The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1864-03-01

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acceptable. Our figures are not presented as
strictly accurate, though they are approximately
so are our explanations aud speculations any,
/ thing more than our individual opinions
The business of this act is with the currency !;
! but its whole operation and bearing cannot be
derstood without reference, also, to the new Tax
Law Let US first take view of the condition of
the currency:
The total issue of Treasury notes to jan.
| lst, 1864, $942, 100000
From this deduct amount taken in and
cancelled, about $50, 600, 900
| Deduct, also the :. 80 interest bear ring notes
declared to be funded by NEW law 23, o0o 900
Amount outstanding S651, OOO, 900
Amount added to circulation since Jan LIST, 100000
Total of present circulation s72o 1000, 900
Of the whole of the above ISSUE the amount
issued IN Sl00 notes 249, 000, 900
Ofthe currency which has been cancelled
there were of $le0 notes a little $4,000, 900
Amount of 500 in crcula-
ton, S2oo, 900, 900
Let US secure safe margin for our estimates, by
assuming the present amount of circulation at
S750,0OO,000. To deplete this, we may mention
as the first item the abstraction of all the hundred
dollar notes This may be safely antci pated be-
tween the present time and the LIST of April next
The provisions of sections 3 and f. of the act will
ton will be the amount funded in four per cent.
stock, prior to the first of April 1t might be sup
posed, at casual glance, that small results are to
be expected from this source for the reason that
the interest being only four per cent, it would be
great sacrifice to make such an investment
to await the tax of thirty three and third per
cent on the currency to be imposed on the LIST OF
April. But this is an error. Section 2 makes
great difference in the values of the bonds and of
tkp f,r no If tba Tho
bonds receivable according to their face, in
payment of all Government dues for 1864, while
the currency, after the lst of April, will be SUBJ
jected to a tax discoun. of one-third Suppose,
for example, a citizen should owe tax to the
Government, on the LIST of July, of two thousand
dollars. By investing that amount of the present
currency in Treasury bond at any time between
the present and the lst of April, he will have the
means of paying his tax without loss. But, if he
fail to provide himself with such bond, and pre-
sent himself, currency in hand to the collector,
it will require three thousand dollars of the same
currency to pay the tax of two thousand dollars.
1t is not to be supposed that men will be SO negh-
gent of their interests to fail to invest in four
per cent. bonds at least enough to meet their
tcipated taxes. If any individuals concerned
shall be too dull careless to make such provision,
capitalists will do it for them, and make them pay
large premium for their neglect.
The amount which will be invested as provis-
ion for paying taxes may be conjecured from the
probable amount Of taxes to be paid during the
year In the last report of the Secretary OF the
Treasury, the proceeds of the tax incomes,
profits &c, levied in April 1868, and still in force
are estimated at a hundred millions per annum.
The taxes just imposed are in addition to these.
tax of five per cent seal and personal estate,
is estimated in the same report, as promising
gross revenue of a hundred and fifty Millions
But the late tax act does than levy tax
of five per cent on real and personal estate 1t
lays heavy additional Duties on profits, and duties
higher than five per cent articles. The
tax laws of April, 1863 and February, 1864 in
their combiped action, will not, probably, yield
less than three hundred millions Of dollars during
the present year.
We find from this examination, that between
the p&esent time and the lst of Apri-just five
weeks from last Friday-theIe will exist the ne
ccssity for funding very large amount. The hun
dred dollar notes, when funded, would furnish the
bonds, in part, with which taxes can be paid; but
this sum is insufficient, and as it is not likely that
they can be exactly distributed, the bonds would
not avail to their full extent Besides this partc-
ular prescribed ISSUE probably not less than hun
dred and fifty millions will need to be funded
These subtractons will reduce the present circula
ton to four hundred millions. To this must be
added the further issues allowed until the lst If
April and wethaVe at that time a total circulation
of about S465, 100000. In reaching this result
which is only about threeffths of the present cir
culaion, we have estimated only for the necessary
funding. That which may be voluntary We throw
in to make the figures good
1t is obvious, that the great and Immediate de-
mand thus created for money by this necessity for
funding 70 which we have referred, and the con-
sequent reduction Of the currency to little more
than half its present volume, greatly increase
the value of the currency, and, consequently, its
purchasing power. If there be any truth in the
theory that prices liz proportion to the crcua-
ton, then prices must soon aud rapidly taE But
there is still better reason to expect this effect
Holders of property have had comparatively little
use for money The necessity Of providing means
to pay their taxes will make them let go their
plus supplies, and put them on the. market.
The figures which We have given, should teach
the holders Of Confederate money not to underrate
it, or to consider its value as diminished by the
late laws. At present, there seems sort Of incon-
siderate and senseless panic, which is sending vic
Tins inc crowds to the nets of the spectators.
Persons are, without necessity, paying out, in
enormous prices, the very money which they
should be investing in bonds to pay their taxes.
Even the money which they need not thus appro-
priate and which is to be taxed third its face,
after the 1st Of April, should not be lavisbed |
away; for the diminished irculation-diminished |
by the previous funding, and diminished still fur
Their By the Aprii tax-wll make the residue
much more valuable than the full amount before
the passage of the law.
Our inference is this: Every one should esti-