The New York herald., 1863-10-23
Secretary Chass's Financial Plans.

the thinncd ranks Is becoming every day more evident
Secretary Chase's Financial Plans.
[From the Lond Post Government organ, Oct. 10
II VIII be In the recollection OF the pub c that OF
the first nso Gences OF the INTRODUCED by the ieder al
financial minister o Inc nvertibe paper was
q drive out OF circulation the secie whica was then M
use Money dealers, like oher merchs snts snueht tho
best Ket Ia winch dlsose their precious commo
dity, and ship load ter ship load Of bullion
ported from America 10 Europe Tho effects the train
thus created 500 manifested themselves Gold lrst and
silver after wards, rapidly disappe red and The c1eas
OF tho Northern towns found themselves Obliged 10 con-
duct even the most trlning business transactions on
credit The man who rode in cab or dined at a
oh iged take in lieu or his change which he might
happen 10 be ontted, certificate OF indeo edness or
THAI amount After time certificates for various sums
were Kept IN Readiness aud each person became so ar
as arded the issuing OF bank notes private ba ker
III the me ntnc The premium on goiI rapidly rose on
fortunately, 1t aud ell in such sasmodc man
ner and the quotations o. one day differed So much from
those OF the days Immediately preceding and following it,
that IN the everyday TRANSACTIONS Oh business shopkrep
ers we're driven despair their attempts TO cslim ate
at its market worth the federal treasury notes. the only
Circulating nedium which was e!t IN Use. The want
OF dollars, and ter me OF cents created demand
for their representatives in the new currency; and
10 meet this demand tho federal government
obliged TO issue Of tho smallest denom nation.
''Gree1backs, ms the Americans learned to call gov
erumeDt notes, supplied the immediate OF The com
mnny and rendered unnecessary the devices which
the mercantile ca:ss hid been driven compensate for
the deficiency OF 'chango.n Still, however notwith
standing every effort ibe part OF the government TO
peyen, it, he continued 10 f0lo ucroSs s
Aca.tic and IN he same rooaoa ua may be ymd the
adtic cur disappeared roDs cudtin. Congress,
which at that time Ia session, erred the
tary OF tie reasuy powers to issue bark notes ad Iii
tm and this combined with the unsatisfactory progress
OF the war tended to increase the value OF gold and
cessary odepreciae the paper currency which had to SO
great an extent displaced It, Such the general condi
tioa Of annGcia ais in the Northern States at the com
mencemeD OF the present year.
II is howe little singular that, although dur
ing the past six months NJ s'cc sses0 ne fde,d arm>s
haze mo- le Sch as 10 an pre- sdngpne hopS OF fhs
speedy and tf0riosS tefmsdcn u the tyor, tie anorcidl
agpcf of qCars hrs ay3ey aay impyorsd We are FAR
RON deny log that the results Of the summer campaign
the Mississippi not such as should have raised in
the money market the value OF federal securities but
regard bel had other circumstances, IL still remains
10 nioa mea ia ~ cna ~ a'areL that the paper cur
roacy the United sta sh ud have stood high
u did in the middle Of the past monhnamelr before the
defeat of Gen. osecrans At ono period last year the
MUM on gold exceeded per cent Within the past
two months II has been low twcnty ysx. citizen
OF the Northern states would doubtless refer this sng
lar variation TO The military OF tho past
mer, and to the nvic;ion, shared by many in the
Nori b, that tho "backbone' Of the rebellion may
fairly he as broken Tn tho Northern popi.
lation sincere in this conviction is we suppose
proved by ne mi n9neSs c acich they exchange specie
that which the confidence OF Europeans In the
worth Ot federal paper Is circumstance OF which the
Americans apJ ear to take no account We are taypay.
log people in this courtry and accustomed year after
year to see tho debts, Or the interests the debts,
create in pas; times paid OF by the which
thus raised We know from experience that there Is but
ono way by which the financial credit OF State can be
suppoteduamcy by providing with regularity for tho
payment Of the government creditor Now, the crcum
stance TO which have aluded, and which amid the
blaze Of federal victories has not attrared the attention
hof 'ok ch tie has lgsed single dollar has been
ratse m the Of 'Grron. II the success Of the
paien on the Mi siSspp has raised the NJ Cha
eaay notes. surely the fact th during the past twelve
months he has increased tie. federal debt by about
hundred and Diy mcs sterling ought TO hve tended TO
dcrccrite the uccnvorblc currency which rests alone
GU tie credit Of the State. Adj to tn that whilst
"c casing 'is liabos, the Secretary OF the Treasury
his omitted in any manner 10 provide for them and
we'll express astonishmcn that 10 the third year OF
tue American ar the premium on gold should be less
tnan half OF what IL wss Ia the second.
cure. whcn constitutes almost the cole
circulating med um in United states belongs the
class of what Stock Exchange ''spcci.
atiye securities" Ihe note with which citizen Of Now
York or Washington purchases what necessary for hs
daily wants changes materially value from day day,
according The fortunes Of armies nghtng distant
regions vary or as stock obbers speculate Tor "rse
GSd TnSA S% uSed
be quoted at twenty-five or at forty.Ave week
Which srss ao %ss
most prosperous In the world Singular this condition
entirely fass to rlvet tho notice OF thoeo TO whom
be most apparent. The Americans doubt think 10
nuisance that difference should exist between the ap
parent and the real value OF bank note; but they
Gle themselves 10 il ~ being Of the conditions
n war. Their armies are now they conder, on the
high road I" vctry and as each success will diminish the
premium on specie The paper currency viii be st par
simultaneously with the extinction or the rebellion 1t -
purely matter OF t!mo and TO all appearance very
short time when tho Union. refreshed rather than ex
hlusted by its recent struggles, Ntu stand
with such prospects who, then. ought t. be sur.
rrised that the premium on gold has fallen instead OF
during the past year. Nay, rather who should not
express his astcnshment that capitalists do eagerly
convert their gold and silver such profitable terms
into the treasury notes OF the United States of American
II is ide ~ ague with ioe who hold this language and,
Is useless % diaio tho pleasures Of vision 10
who Is born bind, II is equally In vain to erdeavor
convey to the hitherto untaxaI people OF America
ton OF tie weight OF the burdens which occasi,usd
oy gigantic national debt. Mr. Gladstone occa-
sion spcke In Parliament Of what he termed an ignorant
impaence OF taxationh At present may be said that
the American nation are simply ignorant OF this mode
rrov.dns Tor tie satisfaction of state liabilities. Whn
as eIr has terminated IL wiu be soa thehr they ,o also
sts,rre d e chorGc,r;:.d az inpd ieni Of tdroiion
Grent Guns AgaiHst iron ships.
Nc a ur1x II