The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-17
Mr.. Chassss Recent Letter On the Our
rency.

city are putting themselves in furious pas
sion against the Secretary Of the Treasury be-
cause Of his application to Congress for fresh
issue Of hundred and fifty millions OF bank
notes to carry on the campaign against the
rebels and finish the war before the termina-
| ton Of summer.
Mr.. Chase and the two houses Of Congress
| may make themselves perfectly easy. All this
| food of bad temper and fiery heat will pass
| quickly away, like the rays of June, and only
| ripen the cherries and strawberries of finance.
OF course some of the puny and ignorant
journals of this city-suoh as the "World, the
Flesh and the Devil'--are hostile to this move
ment Some OF them are predicting terrible
ruin to the finances OF the country; others are
doubling, and cannot tell whether it is right or
wrong. Some are perfectly confused and be-
wildered in their total ignorance upon the sub
ject-particularly Greeley.
The whole Of this financial matter may be
| explained and comprised in . nutshell.
When this war commenced Mr.. Chase came
| on to this city and obtained from the capital
lists of New York, Philadelphia and Boston
about one hundred and forty millions of dol
lars, for which he gave good government
stocks, bearing good interest. When this
money was expended in the prosecution of the
war, the Secretary had to 60 to Congress for
more money, inasmuch as the bankers could
| furnish him no funds beyond that limit, ex-
| cept by submitting to vast shave. On
| looking into and examining the financial re-
cords of Congress, and consulting the consti-
tuition, Mr.. Chase fortunately discovered mine
| of wealth, amounting to FIVE hundred and fifty
millions, in one gulch. He saw that by the
constitution Congress alone had the power and
authority "to regulate the currency and could
prevent the several States from issuing cur
rency. They have been doing this, however
surreptitiously, for seventy years past, and
| by means Of a thousand State banks set up
some Of them in remote corners of the
| Union, have supplied . surreptitiOus cur
| rency to the nation, amounting to an aggregate
| of from four to five hundred millions of dol
lars set afoat every year throughout the coun-
| try.
Now, Congress had only to exercise its own
power and authority, and to remove the spu-
rious local States currencies. by substituting
States, making it a legal tender. When Mr..
Chase is authorized by Congress to issue the
one hundred and fifty millions dollars which
he has asked for, there will be in circu-
lation two hundred and sixteen millions Of
dollars of this kind of currency-a free loan
from the people to the national government.
| Besides the issue which the last letter of Mr..
Chase demands, he can get, if it should be
found necessary to ask Congress for it, a ham
bred and fifty millions more ,cithoa initiating the
currency. All the States bank currency put in
circulation by the States is an insecure and in
adequate currency. The whole West has been
injured extensively for the several years past
by bad currency, and the South may be
said to have none at all.
It therefore appears that the government is
only acting under the just and advised policy
Of simply using the dormant right and power Of
Congress of establishing national currency in
substitution of one which has been surrepti-
tiously introduced, and which is adverse to
the interests OF the Union at large. But beyond
an aggregate Of four or five hundred millions,
such IS the internal commercial necessities Of
the country require, Congress- must not 80. The
country requires that amount; but more than
that would cause an imitation.
The ignorant and assuming journals of the
day, under the influence Of stockjobbing gam
blers and others, may rant and rave q they
please IfCongress passes the Tax bill a. the
proper basis OF the public debt, the country
will be in no danger. and our financial system
| will be the best and most fourishng in the
world but if Congress pass Mr.. Chase's bill
for the additional one hundred and fifty mil
lions Of dollars without passing the Tax bill
also, then indeed the country would be in dan
ger Of financial convulsion-not otherwise.
!
The PACIFIC RAILROAD BILL IN THE SENATE
The bill which has passed the House of Repre-
ssntatives, providing for railway communica-
ton between the Mississippi valley and the
Pacific Ocean, is now before the Senate. This
measure provides for railroad Of 2,425 miles
in length, and for loan Of the credit Of the
government of sixty-6ve millions, in bonds,
running for thirty years, aud for grant to the
road, as the work is completed, Of portion Of
the public lands on both sides. Mr.. Senator
Latham, of California, contends, however, that,
10 the government bonds will not be due for
thirty years, and that as the road will be OK
ceedingly profitable, the public treasury will
not really have to pay single cent for it.
We are inclined to this impression, from the
route which the road 10 to pursue, and from the
inexhaustible mineral riches which, within the
last few years, have been discovered and pro-
6tably worked along this route without o. oad
II Is the great central overland route, skirtng
the Pixies Peak gold mines, the Great Salt Lake,
and passing through the great basin Of Utah to
the Sierra Nevada gold and silver mines, and
thence through some eligible passes over that
mountain range into the gold region Of Cali
Sornls. and thence 10 San Francisco.