Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-07-17
Prom the Boston Journal.
A Very Recent Illustration.
J. o. SMITH, Secretary.

Those pee pie who are becoming infatu-
ated over the "absolute money" theory
will find food for reflection in the history
Of the currency of the late Southern Con-
federacy, or such accounts OF it as have
been made public. In the very readable
book of George Cary Eggleston, pub
lished abont two years ago, entitled " A
Rebels Recollections," may be found a
very instructive lesson on the beauties OF
the currency which was issued by the
Confederate Government to meet the cur
rent expenditures and "enable the people
to do cash business"
We have no space for the entire chspter
of the book devoted to this subject, but
invite those who are studying this ques-
ton. and especially those who feel that
they are gradually becoming the victims
of the absolute money" heresy, to
peruse It most carefully. Mr.. Eggleston
says that the financial system adopted by
the Confederate Government consisted
chiefly in the issue OF treasury notes
enough to meet all the expenses OF the
Government. He doubts if any one in the
Treasury Department knew the exact
amount of such bills issued, but every-
body outside knew that money was
astonishingly abundant. Provisions
were frequently short and clothing not
always in large supply, but there was
money enough. Now let Mr.. Eggleston,
who was q Confederate soldier, tell US
some of the results of this abundance of
absolute" or fiat paper money.
money was so easily got and its value was so
utterly uncertain that we were never able 10 de-
termine what was . fair price for anything. We
fell into habit Of paying whatever was asked,
knowing that we should have to paw more to-
morrow. Speculation became the easiest and
surest thing imaginable. Every article of mer-
chaudjse rose in value every day. 80 Naturally
enough speculation fell into very bad repute, and
the epithet 'speculstor came 10 be considered the
most opprobrous 10 the whole vocabulary of in
vective. Nearly all mercantile business was re.
garded ct least with suspicion and much of it fell in
70 the hands of people with no reputation to lose
The prices oba ned were the most fabu Ions nd
ratio existing between the values of different arti
cles. / bought coffee at $40 and tea at 500 a
pound on the same day. My dinner at the hotel
cost $40 and S5 Was the price Of dress circle
ticket in the theatre. paid 81 for the morning
paper and $40 for & pound Of wretched tallow
candles. The utter absence OF proportion be-
tween these several prices is apparent, and know
Of DO way OF explaining it except upon the tbeo-
~ that the unstable character of the money had
superinduced q reckless disregard of all value ON
the part Of buyers and sellers"
1t may be urged that this worthlessness
fell upon the paper currency near the
close of the war and when the cause OF
the South was nearly hopeless. Such OBJ
lection will not stand These prices ant
the utter worthlessness of the Confederat,
currency as measure OF value ruled II
1868. when not only the people ofthe Souti
were confident of success, but thousand,
of the most patriotic people of the Unior
cause. As the depreciation of the paper
money increased by over-issue the Govern
ment itself, In order to realize anything
was compelled to levy taxes lin kind" in
order to sustain their armies; that is. al
farmers and planters were compelled tc
give the government such a part Of thei'