The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-23

Colonel travel to Panama; ana what Will %
done there We shall learn by and by. What
curious people these South Americans are, and
what a great ado they manage to get up about
nothing at all. In comparison with their petty
squabbles our civil war seems like battle Of
the gods.
The Safe and Necessary Amount Of issue
OF Demand Notes.
The lessons and experience Of history
though often of great use as warning and ex'
ample, are not unfrequently perverted to the
purpose of building up false theories and bad
arguments. We have IN example Of this kind
in the reference frequently made to the issue Of
Continental money and French assignats by
the opponents Of Mr.. Chase's financial plans.
and in the readiness with which they afirm
that the demand notes issued by the United
States Treasury are proper to be compared
with those two historical disasters. We have
maintained on many former occasions that In
no country not eminently commercial, nor en-
gagged in all the activity Of commercial and
industrial production, would it ever be safe OF
practicable to resort to paper credit or to eus
thorizs the issue Of any other money than coin.
We still adhere to that opinion, and for OBJ
vious reasons. In q country Of great and exs
tended productions, carrying on extensive
commerce with all the world, credit in the
shape of bills and notes is not only IN essential
element in all transactions, but 1t would be inn
possible for trade and commerce to exist with
out its use. Also, in exactly such proportion
as trade and commerce are extended, the neces-
sity increases Of creating currency founded
on credit, which may be in its amount and cir.
culation commensurate with the extended wants
and necessities of such people.
A just consideration of those principles,
which are too automatic to require formal de-
monstration, will lead to the conclusion that
Mr. Chase's plans for an extension Of the na-
tional currency are wise and desirable, and
will also assist to show why the issue of Cont.
mental money and French assignats was UNI
wise and disastrous. So immense is the pro.
ductive energy Of our people, SO far stretched
and wide extended is our commerce, both fo5
reign and domestic, but especially the latter
that without an extension Of the currency, and
such currency as will be good and accepta-
BILE in all places, from its uniformity and autho'
be clogged and rendered incapable Of motion.
If we were stationary people, only producing
the simple necessaries Of life, without commerce.
and manufactures, such as we were at the period
when Congress unwisely resorted to the issue Of
what was called Continental money, the effects
would be such a. they then were. The amount
Of commodities and productions being fixed:
md rfe ipryi in 70 ay1rr
demand, an increase of the demand, or, which
is the same thing, Of the circulation, would in
stantly double or treble the price of all COM
modities. Then, the supply still remaining the
same, and not forever augmenting, as it does
among commercial people, this bad state Of
things would continue, and the depreciation Of
the circulating medium, from ito great
excess over commodities, would DO per-
mancnt. In other words, there would
be permanent and ruinous depreciar
ton Of the currency. Such was the CON.
dition of things which obtained at tho issue u
Continental money and French assignats. But
it Is the constant tendency of trade and COM
merce among commercial and productive
people SO vastly to augment and increase tue
quantity Of commodities that, unless there L. .
corresponding increase or circulation, the for.
ner become ruinously in excess; there 10
created what is called ''glut" Of goods, and,
as necessary consequence, industry is thrown
at a standstill, trade is FRUSTRATED and dis
couraged, commerce languishes, ard the pre-
ductive energy and power of q great people arc
depressed and disheartened.
good and sufficiently abundant currency
is the remedy for all this and such Is the pros.
pee. presented by the national currency. II
will drive out all the doubtful, various and
uncertain bank currency, and become univer-
sal AZ well as uniform throughout tie coun.
try. It Is upon this hypothesis that We
arrive at tho amount If demand notes which
ought to be issued by the United States Tres
sury, but beyond which it would not be adj
visable TO 60. On the supposition that five
hundred millions is the quantity of inferior
currency which has hitherto been spread over
the country by doubtful banks and other insti-
tutions, wo conclude that 10 displace this
amount there must be similar amount issued
Of national currency.
The condition Of Tho country, the impsrfec-
tons Of all our local currencies, the vast extent
Of our trade commerce. and productions, call
for and require the extension which the Secre-
tary Of the Treasury proposes. II IL were NOT
imperatively demanded by tie necessities Of the
country, aud its activity and abundance Of pro-
duction, tho measure would DO unwise aud
productive of disaster; but, being called for,
being absolutely necessary and required in
view OF our eminent advances as q commercial
and productive people, to retard, oppose or
prevent IL would be unwise and injurious to
tho interests OF the nation.
Fr.xRAr or SERGEANT Dx BEvos-rn consequences OF an
On .rhlnla The