The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-07-22

the intention OF circulating them "in lieu OF
lawful money" The meaning Of the act is
very plain and easily comprehended.
Gold, Foreign Exchange, Paper Cur
rency and the Panic Makers.
A class of persons, who pretend to pos
sess great financial wisdom, have been labor
ing zealously to destroy public confidence
in the financial system established by the
administration to furnish the means to carry
on the war; Looking at matters through
tie eyes OF a sub basement broker, and without
capacity to comprehend any extensive system
Of national finance, they, upon every rise of
gold or foreign exchange, raise the cry that
Secretary Chase's paper money is the cause and
that ruin and disaster must follow the continue
ton Of that system. For the purpose of proving
themselves prophets, they assert that they last
year predicted this result, and urged upon the
banks to sell their government securities and
invest in gold, in preparation for this condition
of affairs.
All this may do very well for men whose
only idea is q percentage on gold and exchange
purchases; but a financial system that will
0A~oiS 6oVCAuuCup w lalSCy Cuuip tNlu IccO
an enormous army, and carry on war, can
never be successfully established on any
such basis. 1t may answer in time of
peace, when the regular lines Of commerce
are uninterrupted and communication is open
with every section of the country, but not in
times Of war like the present Suppose, for
instance, that the banks had adopted the sys-
ofH ,p.x +Ho..,
the market, and boarding the gold, what would
have been the result? Such a course would
have deprecated the stocks and bonds OF the
government, and rendered the raising of the
amount necessary to equip our armies and
strengthen our navy almost an impossibility,
and would have thrown the country, six months
ago, into hundred times worse condition than
we possibly can be in now. In other words, in
stead of the banks strengthening the hands of
the government, they would have fettered them,
and at the same time rendered unmistakable
aid to JEFF. Davis and his co-conspirators. We
all know that the timely move Of the banks of
New York, Boston and Philadelphia, in taking
government loan Of upwards Of one hundred
millions Of dollars, not only saved us from
financial ruin, but prevented a successful raid
of the enemy into the Northern States, which
they would have made had not the government
been in possession of the financial means
to organize and equip an army. The paper
currency is but part and parcel of
that policy which has carried us success
fully through TO the present time, and
was, in fact, indispensable to our financial
success. Had the recent series of severe bat
ties on the peninsula resulted in the capture of
Richmond instead of check to the advance of
our army, no person would have said word
against the paper currency but all would have
acknowledged it to have been wise and bcne-
fetal system.
The adoption of the system of paper currency
was, in fact, inevitable and indispensable to the
prosecution Of the war; We could not have
got along without It, Had we been at peace
II would not have been needed; but, situated as
we have been, with an extensive war on our
hands-compelled to rely solely upon our ewn
resources; cut of from the aid, and we might
say, sympathy, Of other nations; looking en-
tirely to the confidence of the people--its adop-
ton was unavoidable. There was no alterna.
tive but financial ruin and disaster to the
country. The 6uctuation and sudden rise in
gold and foreign exchange is only temporary
affair, and the inevitable result of bad news
1t does not in the least affect the value Of the
peoples money, but only exhibits to the
world the fear and tlmidity Of few brokers
and small class Of financial mon. Let our
ory, aabiavo q At -
and foreign exchange fwill Immediately fall.
and paper currency be again in the ascend
ancy. The citation OF the paper money Of the
Revolution, and that of France during the
French Revolution, has no bearing upon the
present system ofthe government whatever. The
paper money issued during the American Rcvo-
luton had no government revenue or tax to sup
port it, and in fact no basis to fall back upon
whilst that Of France during the French Revolu
ton was simply the dictum Of the French govern
ment, and had no basis for its support The
system adopted by our government, on the
other hand, is an extensive and elaborate one,
and has for its basis o national tax and is, in
fact, similar to that adopted by England, which
enabled that government to successfully carry
on 1t. twenty years war against the continental
Powers and the first Napoleon. It is, however,
moro carefully arranged in detail, and there
lore superior to even the successful financial
policy Of England. That any serious financial
disaster can befall the present system we do
not believe, the croakers and panic makers not
withstanding. That panics and sudden auc
tuations will take place Is inevitable as long as
there is any danger to the rapid aud success
full march Of our armies. There is. however,
no other system that will carry us successfully
through our present difficulties. IL is war
measure, and would never have been needed In
times Of peace The arguments and the hue
and cry against 1t would have done very we'll
in times of peace, but have no weight under