The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-28
FINANCIAL AND COMMERCIAL

FRIDAY, Feb. 27-6 p NJ.
The financial measures Of Congress invest
Mr.. Chase with more power than was ever before
confded to any finance minister in any country.
He is empowered to sell, at any price he pleases,
5000 000,0 900 of bonds, to as many years as he
peases but not less than ten nor more than forty,
and to bear any rate OF interest he pleases,
but not over six per cent. Next, he is
authorized to issue $500 900 Of Treasury
notes, to run long as he pleases, but
not more than three years, to bear any rate of in
terest LIZ pleases, under six per cent, and to be
legal tender, if he SO declares them, or, il be pre-
fers to be merely interchangeable for legal tender
notes on presentation. Finally, he is allowed-if
he deems it necessary-to issue $50 900 900 more
legal tender notes in the ordinary form, including
the 800 900 lately authorized by joint resou-
ton. These powers are "a large could be de-
sired, and wholly relieve Congress from RESPONSE
bility in the event Of . failure Of the financial
administration. II was clear, some time ago, that
nothing short of some such wholesale delegation of
power as this would have rendered the position of
the government safe throughout the recess.
The main reliance Of the government during the
next twelve months must continue to be, as it has
been in the past upon paper issues. OF these Con-
gress has placed $3.50 900 900 at the service of
the Treasury small in view Of the vast
expenditures of government, that it will require
close economy to make it last till July, 1864 This
paper has been divided by Congress into legal
tender notes. and notes convertible into legal ten.
der and which will become legal tender them
selves whenever the Secretary chooses to say
they are. But these distinctions appear to be
more fanciful than practical. To be of use to the
| government all this paper must be, in name and
effect, money: money that can be used to pay
/ debts, buy supplies, and make good a bank &C
count If any part Of this paper were so presented
TO the public not TO take the form and shape and
not TO fill the uses of money, 1t would fail
In its object of defraying the cost Of the
| war. This IL well understood at the Treasury De.
partmcnt; it is well known there that these new
notes will be, in name and effect, money, though
the interest ON them may, perhaps, in an easy
money market, tend to impede their free crcua-
ton. 1t seems unimportant whether they are
made legal tender or merely interchange bic
for legal tender on demand
OF the 5000 600 900 long bonds authorized. the
Secretary will be able to sell good many with
judcious management He might have sold more
IL Congress had retained the House amendment 10
the Sub-Treasury act, allowing him to keen
accounts In solvent banks. Under the present ar.
rangement no loan could be negotiated az pre-.
sent, simply because legal tender notes.-the
only currency receivable by governmcnt-are too
scarce to make it safe for any bank or banker to
bid for million OF bonds. But II, after issuing
fifty or sixty millions Of notes, the Secretary
then came into the market, either publicly or pr.
yately with q parcel of bonds, they could be
noatcd, especially IL our armies had achieved some