The New York herald., 1862-01-09

Conspiracy OF the wall Street Bankers
| Agaihst Mr.. Chase and the Govern
ment.
1t is evident, from the pious organ Of little
banking concern in this city, that the Wall
street banks have entered into q conspiracy
against the Secretary of the Treasury as to de-
feat his plans of finance, and deprive the ad-
| ministration of the means of carrying on the
war. On Monday it contained fierce on
slaught against him, and yesterday another
against the Congressional Committee of Ways
and Means, on the ground that it has matured
bill embodying the views of Mr.. Chase, whose
demand notes. or promises to pay specie on
demand, without the specie to pay them with
bear untruth on their face" els it pitiable
ignorance or infamous corruption ?" asks the
bank organ, and then adds, "The people will
ask this question in tones of terrible earnestness
when the bubble of these paper issues bursts,
and every politicians fate is sealed who has
been party to this wanton sacrifice of nations
honor, credit and wealth." It sustains it's rea-
soning by referring to the paper money issued by
the Continental Congress during the Revolu-
tionary war, which became so deprecated that
q pair of boots cost $ls0,000, and supper for
four, worth about ten dollars in specie, cost
$250,0O0. "To this fate" says our sanctimoni-
GUS contemporary, must our demand notes
come at last, irresistibly borne thereto by all
the forces and in accordance with all the ma
tural laws which govern finance. Nothing can
save them from ruinous depreciation but some
miraculous intervention" The drift and inten-
tion of this line of argument cannot be mis-
taken-it is to produce the very depreciation
which it predicts, and to cut the sinews of the
war. 1t is inspired in its ominous and lugubri-
GUS vaccinations by little bank which fears
to lose all its circulation in consequence of be-
ing superseded by the national currency, the
offspring of the splendid scheme of the Secre-
tary of the Treasury.
This journal is the World, whose circulation
is limited to a few thousands, and whose abili-
ty to do mischief is fortunately not CONNER
surate with its malice. 1t prates about the
paper money Of the Continental Congress, the
Bank of England and British paper money
during the wars with Napoleon, the French
assignats and the Royal Bank of France, John
Laws "crudities" and the Mississippi bubble"
In these references it betrays its historial igno
rance as well as its inability to comprehend ques
tions Of finance. AS to John Law, for instance
who no doubt was lineal ancestor of our New
York inancier, George Law-both being of
Scotch extraction; both very tall, "above six
feet high" both having rather plain, homely
faces, "big-nosed and speaking broad"-the
World is guilty Of the blunder of making Law
the founder of the ruinous financial policy of
the Royal Bank of France, and Of confounding
with the mississippi bubble" his banking sys-
TEN, which was a sound one, and lifted the
government of France right up out of its
monetary difficulties. What are the facts.
Captain John Law, born in Edinburg fngi-
tive from justice, having killed an antagonist in
duel, took refuge in France, whose financial
affairs were involved in the most deplorable
disorder, owing to the profuse extravaganza of
Louis XIV. and the boundless corruption of
his court and officials, which had entailed an
immense national debt, without any provision
to pay the interest. After the death of Louis
the Duke Of Orleans became Regent, and devoted
himself to the extrication of the tangled skein Of
finance, but in vain. At last Law offered
his services He maintained that metallic
currency, unaided by paper money, was wholly
inadequate to the wants of commercial coun-
try, and cited the examples Of Great Britain
and HOLLAND to show the advantages Of paper.
The result Of his interview with the Regent was
that an edict was issued by which he was au
thorized, in conjunction with his brother, to
establish a bank under the name of Law and
Company. the notes of which should be received
in payment of the taxes. The capital was fixed
at six millions of livres, in twelve thousand
shares, purchaseablc one-fourth in specie, and
the remainder in bulets detot, or government
notes. He made his bills payable at sight, and
in the coin current at the time of their issue.
This rendered his notes more valuable than the
precious metals. He publicly declared that
banker deserved death if he made issues without
having sufficient security to answer all demands
The trade OF the country soon felt the benefit of
his system, and it was not year till his notes
rose to fifteen per cent premium, while the biz
lets d'etat, issued by the government as security
Cor the debts Of Louis, were at discount of
seventy-eight and half per cent. The aston
ished Regent conceived the idea that paper
which could SO aid metallic currency could
entirely supersede specie. Upon this funda-
mental error he acted, and turned Laws private
bank into a public royal bank, but departing
from the sound principles of Law. He imme-
diately caused an issue of notes to the amount
Of one thousand millions of livres. Disaster
was the result. But for this Law is
not blameable. While the bank was under
his control the issues had never exceeded sixty
millions.
AS to the Mississippi scheme, that was
speculative affair." like q mining company or
railroad; and, though Law embarked in it. the
bursting Of the bubble does not affect his
sound principles Of banking or finance. 1t
was fraud upon the public, owing to the