Daily union appeal. (Memphis, Tenn.) 1862-186?, 1862-08-14
OUR FINANCIAL CRISIS.

lion than By constantly assailing the financial
system of our government. If the confidence
of the people, upon which this system greatly
depends, is once greatly destroyed, we are en-
tirely at the mercy of the rebel leaders; for
we shall have no armies, and no means to
raise and support armies. Whether the sys-
tenn is good, bad, or Indifferent therefore, it is
equally our duty not to assert it; for, if bad,
it cannot be asserted at present, and we have
TO make the best OF it or give up the war.
Gonceding, then, all that the opponents of Mr..
Chase claim, It is very clear that they are
practically assisting the rebels by endeav-
oring to destroy public confidence in hDan.
cial system which is imperatively necessary,
which is in actual operation, which is not now
open for discussion or amendment, and for
which no one has suggested a better substitute.
But, reasonable as these financial croakers
are shown TO be in this view of the case, they
appear in much worse light when we con-
slider that our financial system is neither bad
nor Indifferent, bat positively, comparatively
and superlatively good. It is positively good
as theoretical system of finance adapted TO
crisis like this. 1t is comparatively good in
its superiority to the financial systems
formerly adopted by ourselves and By
other nations during very similar eri-
ses. It is superlatively good because
it has accomplished the purpose designed by
the Government, because it has been cordially
and unanimously accepted and endorsed by the
people and because it has cor ferred upon Us
countless advantages, A-athous a single damag
ing draw back. The most dismal financial
croaker, at home or abroad, cannot deny the
fact of the success of our financial system, but
only contends that this success is temporary,
and is more than couIterbalanced By the dis
aster which will follow. To corroborate these
predictions of disaster, history is compelled to
hold up the skirts of prophecy, and our paper
currency is compared to the assignats of the
French Revolution and the Continental mon
ey of our forefathers. Unfortunately, how
ever, this comparison does not hold good.
The assgnats and the Continental nIony were
mere Government shin-plasters issued 10 sup
ply the national treasures with current funds,
just as our store keepers issue shin-plasters to
supply small change, but without any real ba-
sis of value, any sure protection against over
issLe, or any practical provision for redemp-
tion. Mr.. Chases Treasury notes are no such
shin-p plaster issues. The rebels have the entire
monopoly of that sort of paper money. The
Confederate bonds, and not our Treasury notes,
are the modern fac sensiLes of the ancient as
signats and old Continental currency.
The objections which are valid against the
! paper money of the American and French
| revolutions, and which only the stern necess-
/ kkS1 "a bu6 tlluoc HcAc 5uAACtCuk W ON6ICOues
do not at all apply, therefore, to our personal
| financial system. Our paper money has q
real basis of values for it Is based upon the
resources of the country, rendered available
| to the government through the tariff end tax
| bills, which constitute parts of the integral
| system. We are protested against an over
| Issue; for the amount for which notes can be
issued is definitely settled by acts OF Congress;
and, besides this, it is carefully arranged that
| if the issue of notes exceeds the requirements
| of the crcu tation of the country, the surplus
can be invested in United States bonds, pay.
| ing six per cent. in specie. Thus, also, We
have practical provision for the redemption
of these notes; for they are convertible intc
bonds which have not only their interest paid
in specie, but are themselves payable in specie
after the lapse of 8 few years. How, then
can the opponents of Mr.. Chase compare thi
selfchecking, ,self-regulatlng system-by which
the tax and the tariff are made to sustain anC
ultimately 10 redeem in specie the issues o
United States bonds and Treasury notes, AMI
by which the amount of the Treasury notes il
circulation is limited not only by act of Con
gress, but by the requirements of the busines
Of the couatry-with the loose, ditjointed, i'll
constructed and worse managed shinplaste
systems of the French and American revolu
tions, which had no basis but necessity, whicl
regulated the amount of paper issued only b.
the necessities of the government, and whic
, made no adequate provision for the redemp
ton of their issues Nothing but the gros,
est ignorance or the worst motives of treaso
! or reasonable self f-lnterast can explain sue
ridiculous misstatements, and the fnancis
croakers may choose and impale themselVe
upon either horn of the dilemma.
, We have before remarked in these column
, that our financial s,:stem resembled that inst
/ tuted by William Pitt during the long can
paign lnaugurated by the French revolutiel
, when England fought against nearly all ii
| world. But Mr.. Pitts system resembled ths
/, OF Mr.. Chase in principle only, and not in i
machinery. Mr.. Pitts system was destined
adapt the currency to the internal trade an
commerce of the country, ignoring entirely a
a foreign trade and commerce, because the WI
, had effscsually destroyed these external n
} sources. MIR. Chsses system is based upo
r precisely the same principle, and because of
: yery similar state of affairs. We have no
. no extensive foreign trade or commerce to d
pend upon, and our internal resources mu
r be our salvation. Mr. Pitt BIZ maxim
i the notes Of the Bank of England practicall,
!, though not precisely in terms, q legal tende
: in effect transformed that bank into 3 temp
!, rary national treasury, and its issues inte n
o tisnal treasury notes, receivable for goveri
], -ment taxes and duties. MIR. Chase, having I
g Bank Of England or any similar institution
!. begin with, transformed the United Sta.
u Treasury into q national bank, and created
/" national treasury note system Tor himself. ID
Pitt first increased the taxes already in
= posed, and then issued paper money. Mr.. Cha
!, anticipated the results OF taxation by issuir
: his notes, because he required money imm
= = diatelv. and because such a measure W
e necessary to convince Congress and the cou
: try that taxation was unavoidable. Mr.. p
! provided that his notes should ultimately
redeemed in gold. Mr.. Chase provides th
! his note. shall be fundable in bonds payil
: snecie interest and redeemable in specie. Tn
the two systems, while alike in principle, d
:, fer in machinery and in the details Of the
= operations; bat, as far IS . precedent can
:, found for such an unprecedented crisis as th
n Mr.. Pitts financial system justides that of
= Chase But Mr. Pitts system killed off