The New York herald., 1863-12-31

| FINANCIAL PROsrsCrs NOxvH AND SoUM.-
In our calculations a. 70 the prospects of a
speedy restoration OF peace a good deal Of
stress is laid on the physicsl exhaustion Of the
South. II we had 10 rely on this alone we are
afraid that il would not bring us very near our
object. The South has plenty of lighting ma
lerial to keep US occupied a couple of years
more. We're there not other influences to aid
US in subduing il there would be very little
hope Of our bringing it back within the period
named
That which places beyond all question its
speedy submission is the irretrievsbiy des.
Secretary Of the Treasury has frankly declared
that unless the circulation Of paper issues can
be brought down from 500, 900 900, at which
they now stand, to 5000. 900. 900 tho confederacy
is gone. AS Mr. Memminger knows az well as
we do that tho alternative thus put is an utter
impossibility, we may accept in perfect faith
his conclusions. We do not require him, how
ever to aid us in forming our opinions on the
subject. We know that when the expansion Of
an unlimited paper currency has forced up all
the necessaries of life TO prices which place
them teyond the reach Of the great body Of the
people nothing bat q prompt return to sound
principles Of finance can prevent general ruin
A glance at the Last market quotations at
Richmond will show that the rebels have
reached this eliminating point. With doar at
500 q barrel, corn and potatoes at $fl
bushel wheat at SIS q bushel, bacon at So
pound, butter at 81 to $5 a pound. coffee at
from SO 10 $40 a pound, sugar at from So 26
to So SO pound, and wearing apparel at cor
responding rates, it is not possible for them to
carry on the struggle much longer. The old
fable of Menenius Agrippa is about TO receive
fresh Illustration in their case. 1t is the
belly, rather than the sword, that will bring
them to reason
But, whilst rejoicing at a state of things
which promises to put speedy end to the war.
is there nothing in our own financial position
to awaken disquetudes The systems pursued
by Mr. Chase and Mr.. Memminger are in princi-
pie identical, and have relatively been attended
with the same results. Owing to the non-in-
terruption of our internal lines of communi-
cation and our holding possession of the sea-
board, prices have not, it Is true, been forced
up to the same extravagant point as in the re-
volted States But, making allowance for these
and other advantages resulting from our posi-.
ton, we can see but very little difference in
the practical working aud consequences OF the
two systems. When exchange raages from
fifty to seventy-Hve per cent. and the incomes
of all classes are worth less than half what
they were before the rebellion broke out, it
shows that our finances have been conducted
on the worst possible principies, and that with
out the excuse which rebel mis,nanagemeat has
had In vain did we urge on Mr.. Chase at
the beginning Of the war that the only way to
avoid this undue imitation of prices, and to
place our finances on safe basis, was by rails
ing the money required by government by
loans and taxation. He has turned a deaf ear
to our advice and has gone on inundating the
country with paper money until we are rap
idly approaching the condition in which France
was plunged by its assignats 1t is true that
he has lately announced his intention Of re-
turning to specie payments. He had better be
quick about it, or we shall end ourselves re-
duced to one or other OF the two alterna-
tives-repudiaton or ruin.