The New York herald., 1862-03-08
National Finances.
TO THE EDITOR OF THE HERALD.

TO THE EDITOR OF THE HERALD.
the enactment Of o national currency system the
country will have great for congratuation
shall then have afforded opportunity to experience
the advantages of federal circulation possessing such
invaluable oharacteriscs will enable 1t to resist with
successevsry financial vacation incident tho constant
of trade.
In connection with this important subject may not
be inappropriate to remark ha. tho public have reason
to be gratcd at the prompt action of the Chamber Of
Commerce the determination aud confidence hoy have
expressed to render full and liberal support TO the
government measure. While tho Chamber Of Commerce
have endorsed tho circulation Of Treasury notes. with tho
cgatenderq qualification they have not boon nssnsibc
unmindful of the necessity Of Recommending the adoption
OF proper provisions checks and balances that the
ernment issues may have every promise Of permanent
responsibility and usefulness.
To that association, arc also indebted for the
lighened recognition they have made, tho distn-
gushed representatives OF an intelligent commercial
community, that the subject Of currency is essentially,
practical not merely theoreto question, and that its
true elements Of excellence consist in the confidence on
terained by the public the basis OF its responsibility
together with its perfect freedom from DISCUSSES
cealmcns especially governed and regulated by limits
and restrictions intelligent reliable and comprehensive
It is thus that the governments currency has been "a
voraby introduced, Inauguration of incalculable
value nsurng for it the faithful cooperation Of apatr
oc and effective public opinion, which, properly direct
ed would stand potential under the influence Of
lutte and undauntcd spirit. II il nevertheless neces.
sary insure perfect success that the business Of
the country should make practical demonstration Of
their entire willingness and their determination to
respond with confidence In the expectation that tho
government will act in concert. not unmndful of the i'm
portancs Of pursuing Of moderation and concia-
-
permept great and caution should bs svinced in
order to guard against any collision Of an unfrsndIy
character. In venluring radical change, there must
ever be danger especially il ignorance prejudice
should attempt to create the impression that there will
hostile interference with any valuable established
privileges the offspring Of political franchises.
r. has been surmised there cannot be concurrence
Of action between the furnished by the banks
and Of the government then there may be substan
tia grounds for the belief that tho old system Of supply
essentially defective H tho bank circulation be, as s
pretended the faithful representative of the precious
metals, there can DO dfhculty;it will maintain its
position Of assumed superiority leaving excuse to the
managers Of those institutions for Withholding their
Gdence and support from the public Instead Of derange
ent or embarrassment paper of equal and uniform value
everywhere ought to be appreciated by hem OF ines
timable Importance, in checking the improvidsnt GIBBS
and flows Of specie to the remotest sections Of the
country. N N
In tho present situation Of the government finances the
duty is imperative subject Of vital necessity that
every aid and assistance should be prosed hero ought
to bo hesitation, holding back the responsibility
il not less obligatory those who doubt than those
who feel confidence In the practical wisdom OF the
government measures. II win not do for the banks
or leading capitalists, to fold their arms. with in.
difference to the wants Of the Treasury and the i'm
pending dangers Of general distress, while Il is
certain that the government cannot fail in its
Of permanent relief without involving the whole country
in complete state Of bankruptcy II would be imposs-
bic to stop the current its flows would prove
destructive The immediate necessities of government
be supplied with iberaty aud certainty the army
must bo satis6edthers be no tailoring In the pay
msnt OF its dues. govsrnmout cannot obtain efficient
means to insure success through the ordinary and legt
mate Of there may then ample cause
apprehend that extraordinary will be
sdto-forcsd loans and conscriptons. To community
enlightened and intelligent that Of tho United States
scarcely necessary TO state that If the public rsvs
could not be collected through the agency Of indie
pendent currencies running In autagonstc both
prove poweres for any useful purpose. In such
unfortunate state and condition OF financial affairs it
easy to anticipate what must be tho result II would
end in the introduction Of martial law the banks would
be made to dgorge their assets would be sezed for tho
purpose Of discharging the civil and military expenses
with the additional that ofany serious
embarrassment armies would be compelled 10 seek
their sustenance wherever it could be found.
II the Treas Try currency be not made efficient and avail
able there will be crisis II cannot be otherwise; and
in such event, the progress to chaos will be certain
and inevitable The situation Of the country would then
bee me appalling, and what Is worse it could not be
avoided consequently there should be
Of disavor marrng the successful movements Of the
tiona currency Should there be any emergencies lead
n icnti io,
would prove vaueess. Important that provision is
it would rthelcss, MT givo circulation TO the cur.
rcncy, as a common medium Of exchange. Under such
circumstances should bank influences and business
actions impede its progress the responsibility will fall
them. From such iliudged casualty, there could
be no prospect Of escape Therefore, for many obvious
and motives it absolutely necessary that the
currency should not only have the prefer.
encc, but that shoyld be ade the familiar medium In
all mercantile regulations. If this be done and the
banks do their duty wisely Influenced by proer spirit
Of liberal II will then be discovered that tho best in
teress OF the cou1try have been with every
prospect Of a renewal OF general prosperity. If how
ever they hesitate and withhold their assistance they
will incur responsibility OF ordinary magnitude the
catastrophe will not b. limited TO monetary ques
ton.
II is easy to forssee under such circumstances what
will bo the fatal consequences of avalanche Of Trca
sury notes, thrown broadcast tho country, with.
on. having any legitimate resting place. Indicative Of
afriendly patronage The result would be TO compel the
banks, notcs rosas to tender their feeble services to
eccta reconstruction after the parayzag arrangement
If, on the other hand the banks exhibit faithful and
energetic oasraton they will nnd the truth Of
the almost nalibe rule, that tho fiscal services OF any
quantum OF currency will be found consist In the in
verse ratio OF the activity and velocity OF tho circu.
ation and acoroay TO this proposition the inference
Is that there would be no probability OF overissue II
the public credit remains rm with the necessities OF the
Treasury well supplied and no false be made
with regard 70 the currency there will hereafter he
Treasury difficulties; ample means would be obtained
through the legitimate process Of loans
Under this management Of our fiscal Affairs there
could be danger or depression In the value the
currency Consequently the mprovised difficulties, in
discreety and mprudenty apprehsndod that debts and
contracts would be paid settled the principles Of IN
unsound medium will prove faacous. Il is 70 no pur
pose that gentlemen forcsee the possibility Of
ISSUE while they admit the oxcusvc right OF Congress
regulate the coiDage-a power OF sovereign character the
attribute Of neutrality-suspicious. that this exclusive
power has often been, and may be again, exercised
terms OF unlimited abus in debasng tho metallic
rency, or in comforting on IL an ovcrvalue.
hope to be able TO prove to tho satisfaction Of
the most astute political casuiss, that Congress has
the exclusive and absolute control the national
currency and that II would have boen variance and
entirely inconsistent with the perfcct