The New York herald., 1862-02-16

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with which We are now to be made familiar are utterly
ngniGcant it evident that those who continue TO hold
United States stocks must do so In the conviction that
the time approaching when some sudden popular ca
price will terminate the whole struggle and when the
pubic and tho army, having alsifed every assertion
they have hitherto put FORTH will proclaim that they have
| again dszz ed the world with wholly unexpected
triumph With regard TO the stocks OF individual States
| the prospect is far less hazardous.
| There has as yet bssn no disposition by
any OF them to enter into runous commit
| ments for the national cause, and it is quite
| probable that they might maintain theiD individual
faith the worst should happen in the case OF the
federal obligations. Some Of them, indeed, have shown
were in peril of being exposed; the Governor Of New
York for instance having just recommended that tho
property tax to be levied on that State next autumn
should be met by setting against 1t nearly equal claim
CT the State for tho equipment Of its volunteers In re-
ways mines, &C.. not Immediately tho Of war
there perhaps, little ground for apprehension. They
need not suffer materially from tho depreciation OF the
currency since they can raise their charges to provide
for it, and as whenever the day Of paccation arrives
it will nnd them not seriously harmed and wonderful
burst Of vgor for developement Of the national
wealth may then be expected there is why
holders should regard them with much more fear than
in ordinary times.
British Speculattons ON Our National
Debt.speech OF an English Member OF
The London Times rcmarks:-It is essential to renem
ber in cvcry calculation that may now be made on Ame
portion of the whole If the Confedcrates should be
vanqushcd they scarcely be so crushed as to be
Union shall be liable for the debts Of the North and not
for those Of tho South and the other hand suppos
ing the Coniedeates able to establish their independence
burdens with heavy reduction OF population and ter
rory.
Tho position of the stocks OF individual States is far
less hazardous than that OF United States stocks In re-
laon to other securities, such those based on rail-
ways, mines, &C., not Immediately the of war,
there is perhaps little ground for apprehension.
Mr. Barnes, member of Parliament for Bolton, In ad
dressing his constituents protested on and
tieaIOr he hPna Of
blockade and strongly urged that the surest way Of per-
manenty benefng the cotton trade was to turn every
India
Finances OF the American Government.
DIRECT TAXATION AND THE FRAUDS OF TIE CON-
TRACTORS.
from the London Times, Feb IT,
Wo In England have found difficulty in deciding what
has been the political which has plunged the United
states into their present lamentabe condition We have
concluded with a rare unanimity of opinion that the
lay in the adoption Of plans of and conquest
instead of peaceful and friendly separation 1t is not
much difficult to decide what has been the nature
of the miscalculaton which, at the end Of nine months
has plunged tho finances OF what was apparently
powerful and wealthy State into hopeless ruin und
fusion. The Northern States spread vast por
ton Of the surface OF tho globe. They have large
and increasing population, an extensive trade and
considerable quantity OF highly protected manufactures
government Of a European monarchy. France or Eng
land go the whole of the nation at
the disposal Of the Emperor the Parliament never
hls been in America. The central government and
the individual States have divided the between
them To Congress has fallen its share the appropri
alton the proceeds Of indirect taxation Such direct
taxation is levied is appropriated to the governments
of individual States. The thing has become custom
and addition, and the result is that the government
which speaks and acts for the whole or the American
people rally armed uth po,cery which is o Ia fac
tioa' part Of The 'c0te financial resources Of the no'i'"
We hear good deal said aboui imposing direct
which may support forthcoming paper currency and
form the basis future cans but nobody have
any heart for the business IL is not popular move.
ment, and Congress has recently given signal proof OF
its abect subsorvicnce to the popular feeling OF the
ment. But suc stop is worse than unpopular. Ii IS
impractcable. We do doubt that in their dire
tremy Congress will be forced TO go through the form
of imposing large amount OF direct taxation in order to
repair if possible the credit of tho coantry But
also feel the fullest conviction that such direct taxation
will be really paid Tho best lnancier in The world
do little unless he is provided with money or credit
and the American Chancellor Of the xchcue seons TO
be entirely destitute Of both We do not therefore,
der to find him engaging in the Oil niqaity OF tamperng
with the currency, and, having nothing more vana
| bic to offer now, seeking to pay his way with worth
less promises q pay hereafter. bill for issuing
! Ssenty millions storing in government notes upon
W an enormous number OF competing banks, is beng
hurried through Congress Tic army is being paid IN
similar currency, ana money changer follows Tho pay
master TO dole out To them, at heavy discount the
metallic value OF their deprecated pay.
But Mr. Chase has another scheme more creditablo to
the originality Of his genius than the old and worthless
plan OF debasng the currency by the Issue Ct parer
money, sent FORTH not the representative Of the
sources. but Of the wants. of the government II would
appear that in the State of New Yok some other
States OF the Union the banks are required to provide
themselves with certain amount of public securities
in order to guarantee to their customers the conver
| bty II their issues into gold. These securities in
many consist of the Obligations OF tho State,
which rsgarded-and not unleasonabiy-as better
| guarantee TO tho pnblic and safer Investment
| for the banks than the obligations, in any form,
OF the United states government The bright idea has
occurred to Mr. Chase that his difficulties win be if
he only contrve to raise the value in the market Of
The United s'aes stock, % we may SUPPOSE him to
good credit its securities would bring high price IT,
therefore, raise the price OF its securities shall
in tho ssmo proportion raise the credit OF the govern
iDont The securities arc low because nobody wants
them. Those who have them wish to get rid OF them.
Those wD have them not do wish take them The
only resource 10 forco somebody invest in Them
We will pass law requiring tho banks TO get ridoi their
State securities, and take the stocks of the federal
government instead. Thus market will be opened
for deprecated funds credit win rise, and the
stony hearted capitalists Of England and the Con.
ment whose stocks are quoted at rsspecta.
BILE price," The banks object, very naturally
atly that the state stock is far better e
curty the holders of their notes than the stock Of tho
federal government, and they assure them that nothing
will be gained by thoir manuvrs, for the banks aeady
hold Q sufficient amount OF this stock TO supply each
others necessities, without acting upon the market at
all. Tho whole affair singular proof of the desperate
difficulties in which the State Is involved, and equally
desperate 70 which it is ready 10 have recourse
order TO free itself from them.
But Mr. Chase has another scheme STILL equally strange
with his plan for iparting value aud stability to govern
mcn securities He Is said to contemplate the formation
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readyupon the basis OF deposit OF States stock
the circulation. Government undertakes receive
this circulation for all dues excepting mposts and nay
il away tho public creditor whenever he il willing
to receive 1t, which, If he follows the example Of the
State as contained in their own programme, will not be
very often. The object Of these schemes
make the public funds the basis Of the circuat on the
rock upon which the confidence Of the public is rest
exactly because nobody has confidence in them at all
The notion Of arcaly forcing up the value Of public
curtes in the manner have mentioned is OF course
utterly chimerical The very attempt tho ignorance Of
yyhi and tha Of haln.
lessnsss which indicates, quite sufficient swamp
the public credit f not already ruined recall
But the measure is even yet not quite full Some
| which these funds have been dlsspatsd, and, IL
we 10 believe those who have made IL their bust.
ness 10 investigate the question, the annals Of Job.
| bng afford nothing payalel to the proceedings Of
almost every ofncer Of the United States government
| since the beginning Of the An old stipendiary
makes 900 BY selling contract for oxen upon which
the purchaser makes $4,000. Two mllions Of shoes
have been manufactured ~ gain TO the contractors Of