Richmond Whig. [volume] (Richmond, Va.) 1862-1865, 1864-05-09
pended on account Of the anticipated
tax on the currency, tay,,.,,...'..,.. 100000
-
Ths aggregate. 287, 900 600
ds6uced from the total balance Of UNI
drawn appropriations SOS, "a, 5ss

leaves this balance. 1911 24l 300
available for expenditures for six months beyond LIST
July, 1854 1t should IN Their be observed that the es
Inmates submitted by the Departments made with
relation to the present rate Of prices. II that rate can
be reduced, corresponding reduction could be made on
the estimates themselves.
The first and most important Inquiry therefore, is as
to the pro- abil ~ of reduction of prices. AL the
financial measures proposed to and ad1ped by the last
Congress looked TO this result TIE scheme offered by
the Secretary OF the Treasury and that adopted by Con-
gress both sought by different to effect the same
object Which of the two would have proved success
fu it would serve useful purpose to consider. Ii is
the plain duty of the Government to execute the scheme
adopted BY Congress, and every effort has been
directed to its successful prosecution 1t yet too early
to perceive all the results which it will effect; but n s
quite clear ALREADY that the reduction Of currency which
it will produce is great and decided
On the LIST of April when the reduction was to COM
mence the whole issue of general currency represented
by the Treasury notes bearrg nteres amounted to
about 500 millions. or this amount 80 millions were
probably at the credit Of the different dsbursng Of
fears throughout the OoDfederacy eiving 100 mions
the actual circulation. OF this amout abount $50 mil
ons have been funded east Of the Mississippi; and it
may fairly be presumed that so millions more will be
funded OF the Mississippi thus leaving in orcula-
ton 400 uiions. The depositares were directed to
discriminate in their reports between the notes Of one
hundred dollars and those under one hundred, which
have been funded. Only feW of them have made re-
ports IN which this direction has been complied with,
most probably from want of time 10 separate notes
But those few in the cties where the blu ldred dol
lir notes would be likely TO accumulate. They disco3e
the remarkable fact tina. less than one half in some
cases more than third Of the notes funded are
one hundred dollar notes. II may be assumed there
FORE that not more than onehaf OF the whole amount
funded con.st OF hundred dollar notes. By the
terms of the currently set these notes thrown
of circulation after lst April and taxed 10 per cent
per month until extinguisbed. 1t ia important there
fore, to ASCERTAIN the amount OF those now outstanding
The whole amount Of one hundred dollar notes Isl usd
to the Is. April, 1864, was SlS mllions /. is proba
bic that Of the so millions of dela's remaioug at the
date to the credit of discussing officers large pro
portion is represented by these notes. say 40 millions
thus leaving 27S millions OF them in circulation. De
duct from the half OF the total amou1t uaded,
which, as already stated consists OF hundced dol
lar noter to wit, $50 millions, and there left
funded l2S millions OF these notes. This sum, n re
FORE constitutes that remainder whose amount we have
been seeking aud is to be deducted from the 400 mil
lions left the entire circulation alter the funding
The result is that the whole currency would then stand
at 500 millions. Deduct from this balance the tax Of
one-thrd which is imposed by the currency act, and
the actual currency left in circulation is 2l4 millions
and u fraction.
Ii is only necessary for the public mind to apprehend
fully this state OF things aud it would seem imp ,ssibe
to avoid great and sudden fall of prices. Tnis fall
has checked by the unfortunate feature of leaving
the Eve dollar notes current Salers particularly Of
necessary articles, have had excuse OF demanding
an indemnity for the future tax these notes but
the time at hand when they will share The fate of
other notes and the entire old currency disappear
Another reason which has checked the reduce ar
tcles OF prime necessity ia the exoneraton of the
planting and hrniog classes from taxes They have
thereby been enabled to retain their products Bat
when the whole scheme of Congress shall 90 into full
operation say lst of July the reduction Of currency
will be 80 grea. that il is scarcely possible that prices
can be maintained a. existing rates.
The conclusion, them seems fair, that if the currency
can be restrained within the limits which it has been
redrccd the estimates called for by the Departments
NAV be greatly reduced This result would depend
upon the q, tent to which the issue OF TT a ury
no es is carried. The law directs the sGue of tSo DOL
ars Of noes for every three dollars held in private
hands with the exception OF one hundred dollar notes
and notes under five dollars. IL also authorizes the Sec
retary of the Treasury issue in the manner two
dollars for every three dollars received at tho Treasury
under the provisions OF the currency act. Assuming
the figures above stated probable estimates OF the
result of fundiug the amount OF currency 10 be issued
for exchanges with private parties will be $2l4 600 900
and the issues authorized be made for of the
Cover ment would amount TO two-thirds Of $500 O00
600 or $500, 900 900 The aggregate OF these would
carry up the currency again to $4l4 600 600 =
This amount is more than twice the sum wtSch
IN prevoes reports / have sho6n to be rtquisi
for tho entire circulation. With such an expansion
prices could not be expected TO fall to the proper
standard aud the conclusion seems inevitable that one
or the other Of these sources OF expansion must be
Ianed The currency act has distinctly guaranteed 10
the holders Of currency the right to receive new sus
upon the abatement of one-hird from the old and h,
right aunotjusily beimpaired Istoud only be d. alt
with therefore by offering TO the holders Of these notes
security which they might prefer to the issues
Possibly this might be done by giving them option to
exeba ge their notes for four per cent bonds free from
taxation. This freedom from tIxaton would be an
equivalent for the reduction of one-thrd to which
their notes had been subjected and il this plan were
accepted, equlity between these holders and those
who had already funded their notes in four per cents
might be restored, by granting them the privilege OF
exohangirg their four per cent taxable bonds for
tax able at reduction OF ose third The cOmpensa-
ton to the Treasury would be found in the amou Il
which would thereby be pail in 1ney, instead OF four
per cent. bonds for the taxes of the present year,
This arrangement however, with individuals, If LEI.
"a il should be- to their choice, wouli be beyond the
control of the Government Toe other source of issua
namely, that by the Governmeut--s the one which IA
under It's complete control II s the restraint of this
alone which will enable ID to prevent redundancv
of circulating edum Il therefore becomes an INQUIRY
of vital importance 10 ascertain how far tn restrain can
he carried Obviously it depends upon the extent and
availability of tie other means furnished by Congress
for supplying the demands Of the Government n The
means which have already been provided by Congress
(over aud above The issue of Treasury notes are
three, namely the sale of 5O0000000 of six Der cent
bonds certificates Of Indebtedness and taxes.
The six per cent. bonds authorized BY Congress
offer 40 desirable security that may reasonably be
expected that they will be taken up the full extent
Of the available capital of the country The mechani
cal required Tor the issue of bonds with
so many coupons will delay their issue until the month
of MAY. In the meantime, to support the Government
during the month of April and to pay Off the aocumu-
Iation of public indebtedness which from the in
disposition 10 accept payments in old currency since
the passage Of the currency act it became to
exercise the achority to issue Treasury notes AT
the date of this report thirty eight lions have been
issued and ten millions in FIVE hundred dollar notes are
prepared for issue and this issue must be continued
until the bonds can be sold They have already been
advertised, and will be offered for sale early in Nav
and Il is hoped HAT the proceeds of their sale will sun
Div means for supporting the Government, without re-
sorting to the authority to issue Treasury notes.
The next means of supply provided by Congress is
through certificates of indebtedness These certificates
offer another desirable security, and would seem to be