The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-12

iron cst st1md nearly tie rae Reasons Of difs
rent but OF equal force apply real estate ans
prevents ts price ro oe,ng proper guide Inc genera ezra
deduced from the other tests. These facts unit
in establishing beyond dou, ootA tie actual redundancy
NE currency aud is probable rate Of ezcess.
The remedy ,och reQaircd order u Be stite, MAST
therefore, wihdraW tOoAirds Of ne entirs rosAme Of II
The measures already adopted by Congress were In
tended TO act in this direction Tho Treasury notes wore
all made f,ndable originally in eight per cent SO
| Of notes would prefer investing them in bonds
rather than hold tsem when deprecated. 7.
notified, by the act Of last session, that af,el
the ed Of April they no longer invest y
eight per cent securities These measures although ia
deious and well timed, are overpcwered by the neces
sity which compes the government to increase lib 49,
sues Notwithstanding the large and daily Investments
in bonds the currency continues rapidly TO grow IN guam
tty This increase daily advance in prices and
the necessities OF the government compel 1t to purchase
at these prices The payment OF enhanced prices again
compes further increase In the issues and an ascending
Of action and reaction is thus established between
prices and issues which, il not arrested must result In
consequences disastrous to the best interests OF the
country.
These effects are has,ened BY the injurious operation OF
the Of currency upon the bonds Of the
These bonds offered absorbents for the treasury
notes and the high rate OF interest which they bear Is
the inducement take them. In our present circuni
this interest paid in Treasury notes. By
depecating these the interest suffers equal depre
four or three per cent according the scale Of issues OF
Treasury notes The ndacement to take the ponds thus
destroyed, and tho bonds themselves to afford
relief 10 the currency They offer still less nducement
any foreign purchaser, because he Is informed by the
of exchange that his interest will be paid in cur
which must be exchanged for his at the rate Of
three dollars TOR one. plain, therefore, that the
change required prompt reduction Of the currency 10
its normal condition Tho question recurs is this prac
ticabeY
At the last session of Congress an effort was
attain this result by the proposal for loan OF one fifth OF
nj Ia be n n eych
for bonds. The adoption OF this would
have retired large amount of Treasury notes
ut early period, and would thus have
checked the advance Of prices II misfortune Of
every such failure that il leaves The evils increasing at
the stringent All the Of continue in
full operation Prices increase the government is
PEELED to purchase, and the purchases must be paid by
new issues Zach new operation aggrarates tire disease,
and hesitation or delay Is rulnous.
The conditions them which any sufficient remedy must
fulfil first prompt and secondly, effective reduction.
To be effective the currency must be reduced least to
the one hundred and fifty millions already shown TO be
its extreme limit this reduction must be so prompt
as TO take effect before prices undergo further in
crease.
TO NEE, these conditions, ,eoald respectfully propose
that after Tie lapse Of reasonable fine the issues Of Tca
Sary notes bearing date prior 10 the LIST December 1862 shall
cease to be cusncp This be dime ot the least possible
injury by f0Aocg p the action OF Congress at the last
SION, and fring period Of Limitation for funding these
notes.
the law now stands these notes are receivable for
government Dues and the holder entitled TO fund them
in eight per cent securities until tho 22d April next,
after which date he can fund in seven per cent pro-
pose simply to fix period Of limitation Tor the
Of this last mentioned privilege by cnacng that after
list July next the privilege Of funding these notes shall
six months have already been allowed for invest
ment in eight per cent securities according to the
tract the face Of the Two months more will be
allowed for investment in per cent and
long notice, the holders do not choose to avail Them
selves OF their privilege the good faith Of the govern
ment will stand clear Of imputation.
But it essential to good faith that ample should
be provided by the government to secure and pay the
principal and interest OF the securities in which the
holders are required to invest THIS can on De elected
by an ample and permanent toz. sub ton is the
stone Of s Whoe fabric. Without it, the scheme has no
foundation and can secure neither public confidence
Success The proper extent OF this tax will hereafter
be considered. II is sufficient or the present. affirm
that must a. least pay the interest the entire pub
lie debt.
To give completeness the plan II would seem proper
to provide measures Tor future redundancy We
happily relieved from this necessity by the patriotic pro-
posal the States to guarantee the whole or
large portion Of the debt Of this government II all
the States be induced promptly adopt this measure,
will thereby be furnished to absorb any excess Of
the new issue the proper currency The
guarantee Of e SAFES ,oiu enable this ,nm, 10 reduce
be prevailed upon the 80 as 10 cover
tho whole war deb at least four Ave hundred mil.
cnnble the government, in dine time 10 extingnish the
whole principal OF its debt Upon debt Of Fre hundred!
millions ms saetng ea just ten millions The ability to
apply this amount TO the principal instead Of the
affords such obvious advantages 10 insure the favorable
consideration both of Congress and OF the States.
An analysis Of the sche proposed will reduce il 10
l. a iniaton rpm ne rrieiis9e or funding Me notes
issued Jrior 10 Ut Otclatcr
2. a wor tau.
3. A guarantee By he States
l. In considering the frt Of these features the FIRST
Inquiry which suggests itself Is, what will be the effect
oil this Limitation? VIII arrest the circulation of the
notes and lessen the volume OF currency
Its first elect will certainly be to add another stinu
liant investment In bonds II was unfortunate thnt the
act Of the last session the change Of interest for
six months The delay has deprived The remedy much
OF IL efficacy and coed an requires that at least sixty
days should be allowed for its operation Oiherw Use,
would have proposed to m, the funding privilege list
OF Nay Instead OF LIST OF July The elect The sllmuiut
Is thus retarded still the fact that there period Of
limita.oN will nducc holders come in before il ex
pires. Those who desire secure eight per cent secur
lies viii come in before the I'D Of April or hsd no until
that day the notes which secure that rh, ard All
who CAM vii come 10 before The ls! o. July fo fave the
final exclusion II L. probable therefore, that hlo ghout
the entire period an amount Will be withdrawn sufficient
TO check any rapid advance in tie total circu
latIon.
but when the dnal date of lim,aii approaches the
notes will not pass readily from hand hand and the
result will be that they thrown o. ordinary cir
culation aud relieve the currency that extent The
comparatively small then lief, tie hands OF in
dyiduals III cease 10 have Purchasing power They
Will pass only by special con act ana acr chief yale
will consist IN their being receivable for government Dues
al this point the government will collect scicn,
TO absorb the whole remnant tue rcie afforded TO the
community aud the currency vii. be made complete.
Hitherto atepoicy Of He Cor 9ne.iha soueit6o absorb III.
c1ruiJf0n ty tndpeD MS dosr bond at high rate of
Interest aaw ben offered; bn ne iadccmns has L>en ala e
By he depreciation II the crag al rch Ms ia crest
paid hay7spOsed roo 10 apply he deficiency BY snail
portion Of coasrdim We every side Of indicA.
lions OF the abundance Of money large every
where held on deposit but ghe holders propose fer them
selves more prohlable Investments .han pub securities
The ability 10 keep unemployed ,hc.c sums aud to hold
them for an Indefinite lime proves IN u da
mage will be Suffered by requiring their sion into
bonds. The large amount ~ money when shown Wy
the tax returns TO be cGeA NJ .uici est private
hands confirms the belle that there is no want OF
tai among cur people. docs Hoi 70 b, yosh
c9Hcla ion, therefore, hot al ieat Ut,e fo-irihs Of
the currency outs1r ding on ld of Isteatcr WAY be
faad q wiUoM substantial dcndge 10 fIirJis iaeJess
II the remaining ioirih could be absorbed by tax
the solution Of the foblela would thea he complete The
people fully prepared Tor the pas uent or high tax
II may not be practicable to place u at high rate
absorb fourth q the entire currency to he caci
in, but II may approach nearly To leave unabsobed
only ba, portion which will remain outstanding spite
OF all efforts 10 ca | IL IN
win not venture to assert that grave objections may
not he made 10 this scheme such ohcct.oas will bs
found in the way OF every plan. They necessary
suits Of the proportions OF the which Il wagcd
against US and the enormous Of money required
carry II on. Dat appears II ne that upon due cNamps
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