The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-08-13

y.
delivery of the paper to report the same to the
office. The number of carriers, if necessary, shall
be still further increased, until we are able to give
the fullest satisfaction.
For the present, subscribers will pay no money
to any but the newly appointed carriers, who
will be furnished with authority to collect the
subscriptions.
The project Of Mr.. CHASE, to deposit the public
funds in certain favored private banks, is neither
more nor less than a virtual abandonment of the
Sub-Treasury system This system, which was
found to answer very well, so long as there was
money in the Treasury or the Government had
any credit to enable it to provide for its REQUIRE
ments is hastily discarded under the pressure of
the financial embarrassments in which the country
is involved. The Sub-Treasury had no inherent
fault in itself. 1t was a very good method Of
keeping and distributing the public funds, so long
as there were any funds to keep or distribute
But the vaults being nearly empty and there being
no prospect Of their being speedily replenished,
Mr.. CHASE hastily abandons the old system and
leaves it to its faie. He has himself destroyed its
usefulness, and we should not therefore wonder
that he has cast it aside. He has converted its
vaults into mere receptacle for cancelled Gov
eminent issues, and the passage by Congress of
the act which he recommended, authorizing the
issue of greater amount of treasury notes than
the whole revenue from imports could possibly
amount to, for year to come was, in fact, death
blow to the old system. Mr.. CHASE at once turned
his back upon it, and having no means at his
command, now advances smilingly to the capital
lists OF New York, proposing to make their banks
offices Of deposit for fictitious loans, which are
TO be raised through their jobbing. 1t is not
probable that any really sound banks can be in
duced to enter into this shallow and paltry
scheme. 1t is barely possible that some
OF those who lind themselves on the verge of bank
ruptcy, may be tempted to go into the operation,
IN the hope of producing temporary initiation of
the currency, the effect Of which would be to give
an artificial value to, and to create an advance in
The price OF merchandise and produce of all des-
crlpuons. This might enable merchants, whose
paper Is now renewed from month to month, to
make sufficient collections to take up at least a
portion of their outstanding liabilities, and thus
save the banks from the very heavy losses with
which they are now threatened. The condition
OF the New York banks, if we could Judge by their
returns, was never so good. They have in their
vaults about twice as much specie as thew had
twelve months ago. and their circulation is some.
What diminished. But the large amount of dis
counts, on the receipts of which they counted for
the available means to pay their depositors, and
TO make good the difference between their specie
ana their circulation, can no longer be relied upon.
assets are b;aA, r
merchants, who, but few months ago, were re-
garded as men Of wealth and entitled to high
credit, but many of whom now almost ruined,
and who, day after day, are failing by the score
In addition to this much of the specie which is in
the vaults has been placed there upon special de-
post by capitalists largely engaged in opera
tons on foreign account, or having themselves
foreign operations and it is liable to be called out
at any moment, thus reducing the amount held by
the banks to far below that which is
now shown by the weekly returns The bait held
out may, therefore, be deemed an inducement by
some of those, who fully understand their worse
than critical position. As Mr. CHASE has no de-
posts to offer them, it is part of the plan that
they must make deposits for themselves As
stated in previous article, this is to be effected
payment for which is to be retained by them, for
the redemption of treasury notes. The success of
the scheme, Therefore, depends upon the amount
of treasury notes which these banks NAV be
able 10 keep afoat. If, for instance, bank
should purchase $40, 0O0 900 Government securi-
ties, bearing BIO per cent. interest, and should
only be called upon to pay S. 900, 900 for the
redemption of treasury notes, it would then re-
ceive interest ON $40, 700, 900 for an outlay of
$4,000, 900, equal TO interest of IA 81 per
cent. If it should only be called upon to pay
50, 500, 900, it would then receive 20 2O-l00 per
cent If it should keep the whole amount afloat,
it would then receive $3.50, 900 per annum, with
out having advanced one cent Thus, it is made
the interest of the banks to keep afoat as much
of this currency as possible. This could not be
effected TO any extent so long there was another
currency redeemable in specie, and the present
circulation would have to give place to- or be
reduced to level with, the new, before the object
could be accomplished. This would require a
suspension of specie payments. The banks would
not be willing to abandon entirely their own cir
culation, and they would, therefore, adopt this
means to keep it afoat Government, unable to
at the transaction, and the treasury notes, which
are made payable on demand in gold and silver,
would be redeemed with the shinplasers of those
pet banks, which connived at and aided in this
miserable shutting device of the Secretary of the
Treasury. The whole object of his inancering. the
only plan, indeed, which Mr.. CHASE has been able
to suggest is resort to paper currency 1t is for
this that he proposes to make the Treasury notes
redeemable in all the large cities of the coun-
try where he can expect to induce bankers to con-
nlve at his schemes. Boston, New York, Pba-
delphla, Cincinnati and other towns are all TO
have their banks nominally for the redemption
out IN reality for the circulation, of currency
Treasury notes, and no doubt a network of banks
Will be arranged, which will keep the country,
Tor time, flooded with issues which, from day to
day, will only become more and more worthless.
And this is the scheme by which the Govern
ment is to be provided with means for carving on
The war. 1t will no doubt be able to procure q
greater abundance of funds, but when obtained
they will be of little value. The inevitable conse-
quences of such an imitation will speedily follow.
Mr. CHASE may think, for moment, if he sue
coed, that he is basking in the sunshine of pros
perity; but he will find that it is but the precur
sor OF terrible storm. 1t can only lead to a
general bankruptcy, which will break up those
very banks that have lent themselves to the
fraud which is to be practised to the public, and
Government may find itself minus the very de-
poSits which were the nest eggs Of its wealth.
eocn ptlful subterfuges can only serve to sink the
country more deeply into the almost inextricable
e"oarrassments, in which the Administration has
p-l . 1t. There was but one course to pursue.
49, ,.a' was to come openly and honestly before
~ ai'fy, and ask for the means 10 prosecute
,.n war The Administration would then bav.
Known II their policy was to be sustained Nv the
p 1ai Of the Norh-and if they found that #
fon, not they could at once have saved ,bsmss,,as
which Iv asgraee and their country from the ruin
"i-''A Inevitably await them.
the rules and regulations that a Dsnhsn ssang
govern Federal officers with rea care hereafter y. to
slaves ought to forewarn every owDs0 might've
species of property in Maryland o"ner OF that
aI--