The Burlington weekly hawk-eye. [volume] (Burlington [Iowa]) 1860-1876, 1863-03-28

of this political serpent, rebellion, that has woun
its scaly folds into our political Eden, and thu
preserve our cherished Union for all coming ger
eraticns Sincerely yours,
Messrs. H. S. Walbridge, and others, Commit
tee, &c.
MIR. CHAsE'S FINANCIAL SCHEME
Opinion Of an Eminent Merchant.
From the New York Post.
The following is an extract from the letter O
distinguished American merchant, who hear
tily approves of the financial management Of tn
Secretary Of the Treasury, dated Paris Februar
26, 1868:
'My notions of finance, which l express will
great difidence, are not entirely in accord Will
yours.
| The war is not carried on by the pre~existinI
wealth of the nation.
The aggregate wealth Of the nation, such az i
was at the beginning Of the war, remains withou
much change of investment-at all events, ne
part of it, to speak Of, has been lent to the Gov
eminent, or applied directly to pay the expense.
of the war. Mr.. Chase, from the
start up to this time, has never been in a posi-
ton to offer terms and guarantees to capitalists
which would induce them to lend him money fol
lie profoundly convinced OF the fact, that capital
ment to hiu-until he is in q position to do
without them. How, then, is the war carried
on? and how must it be sustained as long as il
continues?
Not by the pre.existing wealth of the nation
but by its current industry, by the new wealth
which it daily creates and applies to this purpose
this is the sole resource aad support Of the
war, The creation of new wealth is, of course,
the combined result of labor, skill and capital
and it is in this indirect way only that pre-
existing capital or wealth contributes, viz: by
rendering labor and skill more productive than
they would be without the use of such capital.
To express myself more definitely, suppose
the annual product of labor, skill, &c.-that is,
the annual creation of new wealth-amounts to
one thousand millions of dollars, and one-half is
required for the consumption of the producers
that is, the nation-then the other half is sur.
plus
This surplus Of five hundred millions is the
annual gain OF new wealth, and in the ordinary
state of things seeks various forms of investment
aud adds that much to the aggregate wealth of
the nation.
But in the existing state of things this surplus
goes to supply the current expenses of the war,
and as far as it is so applied, it is annibilated as
if it were sunk in the sea, or as if it were put
into one large shell, aud blown up The result
of the war is, therefore, that its cost is a total
loss, which is taken, not from pre-existing
wealth, but from the product of current indus
try, which, consequently, prevents the augmen.
tation Of the aggregate wealth of the nation to
that extent.
In this way the war may 60 on as long IS may
be necessary, and without the nation being any
richer or poorer at the end than it was at the
beginning OF the war-but poorer at the end
thanit would have been, but for the war, by
the sum total Of its cost.
Now, how is it, aud why is it, that Mr.. Chase
is better able to seize upon the new wealth than
upon the Old wealth, and convert it to-destruc-
ton-!or the support of the war? That it was
and is possible to do one, and impossible to do
the other, is the practical fact discovered and
appreciated by Mr.. Chase at an early age; and
it is owing to this that the war has been kept
afoot
need not waste words on the hoo and mhy;
it must be obvious to those who reflect, that
while capitalists would not exchange their exist.
ing capital for the obligations of government
entering on struggle for it's life, the whole ma
ton was willing to throw in portion of its cur
rent and future earnings and incomes, and it
was possible, by securing this new wealth in the
very process of creation, while yet 10 the hands
OF the millions who produce it, and before it
passes into the hands of capitalists and becomes
consolidated and invested capital-it was pos-
sible to convert the whole surplus product of
current industry, directly or indirectly, to the
support of the war.
Now this has been done; and it is the result
OF concurrent Causes certain degree of viii
llnSness of the people, and certain degree of
force by the Government
But when all this industry and the products of
industry skill and capital came to be paid for
day by day, the Government, of course, could
only give its promises, and these promises being
substituted for the newly-created wealth, must
pass gradually, isstead of the wealth itself, into
the hands of capitalists.
But this could not be accomplished to the
extent required without some forcing, and
forcing is only possible through numerous small
channels, in each OF which the pressure thrown
In for the moment, combining with the willing
ness, oyercomes the resistance and the promise
passes. 10 carry on this process of in6nitesi-
NAL exchanges it was indispensable that Mr.
Chase should have authority to issue certain
amount OF paper money and authority to liqui.
date contracts by interest notes and such brief
lnltiatory engagements as were practicable. His
business is to get in debt as fast as he can
The first step is the most difficult but, the inita-
ton accomplished, the next step is easier; many
small debts are equal to large one, and large
one is the only method of carrying on the war.
NOW, | understand Mr.. Chase to say to Con.
gress: You must give me authority to issue
paper money; to make room for this currency,
you must tax the bank circulation out of use
With this and the existing system of interest
notes TOR short periods, can initiate the debt;
but to enable me to run you in debt to the extent
the war requires, must have funding scheme
for the absorption of the floating debt, and this
must be backed with a permanent revenue for
Nc. With fhia ohiporv 7 Al.