Richmond Whig. [volume] (Richmond, Va.) 1862-1865, 1864-02-23

operation, and vii render friendly service to thcss
Who have allowed smselses to be caugh. with sd
perahuadance of "tle l.rgs note -
Secondly notes Of the denomination OF $50. $50,
and $40. will, On and at er tae Ist Of April next be
subject to tax Of onstird Of tn, amour promised en-
the face Of said notes but not subject like the hundred
dollar notes, to the additional monthly of ten per
cent On the 1st of January, howevsr. they win be
wiped out of circulation BY the attachment Of tar Of
one hundred per cent Long before that time Mrivsa
i.is certain that most of the notes Of the demon
tons mentioned will have been funded, THAT II, 3.
changed for four per cent. bonds absorbed in the
payment OF taxes OF exchanged for the new lsste
issue authorized BY the act.
Thirdly the Law discriminates in favor Of notes Of
TIL denomination Of IS and under, the presumption
that they are, or will be- chieay held BY persons Of
small Incomes The fves not subject to tax until
the ls of July next bat after that time, they are to be
rated as only worth ssssi until the lst Of January
next when they viii share the fate Of the larger de-
nominations. This latter provision is not clearly sx-
pressed in the act but is presumed TO have been the n-
tention Of Congress) The immediate effect Of this Dis
preference to notes Of larger denominations unless they
wish to fund before the Isl April in which event they
must get rid of their fves in exchange for notes Of
larger denominations. The privilege Of funding the
ves in four per cent bonds commences the LIST April
and ends tie last day Of June, this side Of the Mig
sissippi river. -s ,Ll..
The 81, 81 and half dollar notes ara no. subject to
any tax under the currency Act" and will, conse-
quently, be exchangable at par, in trade for tie
sw of Treasury notes. For this reason they are being
boarded laid by for future use The amount Of Con-
federate small in circulation on the LIST January
1884, was about 100000.
lis generally received axiom of finance, that
when the currency Of q country exceeds the amount
actually required for the exchanges of trade the "pur.
chasng power Of the currency IA sssened an extent
corresponding with the excess For example, il $780,
100000 be required, and $50 600 be put in crcu-
sion, the latter amount in the hands Of the people,
will not buy more than the $l0O 900 900 would and 90,
when the $3.50 600 900 reduced again to $780,
tie latter will buy much the former. Hence IL 10
argued, that whsn the Confederate currency remaining
uafunded Is. April is further reduced at that time
third BY the imposition of tax Of sSt per cent, the
amount thereafter remaining in circulation will buy as
much the whole amount viii purchase now But this
incre ssd purchasing power OF the currency viii, pro-
baby no. DO made available until the old noes
ysrted into the ISSUE As the latter make
t1er appearance there will be general dsp ,siion to
reject the old notes. on account Of the inconvenience of
calculating the ference in value between :hem and the
noes. Toe effect Of this rejection will be the rapid
dsp lcement Of the old notes and the substitution for
them of and uniform currency not exceed ng In
volume third Of the amount now In circulation -
It impossible that this reduction, any approach to
it, can take place without. material decline in prices
Money will be scarcs and the new issue will be in de-
mand hot only because it will have mora purchasing
power than the present currency but for the additional
reason that holders will have an opportunity Of funding
them in registered sir per cent bonds. "the principsl
and interest whereof shall be free from taxation" (Ses
Oh and Fsh sections of the Currency Actin
Since the publication Of the "Currency Act" prices have
generally gone up 'iks rocket" bu; shall be sur
prised if they d, not come down again like the stick
In opinion the high prices Of provisions, etc. ruling
last week. established by the foresbadowing inaa
ence OF the action Of Congress the currency and BY
the meagrensss of supplies, induced BY TIE pervading
conviction among farmers that tie currency was depre
ciang 60 rapidly that 1t would prove to be worth
less. Speculation, of cours had &, influence in put
ting up prices. Blu; We now approaching the cul-
minnting point and further advance need be antic
pated unless the scarcity of articles of,redfor sale
continues or buyers ioolishy make upon sellers
10 get rid of Their treasury notes any sacrifice II
they WISE they will in our opinion, buy nothing
more than they may actually iced present prices but
will keep their notes such as they do not fund to pay
taxes wtb until after the LIST April and eIchar &c them,
at the discOunt, for the new issue.
We do not believe that the scarcity of domestic pro-
auctions, heretofore prevailing will continue, that
the seller Of any commodity will DO compelled to put
up prices to repess the demand therefor unless be for
some imported article declared contraband by receLt
act Of Corgress. very large amount Of taxes will
have to be pild this year, ard tax payers, instead Of
specializing in or buying unneeded articles, which are
almost certain TO decline IN the of six or eight
weeks, VIII avail themselves promptly aud freely of the
funding privilege given by the lst section OF the Cur
rency Act" The incentives to fund too strong TO
be overlooked or dsregard.d The tar payers wlsave
thiry-thres ard one third Per cent in the payment Of
their taxes and will moreover, save the tax for the pre-
sent year. on the they may invest in tie four
per cents. one Of the mos. experienced huanciers Of
this city has given It his opinion, that the four per
cent bonds authorized by the Currency Act" will con-
st ute the most desirable security in the market.
Farmers who have taxes to pay will undoubtedly take
advantage Of the funding privilege, and unless they al
ready have suciency Of Treasury notes for this pur
pe, will sell such proportion of their surplus stock or
produce as will cradle them to realz, the desired
amount for investment in fsus per cent bonds. Thou
sands of the most intelligent agriculturists will perceive
that 1t viii be to their interest to send to market, be-
fore lst April, supplies heretofore withheld in order
thst they may obtain the extraordinary prices pre-
valing, and carry the proceeds untl after the lst
April, when they may convert them into the rev Issue
at the rate OF 80 Of the old for 81 Of toe new. The