The New York herald., 1862-01-25

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strategicslly required.
The point of all others to which we desire,
however, to call attention, in General Arthur's
report is his recommendation that the ''militia
| of the State" (and this will equally apply to
all of the States on the Atlantic coast, and
bordering on the lakes) "at all places ,ohere 1t is
practicable, should be trained to the management
and firing of heavy gums" Should we be
involved, at any moment in foreign war the
local inhabitants of districts would be required
to defend themselves, and to man the fortresses
on Our coast. Volunteer regiments ought there
fore to be formed without delay, for the purpose
of securing proficiency in artillery practice, and
the means of doing so should be afforded to
them by the government. There is no reason
why, in New York, Boston, Portland, Philadel-
phia, New Bedford, Salem, New Haven, and two
score of other towns and Cities companies should
not be enlisted. and sufficiently perfected in
drill, discipline, and ordnance tactics, to enable
them to resist invasion successfully, and beat
off in confusion any enemy that may dare to
approach our shores. While on duty they
will of course be paid out of the national trea-
sury for their services; but at other times there
is no need that they should be so long drawn
away from their usual occupations as to interfere
materially, with the ordinary avocations of life.
We know that we are correct in saying that,
while some such measure is earnestly de-
sired by the authorities at Washington, and
that they would further it by every means
within their power, the people are not sufi-
GENTLY alive to the imperative necessity of
contributing their share to the general defence
of the country. The Mason and Slidell imbro-
Clio should warn every good citizen, as General
Arthur points out, that through the machina-
tions of Napoleon and the efforts of the cotton
spinners, peace with England may still prove
to be of very precarious tenure.
The FINANCIAL MEASURES BEFORE CONGREss.-
The first of the financial measures before Con-
gress needs alteration in at least two points.
Frst-the interest of the six per cent bonds ought
to be paid in coin; otherwise the notes based
upon them will be deprecated. This may cost the
government something more, but it will pay
in the end, besides keeping up the national
credit. Secondly-the payment of the principal
certain in twenty years, or at some other fixed
period, and not after twenty years at the
pleasure of the government" is also necessary
to the success of the measure. BY making
these changes in the bonds, the demand notes
convertible into them will be kept near par,
and for all purposes Ofinternal trade will be as
good as gold till the war is over, and after the
war they will command premium and be
better than gold.
The tax bill, too, ought to be pushed forward
rapidly; for without that all measures of finance
would be worthless Demand notes, without
tax to pay the interest and redeem the princi-
pal. would soon be little better than shinplas-
ters. But let tax of s250,0O0,000 be levied;
and then the war securities of the governmen
will stand A No. l. Tho people of the United
States do not want q permanent national debt
hung like a millst one around their neck. keep
ing them forever under water. They desire TO
pay off their public liabilities soon as posi-
BILE. Let, therefore, one hundred and fifty or
two hundred millions of demand notes be issued
on this basis, and they will become a sound
national currency.
1t will be imperative also to pass bank bill,
authorizing the organization of new national
banks, measure which will compel the exist
ing State banks to take the new currency at
par or be superseded. If they will agree to
take the government demand notes at par, then
their own small notes under five dollars will be
retained in circulation. But if they resist the
circulation of the government notes they must
be crushed between the upper and neither mill
stones.
A bankrupt law will crown all these measures,
winding up all banking concerns which will not
pay either in gold or in the new national cur
rency, and giving relief to honest traders who
may be driven to bankruptcy by the sudden
contraction or collapse of the banks. The
whole of the financial measures ought to be
brought forward and considered together as one
comprehensive system, all of whose parts are in
harmony and will work with each other like
the wheels, and cogs, and weights and pendu-
lum which make up the mechanism of first
| class clock.
| RussErL's PREDICrIoNs.-We observe that
LID. Russell, in one of his recent letters to the
London Times, predicted that the Cabinet at
Washington would refuse to surrender Mason
and Slidell on the application of the British
government. How accurate was his judgment
in the matter the subsequent action Of the
Cabinet clearly demonstrates. We are afraid
that Mr.. Russell is earning for himself the repu-
tation of being false prophet We all re-
member how, when he first arrived in this coun-
try, he predicted that the North would never
rise to make war against the South; and how,
last November, he predicted that before the
close of the year our banks would all be
plunged into the vortex of general financial
ruin, and, later still, how be declared
that if Mason and Slidell were given
| up the Union would be dissolved from
that moment. All his predictions of evil have,
however happily remained unrealized. and he