Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1864-03-24
From the Richmond Enquirer.
TIE FIsASrlAt. SYSTEM ADOPTED BY CON-
GEskSa.

lOQ III ding.
To accomplish hes er.ts, taxation is heavy and
Gndrg c1mi,ulsoy o a large tXttlt. and not little
ensiOn used W. en- it is not tualy Compulsory. Upon
hat large purtion Of ia composed OF $l0O bills
he torc, is b dilute ihts= taxed 3319 ger cent
o. st April, aid 10 ,ar cJrt per month afterwards
until funded. Ibc o,igiral tax oil 331 per cent, how
ever, eXhansts the compusou uNd as regards bills OF
less d4nomlna lpEs For, slih''ugh tax OF 100 per
cent is li Cd JaDuaty, 1863 the bills meanwhile
are excharg ale fer issue, without further loss
by taxation. lie effect OF tie exchange there fore,
is to he reaching OF all tie cid bills by the tax
and also public nveitIce iii nslng bills whose face
shall correctly repreeent tier value
Not only is taxation ustd, but another equally strin
gent force is applied IL the refusal to receive bills for
public dues.
The 73O notes arg, by th= latter means, retired from
circulation.
The new b",ds su d to 'hbsolb currency, might
themselves become pat OF circulation 10 prevent this
they Issued not coupon bonds, payable t" bar
err but registered boz d. not negotiable by delivery
but only by transfer tte books of the Treasury De
partment.
The call certificates are dealt with the currency
which they would c. miand
Such the Stringent adopted for retiring aud
reducing the circulation
To keep it down. Il. we'll IS bring it down, it is pro-
7ided that all laws authorizing tue issue of treasury
notes repeal d. Ouiy toes issued in exchange Tor
those prevcu ly outstanding be issued at ell And
by the terms of the Funding Act, only two dollars OF
ntw can De issued for three dollars OF old bills.
The aggregate Of currency, when all issued can.
nvt therefore, eed two thirds Of the volume OF tn
old currencJ-coaah'erng only tn interest bearpg
notes such.
This currency ny b;n< .ei aud over, is to
support tie goVerl 1T fhere Is, d1u less, more
than ugh for the purpose, it be brought back
and reissu-d l. il IL return to the government by
taxation and loans, ana be fessued from time to time
Taxes paid in kind bring back zone into the treasury
but these qu~e TO be paid out Faxes paid in
currency uSni~ the government with currency for re-
issue. such IS the scheme issue no new notes, but
make the substitutes .r cI&! iiCrts suffice.
The provision made tr loans consists In the author
Y conferred the Secretary Of the Treasury issue
6 per cent untaxld boGds with specific pledge for
their redtmptlon and their coupons receivable 10 pay
ment of export a1d i'm 5r du les. Unfortunately the
blockade, ior tie time ing, prevents any particular
demand for the Coupons. Yet the toEds highly pri
vileged end valuable
The RESOURCES OF tit gov rnmcnt, therefore, will be
l. The s,ue OF 81 OF notes for So OF old notes
charged ior per cent. btrds 2 Notes peaived in
payment of taxCs. Noes ler 10 government on the
new per cent. bends.
The notes exchanged Tor the issue will not form
part Of government resources, the notes will be
returned TO holders in exchange tor the old
Notes celved III pa nlen Of taxes ter the year S64
will be tcv and enlarge government resources much
for taxes Will ac paid lie Ms per cent bouds, except
such as ale paid IN kind.
therefore, government will be dependent, first, on
two thirds oi The funded SCcoud, loacs, aud
third on the tith,s
We have accurate meals of Euowiug what amounts
of the various ds pcnna!lUns have beea issued Again
it is all cc al what will be iuuded of bills
not forced 10 by downright necessity We will sup
pose caso, howe
Suppose currency 10 and Us in March, 1864
500 bills 2OO, O00,O0o
sos, EOS, TO-, 100000 GOO
5s IS 600 OG0
Under IS, 5 600, 600
Tea: non,in'erest bearing 7o noo o coz GOO
Total cuIreIcy. S25 coo 900
Of the foregoing, The 1908 are withdrawn from cir
cuaon from the date # the passage of the act leaving
seven hundred millions of non-interest bearing notes.
We may safely consider that all the $l00 bills (save
stray bills by rccident) will be withdrawn Also
that enough bills viii re converted INFO tour per cent
bonds to pay. Ii e I:ruty taxes 1864 Muny of the
lOGs will be used, howe vtr in purchasing boz d, for ta
purposes so that OF sos, 20s and los there will be
fewer withdrawn for that purpose. Again There may
be OF the money funded rather than pay the 33
per cent. tax. Suppose he funding to be as follows
500 bills, 200 OCo OcO
sos, 20 iea co,vere? ,-to per cents, SO coo 600
Do. to avoid 325 can't tax, $4,000 OG0
IS to avoid 335 tax, rs 100000
Total withdrawn rom CT. cuAtior s25 coo coo
Leaving subject to tax OF ! 375 ,0C0 600
Original circulation, 100000 coo
The treasury, in exchange for these 1915, 100000
will issue $3.50 600 600 Of TIE notes, paying them
to holders f The Old notes
1t will have the right to issue two thirds
OF the amount withdrawn from crculatioa-say $2l6;
OOO 600
Aud also the tax, (v: the 1.-THE tax) paid in 1864
10 money.
And for all Other expenses it would pend on loe De
derived from the six per cent bonds and the agreements
of contractors to accept six per cent certificates.
1t would be an interesting problem to endeavor to
ascertain the probable amount of the currency out
standing at several dat's through the year 1864
say 1st of April, May, Jure July, O,to'er aud Jau
uary l, 1865.
O0O together with the old currency not fund
ed-passng at the ratio of or 3-say SIS 100000
more, will constitute currency. However, the issue OF
new notes in exchange for the cd will then Re very
rapid BY June |, the will largely bave ia
ken the place of the CID making cilc 4lation say $780,
900 600 -; but ;hsn REDUCTION Will be mode by taxa
ton Woe be INN has rot provided four per
cent BOMBS TO Pay taxe' ~hal, tf currency will be
and 'ax.j,n based N the suppos
ton it is superintendent H. will be hard 10 get money
in May.
In July, the SIS will have disappeared largely Peo-
pie will then act advisedy the decision of the
question whether it wiser to fund or to pay the 33
per cent tax. Soon twothirds of the Sos issued will
reaDpear IL new currency.
We may expect very little funding, however, after
the dates fixed fer the 49, tax. The election will
have been MAIDS before that time, ard, if rot taken at
par, the bonds will hardly be taken at what is virtual
~ so per cent premiumi. e, $50 OF old currency for
sl00 bond
In October and the FALL the tthes will be coming in.
IN January, 1865, a large batch of taxes fall due.
The fluctuations OF currency perhaps will not be oil.
together great might, at first sight, be supposed.
The greatest abundance of currency would be outs and
ing he time contracts due at tie close OF the year
to be discharged perhaps tie best time for en-
argement.