The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-01-19

reason to apprshend that our national paper.
will fall into equal discredit with the
continental issues Of our Revolutionary struggle
or the French sssignats. In the first place, the
credit OF the government, which Is infinitely better
than that which was enjoyed by the United States
In l776-SO, or by France in l792-s is pledged for
their payment No possible issue TO the present
conflict can forever ruin the credit or impair the
resources OF so mighty a country as the loyal
States Of the North. A debt Of 81 900 900 900 WAS
borne safely and firmly by England when her
population was only two-third5 of ours ana her
resources not 1.-THE Of ours. And secondly, all
the legal tender issues OF government are and will
be receivable for taxes. If the internal revenue
law yields 5000 900 900 year, is expected, thi
market will prevent anything like whoesal.
depreciation Of the government currency. No
man will be inclined to part with his legal tender
paper for song when il will serve pay his
taxes, to say nothing Of offer debts. But, on the
other hand, the law of political economy is clear
and incxorable; issues Of paper money must
enhance values, and the advance in values
must be in direct proportion to the
amount Of such issues. The more paper is issued
the higher prices must advance. II may be re-
marked that this law has only partially gone into
effect as yet There has been no advance in
wheat, corn, -four, meat, poultry. vegetables
or other home produced food. Real estate has
risen, and groceries imported from abroad have
risen enormously; but the necessaries Of life, in
regard to food, are as cheap as they two
years ago. Corn in Illinois is cheaper than il ever
was, and is being used as fodder. Gold has adj
vanced excessively; bnt the movement of stocks
has not been uniform. Some cheap stocks, OF
nominal or doubtful value have risen prodigiously.
but it is quite likely that dividend paying securi-
tes-such, for instance, a. New ,ork Central
Erie preferred. Galena. Rock Island and Panama
would, III view of their present large traffic, have
been selling at their present prices, though not o
dollar ofpaper money had ever been issued. New
York Central Gaena, Erie bonds--now represent
ed by Erie preferred and Rock Island, all sold at
higher prices in 1883 than they now
command. The first tendency Of panic.
stricken community is TO invest money in
gold as the invarablc integer of value. We
hear it constantly remarked that gold, whatever
happens, will be worth 100 cents on the dollar
implying that other commodities may not be
worth as much. Time will correct this timorous
reasoning. As between gold and food, the latter
is the more essential to human life and the surer
Of sale. AS between gold and dividend paying
stocks real estate, the latter is the better pur-
chase by SO much as the dividend or the rents
yield. No de probation of the currency can de-
stroy the intrinsic value of sound productive pro-
perty, and, whatever fluctuations may occur in
Wall street, it is Mechanically certain that 1t
tho end of the crisis the market value Of such
property will correspond exactly to the appreca-
ton of the gold standard.
We have seen Mr.. Hoopers substitute for Mr..
Spauldings financial measures, prepared at the re-
quest Of and in accordance with the views Of the
Secretary of the Treasury. It authorizes the
Secretary to borrow 5000 900 900 in any Of the
modes hereafter suggested. lie may sell per
cent twenty years bonds at or above par, interest
and principal Of the bonds payable in gold; or he
may sell or pay away to creditors interest bearing
Treasury notes-rate Of interest not hxcd-thc in
tercst on such notes being payable in legal tender
paper and the notes themselves to be Interchange
able at any time for legal tender notes; or he may
pay the soldiers, sailors and other servants aud
creditors of government in legal tender notes. Il
will thus be that the only practical difference
between this bill and Mr.. Spaulding's ID that
whereas the latter restricts the new L.
sues of legal tender money to $500 900 900,
Mr.. Hooper's bill authorizes an issue Of
5000 900 900, if the Secretary chooses. Under
present circumstances the Secretary would have
no choice. He would be compelled to pay tho
whole expenses of the war-say 81 500 900 day
in legal tender paper. He might issue some in.
terest bearing notes; but, as they would not be .
legal tender in payment of debts. he would be
compelled to print dollar Of legal tender paper
for every dollar Of such notes issued, in order to
redeem them on presentation. We see no essen.
tial difference between this bill and Mr.. Spauld-
ings, and consider it immaterial which Of the tive
becomes law.
The following table shows the course of thu