New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-01-15

Ill.,
of war. Our success is much more financial than
a military question. As regards the result, the
Secretary of the Treasury holds now the most
important poet In this contest he is the generalsslQ
and as he is right OIL this question, and the fate "
the Union is involved deem il my duty to give hun
nv earnest and jealous support
Ruinous as must be the effect OF redan-
dant and deprecated Currency upon all iudua.
trial pursuits tie injustice TO our gallant army ana
navy regulars and volunteers, would be attended
with extreme peril. Upon their courage ana en-,
durance We must rely for success. we have pleoeea
10 our brave troops. who are wounded or dyin9 oy
thousands that the Union may live, such nay lis to
enable them while fighting our battles to make al
lotments of portions of their money for the support
of their families daring their absence. we have
promised pensions also. These are all solemn
pledges on the part OF our Government, and our iait
is violated If this pay these pensions are reduced
But there is no difference between law direct,y
reducing this pay and tbese pensions, ana thc
adoption by Congress OF the policy Of reduhdahe
and deprecated currency which VIII produce tne
same resuit. Every vote then in Congress Tor euch
policy, 10 a vote 10 reduce the pay and pensions
for our troops, ard to aDnlhate the aIo!heh's auo
by them fer the support Of their iahes' " iid'
elect 81 a policy must have our troops ana Tue
maintenance of the Union is but too palpaDle' al 70
dls6andment and dissolution. Every snch woe il
given also TO reduce the value Of the wages OIL ipo
and Tor increased taxation, TO the extent, tb We
have seen, OF sos 10000 per annum' AZ As "a vop'
also to reduce our exp0rts and revenue from Gus
toms, to paralyze our industry; and, hna'iy, IN hs
ultimate results, il s vote against the war, Tor re-
pudlation and disunion and hence every disahiohs'
will oppose the plan Of The Secretary.
To what extent this redundancy and depreciation
will go, by enlarged issues OF legal tender treasury
Notes, we may learn from the fact that the bauks
substitute them for coin for the redemption OF Their
paper. Now, just in proportion as tins issue OF
1reaeury Notes becomes redundant end deprecated,
will the bank circulation, redeemable IN such notes,
augment and depIeciae also. This ia the law OF
bank circulation now forced upon us bV congress.
Ii il the law Of redundancy ami depI.clalIon.
this policy is adopted by Congress- an enlarged issue
made of Treasury Notes. and the plan OF tue Score
tary discarded, our bank and Treasury Note cTcua-
tlon with the war continued, will very largely eX-
coed one billion Of dollars before the CLOSE OF Tue
next fiscal year, and both will be deprecated much
more than sixty per cent. Thus, IL We al onid en-
large our issues of legal Demand Treasury Notes 10
$3.50 600 900, and these be made the basis ol BANK
rsuer in the ratio of three to one our total phef
circulation would be $2O0O,OOO,OOO, such treasury
Notes initiating the bank issues, and botL depreca'
ting together And vet this Is the currency III WHICH
il is proposed 20 conduct the war and the busnesr OF
the country. The banks alone, by excessive LOAF
and issues would grow rich apparently on me ruin
of their country Bnt there would be terrible re-
tributlon. The result would be general insolvency
and reputation, me d6bis due ne 6dH6S roufd Dc,
ruin II 10 then the nterest OF the banks 10 SUSTAIN
the Government and the Secretary, and 10 transfer
tneir capital to the new associations. This - sepe-
cjally the case with the New.York banks, winch,
under a provision Of their state constitution, HAth
NO LEGAL EXISTENCE. When reputation and oank,
rupcy become general, the cry, Ike 'ha' OF io"eu
army in a panic flight, would be raised, SdH0s qua
pclf; we NAV have again IN old aud new court
party especially under our miserable system OF al
elective iudiciary aud the banks be crusbed by
wicked legal devices, ~ they were III the West ahd
Southwest 10 1871 and 1893.
Referring 10 the bank issues, the Secretary aye,
in bis last report =" II was only when the United
States notes. baying been me ie legal tender, were
diverted from their lsgiinate NE aB currency, and
made the basis Of bank circulation, that the great M
crease of the Latter began Al tie present celre.
citation of these treasury notes, AZ 10 better Tor Tie
banks BY one third 20 redeem their circulation III
these notes, rather than ia specie ard they need
keep only one dollar Of treasury notes for three OF
bank circulation. This IL the policy forced upon the
backs BY Congress. But the more redundant and
depre ed tins currency becomes tie easier VIII u
be for the banks 10 provide tie bas Of redemption
and expand their circulation in the ratio like that OF
specie OF three dollars OF bank currency for cacn
dollar Of treasury notes held by them. thus II u
that tue enlarged ssre Of treasury notes nect ,safy
increases the bank circulation, IN tae ratio OF hrs
20 one and thus asO that tie circulation Of bank
and Treasury notes becomes redundant aHd depit-
claied. Under such policy, every bank teen, how
ever loyal is stoc. holders of!cers, becomes a
citadel, whose artillery bears with more fearful
eject upon ,be Government than all the armies OF
lie rebe Lion. This Will soon become obvious, and
TIE oum will rect upon tue banks, their officers and
stockholders. Bat The real responsibility will be-
with Congrese, who, by such syr,em viii have
nrrayed the banks in necessary und inevitable hos
tilty 10 the Government. Such, We all know, Is
not the intetion vi Congress; bat ~ this result will
necessarily flow from their neEsarts, upon them, Ia
nd Ill hQ
disaster. 1t is this appalling condition Of our finances
that gives the rebellion 10 only hope VI success, and
invites foreign intervention. Bot IL Cont rass will
adopt the policy Of the Secretary, they will render
certain The triumph Of the Union, aud the Rebels,
from despair and exhaustion, must soon abaIdon
tbs contest.
We have .een how dreadful is the disaster which
the banks would bring On the country by punuiDg
the present SYSTEM and how terrible the odiuIn IL
which they " ould be subjected But now lot u
look at the result, If the plan OF the Secretary !.
adopted. The nsw banks would become fiscal
agents Of the Government. Their circulation woulI
be uniform furnished by the Government, and based
Oh United States stocks the principal and int rest OF
which would be payable in gold. The interest Of
labor aud capital, OF the banks, the Government
and the psoil 10, would for the hfsI tune become In
separablv united aud consolidated. This is a grand
result, aud fiaucht with momeutOus conse Iuences 10
the country. Every citizen, whether stakeholder
OF the banks or not, would nave direct and meal
cuiabe interest ia their success aud prosperity.
They, the people, would have this interest," not
merely as holding the notes OF tic banks, which
would become currency, but because the bauks
would hold tbs stock OF the Government, would
have loaned 1T III this way the money 10 suppress
the Rebellion and thus have saved VA from redun-
daut and deprecated currency, from inevitable
bankruptcy and Reputation, aud have prevented
tie overthrow OF the Union. Each bHnk would then
become IA citadel over which should float tho flag Oi
the uuion for oacb bank would then become pow.
efiul auxiliary Tor tie support Of tho Government
aud tie overthrow Of the Rebellion.
The bill dvoreiug the banks and the Government
was drawn by me, as Secretary Of tie Treasury, in