The New York herald., 1863-03-04

Our DiAoultaes and Daagsrs-Whae IL
the D.ty ~ Mr.. Chssss
Congress, whose term expires to-day, has
taken ample caro- of the measures proposed
by the Secretary of the Treasury Mr.. Chase
has obtained everything that he has asked for.
He is placed in possession of more financial re-
sources and invested with greater money power
than were ever before entrusted to one man in
this country or any other His responsibility
is proportionately grave. He has the option
to save or to destroy, and he must very soon
choose which way he is to travel-the narrow
and difficult path that leads to safety, or the
broad and easy road that leads to destruction.
1t is true that Mr.. Chase began wrong, and it
now seems hard for him to retrace his steps,
but better late than never. We gave him some
advice when he entered upon his career, and
had he followed it he would not now be in
.vOlved in the troubles by which he finds him
self surrounded, nor would the country be driven
to the verge Of financial ruin as it is But it is not
necessary that he should continue the error of
his way. He has the opportunity of taking a
fresh start-of making another departure, with
new log and new reckoning Congress has
given him the power to raise $9OO,OO0,0O
and has left him ample verge and scope to
exercise his ability ~ to the mode and manner
of doing so. He has vast margin Of discre-
tion, and il he fails it will be his own fault.
He is vested with the control of new national
banking system which places in his power all
the banks of the country He can create new
banks or clothe the existing institutions with
new privileges. He can authorize them to issue
the national currency to the extent OF three
hundred millions. Now the question is, how is
he going to do it?-for on this will depend inan-
cial success or ruin.
There is but one course of safety. By depart
ing from i Mr.. Chase has raised gold to seventy
above par, thus depreciating the currsfcy Of
the country, and initiating prices in corres-
pondng degree, while the poor are severely
oppressed and filed with fearful forebodings
about the future. Let Mr.. Chase, therefore,
take the back track before the coming train
dashes him to pieces. If the expansion of the
currency is permitted now to 60 on in the same
way under the new banking system in which
and the banks suspended specie payment to-
gether, and WED with each other in flooding the
country with irredeemable paper money,
nothing can be more certain than that the
whole scheme will collapse in general disaster
like the assignats Of the French Revolution
which amounted at last to thirty-six thousand
millions of francs equal to seven thousand mil
lions of dollars), not worth, even to the govern
ment, the two hundredth part of their nominal
value. But If Secretary Chase will use Alright
the power given him by returning to specie
payment himself, and compelling the banks to
do the same thing. then he will have made him
self master Of the situation. Otherwise the
situation will have made itself master of him.
But in what way is he to effect this! How is
he to get specie. In the first place let him pur-
chase gold to the amount of forty or fifty mil
lions by the sale Of bonds, at whatever price
they will bring. There will, Of course, be some
sacrifice in the first sales; but the bonds after
wards disposed OF will command prices so
much higher that not only will the govern
ment be fully indemnifed for the temporary
depreciation, but its credit will be established
on y secure basis, and in the reduction OF the
interest upon future loans it will save the whole
amount of its investment. With specie nav.
ments prices will fall, and half the amount
Of money will purchase for the government
the same amount Of the articles it needs for the
war; the soldiers pay will be doubly valuable
to him, and discomfort on the score Of paving
him in currency already so greatly depreci-
ated and hereafter to be almost worthless will
be completely removed. Nor is this all. Let
Mr. Chase compel the banks to follow his ex-
ample, and the laborer, the mechanic, the arti.
san, the clerk and ell of that large mass OF
the community living on wages, and paying in
fated prices for SO many Of the necessaries of
life, will have good reason to rejoice, and, in
stead of becoming either opponents of the war
or lukewarm friends, will give it their hearty
support Even the farming class, who are
forced to pay such extravagsnt prices for their
dry goods and other articles, will be immensely
benefited by the change.
1t is great mistake to suppose that
il will require large quantities of gold
to resume specie payment. The great point
to be established IS public confidence Let the
community once understand that any person
with five dollar bill of the new currency, or
five dollar bill Of any bank, can 60 to such
bank and demand and receive gold for it. and
the probability is that he will not care to de-
mand gold, but will pay off the bill in his ordi-
nary business transactions as if il were gold, and
be credited accordingly. If the Treasury De-
partment will pay gold on demand for the
new currency il will not be troubled much
after the people are fully satisfied of the fact;
and II the banks redeem their own notes in
gold or. in its equivalent-ths new currency
they will not be long importuned for the
precious metal. Thus specie will be only
needed to pay foreign balances. The present
greedy speculation in it, depending on the
immutable law Of demand and supply. will
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