Dayton daily empire. [volume] (Dayton [Ohio]) 1850-1865, 1863-10-29
Mr.. Chase's Banking scheme

Mr.. Chase's Banking scheme.
| We invite the special attention Of our read
ers to the following extract from Mr.. Gallatin $
remarks on the new banking schemes of Mr..
Chase, The name alone of the author would
command respectful pernsal, even if it were
not known, that It's present inheritor can boast
a reputation, in financial learning, BY no
means inferior to that Of the former great
Secretary of the Treasury of the United States.
The brief extract we append is lucid and
mastery exposition of the mischief inflicted
on the country by the stupid ignorance and
miserable bunderings of our present minis
ter Of Finance" a.
Each minister that honors the Cabinet with
the illumination of his wisdom seems gifted
with the protu uberauce of laundering, but what
ever may be the evils gurgling from abe blum
ders of the others, they viii be, from their
want of permanenee, harmless in comparison
with the perpetuity of calamity, with which
the follies of our money quack have flooded
the country: lt
Among all the deplorable consequences
OF increasing the prices of commodities by
this proposed increase OF paper money through
the new banks, none ia so injurious to our ma
tional wealth as the transfer Of our public debt
into the hands of foreign capitalists at the
most extraordinary low prices. Persons not
conversant with financial affairs are shame-
/ fully deceived and misled on this question:
1 Because the stocks of the United States are
| quoted at or above par, no matter what may
be the price of gold and other commodities,
they consider our financial policy to be found
ded upon the wise teachings of experience
Now, for example, let us take q case, similar
| to those which occur every day on the street,
and in the New York Stock Board We will
suppose gold to be at fifty per cent premium,
rs it has been more than once within year
and a capitalist in London or Paris wishes to
buy one thousand dollars worth of our Gov
ernment stock-"fve twenties" This stock
ID at par in our paper money, one hundred
dollars of ''greenbacks" being worth one hun
dred dollars in five twenties" The capital
lst has sent one thousand dollars in gold (or
bills of exchange payable in gold) from Lon
don or from Paris, and this sells in New York
for about fifteen hundred dollars in green
backs, there being slight charge for expen.
ses so that every thousand dollars sent from
other countries, when gold is about fifty per
cent premium in New York. buys about fl
teen hundred dollars Of our Government stock,
bearing ak per cent. interest in god and in
reality Mr. Chase gets less (in real value)
than one thousand dollars for his fifteen hun
dred in stock, because his issues Of paper
money have increased the prices of every
thing so much that the fifteen hundred dollars
he-would have received in paper, in the ex-
ample Just referred ia, would buy far less in com
modites than the thousand dollars under a
specie currency. He pays interest on fifteen
hundred dollars annually in gold, being ninety
dollars year, although he has received in
real value only one thousand dollars. In this
way, every foreign capitalist, when gold is at
fifty premium, gets our Government securities
at about sixty cents on the dollar, so that his
capital yields him more than nine per cent
interest, while our poor people, as we'll as all
persons having fixed incomes, are made to pay
fifty per cent more for the necessaries of life
and our own capitalists are compelled to pay
fifty per cent more than foreigners for our
own national securities. To impoversh a ma
ton, and discourage the labor and savings of
its people, no system is so etfeetual as this Of
paper currency and it ia this system, so ruin
Gus to the nation and the people, which we
are requested to reader active and efficiently
admitting its engines into the Clearing House,
that they may destroy and supplant the specie
paying system upon which our New York city
banks are founded, and establish upon its
ruins that OF the notorious John Law, which
has exploded in every country which has tried
it, leaving a succession of awful warnings
and admonitions, which are to be read in al
most every chapter of the history of nations
during the last and present centuries"
80
TIAe Famous Flora TempIe''
Dead.