New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1864-01-05

left the United States without other currency
than the one hundred and fifty millions of tho
paper issues of State banks. In some OF The
States, these issues were well secured by judi
cious and adequate legislative provisions; in 9th
ers, they were without any suilicicntbasis With
ont legislation on the part Of the Federal Gov
eminent, it seemed not only probable. but GER
tain, that the currency would greatly dcgene'
rate. the country be flooded with "wild-cat'
notes. and great commercial and industrial dis
t-ess ensue.
II was a question at tho time whether the sus-
pension Of the banks was al imperative ncces'
sity. 1t il TO be regretted that the experiment
of maintaining specie payments was not thor.
oughly tried, and tho reserve of coin reduced to
a much lower point, before the banks volunta'
rily closed their vaults; but such an experiment
was not practicable with divided counsel'
among bank officers. When tho last loan OF
the one hundred and fifty millions advanced TO
the Government by the banks of the three cities
was taken, on the 10th Of November, ls61, In
long stock of tho United States, 1t was with
great hesitation on the part of the officers, and
only after assurance was given that the Army
of the Potomac was about to move at once upon
the enemy at Manassas, and in the hope OF an
early close of the war.
Whatever opinions may be held as TO the
abili.y Of the country to maintain specie pay
ments land we may here remark that distin-
guishcd financiers have maintained that En-
gland could have better and more cheaply car
red on her long struggle with Napoleon on @
specie basis), or the propriety Of the suspension
Of the banks, il cannot be denied that the sus.
pension imperatyely forced upon the Secretary
Of the Treasury al immediate recurrence to
some system of Government finance. The daily
expenditures of the war were large and increas-
ing; the Treasury was empty; outstanding
claims were pressing for liguida,ioni foreigner
showed no disposition to invest in cur loans;
our vast home resources were as ye. untes,od
and unknown, and the sublime confidence and
patriotism Of the people hardly realized.
1t is an axiom among financial Authorities
tina, it is neither wise nor safe for Government
to obtain resources by The emission of curcncyi
but to some extent there was an exception b.
this general rule in the condition OF the United
States. The Government lad 10 control over
theissuos OF the State banks, which might cur
tail or expand at pleasure, wthou, danger OF
the enforcement of The legal penalty for
failure TO redeem, the absolute necessity Of the
people making a suspension of such legal pen
atty positive necessity. Yet some expansion
of the currency was necessary in order that
medium should be provided large enough to
allow Of the extended operations which the
Government was compelled To carry on in It's
receipts and payments. such was The con-
dition of the currency when the Secretary Of
the Treasury applied to Congress FOR permission
20 issue United States Treasury Notes TO an ex-
ten, limited by law, which should lie a legal
tender for all debts, save such ~ the Govern
ment chose TO except in the interest of lie oiedIti
TO maintain some control over the commerce of
the country and TO check ~ excessive import,
the inevitable result Of an imitation Of values.
1t was clear that 80 long % the people had con-
iidence in these issues, although gold aud silver
would rise in value, there would he no inncdi-
ate corresponding initiation Of other values until
tie gan made by tie withdrawal Of gold from
circulation should be fillcl-tAat il, until $780,
900, 900 of such notes had been issued. 1t was
equally clear that the advantages Of Govern
ment issue legal tender and uniform would be
valued by the people, and that their disposition
to insist on the payment Of debts in such legal
tender would check the disposition of banks to
absorb this currency, "a reserve for the issue
OF their own notes. This popular disposition
has actually served as a discrimination against
bank issues
If the immediate needs of the Treasury had
allowed Of delay, if the promise Of the money
market had warranted the belief that the cur
roncy was extended enough to allow Of q
grqd,mL emission Of these United States legal
tender notes, if a hope had been entertained
that Congress would adopt The radical measure
of taxing out of existence the issues Of State
banks and gradually instituting therefor the
issues Of the Government, it is possible that
the specie level would have been maintained
and the precious metals have again returned
to currency.
None Of these things were probable. The
courts had not yet settled the right Of the
Government to make anything bnt gold and
silver a legal tender; an easy surrender on
the part Of the States Of their old authority
was rot to be expcctcd--a. strong opposition
on the part Of &c hanks and tho use Of all
their powerful influence upon Congress, were