The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-12-17

II they should derand they would be very apt TO Do
s1-where would he bcs Perhaps il will BIO said thAs
there at present danger Of any dsunion save Ia
the Southern States and that all the free States
wll cling together. Admitting this, so long -
the right of secession Is Acknowledged, United
States bonds must still be denounced - en-
rcly unsafe property to hold Though the free States
may agree to united at present. they may differ
next year. and il right of secession be admitted they
will separate on the first difference Of opinion The ma
,eral and commercial interests Of New York and YER
mont OF Massachusetts and Minnesota must in the ma
ture OF things become degree antagonistc N,
the first antagonism the partnership between them
may be dissolved by either prudent person VIII hoid
the funds OF that partnership The same rule applies 10
the South The commercial interests OF Georgia and Ten
nesee OF louisiana and OF South Carolina naturally
antgonisc IT. on the first open antagonism these mem
beers the proposed Southern confederacy
rate the bonds Of that confederacy will be most unsafe
property hold And if either the Northern or the
Southern confederacy were ever mpeled to go TO war
with leading nation, they would find it impossible to
borrow money for the purpose in any financial market IN
world would consequently be unable to carry on
a war This il point in political economy One
Of substantial for the formation Of the
present oonfederacy the imposibty OF raising
ney for the purposes of general defence and general
government without =. onion OF permanent cha
racter. Eighty years ago, a. now, capitalists
would not trust a partnership OF States which
was liable to be dissolved by any partner any fine
morning Hence the fathers Of the country cootrved
BY great perseverance and mutual compromise and
concession contaminated the present confedcracy which
being accomplished, and its perpctuty secured in as
strong words by ~ binding guarantees could be
devised Of deemed 1t safe to trust It, and
United States bonds became of the highest and most
bari ehad ice in he W hat
they failed in their purpose and that the perpctuy of
their Union was not secured AZ they supposed. The
necessary consequence that matters relapse into the
condition in which they stood before the present
fedoracy formed and that United States stocks
really worth than the Old Continental money,
The present financial crisis is doing some good, at
all events IT is arousing the merchants Of Illinois 10 the
inconvenience OF their present system OF bank
ing. In Thursdays HERALD published the report OF
meeting at Chicago, at which reform OF the present
banking Law Of Illinois strongly urged upon the Le
gslaturc II is TO be hoped that the movement will not
prove fruitless. Under the present law Illinois bank
notes practically nconvertble into specie They
mostly based upon deposits of Missouri and Tennessee
state stocks their value uctuaes according the
fluctuations the price OF those stocks the New York
stock Exchange. There altogether, it is estimated
about $12 900 900 Of them aoat Before the present
crisis they current at about per cent discount
at Chicago, sight drafts New York being the
par standard in that city Since the panic affected the
price of Southern State stocks Illinois currency has
declined and the reports have recorded day
to day the in sight exchange upon New York
Chicago TO 6, T. 8 and 10 per premium. The
ing Of this is simply that Illinois bank have fallen
g. and 10 per in value, in consequence Of the
corresponding fall the price the Missouri and
see state stocks, by which they secured. AT the
meeting lately held at Chicago, it urged by
speakers currency of Illinois should be secured
by Illinois and United states stocks only while others
thought that specie basis the only safe plan. In
the present condition OF the wcst pretty to say
that a currency resting a specie basis would not
satisfy the Of the community, it would not sup
ply an adequate circulating medium 10 doubtful,
over whether il could be established at all
rcncy based Illinois, Ohio, Wisconsin, Minnesota and
New York state stocks would be much preferable to
the present currency United states stocks long
the right of secession Is admitted undetermined
very insecure basis for banking currency, and
should advise tho Illinois bankers TO beware Of them
disruption Of the confederacy would insl bly, reduce
their value 10 as low q point that at which the old
currency stood before the organization Of the
prosent confederacy In the meantime the best
for holders OF Illinois currency TO hold short while.
whatever happens there every prospect that Missouri
and Tennessee will pay their interest regularly and that
their bonds will by and by to their old values. Tho
Legislature OF Illinois will doubtless adopt the sugges-
ton Of the Chicago merchants, and obge banks TO
deem their currency for gold at Springfield Chicago
But IL will be n great mistake to allow the redemption TO
be made at discount; II should BIZ ai par.