The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1864-09-09
CONEEDERATE FINANCES.


when Mr.. Memminger and his chief hit upon
! grand scheme, last winter, for the restoration
the credit of the Confederacy, by the forcible
diversion of the Treasury notes then in circua-
n into Government bonds bearing interest, we
k the liberty of respectfully pointing out that
s was reputation, pure and simple; that it
ally destroyed the confidence of the Southern
bple in Confederate money; that the deprecia-
n of the paper would become worse than ever
that, tbough the new issue might not amount
| SlO0OOO,O00 while the old one reached
iOOO, GOO, the new one would reach lower
Int OF wOthlessness than had ever been
aimed by the old one.
The matter was very simple. The Confederate
asury had Issued enormous quantities Of paper,
ich was in use as tho circulating medium, and
ich kept diminishing In value every day. So
Richmond sages rushed to the conclusion
II II was losing lts purchasing power solely
cause there was too much of IL; tina the conf
|noe, or want of confidence OF the people ia its
Innate redemption, had nothing 70 do with its
rchabiDg power, and that all that was needed
make 1t worth coin was - cut down the
antiiy.
What followed was piece OF legislation worthy
DshOmey. Holders OF currency were ordered
convert all notes OF certain denomination Into
.yernment bonds by certain day, on pain OF a
adual loss OF their whole nominal value, begin.
|ng with 80 per cent and ending with 100. This
course, was simple cOnfiscation. Ii dimin-
ed the volume of the currency II Is true, but
uined the credit of the Government. IL was
.ry like the act OF an individual who should rob
holders OF his notes, in order 70 raise his
.edit by diminishing the number of his out
hiding obligations.
of course, after this, the confidence OF the
bic was gone, everybody felt, as we predicted
ey would feel, that holders Of the new issue of
| tes might be treated as the holders OF the old
los were treated. So no one wants 10 hold
pm everybody who Is compelled TO take them
3 rid OF them as fast as possible, for anything
. .ey will bring. We took this view Of the mat
In February last. Mr.. Trenholm, the success
Of the unfortunate Memminger, begins 10
ie It now, He says In a letter to Governor
nham, which we published on Wednesday
An all-perYading esuse of embarrassment
d distress has been the character of our legis-
ion. However patriotically intended, it is not
be denied that the measures adopted by Con-
ess for the reform Of the currency, had the un-
. .ppy effect Of inspiring the public mind with
lings OF fear and distrust as TO the course that
uld ultimately be pursued in relation TO that
|rt OF the public debt that Is represented by the
,asury notes. Apprehensions of ultimate re-
diAtion crept, like an all-peryading poison, into
minds OF the people, and greatly circum-
ibed and diminished the purchasing power Of
notes.
! There were many distinguished and patriotic
a in Congress who earnestly believed that the
iat, If not the sole, evil OF the currency was to
found in its redundancy alone. And reason
from this premise, they inferred that cor
pondlng reduction Of the large volume of the
rehaslng medium would produce an imme.
te redscton in the price Of oil saleable COM
Others entertained a different opinion, and be-
tins ln"' the purchasing power and value Of