The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-09


Mr.. Cobb's first annual report is before us.
Besides the usual figures and es,imates-which
are advanced in this document with timidty
proportional to the late overthrow of the
soundest charlottesville report contains one
novel idea and two practical suggestions All
three deserve careful and favorable considera-
ton.
The Hrst of the suggestions relates to the de-
fciency in the treasury, which Mr.. Cobb pro-
poses to supply by an issue of treasury notes,
not to exceed twenty millions of dollars. Trea-
sury notes are preferable to stock, inasmuch as
they may be used as currency throughout the
country, and may thus supply Che West and the
North with circulating medium which will be
largely used for remittances to distance; also
because they may be paid out to the creditors
Of government in any sums to suit cases. 1t so
happens that such medium as this is the very
thing which we need at the present time-some-
thing which shall he at par all over the coun-
try and which shall not be subject to deprecia-
ton. or decline in value. No allusion is made
to the rate of interest at which such notes could
be placed in circulation; but we presume that
four per cent would be regarded as satisfactory
by the public Four per cent bonds or treasu-
ry notes issued by the government would sell
at par in this market-if, indeed, they did not
command premium Congress and the peo-
pie at large will coincide with Mr.. Cobb on this
head
Mr.. Cobb's second suggestion refers to the
embarrassments Of certain Of our banks and
railways. He proposes the passage of COM
puisory bankrupt act, By which insolvent rail-
way companies and banks might be wound up,
whether they liked it or not. The idea is of
course, to meet the case Of those banks which,
during the present revulsion, broke and laughed
at their depositors; and of those railways which,
when their acceptances went to protest and the
interest on their bonds lay overdue, simply made
an assignment. and went on fnanciering and
making wonderful reports. In the present state
of the law these corporations have the pubic
very much at their mercy. In certain States
they are liable to be called to account and even
to be made to pay under certain circumstances
But in Others, devices can be used to defeat the
law, and both insolyent banks and insolvent
railway companies may defy their creditors and
their stockholders. The evil is likely to grow
with the growth of the property of these corpo-
rations. In some States. as in New Jersey and
Illinois, the leading railways are already mas
tiers of the States; in short time our own New
York Central will be able to control our Legis-
lature, if ii does not do 80 already II some
means be not provided whereby these large cor
porations may be called to account the people
will soon be at their mercy. This is the con-
tingency for which Mr.. Cobb proposes to
provide Under the law he suggests. any
stakeholder who has been cheated by bank
or railway corporation, or any individual who
holds railway acceptance or bank note and
cannot get paid, may appeal TO court not
under State control, and under a law which the
State Legislature cannot repeal, and get his
own. This vii undoubtedly be gain to the
public.
Mr.. Cobb throws out hint to the State go
vernments which will attract some attention
After showing how benefoially the sub-treasury
system worked Throughout the crisis, how the 60
vernment instead Of adding to the pressure on
the banks, a II used to do, actually sustained
them for weeks, and how il was enabled to pass
through an almost unexampled reyulsion with
out injury and loss, il recommends to all the
State governments to follow the federal exam
pie, and manage then finances on The specie
plan Though Of course Mr.. Cobb has no more
to do with the State governments than he has
to do with the HERALD, and his suggestion is
purely gratuitous stil II IL 40 foroible and 30 iu-
dicious that il is quite possible it may meet with
favor at the hands Of some State governments.
at all events. New York, at he present time.
might perhaps safely try IT,
The revulsion itself which figures inciden-
tally in almost every paragraph of the report.
is discussed directly in some places. Mr.. Cobb
Of course ascribes II to the imitation of paper
credit; the cauSe which our contemporaries 80
long secuted, when We pointed II out He gives
the figures Of the bank and railway imitation,
and very properly hints that this alone would
account for a greater Initiation than we have
bad. He denounces the whole system Of over
expansion, which has become chronic in some
parts of the country, and intinatcs that if we
go on running into debt We must expect to pay
the penalty of regular interest.
The report Is a sound and judicious one, and
does credit to Secretary Cobbs common sense
and financial skill
THE HoS. MR. BooBY Books i getting more
and more out OF temper He will aoon he az