Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1861-12-18
NEwBERN, November 20, 1861.
W. ". Holden, Esq, Raleigh, N. c.


NEwBERs, November 20, 1861.
W. ". Holden Esq.,, Raleigh, N. c.
Ny DEAR SIR: was much pleased with Pres-
dent Davis late messageto Congress. 1t was terse,
brief and to the point and so unlike the huge and pom
dcrous State papers which we have heretofore been
accustomed to receive FROM the National Executive,
(the chief merit of which statesmen of that day,
seemed to think consisted of quantity, rather than
guilty y that could not only read it as being
matter of fact and truthful exposition Of our affairs
with pleasure, bu. could do so without being APP
palled by its merninable length The Presidents
exposition of the condition of the Treasury is cheer
ing and the declaration therein that to the extent
that Treasury notes may be issued, the government
is enabled to borrow money aoithout interest, and
thus facilitate the conduct Of the war" is fact
pregnant not only Of great good, but, in my oiin
ion decisive Of our success and ability to carry on
the war to happy termination and without the
intervention of foreign aid and assistance 1t is not
so with the Federal government-their finances are
in most wrctched condition, and their people will
not submit to heavy and oppressive taxation-their
patriot Sun always "kicks the BEAM" when weighed
| in the same scales with the almighty dollar Mr.
Chase the Secretary of the Treasury of the United
States, run aground during the very first month OF
the war; was in New York when he came there
to "raise the wind" to carry on the government
and the lie did not hesitate to declare the insol-
vency of the FEEDER al government and its utter ina
! blty to prosecute the war without pecuniary aid
| from the peOple-all the means of the government
to raise money were exhausted And | have no
hesitation in saying, but for the Bank of Commerce
| of the City of New York the Federal government
would have been brought to "a stand still, and
utterly unable to prosecute this war-and they
would have been forced to have made some satisfac
tory arrangement of their difficulties with the South.
| They had ascertained that they could not eject
loan in Europe, and they too proud and
ashamed, to admit to the capitalists of Europe their
poverty and inability to carry their war OF sub
jugation Of portion of the country, which claimed
only onehrd of the. Union! In this condition OF
affairs, Mr.. Chase came to New York, and was i'm
mcdiatcly coseted with Mr. Stevens, the President
OF the Bank of Commerce. The capital of the Bank
of Commerce was, originally five millions of dollars,
under the general banking law, it was increased to
| ten millions. Ii was perceived both by MIR.
Stevens and the stockholders, that great financial
biunder had been committed in having the capital
Of the Bank thus increased to do fair and legt
mate business in city where the banking capital
already amounted to sixty odd millions of dollars;
with trust companies and savings institutions opcr
ating with capital of many millions of dollars
more The banks were eager TO lend to customers
and it was found that the unwieidy capital of the
Bank of Commerce could not thus be employed
In this dilemma Mr.. Stevens entered the market
with the capital of the Bank Of Commerce. and in
vested the same to the amount of several millions
in the securities of the Federal Government bear
ing interest of six per cent. Several other OF
the city banks having great confidence in his tnan-
cial skill ard Judgment, initiated his example, and
invested largely in the same securities. Mr. Chase
readily represented to Mr.. Stevens that the banks
OF New York mnst lend the Federal Government
one hundred and fifty millions Of dollars, or the
government mast "stop payment" and the Bank
of Commerce. with its enormous amount Of gov
eminent securities, must also necessarily be ruined,
and the only way to save the whole concern, would
be for all Of the banks to affiliate and take the loan
at once; and that the government in fact, must
have their money or their blood" Mr.. Stevens
quickly saw the difficulty, and that his bank was
completely in the power of the government. A
meeting of the Presidents of all the Banks
caIled-the proposition of Mr. Chase was submitted
to them--lt proposed to call in the Presidents
of the Banks Of Philadelphia and Boston-ths was
done-a warm and somewhat angry discussion en-
sued for several Gays, many of the banks protesting
violently against the whole scheme aS being ruinouS
and beyond their ability to carry it out-that their
vaults were now already filled with the suspended
paper of their failing customers and matters were
growing worse and worse, and they would be unable
if they went into this arrangement, to breast the
coming storm. TO all which Mr. Chase coolly re-
piled that ii they did not sustain the government
at once they all ruined without waiting for the
coming storm. Suffice it to say, the banks finally
agreed to lend the Sl50 900 900 in inStalments of
fifty millions provided that after advancing the first
inStalmert, it might be left optional with them
whether they would take the additional instalments
at the several times it had been agreed upon they
should be paid TO this Mr. Chase readily assented
knowing he assured that after they had paid
the first instament they would be unable in the ex-
listing state of things 10 get along without making
the others. The banks then further insisted hoping
that the second and third nstaments might thus
not be needed or required; that the Federal Gov
ernmcnt should prosecute the war with vigor and
effect and bring it at to speedy and cfecual
termination. resolution to that effect adopt
ed by the consent of Mr. Chase and after that func-
tionary left New York for Washington, committee
f appointed, at the head of which Mr. Ste
: vens, to go to Washington and lay the resolution
before the President and to insist that the govern
ment should carry it out speedily and in good faith
Y The New York and Philadelphia Banks carried out
J. their contracts in this matter in good faith. The
Boston Banks snapped of portion of their engage.
t ment with the New England country banks insist.
ing that they bound by the h,g hest consdera
tons of pnriotsm to share with them in this great
financial risk. The banks have taken the second
, insalmcnt and the third and last instament is due
and payable in January next. This they will take
too; and this will be the end of this great financial
S arrangement, for which Mr. Chase has received sc
e much credit and praise in the newspapers. Mr.
S Chase, although the abest man in the Lincoln Cab
met, found to be an imbecie by the Wall stree
J. hnanclerS. Mr. Stevens was the master spirit o.
l. the arrangement, and but for him it would
have been carried out And if it had failed thu
e Bank of Commerce would have been ruined As i
IS he has succeeded in postponing the day of ruiz
st to all of the banks until the first of January 1863
IS There are now large number of persons residing
in the South and citizens of the Confederate States
J. owning stock in these banks, whose monies ar
thus seized and used by the Federal Government il
a carrying on this nefarious and unhoy war agains
d the South. The question is often asked-and it il
e very natural enquiry. long VIII the wa wa
with recognition of the independence of the South
!, ern Confederacy, unless the Federal Government
can receive aid from abroad. And there are obvou
if reasons why it will be so. The only money whicl
lie the Federal Government can command will be tn
fifty millions of dollars which they will receive frou