Year: 1864

r<.ceAeure 81 Ge0rg10, IN srtTd seSssoF, A1oTc"


49, THE CURRENCY, = -.s


ne late action of the Congress Of the Confeder.
states upon the subject of the currency has rem
lefed farther legislation necessary in this State
apon that question. It cannot be denied that this
act has seriously embarrassed the financial system
of this State, and has shaken the confdsnee Of our
people in either the justice of the late Congress or
i@ competency to manage our financial affairs.
striking instances Of unsound policy combined with
bad iaith. The government issues its. Treasury
note Tor $780, and binds itself two years alter q
treaty of peace between the Confederate States and
the United States to pay the bearer that sum; ana
stpuiates upon the face of the note that it is fund
able in Confederate States stocks or bonds, and re-
ceivable in payment Of all public dues except export
duties. The Congress while the war is still pro-
crossing, passes Statute that this bill shall be
funded in about forty days or one third Of it shall
be repudiated and chat tax Of ten per cent month
shall be paid for it after that time by the holder,
and it shall no longer be receivable in payment OF
public Dues and if it is not funded by the 1st OF
January next, the whole debt is repudiated. Did
the holder take the note with such expectatlonsF
Was this the contract and is this the way the gov
ernment is to keep its faithP If We get rid of the
old issues in this way, what guaranty do we give
for better faith in the redemption of the next ssuesf
Again, many Of the notes have the express promise
on their face, that they shall be fundabe in eight
per cent bonds. When2 The plain import is and
30 understood by all at the time of their ISSUE that
1t may be done at any time before the day fixed on
the face of the note for its payment With what
semb,ance of good faith then, does the government
before that time compel the holder to receive four
per cent bond, or lose the whole debt +? and what
better is this than reputation? When was it ever
before attempted by any government, to compel the
funding of almost the entire paper currency OF
country, amounting to seven or eight hundred mil
lions of dollars in forty days? This is certainly
new chapter in 6nanciering


The country expected the imposition of a tax, and
all patriotic citizens were prepared to pay it cheer
fully at any reasonable sacrifice; but reputation
and bad faith not expected and the authors OF
it can not be held guitless


The expiring Congress took the precaution to
discuss this measure in secret session. so that the
individual of the representative could not reach
his constituents and none could be annoyed during
its consideration by the murmurs of public disap.
probation being echoed back into the Legislative
Hall. And to make assurance ,dsub1y sure they
fixed the day for the assembling of their Successors
at time too late to remedy the evil or afford ade
quate redress for the wrong.


These secret sessions of Congress are becoming a
blighting curse to the country. They are used as
convenient mode of covering up from the people
such acts expressions of their representatives as
will not bear investigation in the light of day Al
most every act of usurPation Of power, or of bad
faith, has been conceived, brought forth and nur
tured in secret session. If mistake not the British
Parliament never discussed a single measure in se-
cret session during the whole period of the Crmean
War. But if it is necessary to discuss few mpor
tant military measures, such as may relate to the
movement Of armies, &C., in secret session. it does
not follow that discussions of questions pertaining
to the currency the suspension of the writ of habeas
corpus, and the like, should all be conducted III Sc
cret session. The people should require all such
measures to be discussed with open doors, and the
press should'ha have the liberty Of reporting ard free
ly criticsing the acts of our public servants. In
this way the reflection of the popular will back up
IN the representative, would generally cause the
efeat of such unsound measures as those which
low fastened upon the country in defiance of the


il of the people, g.


But dismissing the past and looking to the future,
be inquiry presented for our consideration is how
hall the State authorities act in the management Of


be finances of the State As the Confederate States


reasury notes constitute the currency of the
~, the State has been obliged to receive and pay
hem out and she must continue-to to do so, as long
Il they remain the only circulating medium. The
resent Legislature has very wisely adopted the
olcy, in the present deprecated condition of the
currency, of collecting by taxation q sufficient sum
currency, to pay the current appropriations of
>he State government; instead of adding them to
The debt of the State to be paid in future upon the
q gold basis If the State issues her own bonds and
puts them upon the market if she issues her own
treasury notes redeemable at future day in her
bonds, she adds the amount so issued to her per-
manent indebtedness; and defeats the policy n pay
ing as she goes as her own bonds or notes. would
then be out, and could pot be redeemed with the
Confederate notes when received into her treasury


If the State receives in payment Of taxes the pre-
sent Confederate treasury notes, they will be re-
uced in amount one third by act Of Congress after
rst of April next and the State receiving them at
bar pays Confederate tax of 33f per cent upon all
moneys that pass through her treasury. This of
course cannot be submitted to-


The reputation policy Of Congress, seems there
fore to have left US but alternative and that is
10 receive and pay out only such issues of Confed-
crate notes. under the act Of Congress pass at par
Without the deduction of s3i any other per cent
But as we obliged to have funds before the time
when the new issues OF Confederate notes can go
into circulation, the question presented is how shall
We supply the treasury in the meantime? In my
Judgment the proper plan will be to issue State
treasury notes, payable on the 25th day of Decem-
ber next at the treasury and each of the more i'm.
portant cities of this State in Confederate treasury
notes. of such issue may be made After first April
next to be used as circulating medium. This
enables the State to anticipate the new issues and
lse them in advance ofther circulation by COnfed





this ISSUE would be just as good as the new issue
Confederate notes; because payable in them, and
Fould be as current in payment Of debts. The act
hould provide that all taxes hereafter due the State
or this year, shall be payable in the Confederate
reasury notes of this new ISSUE and that they shall


be deposited in the treasury, when collected, to re-
aeem the State notes payable in them. The act
should also provide that the State notes shall be re-
turned and the Confederate notes received in place


f them within three months after they are due, or
that the State will longer be liable for their pay
ment. This would prescat holders from laying
Them away, and refusing to bring them in for pay
nent when due, according to the terms of the con-
ract AS the State tax is not. due till next fall,
here will be an abundant supply Of the new Con


ederae &c notes in circulation by that tme to oSViate


II difficulty IN obtaining them by our people to pay


he tax.


recommend the passage of joint resolution,
luthorzlng the Governor to have funded in the six


per cent bonds, provided for by the sct of Congress-


tnH Hnrnf r.,I.