Richmond Whig. [volume] (Richmond, Va.) 1862-1865, 1863-10-28
/ PLAN OF FINANCIAL RELIEF-LETTER FROM
A. III STUART.
SHANNON. Oct. 2lst. 1858

SrAuSroN, Oct. 2lst, 1863
L,1,s, D Armstrong. Esq, Senate Of Va;
nr,s SrR-The present dersnged condition of our
,,cv has excited the serious apprehensons of every
rsaacng man Unless something ia done to arrest the
evil bankruptcy must follow. Our legislative bodies
bsva dealt too much IN tempOTizng ezpedients They
have not had the nerve to look the difficulties of the
times in the face, and to meet them like men. With
nrisss constantly rising, and debt rapidly accumula-
tirQ it must be plain to every one, that ruin both
s,snoaI and political will soon overtake us unless We
change our policy.
Thu radical error was in attempting to carry on
est revolution without taxation by treasury notes ex-
in,ivalv IL Wes doubtless proper 70 issue treasury
o,as 10 an amount sufficient furnish material cur
repev This Was 4 cheap mode OF borrowing, without
interest TO that extent and moreover, II furnished
currency of uniform value throughout the COniederacy,
and th1s regulated the exchanges. But the ISSUE OF
treasury notes should have exceeded one hundred
- 6fyv or two hundred millions Of dollars Every
dollar issued beyond the smaller amount, (which Nj.
Neumioger assumed to be the sum required Tor cur
tended to depreciate the whole body oil the cir
cusou 10 initiate prices stimulate speculation, derange
tbs relations of debtor and creditor, ana do ncacua
bic mischief 10 the business operations OF the country
Currency il the Measure OF value, the yard stick,
or the pound weight or the ousnel Is the measure OF
,ar,fifN Ii YOU double the quantity OF the crcula-
tnr
nssr you will inevitably double the prices Of all
mo6tes in Market unless there be some qualifying Cur
cunstsnce such as q redundant supply. As you ill.,
crease the circulation beyond this point another ele
ment-dstr1lst Of the SOt0sNcy Of The ereHey-nust be
tken into the calculation and therefore the enhance
ment of prices will so on even at greater ratio, than
,ha increase in the volume Of the currency.
The treasury department having areauy Issued cur
rspcv Tn An amount tour or five tunes great the
wants of the country require, prices have gone up
more than five times beyond their nominal standard.
n the issue continues further the element OF dSSt
will become predominant ana the currency will, IN
tow N .utbs become worthless. need not stop 10 de-
Met the consequences Of such stase Of things, not
univ to the business the country but to the success
of The Great struggle in which We are engaged.
The attention the country is therefore anxlousy
directed to this question Of the currency. Many dher-
sot schemes have been suggested, each Of which has
some merit but none Of winch, in my Judgment, will
meet the emergency
Dssuondeut men think the evil has grown to such
fa,rtlI proportious that it cannot be renieded Aus
of \ different opmiOu. But very prompt active and
energetic measures will be required 70 effect a cure
have read with much interest, the plans proposed
nv Governor Norehead, aud by Mr.. Marshall Of the
Senate and Mr. Butord, Chairman Of the Committee
Of the House OF Delegates. Each Of these schemes
embodies valuable features, but l doubt if either will
accomplish the object proposed. The fatal objection to
ali of them is that they require the concurrent action
of oil the States Of the COnederacy. II any State
refuses to sanction the scheme, it necessarily fails This
unanimous concurrence can hardy be expected, and
even if it could be obtained would be- at so ass
day that the evil would then be past relief Other ele
ments are wanting III all these schemes, which are es-
seutia TO success.
The evil is Of a national character and can only be
remedied 10y q national agent. The mischief is of
immediate and presscg nature, and the remedy must be
promptly and decisiyey applied. 1t s wide spread aud
depsca,ed and must be so framed as to eradicate the
disease
/ am not able TO perceive how tbs Legislature can
act efficiently on the subject; but it may Indicate by
resolution its sentiments and if necessary, give
tons to i.s Senator's The voice of Virginia expressed
through her General Assembly, would, doubtless be
potential with the Confederate authorities
In rejecting the subject It has occurred TO ne
that IN order 20 ensure success the following features
ulst be embraced IN the scheme OF relief:
ls Tue issu5 OF new treasury notes must be stopped.
%. One-hal OF :Wo thirds OF the present issue must
BE- retired from circulation.
81 pledge of a specific export duty on al the pro.
duct OF helds and forests be given for The
payment OF the interest and principal of deb..
4ih, vigorous system OF taxation must be adopted
to nee, the Immediate wants Of our Government and
if deficiency should exist it must be met by sale of
bonds, and not by the issue of treasury notes.
A combination Of these features, in veil digested
BILL sii feel zssured give speedy relief 10 the
try, bring down prices diminish the expenses of the
Government substantially double the salaries of our
officers and tho pay Of soldiers, by doubling the
purchasing power OF the Money restore confidence, and
place cur carrsnoy on firm and stable basis.
1. Toe first proposition is simple enough. Congress
should as soon assemblies forbid the further issue
Of treasury notes. The income tax (which will be tnor
mous) sill become Due let January and will furnish
the means Of carrying on the Government for few
% lntns until the other measures which shall pres
emily refer can be made available for the production OF
the revenue.
. The second proposition, the retirement of large
portion of the currency involves more difficulty but
it is by no means insurmountable
The attempt retire the superabuudan. currency by
voluntary fUniiug, mas all must ooncede proved fail
ure Patriotic men have invested, TO considerable
extent in the bonds of the Government but the specu-
larors aud peculators who are unfortunately large
classes have perssenty refused invest their lgot-
ten gains In the securities Of tho Confederate Govern
ment Tho voluntary system therefore, throws all the
burtheu and all the risk the better portion Of
cstv and leaves the least merorous proit by their
outlay.
To remedy this mischief Congress should provide for
rsleaols investment by every resident according to
his means in the bonds Of the Government.
perceive, from 40 editorial Of tue "Whg" of goth
instant that the Of 1860 shows the aggregate
propery OF the Confederate States 10 be, emitting frac
tons ak thousand two hundred and thirty millions
If @ deduct from this amount the value of the property
of Kentucky and Missouri, and fragments of other
States not Available for taxation, amounting to- about
seyent en- hundred miOns have net balance Of near
four thousand five hundred millions. Deduct from this
oue thousand moos for loss Of slaves aud ravages OF
var aud the balance is three thousand five hundred
millions But is proper, the other hand, to add say
one thousand millions for Government bonds and Treas
ry notes held By our citizens and you restore the sg
pregate taxable property of the Conederacy 10 four
thousand Eve hundred millions. Twelve per cent OF this
sam amounts to i've hundred and forty millions.
The amount Of currency which will be in circulation
on Ist January next will be probably six hundred and
fifty Millions The country can bear about two hundred
milOns- It is therefore proper to reduce the volume
of circulation about four hundred and fifty millions,
As 10 leave two hundred millions 70 effect the exchanges
of the country.
Now if il should be provided by law that every citi-
zsn should pay per cent the aggregate value oil
bis property in Treasury notes, you viii be able TO ell
feet tbis reduction. and leave surplus of ninety mil
lions 10 be applied TO the payment Of interest, &c.
la raising this Il per cent. on the taxable property
-. he nrnvihah that NO