The sun. [volume] (New York [N.Y.]) 1833-1916, 1862-01-23

TIE Fin.nca.i Msvewe,,- 81 c,,,~r,--
Our n"vs columns today convey The frst In
telngsnes 81 the long expected Annnoisl policy
Ooogess, which, II IL said, NESTS the ap-
prcval OF Secretary CHAsK, and will be by his,
urged upon the country. The bill authorizes
theesus Of demand Treasury notes, beari No no
interest, having no provision for their rodemp-
tion In specie but declaring the same 70 10
legal tender In the payment Of Public ard
Private debts. This will be virtual CANCEL
mont, according 10 present quotations, Of near-
~ Eve pcr cent upon obligations throughout
the country al tho present time.
Within ak months from date, II obligations
can be deferred TO that period, the Bank cur
rsncy OF the country will enable Debtors TO
buy Government paper at probably fifteen per
cent. discount, with which 70 discharge debts
due today in speoie while at a sill further Do
NOD in the future, II tho war continue, the dia-
count OF the Government currency msy inoroaso
In even greater ratio. The making Of these
nots legal tender Is therefore unjust, and, at
the present time, ia q direct premium for the
delay OF the payment Of all obligations.
But IL is to be hoped that no such provision
will 10 enacted and that financial matter. arc
now to be srapplod with cloarer comprohon-
sion, and moro able management, than have
thus FAR distinguished the views and propoei-
tons Of Secretary CHAsK, and that what,vor
may 10 his urgency in behalf Of his favotite
schem,s Of finance that thoro will DO found
upon tho the floors Of Congress, Democratic
repfest natives sufficiently educated by the pro-
eepts Of JACKSON, and kindred Statesmen, TO
rosoiutoly turn against this irredoomable rag cur
roncy ard to resist is issuo 10 the las or remity.
IL Is the mistaken belief Of tho Secretary
that tho creation Of this currency as legal ten
der will sustain its valuo in market 10 nearly A
pa quotation. But it requires no penetration
70 assure him that while tho Z per cent. Troa-
suy notes are already at discount Of nearly 4
per cont. from gold, this now issue, without in.
forest, cannot fail 10 dopreciato still moro
largely, in defiance Of any and every kind Of |
Congressional enactment 20 uphold it's value.
The experience Of other governments has Wis.,
ly dictated the policy TO 10 pursued. In Francs,
the presiding Director Of tho Treasury is au-
thorisod 10 fix such rate Of interest as will |
sustain tho Government floating currency at
par, and a similar discretion is vested in the |
English Fxchoquer department.
Tho temporary payment Of such ratio Of in |
tcrest ss viii keep its currency at paris there
fore, at the present time, the only efficient, Ii.
gitimstc, ard honest power which Congress now
Possesses, TO uphold Its value. If by negligence
and unwiSo delay it has allowed this rate 20 |
advance beyond the usual prices paid for money, |
Il has no recourse except To these prices for tho |
present, and to pay seven, eight, ton, or twelve !
per cent interest, or such rate as will keep iu |
rotes at par until by immediate taxation and
wiser financial management, tho National credit
can 10 improved, and tho rate of interest re-
ducot. Until our means Of revenue have boon
thoroughly tried, and utterly exhausted, our
Government should not unjustly COM
pei its creditors to accept their payment in
deprecated currency, nor should it ondoavor
to iupatt to II fictitious value by arbitrary on
ac'men,s which are unjust to the people, and
which operate TO the invalidation of private
contracts. Lot tho honest course, of paying
present rates Of interest, DO followed by strin-
gont taxation, and by iud'"i""o ..-..y.is for
the security Of boriholdors, and no necessity
will ever exist Of making Government paper
currency legal tender.