The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-08-12


ess 20 supposs that the price OF stocks can hs thus
Centralized The effect of this must be to food
the country shortly with an immense amount OF
these notes, which have been forced upon soldiers
or clerks, who will be obliged to sell them to live,
or have been paid for merchandise at ten, twenty,
fifty, or perhaps, before long, even hundred per
cent. above its actual specie value. So long as
Mr.. CHASE can make any arrangements to redeem
these notes on demand, all may go on well
enough. 1t is more than doubtful, however, if he
will be able to accomplish anything which will
give the public sufficient confidence to induce them
to replace their present currency by these new notes.
and thus keep sufficient amount of government
issues aHoat to afford a permanent relief Mr..
CHASE has hitherto concocted his schemes at
Washington where he has from time TO time re-
ceived populations from the different banking cir
cles Of the country. The atmosphere of that city
does not seem, however, to have been particularly
conducive to the healthy development of his plans;
and within the past few days he has sought
change of climate in the city of New York,
where he hopes to find at the same time
comfort and advice from Assistant Treasurer
Cisco and other Republican hackers of the Ad-
ministration. On Friday last there was rumor
that he had actually effected temporary loan of
Sl0,000,000, which was so much more than had
been accomplished for several weeks before, that
there was a slight rally in stocks, and an
''improved feeling at the board'' But the next
day the report was discovered to have been prem
AZURE; and all that was definitely known was,
that after several prelminaries, there was to be
another meeting between the Wall street lords
and the honorable Secretary at the Chamber of
spired. Very little, if any thing, can be accom-
plished there; and there is hardly chance that
any arrangements will be perfected which will
enable the Treasurer to provide for one-fourth of
the notes which we may shortly expect to see
upon the market, purporting to be payable
upon demand. From the Eastern States and
the Western States-from Massachusetts to Hi
nois-from every town in which the Government
distributes these notes, in payment for merchan-
disc, material or supplies, they will find their way
to the great banking centre of the North There
will probably be demand for them for the pur-
pose of paying duties, but this will be of very
|
of a further fall and defer buying until they desire
| to enter their goods. So SOON as it is known that
| tbey cannot all be either sold or redeemed they
will be sold at discount which, from day to day.
will 90 on increasing; and rendered thus absolutely
| worthless as circulating medium, they will be
converted, as provided for by the loan act, into
six per cent bonds, which will be forced upon the
market at rates so much below those to which
Congress has, no doubt, at his own suggestion,
confined Mr. CHASE, that it will be utterly i'm
possible for him to realize one cent from the sale
of them. Government is, by this absurd legisa-
ton, placed exactly in the position of weak
merchant who hesitates to make small sacrifice
for the purpose of obtaining the funds which will
enable him to buy at low rates, but prefers to
give long notes for merchandise at ridiculousy
high and ruinous prices. No government or bust
ness can expect to succeed which is managed
after this fashion.
Like the rest of the policy pursued by Mr.. CHASE
this last scheme only shows more clearly the weak
ness and contractedness of his understanding; and
the only results of his sagacty will be to depre-
ciate the stocks, upon the sale of which the Gov
eminent must rely for support, and to offer in
ducemens, to those who still have confidence suf-
Gent to invest in United States securities, to buy
up the very Treasury notes he is anxious to keep
afoat, for the purpose of converting them into
bonds.
The pet bank scheme, upon which Mr.. CHASE
relies as the cleverest part of his pan is rendered
almost nugatory by the issue of Treasury notes.
As it has been for some time impossible to dispose
of government securities at the limit which has
been fixed for the sale of the new issues it is evil
dent that unless some extraordinary inducements
be made to capitalists, it would even if there were
no further depreciation in value, be utterly impos
sible to dispose of the stock. This end is pro-
posed to be accomplished by making those banks,
which purchase the stocks, banks of deposit and
permitting them to retain the whole amount of the
purchase money until called upon to redeem the
Treasury notes.
An amount of interest would thus be earned,
which would be proportionate to the amount OF
treasury notes kept afoat, all of which would be
clear profit to the banks. Thus, if bank were
to purchase So 900, 900 of bonds, it would have
that amount in its possession as a deposit draw
ing meanwhile interest on the stock at the rate of
1
would be diminished by the redemption of treas
| ury notes; but, under any ordinary circumstances,
the banks would not be expected to be called upon
| 10 take up at an outside calculation, over one
half of these, the rest being kept afoa in general
circulation. In this case the bank would be
drawing interest of 80 per cent on SlO,0 00,-
900, while it, in fact, had only made an outlay
| of $5,OO0,O0O. In other words, it would loan out
| its money at IA s-l0 per cent. If this could be
effected, the banks could well afford to purchase
at the rates limited for although the stock should
decline several per cent, the loss in value would
be made up, by the gain in interest, the first year,
and the banks would then continue to draw, so long
as the circulation was kept up, very handsome
| interest for their investment. 1t is scheme,
| however, which can hardly succeed. The large
amount of small treasury notes about to be
| scattered over the country, will find their way
| directly to the places specified as Offices of re-
demption; and it will scsrcey be practicable to
| keep any considerable amount in general circula.
| ton, so long as we have currency as sound as
our present one. If, however, the scheme should
succeed, and bankers should be found who think
their own selfpreservation depends upon the sup
port of the Government, it can only result in an
initiation ofcurrency, which, far from beneftting
any one, will only make more certain the disas-
ter and ruin which now threaten our mercantile
classes. Altogether it is scheme ofwhich its orig
inator has no cause to be proud. If successful
for the moment it cannot rebound 10 his credit; if
a failure, it can only render him the more con-
temptibe.
peared, on Friday last, an account of the disgrace
full LINCOLN demonstration by which Mr.. BRICK
INRIDGE was prevented from speaking on the pre-