The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-08-04
Our Financial system,

Our Financial system,
There is no better way OF aiding the rebel
lion than by constantly assaling the financial
system Of our government. If the confidence
of the people, upon which this system greatly
depends, is once thoroughly destroyed, we are
entirely at the mercy Of the rebel leaders, for
we shall have no armies, and no means to raise
and support armies. Whether the system is
good, bad or Indifferent, therefore, it is equally
Cur duty not to assail it; for, if bad, it cannot
be revised and amended at present, and we
have to make the best of it or give up the war
Conccding, then, all that the opponents of Mr.
Chase claim. it is very clear that they are prac
tically assisting the rebels by endeavoring to
destroy public confidence in financial system
which is imperatively necessary, which is in
actual operation. which is not now open for
discussion or amendment, and for which no one
has suggested a better substitute.
But, reasonable AS these financial croskers
are shown to be in this view OF the case, they
appear in much worse light when we consider
that our financial system is neither bad nor in
different, but positively, comparatively and
superlstiyely good. 1t is positively good as a
theoretical system Of finance adapted to crisis
like this. II is comparatively good in its supc
riority to the financial systems formerly adopted
by ourselves aud by other nations during very
similar crises. II is supeglatively good because
il mas accomplished the purposes designed
by the government, because il has been cor
daily and unanimously accepted and endorsed
by the people, and because it has conferred
upon us countless advantages, without a single
damaging drawback. The most dismal inan
cial croaker. al home or abroad, cannot deny
the fact OF the success OF our financial system,
but only contends that this success is tempo
rary and Is more Than counterbalanccd by the
disasters which will follow. To corroborate
these predictions Of disaster, history il com
PEELED to hold up the skirts Of prophecy. and
our paper currency il compared to the assgnats
OF the French Revolution and the Continental
money Of our own forefa.hers. Unfortunately,
however. this comparison does not hold good.
Tie sssignats and The Continental money were
mere government shinpIasters issued 10 supply
the national treasures with current funds just
as our storekeepcrs Issue shinplasters to supply
small change, but without any real basis Of
value, any sure protection against ovarissue, OK
any practical provision Tor redemption. Mr.
Chase's Treasury notes are no such shinplaster
issues. TIE rebels have the entire monopoly
Of that sors Of paper money. The Confederate
bonds. ana not our Treasury notes, are the mo-
dern fac SMILES Of the ancien. assignats and old
Confidential currency.
The objections which are valid against The
paper money of the American and French Revc-
buttons, and which only the stern necessities o.
the Hmes were sufficient 10 overcome, do no. al
ell apply, theretors, to our present financial
SUSTAIN. Our paper money has real basis Of
value; for II u based upon the resources oil the
country, rendered available 10 she government
through the Tariff and Tax hills, which co.lsti-
tGss parts of tbs integral system. We are pro
tscted against an evsrissoe; for the amount fer
which notice con b Issued ID definitely get
tied by acts Of Congress; and, besides
this, it 10 carefully arranged that, Il the
issue Of notes exceeds the requirements Of
the circulation Of the country, the surplus can
be invested in United Ststes bonds, paying sir
per cent interest In specie. Thus, slso, we
have practical provision for the redemption
Of these notes; for they are convertible into
bonds which have not only their interest paid
In specie, bat ere themselves payable in specie
after the lapse Of = few years How, then, caa
the opponents Of Mr.. Chase compare this self
checking, selfregalating system -by which the
tai and the tariff are made TO sustain and ulti.
mstely 70 redeem In specie the issues Of United
Statca honda ana Tyv0sI,rv notau and M crt,ct
the amount Of the Treasury notes in circulation
is limited not only by act OF Congress, but by
the requirements Of the business of the coun-
try--with the loose, disiointed, RECONSTRUCTED
and worse managed shinplastsr systems of the
French and American Revelations, which had
no basis but necessity, which regulated the
amount Of paper issoed only by the necessities
Of the government, and which made no ade.
quste provision for the redemption Of their