The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1864-08-23
LETTER FROM THE SECRETARY OF
THE TREASURY.

THE TREASURY.
The following letter from the Secretary of the
Treasury, to the Governor of South Carolina, will
be found highly interesting to the public:
TREASURY DEPARTMENT., G. s. A.,
Richmond, August 5, 1864.
To His ErceNencv Gov. Bonham-DEAR SIR:
Your very kind and encouraging letter of Both
ult. was received yesterday. If it shall prove to
be my happy fortune, through the Divine blessing,
to contribute in any degree to the welfare of my
country shall be more than compensated for all
the labors and anxieties to which l have been. ap-
pointed Expressions of confidence and good will
on the part of my fellow citizens, such as you have
been good enough to convey to me, are most CRATE
full ana encouraging. regard the Treasury of the
Confederate States most peculiarly the treasury
of the people, and there is nothing in the power OF
man that would so soon restore it to condition OF
case and prosperity as the universal and generous
support of our people. There is nothing 10 its
present circumstances to inspire alarm, but on the
contrary, every motive for confidence. An all
pervading cause of embarrassment and distress has
been the character of our legislation. However
periodically intended, it is not to be denied that
the measures adopted by Congress for the reform
of the currency had the unhappy effect of inspir-
ing the public mind with feelings Of fear and dis
lTuSG DIS " INC COuTSS MOulu NC
sued in relation to that part of the public debt
that is represented by the Treasury notes. APP
prehensions of ultimate reputation crept like an
all-pervadiug poison into the minds of the people,
and greatly crcumscrbed and diminished the pur-
chasing power of the notes
There were many distinguished and patriotic
men in Congress, who earnestly believed that the
great, if not the sole, evil of the currency was to
be found in its redundancy alone. And reasoning
from this premise, they inferred that correspon-
ding reduction of this large volume of the pur-
chasing medium, would produce an immediate re-
duction in the price of all saleable commodties.
Others entertained different opinion, and belicv-
ing that the purchasing power and value OF these
notes had critical and sensitive dependence up
on the confidence aud good will OF those WHO were
called upon to exchange their substance for them,
insisted that reduction of the quantity, by any
measure that disturbed the confidence of the peo-
pie in the good faith of the Government, would
lead to universal dstrust and still greater deprecia-
ton.
The majority was unhappily found to be of the
first opinion; and it must universally be admit
ted, think, that the policy that prevailed was
erroneous, and the consequences precisely such as
had been predicted by those who opposed it. The
immense reduction effected by the tax of 334 per
cent levied upon the currency, and by the process
of compulsory funding, produced very little effect
upon the prices of commodities. Everybody re-
garded with distrust new issue of notes of the
same character as the last, and resting for their
sup port circulating medium upon the same
pledges, which had ended in disappointment be-
fore.
That this is the true difficulty we have to en-
counter, think every candid person must now
allow, and [ cannot refrain from indulging the
hope that new and sounder policy will govern
future legislation. The patriotism Of Con-
gress is not to be called in question, we at
liberty to doubt their willingness to renouuee any
erroneous and mischieyous Our people at the
time, should not be silent, and in this re-
spect the patriotic citizens of the great and suffer-
ing Commonwealth of Virginia have set mob
example.
On my arrival in Richmond, I found that the
commissioners of prices had fixed the schedule
rates for wheat and corn at $50 and s24 per bush
ell respectively, for the months of August and
September. The feeling of Disappointment and
alarm, with which was inspired by this circum-
stance, you can easily imagine This painful feel
ing was, however, soon changed for one of renew
ed confidence and hope, by the farmers of Virgin
la Public meetings were held in the agricultu-
raj counties, and resolutions adopted boldly avow
ing the impossibity Of maintaining the public
faith, if the Government were forced by the peo-
pie to pay such psices for supplies, and oatrotical
y insisting upon reduction of the standard rates,
and their establishment upon basis sufficiently
low to inspire confidence in the currency. The
result was that the commissioners re-assem5ed
and reduced the schedule prices to ST. for wheat
for the month of August, and SIS for September.
A wiser and more patriotic course was never
pursued by any people, and I would respectfully
appeal to you, as Chief Magistrate of our gallant
and patriotic State, to suggest aud encourage sim
liar meetings and resolutions, on the part of our
own people. [ have an abiding confidence that
general and we'll established belief in the intention
OF Congress- under no circumstances Of temptation
or trial. to shrink from the observance of the most
rigid good faith IN tie money dealings Of the Gov
ernment, will enable us to overcome all our fnan-
eial difficulties That such is their real intention,
l cannot doubt; but this determination should be
encouraged and supported by the public delara-
tions of our people, expressive of their own reso-
lutte will to foster the credit of the Government by
the establishment of low prices, and By the patr-
otto support OF its Treasury. Whatever differences
OF opinion may have existed in the past, or what
ever errors may. be supposed to have been COM
mitted, may now be buried in common grave
We are making new start 10 our finances, and
under circumstances by no means unfavorable or
dlscouraging.
The expenditures of the Government arc of two
classes; those incurred abroad, and those incurred
at home. 1n respect Of the first there has hither-
to been little embarrassment nor is there any rea-
son to expect greater difficulty in the future Our
foreign supplies will probably be procured without
making any addition to the public debt. The ma
lice of our foes having raised the price of cotton
to sod per pound in European markets, while the