Year: 1863

10 Ms Editor Of Tho Constitutionaist:


The Confederate Government have committed two ra-
dca the management OF finances, which pro-
duoed present caamitous condition by the operation
of laws of currency fixed CERTAIN and immutabe the
laws which govern the planetary system


AT the beginning Of this struggle we had large national
resources and unequaed elements of public credit We
borrowed gold at par for bondsweath laid its trea-
sures at feet and poverty itself claimed pryi-
lege to augment with its mite Folly has
mainly contributed to the drying up of this living fountain
OF public supply


The first great error was in attempting to carry on
great and exp nsve solely credit-without taxa
ton This is tho fret ats mpt of tbs kind ever made by
civilized people The result Of The experiment will har1-
y invite its repetition During the first year of it's exist
the present Congress neither levied collected
single cent Of taxes aud postponed the collection Of those
levied for the second year to period too late TO
support currency


The second naturally resulted from the frat and
consummated the destruction of psblc credit. This
rer was the use OF the public credit amot exclusively
the form of currency The natural result of this policy
was plain inevitable, wheming. 1t is well-saed
and sound principle currency that nat which has
sufficient quantity Of circulating medium properly to
swer the wants Of it's trade and commerce. cannot add to
tho value OF that currency by any further ad0 tn it's
quantity In the ordinary state trade Of the
proper quhny exhibits itself in the form Of the exporta
tion Of buion-any deficiency in importation. When,





venttd, any redundancy of currency must necessarily de-
preciate tho whole and this depreciation will exhibit
itself IN the ss in prce of all commodities which II cir
culates 1t s as5 that if this redundant currency ex
lists IN the form OF paper money not convertible into coin
at the will OF the holder the of this depreciation
s the difference between the standard mint price OF
bullion ani The market price when pa in this currency


Tested by these plain and sound principles the solution
OF The causes OF present haancia troubles easy
When this revolution commenced currency in
of the Of society The proof that nearly all
uf tha had 1ad
cash payments, and their notes deprecated there
fore the first treasury note which put into circulation
added ITS nominal value to this each succeeding
Issue enlarged It, and increased the depreciation OF the
whole mass This depreciation began 10 manifest


itself in the rise Of commodities yet the has
unwsey continued day by forced circulation to add to
this excess increase tha rtcaton, and enhance the
price OF all ths commodities which it is compelled to pur
chase and is thus exhausng the national u the
ratio of geometrical progression.


This runous policy woud have long since its
but for the fact that law intimidation and above ALL the
ardent sincere honest but patriotism of the peo
pie have been invoked to uphold it, But the principle
being radlly wrong human power could upheld long,
and spite OF all these powerful proofs national
rency deprecated than thousand per cent be-
low gold aud silver fur hundred per cent below suspend
ed bank notes and prices and rapidly adjust
ing hem'elves to the nr xorable facts


Many unsrund given for this state Of things
by tho supporters or apoogss of this peFnicous policy
Many abl7 and excellent persons affirm and honestly be-


eve that from the peculiar circumstances which surround
us bullion Is no longer standard Of value true
sure of the depreciation Of currency This has
produced infinite mischief 1t is true that gold aud silver
do rice aud fall value Ike, but in much less degree
than other commodities and is mainly by this reason
that they have been adopted by knd standards
of value, and however they may rse fall that in dc
a their value f. of the dsprecation Of in
ieror cuirencies they certainly Still remain IL not the
ifaibr yet the most accurate such deprecia
t"n which tho wisdom Of tho world has yet able to
discover.


This pleasant picture for us to behold yet this is
better than the still more gloomy which continuance
IN the paths OF will speedily present t. our visions
he cons quenccs are frightfu; let pursu, them lit
lie further Let I'd suppose that have FIVE hundred
millions OF currency now in circulation worth fifty millions
of andari bulion the issue of additional five hundred


millions of such currency will not add s8gs do lar TO its
value The thousa I'd millions will be worth than
the five hundred millions belre the last ssue to
wit fifty m"ls OF bullion. The addition has only de-
precaied The whole currency by half and this depre
caton will invariably exhibit it elf ia the rise of the CON-
modlies for which it may be exchanged The Govern
ment therefore, if it expends the additional issue in
losPs rst the whole amount of depreciation
existing at the beginning of tho issue also all the addi
tional depreciation produced by its daily pendtue aud
the notehoders lnue bali of the value of their notes


1t WILL Therefore, follow that if the market price OF
wheat eight dollars per bushel under the Issue Of five
hundred millions Of treasury notes. it will be sixteen dol
lars per bushe usder the ,sue Of thousand millions and
the sixteen dollars will be worth than the eight
dollars aud will exchange for Of other eommodi
lies his being the uniform law OF currency when yod
fix an arbitrary price any given commodity and leave
f other commodities to the natural operation of this law
you uGy uestry all souhd principles Oi exchange, and
must in the ehd ruin the producers Of the regulated
modify unless they abandon that business at least the
~ ent OF producing any surplus This must be the effect
VI this inpressment unless the thrOed by the wis
10 and power of the people.


But IA thus principle truei "Thst commodities will |


e fall IN proportion tn the increAss or dmnution s
money, assume a fact which Is incoptroye rtibs
bi. the language Of Mr. Ricardo and he supported
Adam Smith and all Of the great writers and thinkers
who have hurlshed within the last hundred
7ears The same great truth is daily pressing itself upon
lur oberyaun and demonstrating itself before our eyes
svery day. The pay of Cicers and soldiers the pay
Df the evil employ es Of the Confederate and State Govern
nents, the compensaon Of ALL either in military or civil


e at wages estabhed the old basis Of sound cur.
ency has diminished, and il daily diminishing in real ex-
shangeabe value, to for which the actual necessa-
lies Of life cannot be purchased They feel the misery
md generally know not its law.


The capitalist lends his money to the Government and
iDds that at bis rst haly early dividend he receives
payment Treasury notes not worth one-third n money
what they when he made the loan Yet the Govern.
nent wonders why people will not buy ts bonds Invest
menis gold for the last six months have been the sst
aud among the best n the Confederate Stats They have
paid one hpnded per cent per month the original in
Sestment IN treasury notes. Can say expose
he boundess folly OF our present financial system1


The HISTORY ohe currency Of enemies ne bfqia
sing Of his rs hRmHiang us Neither had foreign
redts, bah had Po,oeyt and siabshed State Cor, IN


ynis 10 .ch them. lie united ~ Tp0r of the ,rar:
Lsy dioidsd Thy hare kept hoice The men ia hs
ied that zoe haze upon ha fhe money and paid their soL
fiers better hap ps hare Their Treasury nstss .sH a!
iiscopnt 81 tess Msn thirty per cent 1aoe than
hoNsand The reaso sqtsiy their GOpern mem
as bitter nadersfood and more firmly adhered 10 The trse
principles g currency than ogrs In all else we had the



have endeayored to point out the main difficulty in our
financial policy aud have, to the best Of my Judgment