The New York herald., 1862-02-05

sentatives, which we published yesterday,
gives a clear exposition not only Of this mea-
sure, but of the whole system of measures Of
which it is part. 1t is only when the bill is
thus viewed in connection with the bill for the
issue of United States bonds to the amount OF
five hundred millions $500 900, ,OO0), bearing
six per cent interest, redeemable in twenty
or thirty years, interest to be paid in
specie the bill to raise taxes to the
amount of Sl50,O0O000, for the specific
purpose of paying the interest and prin-
cipal of these bonds, together with the ordinary
expenditure of the government; and the Bank
ing bill, by which the banks of the country
will be furnished by the government with an
issue of new uniform currency, for which the
banks will have to deposit with the government
an equivalent Of United States stocks, better
security than the State stocks, upon which the
currency of the best of the State banks is
based, to say nothing Of the hundreds
of rotten and ricketty banks whose
issues are secured only by fancy stocks, and Of
ten have no security at all-it is only when
viewed in combination with these measures
that the Demand Note bill is seen in its true
light; for the notes are to be exchanged, at
the option of the holder, for the six per cent
bonds, and the bonds are to be secured, inter-
est and principal, in specie payments, by the
Tax bill.
Under these circumstances, why should not
the $150,000,000 demand notes be made
legal tender! They ought to be as good as
cold Tho o<x, of thoy,,o n 1oro1
tender may be seen in the fact that $150,OO0,-
900 of taxes are to be raised. In what money
are these taxes to be paid? Not in gold, fog
that cannot be had; and not in the dubious
paper money of the banks, so liable to depre-
ciation.' The demand notes, being at par, a
standard of value and legal tender, will ex
actly suit the purpose.
The issue of these notes is required for the
immediate purposes of the government, and it
is only temporary measure till there is time
to put the Banking bill into organization, which
will furnish the country with more perma-
nent currency. The demand notes, having
served their purpose as circulating medium
for short time, will be funded at par by the
holders for United States stocks bearing six
per cent interest. This provision alone would
prevent the depreciation of the notes, even if
they were not made legal tender; for the
moment there was a tendency towards an ex-
cessive circulation of the paper q check
would be instantly put upon it by the funding
process, which would soon diminish the circu-
lation and thus restore the equilibrium. By
the time the demand notes are funded and
nearly out of circulation the Banking bill will
come into operation to supply their place with
sound paper currency, which will be guaran-
teed to the people by United States stocks,
and will have the effect of getting rid of the
$3.50, ,OOO,O 900 of spurious paper money now
afoat among the community.
This new currency will be accessible to any
of the present banks who desire to purchase it,
or to any new banks that may be organized,
the terms to be the purchase and deposit with
the government of United States stocks to the
amount of bills issued. This arrangement
will obviate the objection to the establishment
ofa bank of the United States, which might be
used as political engine, to the detriment of
the people. The currency thus sent abroad
will be better secured than Bank of England
notes. whose bills are based upon the stocks Of
the British government. Why are those stocks
considered 80 good security! Because the in
terest is punctually paid in specie or its
equivalent. 1t is well known that tie principal
will never be paid. But those who invest do
not want the principal. Their object is the in
terest; and if any holder should desire to OBJ
tain the principal he can at any me-
ment find a purchaser who will pay it
to him. Now the new currency of the United
States will have better security than the notes
the latter are secured are also security for the
deposits of customers. The value of the secu-
rity is thus lessened by being divided, whereas
in the case Of the new American currency the
security will be undivided and pledged special
ly and exclusively for the payment of the notes.
Meantime let the Demand Note bill be pushed
forward rapidly; for the troops must be paid,
and the military operations must be carried on,
unless we are to abandon the war. And let the
Tax bill speedily follow it, and not be delayed
till April, as is now intimated. By the passing
of tax bill the demand notes will 60 off we'll
from the start, and no attempt Of scheming
fnanciers and spectators can succeed in depre-
ciating them. The Tax bill will be the true
alchemy which will turn the paper money of
the government into gold. John Randolph
once said in Congress that he had discovered
the philosophers stone, and that was the simple
plan Of pay as you CO." There is sound phi
losophy in the plan, and the nearest approach
to it is the immediate adoption of a tax bill
on comprehensive SCALE which will reach
every class in the community.
MILITARY BURIAL GROUNDs.-The universal in
stincts of humanity encourage respect for the