The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-08-04

issuess Nothing but the grossest ignorance or
the worst motives Of treason or Reasonable
selfinterest can explain such ridiculous mis-
statements and the financial croakers may
choose and impale themselves upon either bora
Of The dilemma.
We have before remarked in these columns
that our financial system resembled that insti
tuted by William Pitt during the long campaign
inangurated by the French Revolution, VIXEN
England fought against nearly all the world.
But Mr.. Pitts system rcsembled that Of Mr..
Chase in principle only and not in its machi-
merry Mr. Pitts system was designed to adapt
the currency to the internal trade and com
MERGE OF the country Ignoring entirely al TO-
reign trade and commerce, because the war had
efectually destroyed these external resources
Mr.. Chase's system is based upon precisely
the same principle, and because of
very similar state of affairs. We have now
no extensive foreign trade or commerce
to depend upon, and our internal resources
must be our salvation. Mr.. Pitt, by making
the notes of the Bank Of England prac-
tically, though not precisely in terms, legal
tender, in effect transformed that bank into q
temporary national treasury, and its issues into
national treasury notes, receivable for govern
ment taxes and duties. Mr.. Chase, having no
Bank Of England or any similar institution to
begin with, transformed the United States
Treasury into national bank, and created a
national treasury note system for himself.
Mr.. Pitt first increased the taxes already i'm.
posed, and then issued paper money. Mr..
Chase anticipated the results of taxation by
issuing his notes, because he required money
immediately, and because such measure was
necessary to convince Congress and the coun-
try that taxation was unavoidable. Mr.. Pitt
provided tina. his notes should ultimately be
redeemed in gold. Mr.. Chase provides that his
notes shall be fundable 10 bonds paying spe-
Gle interest, and redeemahle in specie. Thus
the two systems while alike in principle, differ
in machinery and in the details Of their opera
tons; but, as far as precedent can be found
for such an unprecedented crisis as this Mr.
Pitts financial system justiies that of Mr.
Chase But Mr.. Pitts system killed off all the
country banks, by giving the country a better
currency; and Mr.. Chase's system is quietly,
but surely, strangling all our banks, by substi-
tuting Treasury notes for their issues; and this
we presume IL one Of the causes Of this finan-
cial oroaking
In short, then, Mr. Chases system is adlnira
BILE in theory and in comparison with any for
mer system--that of Mr.. Pitt not excepted
But in practice it is still more admira-
BILE. II has enabled us to carry on
the war. IT has given us a sound
national currency. 1t is eagerly vel
coined at the West, where the bank issues were
based upon Southern State stocks, and became
worthless when the war began. The people
unanimously accent and prefer The Treasury
notes, because, unlike local bank bills. they
are good everywhere in the country. The rise
in gold is caused partly by panic, partly by
spectators and partly by circumstances which
cannot be avoided during times Of war and
therefore does not invalidate the success of Mr..
Chase's system. Indeed, the most careful in
quiry developes the fact that only the sympa-
thizers with the rebellion, the sympathlzers
with local bank companies and the second rate
brokers and spectators in currency feel the
least alarm about, or the least hostility against,
the financial system Of the government.