The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-07-08

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Simmons, Of Rhode Island, for the protection Of
his woodscrews. were'stricken ont bodily, q very
handsome increase ofrevenue would be the result.
With regard to the loans, nothing can be- pre-:
dicted with certainty, for all three are pure ex;
periments. Both France and Prussia borrowed
money In largs an,oYnts and at low ,asss e. ;rxes
est from their people by such. popular loans as
Mr.. Chase proposes But it must meyer be forgot.
ten that the country people Of France and Prus.
sia are very different from the denizens of our
rural districts; Every farmer on the continent Of
Europe puts few silver or gold pieces year. after
year into q stocking, and only draws the hoard
forth on great emergencies, as when he niarries
his daughter, on when his sovereign appealsst i'd
him temptingly. In our Western country, on the
other hand, when q farmer has o. hundred dollars
ahead he instantly buys thousand dollars worth
Of land or FIVE hundred dollars worth Of railway
stock; SO that as general rule, the men who
make the most have the least money to- lend
Speculation beggars ouf. Western people, and
while Mr.. Chase win find plenty Of Western men
willing to help the government, it is somewhat
doubi full whether his national loan will unearth
n'apyhoards Of coin in that section. Still, in New
England and in the Middle States, there is
plenty Of money in savings banks. If Mr..
Chase has the skill to teach the owners
of these deposits that his Treasury notes
are as safe as and more profitable than loans to
savings institutions, lie may get all the money he
needs from them.
The smaller Treasury notes. whether bearing
e5-looper cent interest, and convertible into ex-
chequer bills, or bearing no interest whatever,
and redeemable in coin on demand-may be foated
in large amounts if they are dexterously handled.
The Western country is just now in great distress
for want of currency, aud, as our armies advance
southwark, the same want will be severly felt in
Virginia, Kentucky aud Tennessee. These $40 and
$40 Treasury notes will supply the deficiency, If
they are judiciousiy managed. We are inclined
to think that IT will be found best to render them
redeemable in coin on presentation, and to allow
no interest on them. II 1t is certain that they
can be redeemed in coin, no one will want to re-
deem them. And even in this part of the country
they will be go much preferable to bank notes as
q circulating medium that they cannot fail to
enter into common use.
As to seven per cent loan, not negotiable be.
low par; it is evident from the language OF the
report of the Secretary that he contemplated dc.
gotiating this loan abroad. That tho thing can be
done, there is no doubt. Fifty millions could be
sold readily in the London market at or near par,
after months notice, and other fifty millions
within few months afterward. This is the opin-
ion of the best informed among our foreign thank.
ers. But the enterprise should be approached
with caution. The British aristocracy arc bent on
making the Southern rebellion succeed, if they
can, partly from knowledge of the discredit IT'D
success would bring upon republican institutions,
and partly from desire to see this great nation
divided and humbled. They will defeat the nego.
tiation of any United States loan in England, if
they can. And it is a NICE question whether, I'M
der the'terms of the Queens proclamation, the.
lending Of money to the United States government
might not be considered departure from strict
neutrality. It is certain that the defeat Of
United States loan IN London, whether on this or any
other grounds, would infect severe moral blow
upon our cause in Europe. If, therefore, such
negotiation be attempted, preliminary assurances
should be obtained that the British government
and our enemies among the ruling classes will in
terpose no objection. If it be attempted to ne.
gotiate the loan here, the clause STIMULATING that
no bid can be received below par should be
stricken out The idea Of fixing, by law the price
which tho government shall pay for money 10
relic ofignorance-as stupid as the usnry laws.
Government, like individuals, must, when it wants
money, pay full value for it. fit doesn't it won't
get it. By the time Mr.. Chase needs to sell his
seven per cents, public credit may be so well
established that people will give premium for
them. II, however, public credit should happen
to be SO damaged that people will not give par, it
is folly to declare by law that Mr.. Chase shall not
borrow Oh such terms.