Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1861-12-18
NEwnERN, November 30, 1861.
". ". Holden, Esq, Raleigh, n c.

W. ". Holden, Esq, Raleigh, n. c.
Nix DEAR SIR was much pleased with Presi-
dent Davis late message TO Congress 1t was terse,
brief and to the point andso unlike the huge and pom
derous State papers which WEI have heretofore been
accustomed to receive from the National Executive,
1.-THE chief merit Of which our statesmen of that day,
seemed to think consisted of quantity, rather than
gadiiiy y that one could not ony read 1t as being
matter at fact and truthful exposition Of our affairs
with pleasure, but could do without being ap-
palled by its nermina6e length. The Presidents
exposition Of the condition o. the Treasury is cheer
ing and the declaration therein, that ITO the extent
that Treasury noteS may be issued the government
is enabled to borrow money Without interest, and
thus facilitate the conduct of the war, is u TACT
pregnant not only OF great good, but IN my orln'
ION, decisive Of success and ability to carry on
the war to n happy termination, and without the
intervention Of foreign aid and assistance ii IS not
so with the Federal governmcnt-their finances are
in n wrctched condition, and their people VIII
not submit to heavy and oppressive taXatlon-ther
patriot Sun always kicks the BEAM when weighed
in the same scales with the almighty dollar. Mr..
Chase, the Secretary of the Treasury of the United
States run aground during the very first month OF
the war. was in New York when he came there
to "raiSc the wind to carry on the government
and the war lie did not hesitate to declare the insol
vency of the Federal government and ITS utter ina.
Lty to prosecute the without pecunary aid
from nc {tbptC-dll tut VI ltlC
to raise money were exhausted. And have no
hesitation in saying but for the Bank of Commerce
of the City of New York, the Federal government
would have been brought to "a stand still, and
utterly unable to prosecute this war-and they
would have been forced 10 have made some Satsiac-
tory arrangement of their difficulties with the South.
They had aScertaned that they could not effect
loan in Europe, and they were too proud and
ashamed TO admit the capitalists of Europe their
poverty and inability to carry on their war OF sub
ugatiOn of portion of the country, which claimed
only one third of the Union! In this condition of
affairs Mr. Chase came to New York, and i'm
mediately cloSctcd with Mr.. Stevens, the President
of the Bank of Commerce. The capital Of the Bank
of Commerce was, originally, five millions Of dollars,
under the general banking law, it was increased to
ten millions. Ii was soon perceived both by Mr..
Stevens an1 the stockholders that great financial
blunder had been committed in having the capital
of the Bank thus increased, to do fair and cgiti
mate business in city where the banking capital
already amounted to sixty odd millions of dollars;
with trust companies and savings institutions oper
atinS with capital of many millions OF dollars
more. The banks were eager to lend to customers,
and 1t was lnund that the unweldy capital of the
Bank of Commerce could not thus be employed.
In this dilemma Mr.. Stevens entered the market
with the capital of the Bank of Commerce, and in
vested the same to the amount Of several millions
in the securities of the Federal Government. bear
ing interest of six per cent. Several other OF
the city banks having great confidence IN his nan-
cial Skill aud Judgment, initiated his example and
invested LARGELY in the same securities Mr.. Chase
readily represented To Mr.. Stevens that the banks
OF New York must lend the Federal Government
one hundred and fifty millions of dollars the
government must stop payment, and the Bank
of Commerce. with its enormous amount of gov
eminent securities must also necessarily he ruined,
and the only way to save the whale concern, would
he for all of the banks to affiliate and take the loan
at once; and that the government, in fact, must
have their money or their blood" Mr.. Stevens
quickly saw the difficulty, and that his bank was
completely in the power Of the government. A
meeting Of the Presidents of all the Banks was
callcd-the proposition of Mr.. Chase was submitted
to them--t proposed to call in the Presidents
of the Banks of Phadel phia and l5oSton-this was
donc-a warm and somewhat angry discussion
sued for several Gays many of the banks protesting
violently against the whole scheme as being ruinOuS
and beyond their ability TO carry it out-that their
vaults already filled with the suspended
paper of their failing customers and matters were
growing worse aud worse, and they would be unable
il they went into this arrangement, to breast the
coming storm. To all which Mr. Chase coOlly re-
piled that if they did not sustain the government
once they all ruined without waiting for the
coming storm. Suffice II to say, the banks finally
agreed to lend the $l5O, coo mo in inStaments of
fifty millions provided that after advancing the first
InStalment, it might be left optional with them
whether they would take the additional instaments
at the several times it had been agreed upon they
should he paid To this Mr.. Chase readily assented,
knowing nc assured, that after they had paid
the first nstament they would be unable in the ex-
listing state Of things, TO get along without making
the Others The banks then further insisted hoping
that the second and third instruments might thus
not be needed required; that the Federal Gov
ernmcnt should prosecute the with vigOr and
effect and bring 1t at 10 a speedy and cffcctua
Termination \ resolution n that effect aIoUt-
ed by the consent Of Mr. Chase and after that func
tionary left New York for Washington, committee
was appointed, ut the head of which was Mr. Ste
vcns to go to Washington and lay the resolution
before the President and to insist that the govern
mcnt should carry it out speedily and in good faith
The New York and Philadelphia Banks carried out
their contracts in this matter in good faith. The
Boston Banks sncrped cfa portion of their engage
ment with the New England country banks insist
ing that they were bound by the highest consdera-
tons Of patriotism to share with them in this great
financial risk. The banks have taken the second
insalment and the third and last instamcnt is due
and payable i'll January next. This they will take
too and this will be the end of this great financial
arrangement for which Mr.. Chase has received so
much credit and praise in the newspapers. Mr..
Chase although the ableSt man in the Lincoln Cab
met, found to be inbeciLe by the Wall street
financicrS. Mr. Stevens the master spirit of
the arrangement and but for him it never would
have been carried out. And if it had failed the
Bank of Commerce would have been ruined. As it
Is he has succeeded in poStpOning the day Of ruin
to all of the banks until the first of January 1868
There now a large number of persons residing
in the South and citizens Of the Confederate States,
owning stock in these banks, whose monies are
thus seized and used by the Federal Government in
carrying on this nefarious and unholy war against
the South. The question is often asked-and it is
very natural enquiry-"Ilow long will the
last We answer, that it will terminate in 1862,
with recognition of the independence of the South
ern Confederacy, unless the Federal Government
can receive aid from abroad. And there are obvious
reasons why it will be so. The only money which
the Federal Government can command will be the
fifty millions of dollars which they will receive from
IL nr, Inr r,in kn