The New York herald., 1864-08-04


ir Themlsteocs proficient IN the art OF makoga
sna ciiy into large ore hr Chase Is al least eq any
entitled b clan ne crei Of making a,rat Stae into
,ie Yet let not be unjust even TO this mighty
master the art Of ruin Candor must admit that The
prube set before him Admitted OF but one solntoia
solution less complete according lhe genius
OF Inc philosopher % whom II was submitted. That
problem may fairly said 10 be-given nation deter
mined ou war thrsling reveugey Unsuitable OF
pire, steadily resolved 10 conquer, but equally re-
sonal pecuniary sacrifice, 70 extract from II
Inoa, m2teiias and money. As regards men,
the resources of voluntary enlistment were very
soon exhausted cnnscrption did rot yield what
CURED only resource le was TO hrhe into the
rauks who could neither be forced persuaded.
Thus enlistment very early became quccon OF and
bounty, and the supply or msn ssey resolved ITSELF INTO
TIE de,,er and difficult frobem Of he supply or
mont How. then, mouey to be obtanca2 According
to Old Norld traditions the hrst step would seem to be
TO 10 the utmost possible limit the taxation OF
the people. But Congress, with keen eye 10 It's own
reelection, was unwilling to impose unpopular bur.
dens ts constituents and It sccms that the whole
conirbiiion which tho United States have made
towards bearing by immediate taxation the ex.
penses Of that mighty in which they are
engaged, has been collection Of sns If IN nlil
lions by wh,oh war revenue OF tweuty tour millions
exceeds the old peace revenue OF fourteen millions.
Ready money then, being Of the question, there lay
before tho eyes Of Mr. Chase the bouudess aud entcing
fed OF credit and the question naturally how the
credit Of the community could best be employed towards
satisfying ils enormous demands To an ordinary mind
the question would have been between the suc OF gov
ernment securities aud the imitation Of the
is here that recognize the hand of the I Itedd OF
trsfeitg ttnc, common tcottd hIu dorf,
a3asao Tie respcs,ue merits Of aese oo schemes, M
Cha1s mighty mind ell itsef above The CONTROVERSY
and DEF rmasd 10 reconcile TIE emf cina merits Of icores
pap and deprecated SOCKS by b0liv gydspig both IN
the same scheme and working at once the issus OK
bonds to the utmost extent which they could be sold
and at the time issuing nconvertible paper ti
il requires some two hundred and fifty dollars IN paper
TO purchase hundred in silver gold Nay, m re- as
II these desperate expedicnts not enough. Mr..
Chases genius contrved to combine them he conrived
TO suppress the notes issued by prtate bds all oper the
connunotes varying IN value according 10 the state OF
a rnT
leave 10 issue government notes against government se
cucs he coGtryed to obtain the very utmost that could
be get upon credit from people drmly resolved upon
but stll more firmly resolved that only By borrow
Ing and tamperug with the circulating medium would
they contribute 10 Its expenses.
These great principles thoroughly understood the
Mr. Chase becomes simple in the extreme like
Columbus egg, the whole difficulty disappears the mo-
ment the manner Of action is explained The maxim
which lies at the bottom of the system is to brnih from
mind all idea Of paying ne principal. and, in order
TO make the required sum which Is to be paid
large possible 20 be particularly careful with regard
to the payment OF the interest Interest according to the
school OF which Mr. Chase be considered the founder
is not sum paid for the lorbearance Of money! is
rchsr bat ly meaas of tCtch fresh money may be ob
tdiaed. AS long, therefore, as moro money can
be got, the interest must be paid with the ut
most punctuaiy; the sum borrowed may have sunk by
the deprec alton OF the currency TO two htbs OF its
taic value but the interest must be paid IN gold al
though by that means the charge ia much more than
doubled. Having thus done everything in his power 10
drtus gold o Of the country, Mr. Chases required
him 10 do everything in his power to keep back and
hence number of operations which consisted in selling
tosS wEelevef gold showed tendency
TO rise, and expeinS il from the country BY prohibiting
those who dealt 10 from selling it like any ether
modify in open market, with the intention, when no
more money was to be borrowed of repudiatug first the
interest and after a decent interval of suspense.
the principal. If any one doubts the truth Of this
picture lei him himself by what means he supposes
that the present currency Of America TO be restored
;he standard before the war; how he suppose
that any IN his senses who pay would
be borrowing money at rate OF interest more than
double OF that which 1t nominally bears.
Let US, however, be just 70 Mr.. Chase. He had not
~ "a
could break, he had currency which be could debase
and he had gold which II not wasted 10 the expen
dture OF government might do good service in aurpg
fresh subscribers TO his open loans. lie has
used them all TO the utmost. Actual mouey he
would also have used II be could have got it,
Hut II would be unjust 70 deny that he has done
all that could be dore with the great substituted
powers bountless abuse Of cred, and the investing
worthless paper with the privilege OF legal tender.
lie has not SAVED his co,nyy b he has guen her, in
chang for rerg fair opportunity o. drag
o'ng dosgn the reb.lioas South into same destruction
ich herself The wisest thing he has done wa.c
srcdudl imitation Of me tc, and to leave the agreeable
task Of assisting al it bursting to Mr. William Pitt Fes-
senden, gentleman said 10 be firm believer 10 Mr..
Chases system. Such faith at such a moment merits
that OF mar,yrdom which il is assuredy destined
to receive. II is really worth counting by how many
hundred millions of dollars the expenditure Of the
oht al the loans which be contracted, or by
how many hundred millions more the estimated expend
OF the coming year will exceed the estimated
whe is the precise figure Of the present funded
and floating debt OF the United States. These vast
lose all their Significance for want o unit in which to
calculate them. sir Robert Peel asked, 'Wbat Is
tell US what is dollar? IL has been four apd.sixpence
il has been ard eightpence Whct Il is today
mrcine There is tSef point. the dJyss has bottom
the kusr no fncram This Is the chaos over which Mr..
feseaden IS caied on 70 preside N1thng 10 sr ,hases
be very difficult Tor Mr. Fessenden to do anything
foolish while he is in office than be has already done by
accepting II.