Weekly Trinity journal., 1864-08-27
Views of the Fiscal Policy OF the late Sec
retary OF the Treasury.

Views OF the Fiscal Policy OF the late Sec
retary OF the Treasury.
| The following is taken from the Bankers Nag
azine published in the city of New York, an old
and standard periodical, representing the fnan-
cal interests of that great emporium. Its loyal
ty and hearty support of Government measures
since the beginning of the war have been of the
most marked and unequivocal character. Since
the following article was written further de-
probation of currency has taken place, as was
to be expected:
There is general conviction in the minds OF
those familiar with the subject, that the finances
of the country have been sadly mismanaged, and
that a continuation Of the policy adopted for
some months past will lead to still more extrava-
gance among the people, and to more severe loss
to the Government. The creation by the United
States Treasury of q large volume of paper
money, now amounting to over eight hundred
millions of dollars, unaccompanied by an ade-
quate system of taxation has gradually and rap
idly undermined the commerce and finances of
the country and has disturbed prices of COM
modities to such an extent that our whole system
is in violent commotion
The persistence with which these paper issues
have been forced upon the country in direct
violation of sound principles of finance and in
opposition to the views and warnings of the
ablest men in the country.
The measures of the Treasury which we may
say have met with universal condemnation, and
which have led to the present chaos in public
and private affairs, and to the loss of confidence
in the Treasury management, may be enumer-
ated as follows
l. An increase of paper currency from $l50-
900, ,000 reported in July, 1862 to $50, 900 900,
as officially reported in May, 1864. The latter
comprising as follows:
United States notes legal tenders, .....si41 100000
One and two year legal tenders. 223 100000
One year certificates Of Indebtedness 100000
Three-fourths Of these issues were totally un-
necessary, and contrary to sound advice and to
the experience of the past.
With knowledge Of the growing burdens of
the Government in 1862, the surplus capital of
the country shonld have been absorbed in q
thirty-year loan at six per cent. even at seventy
FIVE cents per dollar. The urgent friends and
defenders of the administration deplore the poll
cy, now unfortunately fastened for a generation
upon the people. The New York Commercial
Adrertiser, of the able defenders of the Gov
ernment, says, in June, 1862 All the errors
of our final policy, (trom the issuing of legal
tender note; to the present day, due TO igno-
rant edndy and presumption. The combined ex-
perience of the civilized world has demonstrated
the sad doom of legal tender notes, wherever
and whenever issued. Science gives the reasons
why governments cannot supply proper paper
currency, and shows why every attempt to force
q governmental currency upon people njures
not only the nation at large, but more especial
y the government resortng to such measure
to force down the price of gold and raise the
price of currency is an error, because govern
mental credit depends upon the same basis as
the credit Of private individuals to wit, conf
dence Confidence cannot be called into life or
fostered into vigpr by force or violence"
The creation OF large volume of paper money
payable on demand, instead of deferring pay
ments to periods of twenty to thirty years, has
led to an advance of prices fully one hundred
per cent beyond those current in ls6l-'62.-
Every contract entered into by the Government
since July 1862 been based upon irredeemable
paper and the losses to the Government thereby
have been at least five hundred millions of dol
lars This is only a small part Of the evil. The
contracts by and between individuals have been
affected in similar ratio and the aggregate loss
of the people is far beyond that sustained by
the general Government. The Euenmg Post,
lone of the ablest defenders of the Adminstra-
tion except to the finances said in their paper
of June 10th I" We have tried the strength OF
legislation and found that statues availed us
little while the volumes of currency kept ex-
pandng We have indulged in denunciations
with no better result. Many man has tasked
his brains to prove that there was no actual de-
probation in the paper money of the Govern
ment, but that the enhancement of values was
caused by wild speculation. And still gold
kept going up, up, upward, until we find il
close upon one hundred per cent. premium. -
1t has since reached one hundred and ninety
premium.
II. The neglect to give seasonable notice to
holders of the five per cent. loan, due January,
1863, as to the money in which such bonds
would be liquidated.
Repeated applications were made to the Treas
ury by holders of these bonds, in October and
December, 1862, for information whether the
bonds would be paid in specie or in paper. The
premium on gold then ranged from % to "a per
cent No public notice was given to this effect
and many of the holders in suspense up to the
3lst of December as to the mode of liquidation
were induced to sell out ut q sacrifice. All this
could have been obviated by fair notice oi
sixty days or more as to the real determination
of the treasury. 1t is generally supposed, in
New York, that certain prominent brokers had
some clue in advance as to the manner of pay
ment that would be and actually was adopted.
ILL.,. The recent action in Congress, as to sales
of or dealings in gold, has heen ascribed to ur-
gent Intervention on the part OF the Treasury in
the halls of legislation.
The passage of the gold act will long be re.
membered as the acme of folly at Washington
The best friends of the Administration at New
York have deprecated any movement of the kind
in Congress. and have warned members of the
effect of such an absurdity as an attempt to con
troll the movements of commercial circles-bui
in vain.
GALEN AND WALcoT.--Dr. Walcot, better knowr
as Peter Pindar, had for some time most violent
cough, when his friend, Galen, persisted in rec.
ommending asses milk as a certain cure. The