The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-13
next we hear is that "All is quiet at Memphis"
and that the merchants intend starting imme-
diatelp for the North to purchase goods.

New ISSUE OF DEMAND NOTES.-The govern
ment is about to make new issue Of demand
notes of small denominations, amounting in
the aggregate to one hundred and fifty millions
OF dollars. Some objection has been made to
this currency; but experience has proved that
1t is the best and the safest for the community.
Heretofore brokers made fortunes by the de-
probation of the small notes of the different
States. SO great was the discount that some
wildcat currency was deprecated even ten
per cent The discount came, of course out
of the pockets Of the people, and the money
dealers were made rich at their expense
Sometimes the banks issuing bills were broken
and the notes became worthless. In this way
the losses Of the people were considerable.
The new currency Of the general govern
ment remedies all these evils. It is safe and
sound. 1t is as good as gold everywhere. Such
is the appreciation in which it is held at the
South that as soon as our armies take posses
sion of rebel city there is great anxiety to
invest in these demand notes, and to get rid of
the Confederate shinplasters as soon as possible.
Why is it that federal paper holds so high
rank? 1t is because of the basis on which it
rests, the strength and stability of the govern
ment, its good faith to the creditor, and its
ability to pay. The value Of the demand notes
is further enhanced by the patriotism of the
people, who, under no circumstances, will de-
preciate them; for that would be only destroy.
ing their own public credit, and the loss would
have to fall ultimately upon themselves.
All that is needed to perfect the security of
these notes, and to make assurance doubly sure,
is to pass the Tax bill, and that is now at such
stage that a few days will suffice for its final
passage, by the agreement of the Senate and
House of Representatives on the points on
which they differ. 1t will be Immediately
signed by the President, as matter of course.
BY this bill and the tariff an income will be
secured Of over two hundred millions per an
mum. According to the calculations Of Mr..
Chase, the average of the interest paid on the
government bonds is four and three-quarters per
cent; but let us put it at five per cent, and we
would thus have, by the results Of the Tax
bill and the tariff, the ways and means of
not only paying the interest on the war debt,
but Of creating sinking fund to pay the prin
cipal--a payment which will be so rarely de-
handed that it is merely nominal. Even
should the expenditures finally foot up
four thousand millions, which is far
higher figure than they can ever reach,
the estimated products of the Tax bill
and the tariff would be ample for the payment
of the interest. Thus from the vast resources
of the country, from the diffusion of wealth
and the patriotism Of the people, tremendous
war can be carried on without material injury
to the finances Of the country, which would
render bankrupt in one year the greatest Power
of Europe. This is the secret of the safety and
security of the demand notes of the govern
ment of the United States-a mystery which
astonishes and confounds the calculations of all
the great inanciers of England and France.
THE NEWS FROM MExIco-THE DEFEAT OF
THE FRENcH.-The news from Mexico which
we publish this morning is of the highest
importance. It more fully confirms the
intelligence we have previously received
Of. the defeat Of the French army at
the gates of Puebla. This reverse to the
French arms is but natural consequence
of IN invasion which the better judgment Of
the Emperor Napoleon should have prevented
him from undertaking. This first sanguinary
encounter is only foretaste Of other conflicts
more severe and terrible which must hereafter
occur in that unfortunate country. unless the
Emperor should, as soon as he hears this news,
decide to recall his shattered army and aban-
don the Mcxicans to themselves. If he consult
the interest Of France and the welfare Of his
own dynasty, he will not seek to prolong
bloody war, at a long distance from his empire,
at enormous expense, and for no useful or pro-
gressive purpose whatever. Surely the unjust
claims of Jecker Il Co., and the welfare of di-
lapidated branch of the house Of Hapsburg, are
not considerations Of sufficient weight to cause
the useless sacrifice of thousands of valuable
lives. But this will be the result il the En-:
peror, instead of recalling the present troops,
should decide to send new levies into Mexico
to sustain the French troops already in the
country.
The repulse of the hitherto unconquerable
soldiers of France, the heroes Of Africa and of
Italy, cannot be expected to please the Emperor
very much. But whether he will send large
army to Mexico or not remains to be seen. The
injured pride Of the nation may prompt him
to attempt to overrun the Mexicans; but his
calm, sober second thought will cause him to
beware. He cannot forget that there are six
millions Of Mexicans, divided in politics, but
united like one man for the repulse Of their in
vaders. However large an army the French
may be able to send in ships across the ocean,
the Mexicans on the spot will overwhelm them;
and after . desperate struggle Of months, If
not years, the invading army will have to
retire greatly the losers. Besides, the Ameri-
can rebellion is drawing rapidly to close, and
the great army Of this republic may find some
work in Mexico, If the existence Of that re-
public be endangered by European invaders.
The Emperor Of the French had therefore bet