The New York herald., 1862-12-08
NEW YORK HERALD, MONDAY, DECEMBER g. 1882.

ss s tfaskai sas 'rdi sD nes IN
rebellion win be 70 thoroughly crushed thes the
future policy Of the Treasury Department WA
be simple and easy. That tho United States, with
q revenue of s2oO, 600, 600 ut least. can borrow
$lo0, ,oO0, coo in seven mon.hs-say fifteen millions
. month--by the sale Of bonds at fair rate, is
too obvious to be denied by the most ardent
partisan Of irredeemable paper. II world be
infinitely better for the government and the
country TO permit Mr.. Chase to receive In pay
ment Of loans-in case of seeming scarcity Of
currency--the secured notes Of sound banks
(which he might hold, if he chose, and pay ont in
their stead United States notes) rather than ruin
| everybody by more irredeemable issues. But
government currency can be got If government
wiil make il the interest Of holders to part with
it. II cannot be expected, of course, that hol-
de1s of currency which is at any time
convertible into United States per cent
stock, at par, should be in any hurry
to Offer it to government in exchange for
United States bonds at premium. To tempt them
to tender him the Of their currency the Secre-
tary must offer his bonds at discount. Nothing
can be moro absurd than the noton--whch was
frequently ventilated in Congress last session
States bonds below par. Why the professors Of
this theory selected the caha,istio figure l0o--in
stead Of SIS or 90, or 95 OF IO5 or ll0-as the one
invariabls rate at which people should be allowed
the privilege Of buying United States bonds passes
hnraon nnderstandina to dircover. Everybody is
supposed TO know, at the present day, that 60
vernment securities, like all merchantsble commo-
dities, fuctuats in value, and that Congress
can no more fix an arbitrary valuation
upon them tfan it can upon corn or cotton.
few years ago United States skies were
cheap at 100, because tie demand was large and
the supply small. IF new loans ere negotiated
new they will be dear at lOs, because the supply
will be in excess of the demand. Is Congress,
therefore, ignoranty and arrogantly to proclaim
itself superior to the laws of trade, ard to insist
upon people buying its al the price it fxess
# it does, people will not buy them at all. Six
months experience has pretty thoroughly illus
trsted the effect of Congressional attempts to over
ride the laws of political economy In June last
Congress, rather tl.an cell United States skies be.
low par issued paper money. Consequently,
United States skies are now selling at 100 for a
currency which is at discount of 26 per cent as
compared with gold--tbe real standard. In other
words, tho very bonds which it was deemed I'M.
wise and rinous to sell at 95 now selling at IS
cents on the dollar. Another issue, by causing
gold to advance to l5O l60, would cause United
States bonds to fall to so 60 cents on the dollar.
The first aim Of all sound fnancicrs at the pre-
sent crisis should be to facilitate the resumption
OF specie pas lDsn.s by government and the banks
nt az earlya day as possible If Congress pur-
snes the policy indicated by the Secretary Of the
Treasury tbs result car be achieved ,nrch sooner
tllan is expected. Nothing keeps specie at the
present enormous prcmlani but the dread Of fur.
ther issues Of iIredeemable paper. Once let it be
understood that tac ora of paper money is ended,
and the arguments against the premium on gold
the large production and the small consumption Of
the article, the condition Of our foreign trade,
which shows balance IN favor Of this country, the
sound condition of our finances the Erge public
revenuc ard the heavy expense Of gold boards
would very quickly cause tie premium to decline
TO a agure which would render resumption OF
specie payments quite feasible. In January next
government will begin to receive coin in
payment Of duties. II no further issues Of
irredeemable paper are made, the premium on
gold in March next. viii be go small that the gov
erment will be able to purchase few millions
without much loss. and before the end Of the fiscal
year 2 rssnme specie payment on It's legal tender
currency. The Very prospect Of such an event
would cause gold to fail to par and would enable
the banks to resume likewise. There never has
been any scarcity of gold in this country. 1t is the
want, not Of specie, but Of confidence, which has
led to the extravagant premium on the precious
metal. A judicious bankrupt law, applying to
corporations ns well as to individuals, would, in
the present condition Of the banks place il in the
power of the Treasury Department to compel them
to resume If they did not do SO spontaneously. =
The crisis, in all its aspects, is very momcntous
II Congress- should be SO ill-advised as to over.
ride the recommendations Of the Secretary Of the
Treasury, and issue more paper money, the dura-
ton Of the war may be calculated with mathe-
matical certainty, and the triumph Of the rebels
win be rendered secure. Each new issue of ire.
deemable paper would not only involve further
depreciation of the currency, but would render
loans more impracticable than before. An issue
Of 5000 900 900 has caused depreciation Of rs per
cent; another of like amount would swell the de-.
probation to so per cent, and would necessitate
further issue in the summer Of 1868. which would
increase the depreciation to rs per cent and SO at
length the point would be reached at which every
additional million issued by government would de-
base all previous issues until the whole became
vaiucless, like the old Continental money and the
French assiynats, and peace at any price would
become inevitable, from the impossibility Of
sustaining tie army. Now or never Is the time to
revert to soand principles. Government can now
save itself, sase its credit and pave tho way for
the restoration Of specie payments. Another issue
Of rrcdeematle paper and 1t will be too late. The
next ninety days viii probably witness military
successes which viii change the aspect Of affairs,
and viii render it not only practicable but easy
for the Secretary Of the Treasury TO borrow all the
money be wants. provided always that Congress
docs not spoil his market by publishing to the
world o confession of weakness and want OF con-
1dence, in the Shape Of further authority to
manufacture irredeemable paper.
/. The trade tables for the week which ended yes