The New York herald., 1862-02-01


there is still money coming from England, and taxation
Of $500 900 900 year fi0 900 000 OF money will
both carry on the war, make notes negotiable, and ss
tain the value OF that has TO run for twenty years
u would appear that these reasons are generally sc-
ceedat least that they ut the last date for the
premium required for gold still inconsderabo, ana
there was nothing at all approaching to panic Among
the Americans themselves there was still great conn
dence The only treachery on the part o. e biisn
and other foreigners who said TO be- as usual Do
having very ILL., Agents for English corporations were in
New York disposing Of American securities on any
terms and thus lending evil countenance 10 the sout'
ern confederacy Many millions u dollars were 70 De
passing the border not only in exchange Tor sussMo
English goods bat also because there wel men 80 uh
trOtic think dollars safer anywhere than III the
United States Notwithstanding these mlschevous at
tcmpts damage the federal credit no doubt Was enter
tanned that in q very few months after the new taxation
had been In full pay the federal government would find
itself paying its way through all its difficulties. and thus
offering splendid conrat to the Confederate cause,
which assumed to be in state Ct hopeless insol
vency.
Is it really duty to dispe pleasant illusions
We might well read chapter from Sir W. Reds
claw Of Storms" 10 the next Southwestern offer any
financial considerations TO tho Americans with the hope
OF practical result But st tell at least our own
counrymen what this The FIVE dollar notes now
issued by the United states Treasury and the Northern
banks instead of the gold merely promises TO pay
that as convenien after the termination Of
the The value OF such promises depends great
variety Of considerations and ranges accordingly from
par to zero. Whsa zoe substituted them ta gold. IN hs
year 1877, at f a eqkbor drided from us
by yd'TD,o bat JoiTous STRAIT, hdcifg ourselves 'o1
prToadrnce Of navai poer omt having also the bstpot
opened with the promise of negotiation and prospect Of
peace. Therc WAS no apprehension of danger to this
country, and We were only carrying on the war IN inc
merest philanthropyor the sake OF the Christian and
civilized world. one thing was very clear-ibat
aay day we pleased we might retire out Of the
quarrel, with the British duminions, the British
constitution the British commerce, tho British
revenue wholly uninured, and no loss, ex
cept some sentimental damage TO our exalted Character
just ront in the British flag that we could tor
inmate any day al the sacrifice Of few big words and
shred of bunting need not be long one and John Bu
much too wise TO bo always graspng at il shadow.
BIT in the February of Gat year suspended cash ray
e,, aai did not Teu,a, % for tsoenty years Before
that day gold had risen 70 forty or fy per cent pre-
MUM, and guneas only to be found in cabnsts and
old stockings cannot b. said that at any time the
was matter of absolute necessity to the nation as we
could have made peace any moment without the sacri
fee Of acre, military post. institution or
person ia these isles Yet ohstnaely did contend for
the deliverance Of Europe tie world frc the daurb
Of the public peace that we kept up the war for quarter
Of century and such the confidence in our obsti
macy that till tho end Of the the ''promse to pay'
was always much below par, and great indeed were the
commercial difficulties and distresses involved in that
depreciation and the conse, ,t,ent lna! rebound
comparison OF England in 1897 with the Northern
Satss Of America 10 1862 cannot be considered favorable
TO the latter. II by no plain that the Cabinet o.
Washington will Be otie 10 make peace vhsa serious
promises and Losses hmay hese 70 up much more than
The Southern States. II may have to make terms with its
own army well as that OF the os The United States
not a taxpaying country. Their high tariffs
fess to the extreme difficulty Of direct taxation par
tcuiary for federal purposes Half the American axray
ers live in regions just reclaimed from the forest and
nois, which may be said 10 occupy mid rank between
New Eng ard and the FIR West, has hitherto paid in all
Goa ooc The yield Of an American Income Tax may be
estimated from the fact that rent there has always
been resented as sort Of tribute and therefore SYM
b Of degradation What security is there here for tho
future payment of the debts likely to be incurred under
an expenditure OF hundred millions sterling Year,
That Is rot likely 10 be diminished brought
under control, All the press open mouhed against
army Of jobbes and spectators who said to be
making their fortunes by the ruin OF their country They
i'm nxrith with
which almost anybody, anywhere at the head of
few thousand men, permitted TO pledge the credit Of
the treasury. Meanwhile army Of contractors
clamorng payment, Justly observe that the sol
diers and officers get oil the ready money while they
who supply the material for the war unpaid. They
will have to take payment in paper. whatever its
value There will still be those VINO will be N cond
on to refuse paper and who will have specie in the Or
binary Of trade They arc the fore gn merchant
and manufacturer. Not i've dollar note will the
Atlantic Styx to these happier realms unless to ainuse
the curious or attract the senger to the shop window
of Change de Mnn1is. There not circumstance in
which America OF 1862 be compared with England OF
s97, and il he British insolvency OF which we have
lately boon reminded lasted twenty years may well
ask when il will terminate IN redemption OF every bit
of paper in the States.
When an nconvertb!e paper currency Is once subst.
tod for god becomes the base f the whole financial
system, and its rising falling valo anecs every fixed
payment, whether public private Tao raiue i'll rie
uih the prospects If pence, and fall they rece from Ne
eye The defeat which throws the it's defence,
aud the victory which encourages TO perseverance
equally fatal to the hope: Of aa early peace Mon may be
sangune may dcspond but is the probable duration
OF the and the extent of the expenditure that will
rule the value OF the dollar note Who shall pretend to
say how long the will last The Confederates have
been and again pronounced 10 be bankrupt
Of TO be Incapable OF further exeriol 10 any
purpose but the prediction has been repeated eo often
operations the coast, the federas find organized,
intrenched and we'll supplied force wherever they push
their reconnoisssnccs south Of the Potomac. the
safe 30 last yecr hrger 0ha mil b. he rItve o.
promise to pay icAict i mot Be redeemed M proper
errai oftr tat year We do not expect to be listened
but Wa xyQ ipQr-
cia catastrophe ginning Of the end. with twice tho
expenditure Of war the government of Washns.on
speak itself To speaks OF either bankruptcy
and disorder the expedent Of European arbitration
fFrom the Lndcn Post government organ) Jan. 49,.
With money In the exchcquer the government has de-
cared itself nsolvsnt, and ondly nSagines that is in
better position than IL il had maintained Its credit till 1t
had spent its last dollar. Tho falacy Of such supposi
ton must be apparent to all.
The federal government il indeed unforturat in rot
possessing minister capable Of graphing with the pre-
the only by which the oal credit be upheld
II the enuncaten Of inconroyeItibe dognas affords evil
depce of financial skill il would have been impossible 10
have selected Secretary to the Treasury able
than Mr.. Chase. Can anything be sognder than the
much admiration at New York; Let the country
be taxed he proposss TO an extent sufficient y pay
the interest on tbs debt contracted, to establish
sinking fund, and to pay the current expenses OF
the government T9y cood odsics hisis, doub,, and
II ras foIooed zoe should hear nothing aiout Me pen
sio~ of srse peysnfs and FOREIGN cdpitntiis ould b.
eaoery par has,ae fed, raj seviics. But Mr. Chase TN
fortunately has not told his countrymen how the happy
consumma,ion is to be effected. Tell man VINO Is in
difficulties that the best thing be do is to provide
money for the payment OF his rent and weekly bills to
satisfy the accruns Interest his debts and to satisfy
In full the pressing OF his creditors and he viii,
doubtless admit the soundness of tho advice but can
scarcely feel benefited unless the Of pursuing the
indicated are placed within his power Now, the
means by which the federal government should pay
their way and at the same time lghten the load
they arc preparing for the backs OF postsrity,
Mr.. Chase hss failed sto devise. His require
nents the current ycsr exceed hundred millions
sterling. Hs customg will not throw six millions irto
the Exchequer. OF the taxation which Is To pay the ia.
terest on the debt and to create the sinking fund we
have heard nothing yet. The Congress whether from
an inab y roaizc the situation 10 which the country
placed from not being habitustod 10 impose taxes
or from a cobscousnces that II they do Impose them
they are not likely 10 be paid has hitherto manifested
singular dislc nation 10 vote the necessary sup.
plies. The Now York press complains that al
though moneyed men are anxious 10 bear the bur
den OF the war; the Congress fails to devise the
mears by which It's incntions ara to be carried
into effect The Committee Of Ways and Means
which has been appointed by Congress differs entire
y in its composition frVrn similar committees here,
--Sf~