Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1862-06-25
Condition of National Finances.

The success that has attended the bold
financial policy of Secretary Chase, thus
far on its trial, amid the most exhausting
demands upon the national finances ever
experienced in the history of this coun-
try, has 4 nc salutary influence in stay
ing and increasing the public confidence
the capacity and energy of the administra-
tors of the general government. The mall
cious efforts of the enemies of the admins
t~ration. whose highest ambition. and great
est qualification are realized in endeavors
to weaken the public confidence in, and
paralyze the power of the government.
have most s~ignally failed. and to-day the
financial policy of the Secretary of the
Treasury is recognized by fair minds as
the fulcrum that sustains firmly the gov
ernmentabove the gulf of bankruptcy and
discredit into which it threatened to sink
a few months since.
The increased demands of the Treasury
have caused Secretary Chase to ask Con-
gress to authorize him to issue one hun
dred and fifty millions L. S. Treasury
Notes. A bill has been reported from the
Committee of Ways and Means author
izing the issue, the notes to be of denom-
nation no less than s., to be legal ten
der, and receivable for all government
dues, debts, leans and taxes, except du-
ties on imports and interest on govern
ment bonds and interest bearing notes.
The bill will quite probably pass Con-
gress.
The whole nominal circulation of u. s.
Notes is now Sill, 600, 900. of this amount
S57, 900, 900 are demand notes, but are
practically withdrawn from circulation,
being boarded for ~thepayment of customs,
of the proposed new issue, therefore, a
sum, equal TO that boarded, would be re-
placed for general circulation, and about
$4,000, 900 will be withheld to meet de-
manIs on the Treasury for temporary de-
p~osites. Thus the sum practically added
to the circulation would only be S53,000-
600.
A money article in the y. Y. Herald, of
June Il, JON this subject, says
The proposed issue of $50. 600, 900
more Treasury notes occupies public at
tention to the exclusion of every other
topic. The people who were opposed to
the first issue of government paper. on the
IL Iol,,,.l ,,,,l, 80 llft.o,, .. III
irredeemable paper curreucies, are still
more indignant at this new proposal but
the public ut large, so far rs we can judge,
will hail the passage of a supplementary
act, authorizing a new issue of legal ten
der paper, with general satisfaction. Con-
trary to the predictions OF the bullionists
the first issues of paper-viz: 500, 000.-
900 of demand notes, and 500. 900. 600 of
legal tender noteS-have not cIuseda gen.
eral advance in prices, and have not oblig-
ed the government to pay more for every
thing it wanted, though they have impart-
ed buoyancy to Wall street, and largely
hclpedin raising governments to a premi-
uni of six per cent. There is no reason
to believe that 4 further issue will have
II different effect. There Is not curren-
" enough in the country-of the right
klnd-for the ordinary transaction of bus
mess. People everywhere will gladly en-
change the bank notes for Government
paper, and having once got the latter,
they will refuse to receive anything else,
with the exception of specie. Hence
there is no reason to look for II alarm
ing advance in prices. or IL material adj
in the cost of living. In Wall
street, the new issue, by increasing the
already swollen volume OF money. will
cause the rate of interest to fall still furth-
er, and the price of Government and div
idcnd paying securities TO advance. 1t
will facilitate any negotiations which Mr..
Chase may feel impclled to make. and
will afford the mercantile community
excellent facilities for the resurrection OF
trade after the war. Further than this,
it is unlikely that the G issue will he
followed 10y any startling important re-