Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1861-08-15
- NntIannIIoan.


The New York Herald, which often sees
danger where none exist, has long article
on the diffculties in the way of negotiating
the loan now asked BY the Government.
The Herald charges Congress with so tying
the hands of the Secretary of the Treasury
that he cannot realize the requisite sum on
the loan in the market. The rate Of inter
est Is claimed to be so low as to prevent
capitalists investing The editor fears ter
ribIe financial panic as the result Hesays:
"AmOng the bills passed at the extra ses-
sion of Congress was one authorizing Secrp.
tary Chase to borrow $3.50, ,0OO, 600. eitbe,
By issuing seven per cent bonds, which he is
obliged to sell at par, or, failing to find pur-
ehaserS at par, another provision of the law
gives him the power to issue Treasury notes
OF various denominations, drawing interest
at the rate Of seven and three-tenths per
cent. These he is also restricted 70 sell AZ
par. Now the Wall street fnanciers being
able to obtain United States sixes already IN
the market st eighty-sight cents on the dol
lar, refuse to take either the new Issue Of
bonds or Treasury notes for par unless they
are made to draw eight per cent, which they
consider the present market rate equivalent
to. At this point we End the SecrstarT Of
the Treasury ct q standstilL He can no
more hx the rate Of interest at eight per cent
than be can sell the bonds or notes for les
than par. He is unable 70 conpromiss with
Wall street. upon either terms, but, with the
government calling for money, remains wiz
his hands tied. His estimates are for Sl2O.-
100000 for the next four months Operation.
or At the rate Of 81, 10000 per day. The |
bankers refuse to furnish that amount at his |
terms-the only terms on which Congress
has permitted him to receive it-aud be can
not abAte one toto II he would. What, tbep.
is to be the Tesult2
There are at the present time upwards Of |
two hundred and fifty millions on deposit IN |
the savings banks Of tho Northern States. 10
say nothing Of the amounts on deposit in
other banks by small depositors.
We understand that, since Mr.. Chase inds
the hnanciers Of Wall street will not respoud
under the terms upon which the loan is Offer
60, ne proposes to issue the Treasury notas
in denominations that will answer the nny.
pose, ana proclaim a popular or psople'g
loan on NaPolsonB PLAN There Is no oues-
ton but that in this way the loan viii ba
rapidly taken up, at least fast eDopgb II
meet all the requirements Of the Rovern1oent
The moment that q loan is offered on tbst
or Nspoleon's plan, there viii be q rush mn
on the banks without parallel 10 our histsrr
This at once opens the doom for sWeepis,,
crisis among the banks. which, of itself viii
make the rush for the Treasury notes ali
The greater, as the only safe security. De-
positon viii be found demanding Of ne
banks the sums due them; the banks N
turn, will bo compelled to throw their mort.
cages on real estate, bonds, &c, on the mar.
ket % meet these demands thus increasing
the excitement and huErying each other f6
confusion ever the financial precipine wifh L
greater CONSERVATION than that which char
ac,erized the army in is fright at Bull RAM