Richmond Whig. [volume] (Richmond, Va.) 1862-1865, 1864-05-19
The Currency and Credit Of the Government


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The Currency and Credit of the Government
ne Pr sdsa5 IS sa.i,ei to til, thanks Of the eOuo-
tFy for his wise and 6msy accommodation that the Is
sue of Treasury notes be limited by Law to two hund'el
and thirty millions Of dollars Ia the a6sanee of suet
Limitation, distrlst Of currency will continue an
prices remain AZ or near their present exorbiiAnt stnd
ard The recommendation OF the President is sep IL
ths III hl direction but without aoGilary measures,
viii not effect the end proposed Oar legislation SHOULD
be dectsd not Only to the reduction Of the volume O.
our currency but to the establishment of our credit on
firm basis. Il is to be topej, therefore, ths' Con
gress will nOs only respond promptly to the suggestion
oflhe President bu. that they will follow it with Othr
measures equally necessary to the pubic veal
If the power taken from the Secretary OF Tie
Treasury 70 issue notes beyond $50 millions, what s.
oury have We in the Abseree Of other iegislOn that
be win be able to raise the money, from other acureef
necessary 10 carry en- the var? This is a contingency
that mus be provided for Government eight per cent
bonds are qloted eight ten per cent. below
par As the currency becomes reduced aud the strin
geDoy in he money market increased, the prices Of
bonds must continue 10 90 dosn. The only means q
providing money TO support the Government and sus-
tain the army which will remain after the authority Of
the Secretary 70 Issue nes revoked vii be taxa
ton direct and ndrec Aad the cal, or h,Po'heeation
Of bonds Taxation, know, viii not suihsS, because
large portion il absorbed in the luclon OF the cur
Psncy from its recent bloated proportions. Will the
sale Of bonds be sufeientg Without further legila
tiOn, We fear is will The fae that eight per cent.
bonds discount is very persuasive 20 prove that
SIX per cent bonds can hardly be sold large quaint
ties a. par or sn amount approx mating their par value
True, the sG per cent. bonds arc exempted from tax
alton, and secured by the pledge OF import duts
already laid and such export dues may hereafter be
laid But will these guarantees 5niee give stability
10 their Vaues3 We fear not. Something more must
be done 70 strengthen thess bOud, viii be in dan
ger OF additional financial difficulties. Neither exemP
ton from taxation liberal promise Of interest,"
general pledge, OF publ faith Will be sufficient place
OF; bonds on a solid foundation. Capitalists will
quire a more substantial guarantee How can this Be-
givsn2 We answer, By the pledge Of an actual, ard
a eontiRgsn export duty he productions of
fields and iOres u.
Toe 6,h section Of the Currency Act passed at Il
last session Of Congress- provides that 10 pay the ex
pense Of the Government otherwise provided tor
toe Secretary o; the Treasury is hereby authorized 20
issue SIX per cent binds 10 amount not exceeding
ase hundred millions Of d,lars, the principal and at,r-
est whereof shall be free from tA1lti1ni and for the
payment OF the interest thereon the entire net reeeps
OF any export duty hereafter lad the value OF all
cotton, tobacco and naval stores which shall b. export
ed from the Confederate States and the net proceeds
OF the import duies laid, so much thereof a.
may be necessary 70 pay, annually, the interest, are
hereby sPeOisly pledged provided that the duties now
laid upOn imports, and hereby plsd sed shall hereafter
be paid in SPECIE or ia sterling Ijhange in the cOu
pOns Of said bonds"
This Is all very well Ear it goes but info tu-
nA.sly it does not go far enough We have here
substantive pledge Of the import duties now laid tu.
everybody Knows that these duties are not suiisen 10
meet the Interest Onstenh par. of the boads which
she Secretary is authorized TO sell The other Die % u
export duties is altogether llusOry Il is SHADOW with
out aay substance l. Is a pledge not of an existing
dsy, or Of duty which the Governments binds itself
thereafter lay but merely Of the net receipts Of any
e1 port duty hereafter laid" This is rather 700 misty
add Intangible to sati,fy capitalists. II Congress had
followed up the pledge By the imposition OF duty suf-
aOent TO meet the object proposed il Congress bad
even pledged ;sslf az failure day, to lay such Juy
it would have infused vitality into tho proposed guAran
tee But il did nothing of the kind aud The pledge IS
1t stands, binds the Government to nothing What
security has any that C5pgress wil hereafter lay
any such duty? II borrower, IN of money will
not give security bsor getting toe Oln is il reasonable
expect tina; be will give after be has obtained it
TIE public know that qaes vote Of two-thirds Of
both houses OF Congress to lay such duty. Il will be
difficult obtain this vote eKosp. under The pressure
OF strong necessity and capitalists not willing TO
wait until the necessity las been removed They will rs
qurs the security in available FORM B,ors they part
W'lh their money.
Let Congress nov supply the deficiencies of former
Legislation Let it give pledge, 10 a valid and availa-
bic FORM Of an export duty Of not less than Eve cents
per pound on cotton add equivalent duty tobacco
and naval stores for the payment Of the interest and
ultimate redemption Of the bOnds The effect viii be
ike magic. Il win operate on tAe dormant ered. 4
The Glvsrnmsns Ike sPring shower on the Witbered
grass The bonds viii meet ready sale, not ouly at
hone, bus in Europe and the prOceeds win be in a cur.
rency which viii b. nearly IL not altogether. equal to
gold Il would be better to sell boads for their mar
value in such currency. fhan a premium Of fty or
Ons hundred per cent in the present deprecated paoer
rae dutiss which Hs propose would, as 5000 a, ue
var over yield revenue Of seventy-6ve or opebup
irsd lions OF dOllars. Esim ting the annual crop
Of Gotten as four millions Of bales, and the weighs Of
zach bale at 400 pounds and the duty at the minimum
Ave cents per annum) and We have from this source
lone, eighty millions Ct dollars per annuu Add 10
MS corresponding duy on tobacco snd naval stores
nd the aggregate will be sEellsd to one hundred NIL
ons or more. II
Hsrs We have a substantial basis Of credit Every