The New York herald., 1863-01-14
The War and Our National Etu..c,s In
COnecess

The war ana our National Finances In
COnecess.
The speech of Mr. Spauding. os New York,
in the House of Representatlves-pun in
Yesterdays HERALD-prescnts at once n.h,v
important expose of our national finances at the
present time and programme to meet the tre-
mendous difficulties which surround the ques.
ton for the future. Mr. Spaulding's project Of
relief is understood to express the views OF the
Committee on Finance, with single exception;
but it is antagonistic to the opinions of Mr..
Chase, as set forth in his annual report to
Congress.
Mr.. Spauldings exhibition Of the actual con-
diton of our finances is remarkably clear and
Ineligible. He shows that, before the expra-
ton of the present month"; sum of one hun
dred and fifty millions is needed for the imme-
diate necessities of the army The troops, en-
during all the hardships Of war, have been un-
paid for many months. Till the lst Of July
period Of six months--over $2,500,0OO will
be required every day, Sundays included. Till
July ls64-a period of eighteen months--over
eleven hundred millions SLIT 100000 must
be provided for in addition to the proceeds of
customs and taxes He estimates the debt as
reaching at an early day two thousand mil
lons-equal to half the English debt. But at
the end of the next two years, or at the expira-
ton Of the present Presidential term-before
which the war is not likely to be brought to q
close-the debt will amount to four thousand
millions, or fully as much as the debt of Great
Britain with the interest one-third more.
How is this vast sum of money to be raised:
The Secretary Of the Treasury proposes to do
it by two modes: first, by establishing ma
tional bank; second, by loans in some Of the
forms heretofore authorized by Congress. In
reference to the first mode Mr.. Spaui ding con-
tends that the proposed bill for the establish
ment of national bank and the suppression of
the circulation of the State banks would net
only be unjust, but would not yield any con-
| siderable amount Of money to meet the appro-
priations for the current and next fiscal year.
1t is certain, too, that the banking interests in
the different States are sufficiently powerful to
defeat the proposition of Mr.. Chase in Con-
gress. 1t is true that following the example
Of Mr. Chase, the banks suspended specie pay
ment more than year ago, and that Of their
only the sum of $42,000,00O, or about one
fourth, is secured, while the rest Is insecured
circulation upon which those banks are max
ing large interest without the investment Of
principal But with such corrupt Congress
as the present the banks would have little diff
fculty in preventing the passage Of any reme-
dial measure. Besides, there would be strong
opposition to it in many parts Of the country
on the ground Of unconstitutional federal inter-
ference with States rights
As to Mr.. Chase's other mode Of raising the
money by loans, Mr.. Spaulding contends that
there is not currency enough in the country to
meet the necessities Of so large an expenditure.
He doubts if loan OF 5000, 900 could be
taken at this time for want of currency to pay
for it. The gold and silver in the banks Of
New York, Philadelphia and Boston amount
to about $5O,000,0O0; the amount in all the
other banks about $37 ,OoO, ,OOO-in all $87,-
100000. The whole gold currency Of the
country, if it could be brought out, would only
amount to $25O,000,00O The whole Of the
secured currency of the banks is only $42,-
| 100000, and even for that specie payment is
suspended. Mr.. Spaulding holds that such
currency ought not to be taken for loans and
security is really inferior to that Of United
States demand notes, and the federal govern
ment has better right to the benefit Of the
interest than the State banks. From the fact
that Congress ten months ago authorized Mr.
Chase to sell $500, 100000 worth Of fve-twenty
six per cent bonds at the market price. and
take payment for them in legal tender notes,
while up to the present time he has not been
able to dispose Of more than SIS, 900, ,00O though
during the same period he has paid out nearly
S250,000,0O0 legal tender notes, Mr.. Spaulding
infers that money cannot be raised in this
form.
What, then, does Mr.. Spaulding, in the name
of the Committee on Finance, propose? To
issue three hundred millions more Of legal
tender notes. and three hundred millions
of intersst-besring Treasury notes (5-47H per
cent?, besides loans amounting to $9O0,O0o,O00,
as proposed by Mr.. Chase, in order to enable
him ito borrow money in any Of the ordinary
FORMS or, IL exigenciss require, to make addi
tional issues Of United States notes."
Now this Is only repeating the medicine
under which the patient has already become
sicksr and sicker every day. Mr. Spaulding
observes, in references TO the legal tender
notes, that he has . great aversion to any
further issue Of them, and can only consent to
il as an imperative necessity. He says larger
issue will initiate prices; but he does not see
how Il can be avoided; for the troops must be
paid and the war carried on; and the armies
Of the de facto government at Richmond must
be whipped badly in the field before II will
compromise or surrender. "The daily expenses
of the war are enormous. The public debt is
running up at fearful rate. This state Of
things cannot be continued for any csnsidera
BILE length Of time without public debt so
large that il will burthen the present and