The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-02-14
fmpending Financial Crash Omoialiy
Announced.


Announced.
Ever since the war began and. indeed, prior
to Its commencement, we have cautioned the
government 10 exercise the soundest prudence
and the highest wisdom In dealing with the
finances OF the country. to avoid mourning toe
vast en- Indebtedness. to keep as clear Of i'm
perilling our national credit AZ we should om
national honor and unity. and to prepare in sea.
son for the tremendous financial crash which we
considered TO be as inevitable as that peace
would eventually follow vigorous prosecution
Of the war. The signs Of the times begin to
foreshadow the realization Of this prediction
with unerrng certainty First ia importance
among those representations is that fur
nished under government authority, in the
form OF circular. issued by Henry Mccul-
Tough, Comptroller Of the United States Cur
rency, to the managers Of the national banks
In this circular the Comptroller urges upon
these managers to boar constantly in mind,
in considering the condition Of tho country
although the loyal States appear specifically
to be in pr Sperous condition. that such is not
tho fact That while the government is engaged
in tho suppression Of a rebellion Of unexampled
fierceness and magnitude. and is constantly
draining the country Of its laboring and pro.
ducing population, and diverting its mechanical
industry from works of permanent value to the
construction OF Implements Of warfare; while
cities are crowded, aud Tho country is to the
same extent depleted, and waste and cxtravs
gance prevail as they never before prevailed in
the United States, the nation, ,otatever may be
the esternal Indications, is not 1rospersnq. The
country will unquestionably be the poorer
every day the war is continued The seeming
prosperity Of the loyal States is owing mainl y
to the large expenditures Of the government
and tho redundant currency which these expen-
dtures seem to render necessary" He further
says" Manage the affairs Of your respective
banks with perfect consciousness that the APP
parent prosperity Of the country will be proved
to be unreal when the war is closed, If not be-
fore; and be prepared by careful management
Of the trust committed 10 you to help TO save the
ration from a.faancid collapse, instead Of lond-
ing your influence to mako it moro certain and
more severe.o Md
Here is high government authority for pre-
pairing the public mind for the impending re-
vulsion. 1t is cry to our financial men-mer-
chants manufacturers and traders---to "stand
from under" when the critical and inevitable
moment arrives 1t is q warning voice to them
to clear away the decks and prepare for action,
and it is vivid endorsement of the admoni-
lions We have from time to time uttered on the
subject. In the midst Of present prosperity.
superiuduced by the extraordinary imitation Of
"Make hay while the sun shines" aud prepare
for the future
! Just prior to the failure Of the old national
bank. and tho general smash up Of that system,
with Nicholas Biddle and the whole race Of
Philadelphia politicians and financiers Of that
day who opposed General Jackson aud the ad-
ministration Of Martin Van Buren,, there was a
great hue and cry all over the country about
the destruction Of the public credit and the
humiliation OF the currency Of the country.
What happened The State banks Of that
day had accumulated nearly all tho coin Of the
country and when the issue finally came it was
found that they were in sound and healthy
based upon the precious metals This gradually
restored credit and confidence, and In toe end
it was proven that The 9ueh yllliea Stats banks
were the real basis OF the credit Of the country,
and that they furnished the material aid which
stimuiated private enterprise and encouraged
the great works ofpublio Improvement whichfol-
lowed few years after the crash Of 1887. How
stands the case now. II there be any material
change it must be in favor Of the State banks
Is they now exist; for their condition is better
and stronger now than in 1887 and 1885, and
the public confidence in their stability not so
wayering. To the State banks of the present
day, with their vaults crammed with gold and
silver, may the people look for aid and
deliverance from the financial disorder and ruin
which are inevitable by a persistence in the
financial policy Of Mr.. Chase, and especially in
his national bank scheme, which has already
invoked so significant and timely an admoni-
ton as that conveyed by the late circular of the
Comptroller Of the United States currency.
TIE LATEST REPORTED PRIVATE LETTER FROM
GENERAL GRAST.-The latest reported private
letter OF General Grant on public affairs Is
one which it Is said was written to Hon. e. B.
Washburne, Of Illinois, after the resolution re-
vivirg the grade Of lieutenant general was
introduced in the House In this letter. 1t ap-
pears, General Grant says You should re-
collect that have been highly honored already
by the government, and do not ask or feel that
deserve, anything more in the shape Of honors
or promotion. Asuccess over the enemy is what
l crave above everything else, and desire to
hold such an influence over those under my
command as to enable me to use them TO the
best advantage to secure this end"
This is just such letter as meritorious
and modest soldier you'd write. We recon-
mend Its careful perusal by the Senate. The
republican Presidential managers of that body