The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1875-09-17
CONFEDERATE CURRENCY.
How the South Went Through Rag
Money Ruin.

In 1861 the National Bank Note Com.
pany of New York printed 100000, 900 Of
one year Confederate notes, in denomina.
tions of not less than fifty dollars. This
issue was at first nearly at par. A year
afterwards it passed at two cents to the dol
lar. Meanwhile, fresh issues were poured
forth. The printing presses "made mon-
| ey' at a great rate. Col. Blanton Duncan,
who helped to beat the Democratic candi-
dates in 1872 by setting up Bourbon side
! show, helped to beat the South by supply
ing its de .facto Government with measure
less quantities of Rag Money. The curren-
| cy he supplied was adorned with various
emblamatic vignettes, one of which, as he
wrote the Confederate Secretary of the
Treasury, represents the South rising in
its might and striking down the North and
| clipping the eagle" The backs Of nearly
all these notes were originally white, but
handling soon changed them to dingy
gray, whence the name which was applied
to them.
When the currency got SO far down that
nobody knew how little it was worth, the
Richmond financiers tried an expedient
which had been resorted to in the case of
the colonial Continental currency" the
French assignates and the Australian legal
tenders-and always with the same result.
It is On the principle of hair Of the dog
1,oI +ho A
was printed, in which the old ones were to
be redeemed at two-thirds of their face
value. But Of course, the new and old ran
a race IN depreciation, and were soon equal
ly valueless.
Then the presses were set at work again.
The laws providing for the issue of "m mon
ey" were so many and SO complicated
that there was partically no limit to the
amount set afloat. 1t is said that the Sec
retary of the Treasury did not know the
figures. 1t became impossible to sign the
grayhacks fast enough in the department,
and several thousand young women of
Richmond were employed, who took sheets
of notes to their homes, signed them with
whatever name was wanted, and brought
the stuff back.
Prices went soaring heavenward, as the
purchasing power of the currency dropped
in tile other direction. Mr.. George Cary
Eggestone tells, IN "A Rebels Recollec-
ton" of friend of his who said "Be-
fore the war went to market with the
money in my pocket, and brought back my
purchases in basket; now l take the
money in my basket, and bring the things
home in my pocket" The jest was liter
ally true. The Postoffice clerks in Rich
mold resigned because they could not
live on their salaries of $4,000 year
in Confederate greenbacks. A barrel of
fiou brought $1,000. Mr.. Eggleston saw
a pair of boots sold for $500. The price |
asked was 5000, but change could not be
made, and the purchaser handed over his |
$500 bill, saying: 'Keep the change
never let little matter of $500 stand in the
: =; =! -ef q trade ~ buying IN Inc Market TO I
alties in order to keep prices as low as POS
sibIe. Finally, gold reached IL, 400 per cent
premium. The "money" became alb |
solutely valueless. 1t was no longer a
standard. Nothing could be procured with |
it, The community fell back to the bar
barism of barter A physician was paid
by his planter-patients in corn. Students
paid their tuition fees in provisions. The |
very taxes were collected in corn, tobacco,
eggs, chickens and sweet potatoes.-Pitts-
6urgh Chronicle.