Brownlow's Knoxville Whig, and rebel ventilator. [volume] (Knoxville, Tenn.) 1863-1866, 1864-06-11
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Increase III 1904


And this enormous increase was all under
the old rates, though, Of course melted by
the expectation Of higher duties at a later
period Suppose that both and all sources
yield but three hundred and fifty millions,
what reason is there, then, to doubt that
the whole demand will be met, and that
something beyond the mere interest will
be paid on the public debt every year from
this time forth?
The chief point Of controversy is over
the soundness or unsoundness OF the cur
rency. There are s450,OO0,0O0 Of green
backs issued about SIT ,O00, 600 Of fraction
al currency afoat on an average, and
s2j 600 600 of interest bearing legal tender
notes Opponents of the present financial
policy call these issues excessive; declare
that they have caused runous mutations,
and that they will collapse in the end. For
these assertions there appears some reason,
if it 10 all, as they assert, actual currency,
, to which the old banks add their notes,
swelling the volume much beyond anything
known. But there are many gre at abate
ments from these aggregates in the actual
cur ency used in business In the first
place, large share Of the issues Of the
government is kept out of the ordinary
channels OF trade in various ways; it is
paid for unusual purposes, and is held
largely in reserve, both by the government
and the people This is proved BY the fact
that it does not crowd the monetary chan
nes, nor gather at its centres. Enough Of
it can rarely be got for payments on ac-
g =, tl,ap
been at premium in New York for such
purposes. These greenbacks are undoubt-
eddy largely held by the people Of the in
terror when paid out for produce, or in any
way BY the government, being always bet
ter than ordinary bapk notes, at least in all
the western States 1t is not too much to
assume that half the entire volume Of green
backs issued is held ont Of use as currency,
much as gold was held in ordinary times
before the war.
The same reasons apply still more fjrcibly
TO tho new issues OF the five per cent legal
tenders, four fiftbs of which are held as in
vcstmcnt, in fact. They are worth more
than currency everywhere, and as interest
accrued on them they are laid aside as re.
serve. The casuits say they will suddenly
be thrown on the market as currency when
the coupons are cut of, but though few
may be, the probabilities are that they will
run their time, one year two years, or three
years, and be exchanged as bonds would be
barring such interest for such periods -
They greatly assist the government and its
creditors, and they do not crowd the cur
rency.
Again, the immensely increased volume
Of currency required for system of cash
payments in business must be considered.
Money Of the United States now largely
supplies the place Of business paper in for
mer times How much business was Gre
afed by the credit system of 1860 and pre-
vious year which does not now exist at all
and in what does greenback or FIVE per
cent. interest note received In payment for
goods sold initiate the currency more than q
note Of hand then received, which was dis.
counted, sold or deposited, as the interests
of the merchants receiving it required? He
always attempted to employ his paper be.
fore now be can safely employ il, because
4 has tie national sodsrSemsns pusinssi