The Portland daily press., 1862-11-11

British Blunders In American Finances.
Readers of the British newspapers know,
that almost every assertion and prediction
which those papers have made respecting the
American rebellion, with one or two honorable
exceptions, have proved false; and yet the
Portland Advertiser, protesting to be friendly
to rhe present administration, on the 9Th inst.
copies half column Of British abuse from the
London Economist, upon what that paper
terms the "Msmanagement of the American
Finances"
The most casual reading of that article
shows, that the mismanagement arises, in the
opinion Of this British writer, from the fact
that Secretary Chase did not procure his mon
ey in Europe; but took such measures as would
place the American loan in the hands of Amer
lean capitalists In his opening paragraph,
the writer says:
"If heavy income tax had been imposed
at the outset of the war, the federal gorern-
ment ,could probably hare been able to bor-
rou largely in Europe"
Now it is well known that at an early day
Congress did pass joint resolution, with great
unanimity, showing that they intended as
soon as their Committees could frame such a
complicated bill as an internal tax act, to en-
act the same into law. Congress gave the
Secretary or the Treasury authority to pro-
cure his money in Europe il necessary, but our
Bankers and citizens were ready to furnish il
on better terms than the British or other Eu-
ropean bankers, who have now learned that
there are both men and money in the United
States.
This writer in the Economist, before he CEN
sures the United States for issuing paper
currency, should remember, that British wri
tiers on finance admit, that it was the paper
currency of the Bank of England that enabled
her to carry on her costly wars against Napo-
leon the LIST; and assuredy the promises of
government are better than those of private
corporation chartered by that government.
Congress wisely gave the Secretary of the
Treasury the choice of several methods of
procuring money; there were certain Shylocks
here at home, who, like the British Bankers,
wanted to get our narional bonds at fifty to
seventy cents on the dollar, well knowing that
the recuperative energies and growing wealth
of our nation, would ere long, pay both inter-
est and principal upon them, as it always has
done. But Secretary Chase wisely concluded
as the result shows, that however distrustful
some native and all foreign bankers were,
there was wealth and capital and patriotism
enough in the north to loan the government
all it wanted for an energetic prosecution of
the war and at reasonable rares
1t was at once seen that the vast war ex-
penditures necessary to subdue six millions of
rebels could not be conveniently carried on
In gold and silver; and however well the sub
treasury might answer when our expenditures
were two hundred millions annually il would
not be practicable when they were half this
sum daily, hence It was at once seen that the
government to pay its troops, purchase NUM-
tions of war and food promptly. must either
have recourse to bank bills issued by corpora
tions unknown and irresponsible to the FEEDER
oil government, or issue its own promises which
would circulate in all the States, and give the
soldier in the field note that should be cur
rent also at home.
In doing this, it was foreseen that the ma
with that issued by the State Banks, but the
necessities of war, the principle of the old Ro-
man law, "salus popuH suprema ler," "The
good of the people is the supreme law" justi-
fed the act. There can be no question but
that our State bank currency is financial ex-
crescence, that has grown up under our Fed
eral constitution, and in opposition to the clear
intents OF its trainers; when, therefore, nation
al exigencies require that the Federal govern
ment should avail itself of one Of the highest
attributes of sovereignty, to wit: the making
and uttering of money, no loyal man will hesi-
tate to say, that the national must have the
preference over any issues of private corpora
tions, even when legalized by state authority.
The circulation oil the Banks in the loyal
Statesis at this time, no doubt, over one hum
dred and seventy-hve millions of dollars, and
the national government also has probably
one hundred millions more. Thus it will be
seen that our currency is inflated nearly one
third OF its usual volume Ii the rebellion
continues through next summer, either the
State Banks must curtail their issues, or the
Federal government its legal tender notes. Ii
military necessity requires that the latter
must be issued, then the State issues must be
Withdrawn, either by general return to spe-
Gle payment by joint action OF the various
State Legislatures, or Congress must put such
tax on the issuing of bank bills as will com
pei the Banks to withdraw their bills, and
check the inflated state of our currency.
Tne best evidence that Secretary Chase's Sc
lection of the various plans for raising money
TO carry on this war was that best adapted to
the business habits of our people, is shown in
the fact tina; the large sums of money required
by the Government have been raised without
serious arrangement to the vast business in
terest of the country, and that at this mo-
ment the Government has more money ten
dered to it than II requires.