The daily Evansville journal. (Evansville, Ind.) 1862-1863, 1863-01-24
REVIEW OF OUR FINANCES.
AND OF THE
REPORT OF HON. S. P. CHASE.
SECRETARY OF THE TREASURY.
HON. ROBERT j. WALKER,
From advance sheets of the Continental Monthly
for Eehruarv

Concluded
Our twenty-years' loan is now barely
at par, and the fve-twenties below par.
The difficulty of inducing bank and other
capital to invest hundreds of millions of
dollars under the new system is very
great. Is it wise to commence the eff
fort, confined to our weakest securities.
now below par. Besides, considering
the old and new debts, and constantly
increasing responsibilities, is there any
prospect that we will have liquidated all
these before the end of five years, and
the five-twenty loan also? Surely, upon
benefit so doubtful, and contingency
so improbable, we ought not to risk the
fate of measure on which depends the
safety of the Union. But if we could
pay off the fve-twentv loan held by the
new banks, is it prudent to assume that
so many hundred millions of capital will
be withdrawn from the present banks,
and other business, for investment in the
new banks, which may cease at the end
of five years by the payment of the
bonds? The change from the old to the
new banks may involve some loss at
first, hut if tLo--.--'---.-g -
at the end of FIVE years, just when profits
might be realizing, the plan could scarce
ly succeed. When the Secretary first
proposed this system in December, 1861,
he probably would have succeeded with
the ive-twenties, in the condition at that
date of the public credit. But the disas-
trous fall of our securities since that
date seems now to require bonds of a
higher value.
| would then provide a twenty-years'
loan for all that may be made the basis
of the new bank circulation. But it is
not six, but only a four per cent.
twenty-years loan that is proposed, by
deducting one per cent semi-annually
from the interest of the bonds made the
basis of this bank circulation. This de.
duction would only be fair equivalent
for the expenses incurred by the Govern.
ment in furnishing the circulation, for
the release Of taxes, for the deposit oi
public moneys with these banks, for
making these notes a legal tender, and
receiving them for all dues except Gus
toms The tax on all other bank circu
lation should be one and half per cent
semi-annually, secured by adequate pen
alties.
If, under this system, during this stu
pendous rebellion, involving the exist
ence of the Government, with armie.
and expenditures unexampled in history
the Secretary (as, with the aid of Con
gress and the banks, believe he can)
should secure us a sound and uniform
currency, and negotiate vast loans, run
ming twenty years, at par, the Govern
ment paying only four per cent. interes
per annum, he will have accomplished ;
financial miracle, and deserved a fame
nearest to that of the first and creates
of his predecessors, the peerless Hamil
ton.
have contended, during the las
fourth of century, that all State banl
bellion will demonstrate the truth o
that proposition, and the question b
Intimately so decided by the Suprem
Court of the United States. This, 1t
true. might require some of those Judges
If then living, to change their OPINION
ON some points; but this has been don
D before. and even on constitutional que
/; t;ons: and State banks will fall betoi
/; ;ndicial action, as well as nullihcatlol
Il State allegiance, secession, and II
VI whole brood of kindred heresies,
A republic which cannot regulate
- currency, or which leaves that pow
with thirty-four separate States, ca
legislating at its pleasure and witho
r. uniformity, abandons an essential I
tional authority, and this abdlcation
i. furnished one of the main supports
), the rebellion. With nothing but
tional currency, the revolted States n
u or could have successfully Inaugural
'u' this war. and we must deprive them
- ali time to come of this terrible ally
treason. To permit the State to prov
the circulating medium, the money Of Q,
/. country, is to enable them to furnish
sinews of war, and clothe them WITT
hes, power to overthrow the Government
-ets' With only such national currency a
,sa. now proposed, issued by the Governn
Wax to these banks, organized by CGngr
and based on the deposit in the FED
- treasury of United States stock, the
AR bellion would have been impossible