New-York daily tribune., 1861-12-31
THE NATIONAL FINANCES.

Mr.. Gallatin, at the meeting of Bank man.
ayers on Saturday evening, spoke at length in
criticism Of Secretary's Chases financial policy,
which he regards as the main cause for the
present necessity of suspending Specie Pay
ments. We give the following letter from Mr.
G.. to Senator Fessenden, which embodies his
affirmative SUGGESTIONS
NEw-YoRK, December IL, 1861.
To the Hon. W. P. FEssEsDss Senator United States:
In accordance with your Kind invitation. it affords me
pleasure to communicate with you.
The proposition othe Secretary Of the Treasury to establish
system Of currency the basis Of the Government debt
similar the system prevailing in this State Is very much
ess Objectionable than the Issue Of Government paper by
the Government BY opinion of that measure, and OF the
Of loans which will absorb has already been com
muhcated to the Secretary of the Teasnry and herewith
submit copy of It for your peusa Indeed nothing has
occurd alter the views expressed In my letters to the
Secretary Of the Treasury alter the accession OF the
present Administration and Of these also submit copy In
print, The measures which Government seems called pron
to adopt are In my humble judgment, as follows. "a
l. The issue Of Government obligations IS email % S. AlO
and $40 to contr.ors and Or supplies bearing moderate
rate interest ay about three per cent? until funded to be
funded ia wentyyesrs' 'ay per cent? stock when
PRESENTED Of the Treasury in Of to or over In even
hundreds &c. ~ .-''f taisao' - 49, 70
O. Tho issue Of Government stock on portion OF which
interest principal should be payable in Europe to be sold
In the market upon the best that be obtsined for
that payable here ss well as tba. payable in Europe
The draw Ing direct upon the banks for proceeds Of Gov
ernmen. loans taken by them.
The increase Of drec. taxation particularly on Injuries
such a. pianos carriages, &C. which would fall lightly the
poorer classes In preference to hsh duties imports the
latter being already in almost prohi5oy and II
further increased would offer pIeminn to smuggling
In relation to the first may be advisable make the rate
Of interest low urge in the obligations to be funded
These issues are in the Of what known in Europe
Excbeqaer Bis and might be termed or denomina'ed
Treasury Warrants.
On the second would ouly refer to the relief
which the sale Of stock in Elrope might srd dining any
future monetary essency likely TO arise IN the progress o. the
war, or upon the termination Of hostiities.
A. to the third suppose the Secretarys objection i
founded more upon technical grounds than upon matter Of
pncplc for that the provision In the loan acts
year authorizing Secretary fthe Treasury to draw
upon the banks and keep accounts with them was particularly
intended % authorize a' Ter disbursements against the do
posts created BY the taking leans This Of vital i
porsuce to the working both Government and bank ansn
ce. and Ia the .ny way in which loans be safely taken
BY the banks Ihe ,houdso prefer he could make his drafts
upon banks any city payable at bank In
that city and the eIch at all places throughout upon the
Union the THREE CITE. being or at premium these
drafts would circulate freely, and facilitate tho inland
changes and avoid the displacement Of coin. Indeed weud
be advisable make oil his das the banks Of the three
citiesNew York Philadelphia and Bos.on-for such drafts
viii always be at shove par throughout the coun.fy aud
would resct oil drafts the banks Of the three cities for
this very important tba: there would be no r'k Of
oss 10 the Government the specie Of s te banks IN the C
ofNew.York being now common fund
Here nay permitted to refer to what the osrhs Of the
three cities have done TO sustain the credit Of the 0ovenmen
and preserve our liberties Selfish motives OF gnn never FOR
moment retarded their patriotic efforts and would respect
fully urge upon your confederation the Prepey Of eaSracnf
10 the loan act. Of this session provision fOI indenyns
them M case the GoyeTnen. should make negotiations a.
lower rites than those which have governed the taking o. the
Iosrs authorized BY the acts Of the last session
T, course usual and trust the equity and The justice o
1. will commend themselves to your judgment
Upon the fourth point, you will sree with deee' not
that any tariff which would sim at revenue and fair pToee
,ion u nome Industry reed not lie absolutely pEohibory
and ru., you will also agree with that good policy ana
particularly regard for the pacific relations nsppy sness
Ing between our own other countries require that we
should no, now efforts of extraordinary character 10
promote investments Of capital channels Of industry
which nsy prove hazsrdous roGtabe We need now to
bu,bsud oar capital snd render ell efficient as possible
Had We surplus Of capital, case might be different
v.,v re,c.e,s,lly ycurs, JAMES GALLAT1N
unBDzsessEz1SsvsDna