue them
J as soon as he might have occasion to do SO, and
indeed he would be obliged to reissue them
and thus the country might again be flooded
with deprecated currency. This may hsve
cen casual omission, but it strikes ms as
strange. that 10 an elaborate scheme, formally
presented to the country by convention of
professional fuanciers, such an omission should
, Lave occurred
& But passing that by, let us examine the plan
in other asps cts.
The Government is to borrow one thousand
millions, and pledge itself to pay the interest
annually in CON-
| Thi involves two propositons-1st, the bor-
!, rowing of 81 900, millions 10 currency, and O.,
the payment of the interest in coin.
Let us consider them in their proper order
!, The estimated amount Of the treasury notes in
. circulation, on Is h inst, was six hundred mil
lions If We add fifty millions for the new issue
| likely to be made before 1st of December, we
! have the probable aggregate of notes in circnla
ton, at that date, six hundred and fifty mil.
: ions.
u How, then, 'sfe the 600 millions of bonds 10
be bought and paid tor It is clear, the 500 mil
lions of treasury notes will not suffice Aud il
: you add all the bank issues, extended to tue
limits authorised by thei. charters, aud all the
county Issues, aud sill the eorporst ton issues the
aggregate will still fall short of the desired a..
mount. And what is the country to do in tie
meantime for currency? How is the business
of the country to be carried on? How are con
tracts to be met the necessares Of life obtain
ed?
al Was there ever so crude and i'll digested a
scheme put forth to the country by an assembly
of grave and intelligent gentlemen! The sim
pie queries above proponnded illustrate the i'm
practioablity&of tie whole plan.
Let US now consider the second branch of the
proposition, which, coDtemplates the payment OF
of the interest on this 1000 million loan in coin
!, Will anybody be kind enough to tell me where
the Government is annually to get sixty million
in coin rather think Mr.. Memmibger would
give handsome premium TO any gentleman
who would afford him the desired information
! Has the Government that amount of coin. or
{ has it property that will bring it? fit be ans
5 wered the people to be taxed to raise it, the
inquiry at once arises, where are the people to
get it? The people have neither coin nor any
thing that will bring coin And if they bad
cotton and other cash articles that would bring
! it, they have not the means of getting them
to market to effec- the exchange.
t But it may be ssid the people will be allowed
| to pay their tsyes in coupons aud thus be re-
lieve.l from the sninons exaction of coin. This
is all very well as far 1t goes; but if the peo-
{ lie pay no coin to Government, how can Gov
ernrnent pay coin to the boz holders There Is
the ruh! The whole scheme is obviously found
ed on the idea that each tax payer will make a
;, nice calculation, and ascertain exactly how
much of the sixty million tax he would have to
ray, end take j st enough OF the thousand mil
lion loan TO cradle him to psy bis tax with his
coupons, and thus the whole affair would be a
ham. 1t would nomnay be coin transac
\ 1ix,
] between the ptrtiesl But suppose some people
were without the money to buy the necessary
quantity of bonds, and that certain opnlent bank
ers and brokers were to buy an over prof. or
ton, what then Then the man without mon
ey would have to frrnish the coin or buy from
the rich banker or broker coupons enough TO
pay his tax These coupons would be in de-
nand. They would be equal 20 gold, and the
limpecuniou man would have to pay the price
i of gold for them. This would be very good
thing for the banker and broker but a very bad
/ thing for the distressed tax payer. Gold is
4 now worth sixteen in notes for one. Heave
/ only knows what it would lie worth if to the
present demand you a6d demand for sixty
millions per annu.n more!
But could the people stand this ssplan of re-
lief?n Bonds to tfso amount OF one Thousand mil
i lions are to be sold, and annual tax of sixty
millions levied. Have the advocates OF the
sspan'' subjected it to the test of figures =
| Let US see how it would work in Virginia. The
share of the Old Dominion would be about one :
seventh of the whole loan and the whole tax -
| Her citizens must. therefore. buy one hundred