The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1863-03-20
The Government and Popular In
y =. dahfadnass.

- debtedness.
\ "A financial writer in the New York
Times thus forcibly elucidates the hnan-
cial policy Of Secretary Chase, and adds
fact Of great Significance: ~
"The idea is tomake the issue ofnotes,
present and future, no more than Is equal
to the real demdndsaof Cuisines, in. which
case they will be maintained, in regard
to ordinary merchandise, very nearly at
par. For all the residue of Government
wants the reliance is upon the sale Of
bonds. And here the practical question
is, how to nldintdin he value Of these bonds
at such rates as piH induce Tic investment Of
capital IN them. That is the real problem,
and il seems to me it is successfully
solved. The man who invests money in
vests two things--secyyTty and interest
and the more of both he has the better he
is placed. Let us look at this. II is not
possible to conceive that the Government
should fail on the bonds, even though it
should fail on the notes. Notes of cir
culation must be paid in full ; but bonds
are paid only by interest. For example,
two thousand millions of dollars in bonds
require but one hundred and twenty mil
lions per annum to pay the interest but
the tariff and internal revenue will not
produce less than two hundred millions
per annum. Thus the security of United
States bonds-that is, the payment Of
the interests undoubtedly perfect to
an amount greater than we can conceive
will be required. aHa
"The next point is, the interest and
here is a very curious fact-that the
more ue Treasury notes (Which il is OBJ
| served are legal tender for debit depre-
| oiate, the greater is the interest on The bonds
for that is paid in gold. If A receives
| Sc interest on a hundred in gold, wher
gold is at 80 premium, he receives q
per cent. interest in currency which
will pay his debts. II is very plain tina
there is temptation to invest in Govern,
ment bonds not afforded by any other Sc.
curity. 1t is impossible that inteligen
people should not see this and act upor
it. But there is still wanting a steady
market, place OF absorption, and thi
will, in all probability, be found by th,
operation of the bank bill. Without in
terfering at all with the old banks, Their,
are many parts Of the country wher
banks may be established under the ma
tional law with advantage. Gradual,
these banks will come into operation, AM
afford a steady market for bonds.
think, therefore, the financial schem
will be entirely successful. But, IL tn
bonds are slow of sale, the Secretary ha
his interest bearing notes, and is in an,
event, entirely secure against the want
money.
awhile the public debt is increasing
let me note set-or against that of n
small importance IL is the continued dim
mutton Of private delts. Ia the annual re
port Of the Commissioner Of Statistics
the Legislature of Ohio, there is ia,
which is test of this question. II
annual mortgage debt put upon recOr,
is fee millions less than usual The usu,
average is about S29,00O,0O0, so that Il
: falling of is about is per cent; in 9TH
words that lie the diminution of indivit
ual debts Of that description. SUI
pose that is about the general ratio
reduction. festimate the entire indiViC
ual and corporate debts Of the country
! Independent of the National Cover
ment--at about fiOO thousand millions.
that case, reduction of debt generally
! 1S6l~'62 was equal 10 three hundred al
sirtg millions Of dollars. think IL not b
vond the truth,n