Richmond Whig. [volume] (Richmond, Va.) 1862-1865, 1862-07-07
YANKEE FINANCES.


tain the following exposition of Northern FnsncieFing
The announcement in Congress of the plan TO issue
one hundred and fifty million of dollars in Government
paper money in addition TO the one hundred and nifty
million now out has taken many persons here oy sur
prise although iumaton had previously been given In
this and other journals of the probability OF such
| scheme.
been set s oat to this extent is not little singular.
At first horty was asked to Issue hfty millions OF de-
mand notes. redeem2be in specie and receivable for all
public dues This with mu,h opposition, as seri-
Gus innovation upon the principles oil political economy
supposed to be -+ny established in this country, and
many writer's and bankers pointed out the evils likely
to result from such ISSUE The arguments against the
new system fairly met, but tho discussion
| was closed chiefly by clamor The writer's were de-
nounced as enemies of the Government seeking oeca
sion to embarrass s financial operations and the bank
ere whose emsent laneial abilities and heightened pa
rotsm should have protected them from such Indecent
assaults we're accused Of both seshness and dsloyay,
the changes being rung alternately upon either theme,
until they were sienced, where they could not be
answered.
While tho fifty million bill was before Congress- at
tached TO other provisions which delayed its passage
act with single section was adopted authorizing the
issue of ten millions Of these notes. so that when the
former enacted the amount to be issued under the
two reached sixty million dollars. Before these we're all
out if we remember rightly, the Treasury suspended
sp ole payments and the promise to redeem IN gold be-
came yAlueess The notes receivable for duties,
however aud were not that time at any very material
discount as compared with current bank notes, while
most Of the banks took them on deposit.
On the 25.h Of February OF the current year, act
was parsed authorizing new issue Of hundred and
fifty millions OF paper money (of five dollars and up
wards ike the previous notes, aud making them Il gal
tender for both public and private debts excepting
payment of duties and interest on the Government SO
curtes both of which nj first declared should be
paid in gold Afterwards il found tia. the first fifty
millions were 90 stamped their face that they must be
taken icr Gnties whereupon the act was recalled and
amended leaving them this privilege making them also
legal tender for private obligations, but providing for
their return to the Treasury Nothing said in this
%, about the ten millions first authorized but 1t de-
cared that the issue should go out ony the old
fifty mil Ons came H. and the amount of the two
seher should at no time exceed hundred and fifty
million collars AS the ten millions were not included
10 either Of the two suee, they were LETT IN excess oil
the minimum sum thus named.
TIE duties Oh imports average about hse millions per
month and as these must be paid In either gold or the
cid demand notes. there premium on the latter oil
about thTee-iourhs OF per cent aud this was slowly
apprecialng accessible amounts gathered in--
Near the close Of las. week suggestion made TO
Secretary Chase that HE authority to isu, the
aqd three euths three years bonds OF which he had
about iweuty-pine millions remaining hsld would *.
pre on the l7h BrOI mo, and that ne cori exchange
hem for the old demand notes with p!ods both 10 him
sell SUD the COMMUNITY. lae tueEfsNlou Was BOOS
one He needed the money, aud could obtain II chea
the premium no would receive reducing the interest on
his bonds to less than six pr cent He would need gold
IN the future for inter the public deOt ard he could
secure l. the sooner by retiring this amount OF the old
notes. lie would not diminish The amount OF his frr'
circulation because for the whole thus Withdrawn,
he could ssus legal tender notes to take their place
/! he had author I'D Mr.. Cisco, who is not only al
invaluable and disinIeresed adviser, but the financial
agent OF the Department in this city by special legal Gu
actmeut to nsgole this exchange, II would have been
done 10 the satisfaction Of the public, Or il be had Of
fired the whole Of the notes By advertisement
for exchange with those bidding the highest premium,
he would probably have obtained or per cent. Az
il wsa he uegotiAt about two snd quarter millions
privately, at premium OF three per cent, and closed
the transaction without going further. Much .ceEsure
has been cast upon both Mr. Chase and the gentlemen
Sith whom he treated aud severe articles have been pub
shed even in his party orgaus; but We see no oc.
casion for such violence. There may have been little
grecdness the part Of tho operators here but Mr.
Jhase simply made mistake 10 his method OF manage
ment having been msed by interested advisers aud 10
hurry to close what be thought successful hit for
gotten u take counsel which would have prevented him
from falling into such an error.
Aud nov we come to the plans for the future. The
g. States Treasury has received upon dePos uPNSrds Of
6ty million doars for which certificates have been is.
sued PAYABLE on demand after ten days notice. These
certificates must not be oon!ounded vi the certificates
OF Indebtedness about hiy millions OF which have been
p,d out 70 public creditors, and which redeemsble
Que wear from date, With per cent Interest The Ger
ufcatcs Of 4, p1sit include about thirty millions to the
b4uk az per cent, and the REMAINDER 10 lrNae eAPi
tali-.s a. per cent
The fear that these deposits might suddenly be called
for when would be announcement to pay thea, aAd led
TO q scheme for preparing ninety or Que hundred mil
lion dollars OF notes 10 De hell az arsrVe, aud then
10 Increase the deposits TO that amount, keeping the
notes ready for payment. There also prC =c for
Ava nj Nv milnua OF small
tvo.and threes-or convenience TO mix with the Other
currency When the proportion Was made 10 Congress
70 issue an additional hundred and Try millions
.ss AZ first supposed hAt this amount included The con
d,tiOLs noticed above. But II would appear from the
plan nov before Us that the Secretary asks for authority
10 make clear issue Cf this additional amount precisely
similar 10 the one hundred and dy millions now au'
tbotxsd lie may expect Congress 10 do that which he
hsslaes to recommend viz 70 provide that part OF the
sue shall be in small notes but he evidently desires 10
other condiuone.
Taoso Who favored the hrs. issue and we're little harsh
toward the old fogies who do believe in currency
of irreioemaha government paper money staggered
Inv hi, new proposition. The New York Commercial
Advertiser oppOFes the plan with very Sensible sug
ges;ions but cannot concedo the soundness oil the
log which defended the former issue aud OF ects to
that prop SD The editor says l. precisely TO this
point We begin TO apprehend danger. The pubic have
bsen 70 intoxicated with the fleets OF moderate stmu-
ant accusing Them from safe OF torpidy, thai " Is
proposed 10 try tue virtue o. secohu luhpIer' We
respectfully suggest that the point OF danger Ws u
tho trial of the Fl 81 glass by which "the public have
been so intoxicated" aud bseye al the advocates oil
ubriety will agree with that this 10 The proper Use oil
be 6yu,a Is was at that point stood with our warn
log which i. now on record aud which We have never
al &c seen occasion TO recall
IL is due to Mr.. Chase, however, TO say, that hls
scheme will 90 far to relieve OF the danger connected
tb such an ISSUE All the legal tesder notes out are
fuodabs 10 a per cent. twenty year ulited states
.tock redoemabs after five year,, at ;he option OF the
Government BY a)oiing che country with the demand
issuea he will compel the bolders, who can make no
other use of them fuod them ct par in th,s hSe per
c,nt stcuries. This Quiet 10 tue currency wan save
N prsat en from deprccsiop and will aid in reg
mating the market IL is very likely, too that the in
g,don " Il lead to revival Of active business, and thus
lives rs brea,hi5g spell OF prosperity during which
some har eats may he garuered II evil follows ultimate
w. a. i. is almost sure to do in every violation OF sound