The New York herald., 1864-12-23

IL ourrssny N, ~ ssSnM sAss = tAsy eaa
ssw- thas there y sosshsrASiy mere Than sins
hundred millions Of money In paper circulating.
for the government BY Its omssiea 70 tax heavily n drs
end Ne commission 70 ths runous system Of currency
imitation, has impaired its credit, and thereby en-
hsnced the price everything 10 be bought with paper
money eariy threecld, 90 demanding . proportonate
Increase in the volume or ths ourrsncy With wh0A the
exchanges made.
The suspension ss specie payments made distinction
at between gold and paper and the formcr having
an intrinsic value, while the other had NOT held
out temptation TO hoard both for security and on
speculation, which tho subsequent course Of egiss-
sion greatly stimulatsd. and more than jastinsd
the sanguine expectations OF tho hoarders. Ins
government Jailed TO place sufcisnt reliance
upon its credit and 70 enlist the services ana secure
The co operation of banking interests Of tho country
II Mr. Chase had been . keen observer hs would hare
seen in the New York Clearing House prastcai expo
sitlon she policy proper TO be pursusA Tho old banks
this city have capital or about seventy millions, and
their daily transactions aggregate about ninety neas
yet their circulation ID at present less than three mil
lions ave hundred thousAnd But without credit IN Tho
form Of check osrtncAtions and the payment of dsr
only to each through the Clearing HOUSE. the
transaction Of this amount Of business would b nposs
bls that 70 say, this credit mot used, snd every
check had bs paid 10 money prosentatcs the ssm
required for the transaction Of this OF business
would be equal 70 the entire currency issues ef shs
country.
the governmens, BY suspendng the Sub Treasury sys
tom making the banks In the principal cities agents
for sale Of Its securities and dsposisories Of s uads
received therefor, might have avaed itself OF the same
kind Of credit that tho associated banks enjoy among
each other The banks In zach city would, under this
arrangement, have had 70 Join In . bond to the
government for the security os the funds en-.
trusted to them, and Of these wocld have
had selected by the rest through which only the
would have transacted It's business All the
bapks In proportion their capital would have shared
Ia the deposits by certificates granted 10 them
BY Clearing House Association answering the
purposes Of money. Meanwhile the government could
have drawn against it's deposits In tho banks OF the diff
eren ctes which drafts would have boen In tho great
majority OF cases. passed TO the credit OF depostors In
stead Of being paid In cash.
Now becomes \ matter OF moment what course
should be pursued to arrest the depreciation OF the
currency the Secretary Of tho Treasury and Congress
continue TO allow existing OWLS to run on, we shall Wit
agaravatioa OF the present symptoms 0 tho Dc
cline OF credit 70 be succeeded eventually BY
forced return 70 specie payments In France whom
the assgna,s dscrsdtsd This would be the collapse
the bubble Of infaton, which has been blown for tho
last three years. Would NOT. therefore, bs better TO
sons and mako effort 70 speob payments bscrs
compelled TO sos The time opiortuue for Il now
that the military situation 80 promising and the pros
pect OF the war ending within year or 90 greatly i'm.
proved. ,
Kits possible 10 resume specie payments after the
currency has repudated BY the people, In France
during the Revolution. II 10 equally possible 70 do 20
while the latter Is in good ropute, In Great Britain
1891 after suspension OF nqerly tweuty-four years.
hw w~oin to thA amt AZ kwA hua
and thirty millions At least In the loyal States about
hundred millions OF which 70 held By the banhs thirty
nve minoss BY the government and the re-
maindor by the people, who hsve It boarded The New
York banks have nearly swsny.one millions II 10 there
fore obvious that there ID hard cash enough In the
country TO specie payments on we only know
how and were willing to employ IT.
That this would produce rsvusion Il 10 easy to see
but would the transition from morbid to healthy
state The way do II would be- firstly, for the gov
further issues Of currency
would be made Secondly, that in order TO tho
return specie pay msuts all its transactions would
future be made far possible on coin basis. allow
ing the depreciation Of the currency according 70 The
current price Of gold. and that the currency 10
circulation would be Withdrawn - fast - possible. and
necessary that notes for the Equivalent in coin Of
the sum Withdrawn would 30 substkutsd. Ths govern.
msnt at the time would require sell It's securities
for their value coin al the market rata, and 90 The
hoardings o. the country would gradually b. released
Under the working Of this plan We should have for
considerable time gold and currency values for nearly
everything ~ WAS The case In dursg the period
already reforred bat prices would gradually adjust
themselves TO specie bass and tho gold value Of pro-
perty and labor Of all kinds would be thereby appreci
a,sd. Az it u, the depreciation Of the currency 10
mpovershng tho roh and the poor alike. for owing 70
its subtle influence, those who virtually far poorer
are MADE 70 appear before the suspension
The government would have the means Of making this
change by the sale OF It's securities, we'll BY the
In the gold valse OF It's revenue as consequent
upon tho app Of tho currency and BY making
the entire banking OF the country subscrveut 70
Its welfare, extend ng its facilit 90 for credit.
The funding OF the whole Of the present gold bearing
and currency issues into common stock like the con
soils OF Great Britain which perpetual anpuites a.
lowing TO six per cent stocks prcportlonate advan
ages 10 conversion over the vs per Stocks and 10
the latter the currency debt, would bs desirable
measure In the event Of such system tending to the
restoration OF specie payments being adopted. When
congress debating the question OF the currency the
latter should not be lost sight o.
The receipts the Racine and Mssssipp and Northern
Illinois railroads during the week ending December T.
amounted to 50 ia. which exhibits falling on In the
earnings compared with the time in 1858 OF 1921
The Ohio and Mississippi Railroad will pay Sd January,
the interest their preferred stock.
The Pi,tsbure Fort Wayne and Chicago road viii pay,
Sd January dividend OF az per cont free Of tax, and
az per OF the third mortgage bonds. 1hs latter
In anticipation OF that due April, 1895.
There has recently been much inquiry 10 the coudi
TIN OF the outstanding three tsnth issued
the act OF July II, 1851. 10 understood that
about millions Of these notes which have
been presented for redemption conversion into the
1881 bonds suit Is pepdiss 70 w the question
whether mot receivable In payment Of