Daily Democrat and news. [volume] (Davenport, Iowa) 1859-1864, 1862-01-29
Tae FINANCIAL sCHEAE.


n. n. wlCluARDsOE, Editor.
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THE FINANCIAL sCHEAE.
Tn another column We publish COM
prehsn.ivs synopsis Of the important
sn.ooi.l measure recently concocted by
The Committee on Wsys and Means tor
the purpose Of relieving the couotr,
from present and prospective financial
embarrassments. That this plan 30 laid
down will become . law, there is but
little room for doubt, neither in our
opinion is there any grounds for be
lief that the scheme will operate
smoothly as it is probably intended.
1t comprehends the Legislation OF pa
per into metallic currency-or theIsame
thing. This same thing has been tiled
over ard over again by individuals, by
companies, by corporations and by ma
tions, but We fail to find, on the page Of
history, anything which leads us to be-
lieve that success ever attended tho ell
fort. There may be an exception to
the general rule in these days, but we
hardly believe it.
Here We find . hundred millions Of
paper currency, bearing no interest, put
out in enc batch. 1t is made legal ten
der in the lands placed on the same
shelf with solid specie. Specie never
falls below par-never is deprecated
never gets above par-but always
stands at the same point of valuation
through all times and all circumstances.
Now what will make these treasury
notes legitimate representation ofspe'
Gle Their redemption at par, not in
treasury notes again, but in specie. 1t
is true that these notes are to be payable
on demand, bat it is not to be supposed
that they will be. There is nothing Of
the kind contemplated-that is to say
the Government does not intend to keep
fifty or seventy-6ve millions Of dollars OF
gold and silver in it's vaults for the es-
pec'al purpose Of meeting these notes.
Yet holders will naturally desire to keep
grinding them through. But should
the Government, contrary to present ex'
pectation, redeem these notes, they will
of course remain permanently at par ;
but should it fail iu so doing, no leglsla
ton Of any character, no power in the
land or outside of it can prevent their
depreciation.
But there's no use in speculating over
this matter; the bill will probably be-
come a law very soon ,and then in the due
course Of events we shsll have an oppor-
tunity to see whether or not the act Of
legislating rag currency up to the specie
standard will keep it there. The plan
will undoubtedly afford q temporary re.
lief For time the country will be flush
with paper promises and matters will
progress swimmingly, but the day OF
reckoning will be sure to follow. So
be it.
The proposed FIVE hundred millions
Government bonds are to draw in
terest from the time Of being issued, at
the rate Ct six per cent, which in the
aggregate amounts to thirty millions
per year.
The New York Tribune calls atten-
ton to the fact that the bill is silent up
on this very important point, namely ::
In ,chat Is the interest on the bonds Is.
sued under Ms provisions ofhis act to
be payable ?
1t argues that
sit is oil very we'll to say that the
Secretary Of the Treasury may issu.
bonds expressed and payable in foreign
currency, and drawing six per cent. 10.
tercst but the takers Of these bonds
will want to know whether their elk
per cent. is to be paid in the equivalent
OF gold or the equivalent of treasury
notes, which may be eqnal to god, and
then again may not. Make the inter e.,
OF these bonds payable in gold, and
they will have real basis in the alb
sence Of such basis, the whole scheme
seems to us to SAVIOR too much Ct that
noted Hndoo cosmogony which every
one has heard Of. Treasury notes paw.
able on demand in 20 year six per cent.
bonds, the interest pay able 10 gold, are
tangible but We are not sure tina,
Treasury notes whereof the interest i.
payable in Treasury notes are the same
thing"
Tnr Times Washington correspondent
says the Yankee yearning for Southern
trade 10 extraordinary. Scarcely . day
passes without numerous applications
being made to the War Department, for
permission to take vessels into Port
Royal, laden With assorted carpoes Of
shoes, blankets, salt, Deedles, pins,
Quinine. &C.. &C.. in every casa !. 10