The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-08-14


of the State street 6nanciers upon the
important question of the government loan
1t appears that the directors of the Boston
banks held meeting yesterday, and consider
ing the question as being one ofpublic necessity,
appointed committee of three to confer with the
committees of New York ard Philadelphia,
with the instruction to inform the New York
and Philadelphia bankers 'that the banks and
bankers of Boston, and the State of Massachusetts
and its people, are prepared and willing to fur
nish men andmoney TO the utmost extent OF their
ability, now, henceforth and forever" Realizing
lion would make their bank securities of little
or no value, and place the finances of the
country in doubtful condition-also that q re-
sort to national or peoples loan would vir-
tally swamp every banking institution in the
country-they have come forward and an
nounced their willingness to take their share of
the loan, and continue to do 80 TO the extent of
their means as long as the government shall
need it to suppress the rebellion.
In promptly adopting this course the State
street financiers have set an example worthy of
emulation by the philosophers Of Wall street.
We have not as yet been advised as to the course
that will be pursued in regard to this important
question by the bankers Of Philadelphia, but
inasmuch as Secretary Chase has been there, we
she'll probably learn within the next twenty
four hours whether they adopt Wall or STATE
street as their model. Nothing new has tran
sphed in Wall street in regard to the subject.
The committee appointed at the recent meeting
have not reported, doubtless waiting to hear
from the other important financial points. Thus
far, therefore, the only favorable response to
the call on the part Of the government has
come from Boston, although it is apparent that
the prospect of Secretary Chase adopting Ma
poleon's plan for the loan creates no little
uneasiness in financial circles in this city.
The more this question is dwelt upon the
greater magnitude does it assume. The strict
provisions of the law as passed by Congress
have placed the nation, in financial point Of
view in a position critical in the extreme.
Plunged into the most unjustifable and extern
sive rebellion known to the world, the legisla-
tive branch of the government passes a law
calling for loan and debating the terms upon
which the financial men shall furnish the money.
One city only comes forward with favorable
response, the real financial centre of the coun-
try refusing to furnish the means asked for at
the price fixed by Congress. The exigoncies of
the moment are such that it leaves the financial
officer of the government but one alternative
and that the resort to the Napoleonic or peoples
loan. The bare announcement of that policy
will create panic such as has never taken place
in this or any other country. The parties to
whom the two hundred and fifty millions now
in the savings banks belong will no longer hest
tate when they can increase their interest
from five to seven and three-tenths per
cent-.he former doubtful and the lat
ter the very best of securities-but
will forthwith demand their money The
result of This universal demand is better inn
agined than described. Our savings banks loan
the money which they receive on mortgages
upon real estate and the purchase of first class
stocks and bonds; il is in this way that they are
able TO pay their depositors interest. Let this
money be demanded, and those mortgages
stocks and bonds will have to be thrown upon
the market to obtain money to pay the depositors
The class of depositors such that at the first
symptoms of a crisis, even il they do not wish
to purchase Treasury notes, they will forthwith
call for their deposits and the result will be the
same. The failure of the savings banks will
carry with them all other banking institutions,
and all will go down together in the crash.
We repeat il, The financial affairs Of the
country never stood in as critical a position as
they do to-day. Thirty days from this may see
the banks and financial firms tumbling in every
direction The Wall street philosophers may,
however, in view Of the action Of the Boston
bankers, reverse their decision and decide to
furnish the money even at the Congressional
figures. Should they decide upon that course,
we may escape the storm that is now pending;
If OF, look ont for breakers.
REORGANIZATION OF THE CoMAiIssARrAT.-It
and the chief Of the Subsistence Department,
that the day previous to the battle of Bull run
10000 rations, or provisions for four days,
were served ont TO the army. The fact that the
troops went hungry into the fight is therefore
attributable solely TO the inefficient commits
sariat of the different regiments. Now that the
government is vested with The power OF remov.
ing incompetent volunteer officers, after exami-
nation by proper board, too much care cam
not be exercised in scrutinizing the qualGca
lions Of commissaries and quartermasters. II
is TO the total ignorance of their dnties on the
part Of these persons that the bad treatment of
the volunteer troops has been mainly owing.
To guard against it in future no one should be
appointed to either Of these posts who has not
had some military experience, hut more espe-
cially in the provisioning Of troops. The rations
issued by government are admitted to be alum
dant and of the very best quality and. with
proper regimental organization. there is no
reason why there should be grounds for any
further complaints in this regard.
Officers must be taught that it is their duty TO
look personally 10 the health and comfort of
u. ~, h.o