The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-02
events to which the ewes Of ali operators are now

Jacinto, and the delivery Tuesday of the Presi-
dents Message. The bears build great hopes on
the former. They argue that England will demand
from this country apologies which the United
States cannot grant, and hence that the national
| cause will meet with a check which will enable
them to realize profit on their contracts. On the
other hand the bulls look forward hopefully to the
Presidents Message. 1t is generally believed in
intelligent circles that the Message will be calm,
statesmanlike document setting forth the cnor-
nous strength which the nation has deve-
loped for the suppression of the rebellion; demon
strating the certainty of the success of the 60
vernment; and referring to the affair of the Trent
| and the Mexican intervention in such terms as will
remove every apprehension of foreign trouble tits
taken for granted that its general tone will be
hopeful and cheering.
Much curiosity is felt with regard to the report
of the Secretary Of the Treasury, which will be sent
in with the Message. In Saturdays HERALD we
published statement of views which may per.
haps find an echo in the report The public must
not be surprised it, as an alternative for the issue
Of large amount of demand notes-0therwise
known rs United States notes.-the Secretary
should directly recommend the establishment of
United States Bank of issue, with clause in its
u
be perceived at glance that the issues of bank
owned or protected by the United States go
vernment would be as safe and sound
the issues of the best of our North
crn banks, or as United States notes or
bonds. The advantage Of superseding the
$50 900 600 Of heterogeneous bank notes now cir
culating throughout the Northern States by $780,
600 coo Of United States currency, at par every
where and redeemabe for gold in moderate amounts
at any of the bank agencies, is obvious at
glance. II may take some time to satisfy the pub
lie that United States Gank would bear
resemblance to the first than to the second nstitu-
ton Of that name which is known to our history.
The first United States Bank established
solely for the purpose OF "tidng' the government
finances over period Of accidental financial dii-
Guilty; when that period expired the Office of the
bank was fulfilled and il was allowed to 20 out ofex
istcnce The second United States Bank, though
established for various objects, eventually to
be mere "kite-fyer," whose principal business was
attempting to balance our foreign trade with bills
Of credit based upon nothing Such an institution
could come to nothing but ruin. But the discredit
which it brought upon the title of United
States Bank should not be allowed to prejudice
the fortunes of similar bank at the present time.
new United States Bank, chartered in view Of
the war, and destined, necessarily to 60 out of ex-
istence as soon rs the new financial status growing
out of the war were brought to a close, need not
involve any danger and might be SO organized
to be as beneficial to the general commerce Of the
country as to the government. 1t would, of
course, prove fatal to the sickly and dishonest
Institutions known as banks Of issue in the rural
l;-tr 10,
avoiding the redemption thereof. But it would
prove ally and friend to the banks Of the
cities of New York, Boston and Philadelphia, by
relieving them of the burthen Of carrying the GO
vernment through the war and thus leaving them
free to fulfil their natural destiny in the accommo
dalton Of their commercial clients. The great ad-
vantage which the government would derive from
| the establishment Of United States Bank would
! be the saving of interest on or two hundred
| millions of dollars which it might issue in the shape
Of bank notes, either rcdcemable in gold on pre-
senation or rendered a legal tender by act Of Con-
eress. Four months experience has developed
great difficulties in the way of floating large
amounts of United States notes under the act Of the
last session OF Congress. Laboring men have not
yet learned that they are in effect money, and as
fast the aborers at the forts in New York harbor
and the troops in Virginia are paid in these notes,
they come back to the Subj Treasury for redemp-
ton in specie. Time would. Of course, overcome
this difficulty; but time is just what cannot be
afforded just now. 1t is not improbable that the
Secretary may suggest that the present moment,
when the banks are overfowing with gold, and the
country is hundred millions richer in specie than
it was year ago, is proptious for a third expert
ment Of United States Bank.
1t will, of course, be argued by the bulionists
that the establishment of United States Bank Of
issue, and the emission Of one or two hundred
millions of circulating notes or United States cur.
rency, based upon government credit, will lead 10
general imitation of credit, which, in its turn, must
| be followed by disastrous collapse. All this may
be true enough but how can the imitation be avoid.
| cd, An expansion Of credit is unavoidable, what
ever he the shape in which the money is obtained
| FOR the prosecution of the war. The government
cannot spend and half millions a day, as it is
| doing, without adding that amount. in some
| shape or other. to the currency Of the country:
whether the money be represented by 7.30 Trcasn-
| ry notes. or by twenty year bonds or by United
! States notes, or by the issues OF United States
| Bank the result will be the same. The only dill
| ference between the various methods Of
| raising the money required consists in the fact
| that if the government raises money by issuing
| 7.30 notes OF six per cent bonds large amount
| of money will be needed to pay the annual inter
| est, whereas an issue Of United States notes or
United States Bank notes would involve no outlay
| for interest. As to collapse after the war; that
| ia matter which, foresecn long since, can surely
| be guarded against by all prudent traders. To
argue that Il quickcning of trade and a sudden de-
vcopemcnt Of industry and enterprise TO be
deprecated because they are liable to be followed
by reaction which often proves fatal to rash
spectators, is the old argument. which has been
adduced against every good thing-namely, that it
may be overdone. If government can bring
this war to close without increasing the annual
expenditure for the payment of interest on the
national debt, and can at the same time furnish
the country with sound currency, and stimulate
trade, industry and general business to unwonted
activity, no subsequent reaction would be too dear
price to pay for the present gain.
The receipts of the New York canals for the
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