Monday, June 10, 2013

October 8, 1861---"I'll have Manhattan..."



OCTOBER 8, 1861:     

Even this early in the war, the Confederacy faces food shortages, rising inflation, and a rapidly mounting public debt which it must pay off with specie since its currency is not recognized anywhere but domestically. In this dire situation The Richmond Daily Dispatch reports with glee that the Union is facing its own economic woes, and makes “a modest proposal.”:

–”Ion,” the Washington correspondent of the Baltimore American, says that the war expenses of the Yankee Government are now stated, “upon Government authority,” to be…$442,000,000 per annual…Pretty good work this for one year of war.

As some little anxiety is felt to learn how his interest is to be met, “Ion” condescends to let all inquirers know that if the war should continue several years, the Yankee war debt will not be greater, in proportion to their ability to pay, than the national debts of France and England. That this be very consoling to the Yankee nation! No doubt every Yankee from Cape Cod to Cairo will fall into spasms of exultation when he learns that the universal codfish generation can make war for “several years” (half a dozen, say,) without subjecting itself on a heavier debt than the two most heavily burthened nations of which there is any account in all history.

When Governments begin to borrow money to carry they are not apt to stop short in their cancer. On the contrary, each succeeding year is apt to witness a loan larger than that which preceded it… At the end of their nine years war, the Yankees may sell New York for one year’s interest on their debt; the next year they may sell Philadelphia in part payment; and the year after that, they may put up Boston and apply the proceeds as far as they will go. 


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