The New York herald., 1862-12-08
FINANCIAL AND COMMERCIAL.


a-ea4 l ~ SUNDAY, Dec. Z, 1SG2
The problem which Congress has now to solve
admits Of two solutions only. Members must
choose between manufacturing more irredeenabl
paper or raising money by tie sale Of United
States bonds, as recommended by the Secretary
IT the Treasury. The former plan is easy, simple
tempting; would>be- popular with the spectators
sf Wall stfcet, and with everybody who has bous ht
socks. merchandise or property CT ary kind on
speculation; would enable rich men to make
money, relieve the Treasury Department Of oil
sroable and anxiety, and supply government with
~ The 1upls y requirer; but on the other hand,
would cause large advance in the price OF gold.
Whinish the value and "purchasng power" Of
she currency, largely increase the cost Of iv..
bag impose further burthens on the farmer
and mechanic, who are already impoverished
~ the present depreciation Of the currency.
disturb values and commerce throughout the
country. and render inevitable q future crash, in
which our whole commercial system would go to
wreck. The other al:ernative-the sale Of United
etates bonds at the market pr.ce--will displease
spectators, disappoint bankers, cause an appa.
esnt but unreal decline in the market price of gov
eminent stocks, render the money market active.
snd involve superficial difficulties in the pay
nent Of the looms to be negotiated; but. on the
ether hand, viii cause the price Of gold to fall the
currency to appreciate and its purchasing power
% increase, will reduce the cost Of necsssares Of
Me, relieve the poor Of the burthens now
laid upon them, restore public and commercial
credit to q stable footing, and pave the way
FOR an early resumption Of specie payments.
ID choosing between these two alternatives
Congress must remember that the livelihood Of
ainatenths Of the people hangs on its decision.
An issue Of $500 900 Of irrsdesmabie paper has
Appreciated the national currency rs per cent and
has raised the cost Of ili nscsesayies Of lie from
% to so per cent further Issue Of the like
amount will dcprsciats the currency TO 50 cents
ghe dollar and will nearly double the cost OF all
vhe nccesssries on which the poor subsist. An
Susue Of 800 900 900 Of irrsdeemabls paper has
ssrsady added twenty-five per cent 70 the cost Of
the war; further Issue will mako the war cost as
much more. Mr.. Chsse's report shows that we
ere spending rather more than two millions . day.
Had we been able six months ago TO raise money
without issuing paper, the expenses would have
been less than . million and half; II any moro
paper II issued, they will exceed two mil.
Hons and hall. 70 vote for further
essus s therefore. rst. to vote for unnecessary
increase Of ts00,O00a dayin the cost OF the war,
and "a corresponding increase in the ultimate
burthens OF taxpayer; and, secondly, to involve
GArmcrs, mechanics, lsborers and all persons with
6xed incomes In expenses 40 enormous as to
Insure the commencement OF pauperism in this
hitherto prosperous country, and tho eternal male
diction OF thc reckless politicians who committed
Che wrong.
le The OPT ants Of United States loans do not
dare to Adult that their real motive 10 to secure
. further imitation OF values which may enrich
chem whilo 10 ruins the country at large; they
pretend that u 10 impossible To negotiate loans.
To this shallow pretsncs Il might snics to reply
that II government cannot borrow 1t GER
tainly cannot manufacture currency. No
man should bc asked to receive as money
4s,e current note OF q government whose bond
he would not buy At some rate or other. II
interest bearing bonds Of the United States cannot
BE- sold 10 open market. Il il fraud {, compel
people TO receive - money currency issued by the
United States and bearing no Interest,". But, In
not, the United States can borrow al tho money
shey need without d6lcuity. OF the t27s 900 900
deficit for the currsnt year Mr. Chase admits thnt he
win get $50 900 BY substituting United States
notcs for bank notes. and s25 0C0 900 by enlarging
! the limit for temporary deposits; and careful
scrutny Of the tables accompanying hs report will
show that hs has undercstimsted the receipts from
internal revenue by at csst Gao 900 or $50 Oo0
900, while on another side, he debts himself with
go ss 600 for maturing certificates Of injebted-
ness. which can, Of course, be easily renewed. II
Shus appears that loan Of sloo 600 900 would carry
che government Trough the present fiscal year, III,
July uexs when, In all probability. the Mississippi
Richmond Charleston, Mobile, Savannah and
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