Year: 1862




IMPORTANT FINANCIAL SCHEME.


>~~~~~~>~>~>~~~-~~~


The Use OF the Staples OF the south a. .
Basis ~ Exchange and Credit-Lester
" Mr. Wssmore 60 the Secretary Of the
OF che Scheme.


wnlARps Horn, wAuseroR, d. @. Sept 16, 1862.
Hon. 8. r CHAm, Secretary Of tho Treasury


ssR-Darine residence Of twenty years in the South
have been extensively engaged in mercantile and hnan-
cia transactions In being engaged have acquired
knowledge Of cotton and tobacco factorage the nstu
tions and Of the people, their monetary
condition and necessities, kc.


Ny study C. political economy led 10 the conclu
sion that paper money issued for carrying on war
sustained except the enemy be- either by its pro-
ducts domain upon its exchequer made 70
reimburse the outlay Of snch paper currency.


Instance our continental money the assignas Of
France Texas Treasury all became comparative
ly valneless 10 the parties holding them an nvoun
tary contribution to the respective for which they
issued and such must inevitably be the fate Of the
so-caed Confederate money but may We not hope for
results for the federal Treasury notes Certainly
may use the staple products OF the South in a
legitimate basis for exchange and credit To
this presume suggest TO the through
it's successful Anancal nsad the Hon Secretary Of the
Treasury, the following


Fr-Allow cotton sugar, tobacco, rice, tnrpentne
to be exported from the South except through
government agency. The government having control Of
these great staples will cause other Powers to cultivate
friendly and intimate relations with this government In
truth the government having c9rse e saa possession Of
hose Indispensable asssssfy staples cOmpels other ma
ions act good faith in all respects II would be
heir interest thon scountenance the brea king Of the
rt,fth aouhi mi oh
nitely illustrated.


TO show tho Importance of this measure well as the
magnitude OF the enterprise to the government will
take cotton for example. Cotton worth to-day
in Now York the enormous price of from hfty hye TO
fty eight cents per pound whics together with the cur
rent rate Of exchange on England vizthirty per cent,
o pound Of cotton represents in Liverpool seventy 70
-four Of federal paper currency provided
should sell in England at corresponding price, twill be
found that this would in the aggregate make large
amount Of foreign exchange TO sustain commercial and
national intercourse and credit as Will be secn oy the io
lowing


From the best information can obtain, there wl-at
the end Of the present cotton picking seasonbe
pounds. OF this amount would expect, BY judcious
management the the government 70 obtain by
bales the present value Of which IN Liverpool in federal
currency would be 500 pounds say seventy
cents $500 100000 Now in proportion as the market is
supplied tho price must necessarily decline ON the &C
count Of its increased supply viii, therefore, rate IN
this example Gotten at nifty cents instead Of seventy as
above; 800 600 pounds at fifty cents $500 600
In these calculations of price and value, have omitted
stating the expense selling Europe, but have
instead placed the price far below the prices current
there TO day


Now the ques arises how is the government TO obtain
he cotton with ut least partial consent Of the nominal
producer Ny idea is for the government TO ad
vance through the custom house and government agents
appointed for that purpose say twenty cents per pound
ali merchantabe middling upland cotons, higher Or
lower according their grades to all parties holding the
same regardless Of political sentiments The said cotton
to be shipped cithcs to European or Northern markets
sold be doomed advisable by the Secretary of
the Treasury chargeabe Of course, with ali usual and
necessary expense incurred in shipping, ranshppng and
sale When sold by the government the proceeds TO be
deposited in the United States Treasury, and there held
twelve months, at the end OF which time, the party
the oath o. es and paying al tax due
said party to the government, then the government TO
hand over to him or his legal representatives. in federal
(paper) currency, the amount that may then be found
due, without interest either way Parties from whom
cotton other staples may have been received failing
come orward-arter due notice has been giventaking
the oath of allegiance paying all dues to the govern
mcnt, then said balance shall be deemed and declared
forfeited TO tho United States


Some among the many arguments could urge in be
half Of this policy are these


Frst-It cannot be expected that large majority in
the disoya States can be reached except through their
selnteFest. The government extending such facilities
as have named, cannot fair, in my opinion TO induce
tsrms offered


Secondsuch course would stimulate the adventurous
ana 70 60 among the holders o. soston to
Here would that twenty per pound would
much in advance the price Of cotton as at present ru
ing within the Confederate lines


2hird-The secessiouists themselves, except whore
their authorities prevented would take advantage OF tho
opportunity to dispose OF their oops, we'll knowing that
by retaining their cotton till general poace they would
not in all probability realize 10 exceed twelve to fifteen
cents pound for the that The remainder Of The
crops 1861 and 1862 would be thrown upon the market
at once which would be runous not only TO them but
all the national interests


Tbu-r the government shorld take control OF these
two crops, they would during the at least be abls
to get to market the number Of bales have named in
such limited quantities q time that the market would
not bo seriously depressed Further the
1t to itself protect the staples Of the that
through these products the people Of the South may be
able pay their pro rata OF the debt incurred by the
war; and the government further it TO the loyal
North TO 80 arrange its financial and belgerent inter
course with the rebel states TO them he rebels
as lar possible, from insolvency. that they at the
close of the war; may have it in their power quidate
in measure the 5000 600 600 they the Norther
chants and capitalists, which they certainly will be
able to do IL the closes with this immense stock Of
cotton on hand, stored in gin houses and elsewhere


Ffu-This generous course of policy (which I advo
catc on the rar OF the government those in rebellion
could not fail being appreciated b. all enlightened people
of Europe and our own loyal people themselves wouid
in this disposition the part of the admins
TO protect them while they relieving immediate
wants Of the Southern planter and the European cotton
spinner.


Strh-The control OF these two crops would give the
government the ION my pan) Of two hundred millions
Of dollars without interest and give il abundance
OF gold TO pay its interest, which place its secur


ties on rm basis, and would cause them to be sought
for investments.


ssvntalt is, in my opinion absolutely necessary that
the government should have other means, beyond its
Cieut, lts own interest, which
the control OF Gotten and such other products are ex
ported to foreign countries alone would give Them this
plan does not contemplate the government paying out
anything other than Treasury notes is further the n
terest of the government TO obtain circulation in the
South of its notes. Tor every dollar OF United states cur
rency circulated there deprecates OF necessity their
rency, and 10 deprccate their money that much
out OF their hands whereby 10 continue the rebellion
Further, is not ae believe, the interest Of the 90
vernnent, when shall have established law and order
again in the dsioya States that its people should be
crushed and wholly ruined, but that prosperity
n dafa tlarr


In furthsrance Of this view would that have 1t
from sources entitled 10 know that ai least one quarter
Of the cotton hand exposed 20 destruction from
the fact that there great deficiency OF baggng aud
bale rope the South which the government could pro
tect and save from waste BY allowing these important
ticos to be sont South the time promoting tho
interests Of parties In Kentucky who now greatly in
convenenced by holding large stocks OF bagging and
rope, without being able 10 effect sales except nj de-
pressed and rninouslY low prcea Iii. rnlicy