Gallipolis journal. [volume] (Gallipolis, Ohio) 1837-1919, 1862-12-04

The GovERNMEST Finances lit
tie less than two weeks ago the Secre-
tary Of the Treasury gave information
to the banks and bankers ofNew York,
PhiladelphIa, and Boston that the Gov
eminent would receive offers for tenn
pOrary loan OF twelve millions. The
Philadelphia North American says
that the thing was done very quietly,
and that the fact of nothing being said
about it in public made it a wonderful
affair to the speculstors Of the three
cities, or at least to that portion Of them
who have been blowing bubbles for
some months past. In fact. the move
ment took them completely by sur
prise, and well nigh knocked the breath
out Of their plans.
Mr.. Chase had not nearly exhausted
the power given him BY Congress to
issue legal tender and stamp notes, and
could. had he chosen to do so, have
supplied the necessities of the Treasury
by going on with their issue. Had be
done so an immense hullabaIoo would,
Of course. have been raised IN New
York. and all Wall street would have
been full Of kite-fiyers. They would
&. once have sent gold up to so premi-
nm, and exchange to IS. Mr. Chase
therefore, wisely determined to show
the utter fallaey OF the whole gold spec
ulstion. BY issuing no more paper at
this time, and BY calling at once for
temporary loan.
He had raised loans before without
any trouble, and It might have been
thought that so small an affair as q
temporary loan OF twelve millions would
have been a mere bagatele. The banks
OF Philadelphia and Boston, with a
hundred millions ont on private loans,
were asked for two millions, and the
banks of New York. with hundred
and seventy millions out on private
loans. were asked for only ten millions.
Gold. which had gone up to % premi-
um, fell to 80. Stock speculation seemed
to have been suddenly smitten with the
Asiatic chslera.
Stranger than all. there was found'to
be bona fde scarcity Of the Govern
meDt paper currency. This very thing,
whose volume was magni6ed BY specu-
lators into some nonstrous and unnatu-
raj development, upon which had been
thrown al the blame OF the expansion
and its consequent evils, turned out to
be insufficient to surply the wants OF :
the country; and the proof Of it was
that the banks experienced q serious
difficulty in collecting enough to pay
the loan. Never was financial stroke
more ably conceived or dexterously
executed Mr.. Chase has been berated
continually for month after month as
the author of the expansion, and as
having deluged the country with Gov
ernment paper In order to force the
expansion still higher, the spectators
fabricated the most astonishing stories
Of contemplated new issues Of the same
sort. Suddenly he abandons the issue
of notes. although he has not yet ex-
bausted the power granted him to issue.
He gives into the sage advice urged
upon him to depend upon loans Tor
means beyond the regular revenues,
and unostentatiously calls for tempo
rary loan of twelve millions, followed
BY 7,3O loan Of thirteen and a half
millions.
Presto the scene changes. The i'm
mense volume Of Government paper
disappears, stocks totter, and there IS
an absolute difficulty ofraisiDg sufficient
egsl tender notes to meet this loan.
Where now are all these millions OF
surplus notes Of which the spectators
have been talking for the last three
Where is the alleged Gov
srnment imitation Of the currency Tor
which Mr.. Chase has been so soundly
abused. and which has been made the
basis Of the gold speculation, the rise
n the values OF stocks, exchange, mer.
DC? Mr.. Chase has dissipa-
ed this delusion by single stroke OF
Journal.