Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1864-03-15
!!;,pl'lun( Enq6lt1I.
yoyHAY MORNING, MARCH. IL. 1864
TIE FINANCIAL SYSTEM ADOPTED
RY CONGRESS.
ry TYLER a. hLLEGRE.

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THE FINANCIAL SYSTEM ADOPTED
By CONGRESS.
Tb. general idea of the scheme is to reduce
ne currenc; and KEEP it within bounds, on
-. o,s ta..i, and OF the same time provide
i-;,:.e necessary government expenditures
hsa.;s;cm Of combined taxation aud fund.
!r:.
T,.coupli.h these ends, taxation is heavy
ard fi,niins compulsory, to lurge extent
and NOT little tension used when it ID not
syps !; compulsory. Upon that large Por-
non ol circulation composed Of 500 biha, the
.reA !; absolute. Thcss are taxed 33s Fer
,ea:. On Is, Apr;i. and 10 per cent per monsh
afterwards until funded. The original tax o.
q, per cent, however, exhausts the compnl-
.yp n;4, az regards bills Of less dcnonina
,ie.. F,r, although tax Of 100 per cent
il !sip.sosel january l, 1865, the bills mean
while are cschangeslls for the new issue,
sitn;a: further loss By taxaticn. The only
s=,c. Of the exchange, therefore, is to ensure
,hc reaching Of all the old bills by the tax,
sni ,lD public convenience in using bills
.wa2s, f;.co shall correctly represent their
va,as.
NJ. only is taxation used, but another
equally saiugept furce is applied in 'ae re-
ia,si t, receive bis for public dues.
The 80 notes are, by the latter means, re.
,i.ei from circulation.
Tn. new bonds, issued to absorb currency,
nigh, themselves become part of circulation
To prevent this they are issued, Tot as coup por
bonds, rsyable to bearer, but as registered
65ni,, not negotiable by delivery, but only
sv transfer On the books Of the Treasury De-
psrtmen:.
Tie call certificates are dealt with, as The
currency wl.ca they would command.
Such are the stringent means adopted fo'
retiring and reducing the circulation.
To keep it down, as well as bring it down
it is provided that all laws authorizing tht
issue treasury notes are repealed. Only notes
issued in exchange for those previously out
standing can be issued at all. And, by th'
terms OF tie Funding Act, only two dollar
Of new can be issued for three dollars Of OLE
bilI..
The aggregate of new currency, when al
issaet, cannot, therefore, exceed two-thlrds o
the volume Of the old currency-considerint
Onls the nop-iuterest- bearing notes as such
This currency, by being turned over ant
over, is to support the government. There is
d,ao;,ess, more than enough for tho purpose
il i; can be brought back and reissucd. 1t
n.e,urn to the government by taxation an
!o1a-, and bc reissued from time to time
Taxes paid in kind bring back mono into tn
treasury, but these. require nohe 10 be pal
out. Taxes paid in currency furnish the gov
etu:aan. with currency for reissue. Such l
the scheme-so issue no new notes, but max
the substitutes for old notes suffice.
The provision made for loans consists in tn
authority conferred on the Secretary OF tn
Treasury TO issue 6 per cent. unsaxcd bonds
with sre,lfc pledge for their redemption
and their coupons receivable in payment
export and import duties. Unfortunately, tn
boAa1e, for the time being, prevents an
particular demand for the coupons. Yet tn
bonds are highly privileged and valuable.
The resources of the government, therefore
will be-: l. The issue Of 81 of new notes ft
s. Of cd notes exchanged for 4 per cen
bonds. .. Notes received in payment
taxes. 3. Notes lent to government on th
new per cent. bonds.
The notes exchanged for the new issue Wi
n5: form part Of government resources, q
the new notes will be returned to holders i
exchange for the old.
Notes received in payment Of taxes for tn
year 1854 will be few, aad not enlarge gov
ernment resources much; for taxes will b
paid in tho 4 per cent bonds, except such q
are rail in kind.
Therefore, government will be dependent
s.s, on two. ..hirSs of the amount funded; secon
On lar.s, and third on the tithes.
W. haro 40 accurate means Of known
what amounts Of the various denomination
haze been issued. Again, it is oil conjecture
what amount will be funded of bills not foroe
in by downright necessity. We will suppos
Gaze, however:
Suppose currency to stand thus in Aarci
lSs.