Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1863-12-23
40 More Paper Money, wise Al
chemy."

This is the assertion OF Mr. Chase in his an
pual report after contemplating the fact that he
has put ahoal four hundred million dollars, aud
is about To put ahoat Ses en- hundred million dol
lars more" He put out paper until 10 depreci-
sted In the market 10 sixty sir cents on the dol
lar and then sold FIVE twenty ear stock pAysble
priacipsl and interest in gold. for that paper dol
lar for dollar. He has the right 10 reisem the
stock in gold after Eve years Suppose il can
be done at the end Of ten. there will then be paid
one hundred and sixty dollars in gold for the use
OF sixty-six dollars in gold ten years, nine per
cent. per annum interest. This operation that
gentleman calls "a wise alchemy" aud he plumes
himself upon "wise alchemy" which he practices
in the manner denounced by Richelieu. the wise
cardinal. "in the crucible called debit and in
most wonderful manner. When he advocated
greenbacks be set forth their advantages Ia his
first report thus:
They loan without interest"
They are uniform currency"
! They are constantly equal 10 specie"
They are - ruinoas than bank paper"
They are Government PROMISES
( They are a legal tender"
The people understood this and submitted to
the issue, until, notwithstanding their constant
equality to specie" they are at discount of
thirty-four cents per dollar. Mr.. Chase pro-
poses pet bank circulation, of which the chief
features are as follows:
They cost The treasury per a0num eighteen ulHons
Of dollars gold interest"
"rhey have two thousand shades Of uniformity
They never to be paid In specie
They more runous than United States notes."
They promises OF unknown persons"
They not q les al tender"
Mr Chase advances these features of the new
currency a. reasons Why they are superior to
United States notes Thus indicating the Singh
lar alchemy" of his mind BIT we told two
hundred aDd twenty six millions of dollars OF this
l..
aAoat. because the Unitel States notes have
reached "A limit prescribed by law.
Aud the Secretary thinks II clearly nexpedient to in
the amount When circulation exceeds the legt
requirements for real payments oad exchanges,
increase 20 It's volume viii increase its value On the
contrary, such addition tends inevitably depreciation
and depreciation, II addition be continued, will find il
only practical limit in the utter worthesness Of the
mented mass"
Now this understanding Of the ultimate result,
: of the paper system is correct hut in inaugural
ing system Of two thousand banks with TIVE
hundred and twenty six million dollars OF capital
pledged to continued suspension, the Secretary
knows that he IL creating power which vii
compel mn increase Of the limit OF capital in tn,
. same manner that he himself demanded the orig
inai limit of fifty millions United States notes. u
, be raised successfully to two hundred. tire,
, hundred, tour hundred aud fifty nine hundred
millions, bis present authority. Ii is always thu
! nature OF dependent paper 10 demand more cur
rency This principle the Secretary himself rec
, ognizes.
'rhc Secretary proposes change Of this limitation
places reliance, srefore Of
from increase OF circulation Additional loans
this mode would, indeed almost certainly prove ilusory
for diminished value could hardly fail to neutsaze In
i creased amount"
o When his two thousand political banks hav
r invested their money upon inflated values, an'
"a have reached their limit. resstless clamor vii
a.. I...
Il business" the stereotyped cry in such case
& and this cry will involve the ruin Of the nations
a credit.
" But Mr.. Chase's wise alchemy" m1nifests il.
n self in other wonderful ways. He pre,ends tina
It the four hundred million interest bearing loga
a tenders. which he asked Congress for are no
Il currency, and win not initiate prices. The La
y says:
{. "And the said Treasury notes may be made leg
tender the United States notes. for the
m face value, excluding interest"
N lie ponderel over these notes from March 3
D, to August 3lst. aud then asked the New Yor
IL banks 10 lend him aft, millions OF them at 81
e per cent and wrote M follows:
'Thc issues Of them will be ready during the month
u September"
b Not ready yet December 18th
"Beng legal tender for their face excluding incre,
20 they eenno, tall be ow the legal tender par Bearing T.
~ forest. they cannot materially effect the circulation VII
t, reference 60 gold
The banks agreed 10 the loan, and Mr. Chas,
r eager for money, was only too willing To accom-
=, modale tho banks One of them suggested tn
4 the notes should bear three coupons for semi AZ
4. nual interest, This was agreed ~. Now com,
y the wise alchemy" which provided that tho.
NJ notes should not effect the circulation" Tt
/, law says the notes afe legal tender for face 81
A elusive OF interest" Mr. Chase says they won
10 effect the circulation - The holder says 1--WE
"a see about that" lie takes pair OF scissors Gu
"a oil the coupons. which he keeps To collect again
n the Government. and masses the face Tor leg
IA tender exclusive OF interest, Mr Chase l. cot
,e founded with this "alchcmy" OF which tho xvii
n dom" Is on the wrong side Of the question /
y will practice very long time before he VI
% make gold out of paper 10y this plan OF ~
ar chcmy II New York News.