The New York herald., 1862-12-08

xnde0d contenos that the increase OF paper has
nearly supplied the plaos, Of the gold with
drawn, and that there is no, Nxcsss Of paper.
II that bs true then it is 20 much the
mora easy to resume specie payments. But,
a. If not quite sure about his footing,
ne says II an expansion Of paper has
really caused the depreciation, the increase
OF the paper Of the State banks, and not the
excessive issue Of United States paper, is at
fault. This is almost too puerile for reply.
~ MI. Chase commenced his operations the
paper Of the State banks was at par, and any
person would prefer bank note of this city to
the same amount in gold. It is the excess Of
inconvertible paper that causes this great de-
probation. If it were convertible II would not
depreciate at ell. Let the public confidence be
restored, and ten millions Of gold would be
sufficient to meet the demand. To purchase
this or any amount that may be necessary, as
well as to pay the interest in specie, let United
States bonds be sold for whatever they will
bring. This ID the true way to restore the equi-
librium In the currency, which has been lost by
gross financial mismanagement.
This leads us to the third essential for
sound currency. The Issues Of the State banks
must be abolished either by direct action or by
taxing them. These banks are making large
interest without capital, their paper promises
to pay not being enforced. They are paying no
interest for the debts tlsy are continually con-
tracing, while the nation, far better entitled to
credit, has to pay smart interest. The people
surely have the best right to this benefit If
any portion of the community ought to be
heavily taxed it il the banking corporations
But 1t is for the interest of the nation that their
issues be abolished and that their functions be
confined to deposit and discount. Let all flu
turs issues be prohibited, and let them be COM
PEELED to redeem the issues now in circula-
ton, within brief given time, by gold or
United States notes. Let them be compelled
by law to substitute for their securities
United States bonds instead Of State stocks;
and, finally, if they fail, let them be
by Congress. The effect of this will be to throw
great quantities of State stocks upon the
market and thus to depreciate them. But the
safety Of the national credit is the supreme law,
and States, like individuals must bear their
share of the burthen. State banks only exist
on sufferance. They have no constitutional ex-
istence. According to the constitution the
States have no right to "emit bills Of credit"
and the federal government alone has right to
regulate the currency right which, in times
Of peace, has been held in abeyanse bat which
ought now to be exercised for the benefit of
the nation.
In the name Of patriotism and common
sense let the negrs question be kept in the
background in Congress till this great question
OF paramount Importance is satisfactorily set
lied s.a; the national finances are established upon
principles tested by experience and the ma
tional credit is commensurate with boundless
resources, such as are possessed by no other
country on the face of the earth.
military Campaigning by Railroads.
In another column will be found an interest
ing letter from Washington foreshadowing i'm
portant exposures of the intrigues Of the radi-
Gals against General Mcclellan during the time
that he was in commanded the forces at Wash
ington and on the peninsula which finally
resulted In his removal. II also furnishes some
important facts and practical suggestions in re-
ference to the experience Of our armies in re-
lying upon railroads as . medium to obtain
their supplies while marching into an ensmy's
country, to which we call the attention OF our
readers.
The facts there stated in regard TO the result
of relying upon railroad communication to fur
nish supplies for the army on the peninsula
over the short distance from the White House,
on the Pamunkey, to the Chickahominy, also
the experience Of Pope, with much less force
in attempting to obtain his supplies over the
Orange and Alexandria Railroad, throw q food
Of light upon the events Of the past year
They also furnish our readers some idea Of the
immense sacrifice Of life and treasure which the
intriguss Of the radicals at Washington against
General Mcclellan have brought upon the coun-
try in their vsin and fruitless efforts I'd ruin
Mcclellan and prove themselves great generals.
We have here also the facts showing that the rail-
road from the White House to the Chickahominy,
adistance Of only twenty miles, was, when well
stocked with engines and cars, inadequate for tho
transportation Of supplies for the army, forcing
the artillery and cavalry horses to subsist
a great deal Of the time on half allowance of
forage On the other hand, IL is also shown
that Pope, With much less force, was unable
to obtain at Warrenton, one-third the distance
to Richmond, sufficient supplies for his troops
before he was joined by the Army Of the
Potomac. These facts are also borne out by
the statements Of Prince de Joinville in his re-
view of the peninsula campaign, where he
states that an invading army in this country
cannot safely march over two or three days
from their base Of supplies without water
communication.
Had the wise men, the would be gene
rails and politicians at Washington who
pretend to know more about military mat