Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1864-03-17
From the Richmond Wing 18th inst.
FINANCIAL AND COMMERCIAL.

The idea seems to prevail to some extent among the
of the people, that because the present dpreca
ted currency will be taxed one third the first OF
April, the currency will not represent purchas
ing value OF more than sxysix cents IN the dollar
They argue that it takes fifteen dollars of the present
currency to get ten dollar note at the Treasury,
the ten dollar note obtained will not at any future
time, buy more than tpo-tirds of the quantity Of any
article which they now purchase tor fifteen dollars
If the SIS or instance) will buy three pounds OF lard
now the new $40 note will only buy two pounds
They specifically conclude therefore, that they will
gain nothing by the exchange but will lose S. ofevery
SIS which they may "carry until LIST April; and
with this apprehension on their minds they are ex-
ceedngy anxious on the one hand to get rid OF their
money now, by paying exravagant prices for things
not actually needed, and the other hand, to with
hold from sale any and every dsposable article they
may have. They do not perceive how 1t ls possible
for the reduction OF the currency to appreciate the
amount which remains in circulation, and have no
faith in the opinion based upon financial prlnciple)
that the purchasing power of the currency will be
equal to that which attaches to the present currency
although the former will be nearly flee htndOed nal
hons of dollars less than the aggregate issue of the
later up to the lst April.
1t is very true that for few days after the lst of
April, SIS of the currency will not buy more of
any article than $15 OF the present currency will buy
now and that consequently, the person who carries the
latter to 1st April and expends before the effect of
the depletion of the currency is developed loses five
dollars but, it is contrary to reasonable expectation
to suppose that the state of things which would subject
him to this loss will continue any considerable length OF
time. Every day after the 1st of April, unless some
decided military reverse to our arms takes place. the
purchasing power of the new currency will increase
until $40 of it will go far as 81 now and the appre
citation viii not stop at this point of increase.
The inevitable result of the depletion Of the
cy going on will be scarcity OF the circulating
medium. Millions of dollars beng funded daily at
the various repositories throughout the Conederacy
and On the lst of April the amount remaining ununded
Except the fves) will be reduced third by the at
tachment of tax of 49, cents on every dollar. 1t is
estimated that the amount which will be permanently
withdrawn from circulation by the combined operation
of funding and the tax will be near $5OO,OOO,0OO! y
Gan any believe for moment that the extlnguish-
ment of this amount OF Treasury nos will not pro-
duce a scarcity of the circulating medium? Aod if
money becomes scarce its value or purchasing power
must increase. The difference between the prescott state
of things and that which we are confident will be de-
veloped in the future if our finances are Judclousy
managed is that money is noW abundant and commod-
tiles scarce hereafter money will be scarce and com
modtes plentiful. This has been the usual experience
of the world and if it should prove otherwise here, our
condition will be deplorable indeed If money and
commodities 10 be simultaneously scarce will be
decidedly eff than we were when money was abun
dant and commodities selling at high prices.
The usual effect OF scarcity of money is to lessen
the general ability to b commodities for any pur.
pose and to increase the pressure upon holders to SELL
Eventually sellers become more numerous than buyers,
and the supply of commodities equals eXceeds the
demand, ALWAYS excepting articles absolutely pros
pectiyely scarce We to doubt that this
effect will be developed here when the currency is de-
pleted Holders of onmodities-deaers and produ-
cers-fnding extravaganza and speculation checked
and the demand from all lessened will abate
their extreme prices. They will require money to buy
articles which they may need or desire, and must sell
to realize the required amount Both sellers and puy
ers will perceive that the currency Is lntrnsca
more valuable available than the DID, (beipg CONVEX
tible into SIX per cent bonds, exempt from taxation
etc., and they will be influenced to acquire or to ho
it as their interests may dictate. The important resul
will be q demand for money. Its scarcity having d
mnished the general ability to buy, and simulated til
disposition to SELL the effect will be general reductio
OF prices.
This is the view we take OF the effect of the " GU
rency Act and, 80 believing, we think that the ma
Who abstains now from the purchase oil any article nc
absolutely needed and submits to the tax OF
upLn the currency he carries to the lst April tor pr
spectiue use is far wiser than he wbs squanders b
money in the purchase at eztravagant prces' OF art
cles not actually required but the latter is not mo
blind to his interest taan the man who mas 40
II thing for sale, and will not sell it whilst he can, at Il
IT unprecedented prices now prevailing, unless he has
reasonable assurance that he will be able to obtain
prices or some approach thereto in the new Gu
lrsncY.