The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-07-19
FINANCIAL AND coMMERc IAL.'
MONDAY. July Is-sP. N.


The negotiations OF Mr. FesseDdeu With the associated
banks having proved barren OF result there Is ample
room Tor conjecture what his policywhe1 he does
declare twill be- just the prospect locks oAay
for the Treasury Department The new secretary nss
entered Office critical period IN the history .ns
war and 10 him people lock FOR course on action
calculated 10 retrieve fortunes o. TIE country which,
under 10 corrupt inoonpeeni management Of Mr..
Chase promised before long 90 drift into Of back
roptcy starvation prices and ultimate reputation With
eighteen bunared millions OF Adsbt, currency worth
only thirty Ave the dollar, expenses running
ou at tie Of nearly three millions per day, and
all bat empty Treasury, The country moving "a.
pdy in the direction indicated.
When NJ Chase left the CaSaet therefore, splendid
opportunity occurred his successor improve upon
tue existing Q. things, and avert the threatened
catastrophe. The mistakes OF Mir Chase obvious
and their consequences direct that no better
by which successor might profit could have been
found with this experience before him Mr.. Fessenden
10 New York to confer with the representatives
OF the old banks aud make arrangements for a
loan. They received him with every dis,cstcn to
meet his views to the extent Of the means their
command, and offered 10 negotiate with him for loan
or 6fty millions and ihree-tcnths Treasury
notes bonds, with the proviso, however forced
them necessity that be to allow the loan TO remain
Inscribed credit their books TN he had
10 draw for Ii in instruments to pay public creditors
TropoSlton being contrary 10 precedcnt ana Tue
letter although the spirit Of tbs av Mr. Fessenden
after number OF prolonged INTERVENE the subject,
declined. He would only accept payment Of the
fuu amount in greenbaols into the Sub-Treasury;
and the collective State banks OF New YORK. Boston ana
PhsceiYhia have not half that amount Of greeubaeks in
their vaults the terms proposed inpossi.
be Thus instead o! having united tho banking in forest
in support Of the government, no has made matters
than they before, anu placed the treasury
an1 No hon.r
other, He willing enough accept the loan
on his terms, bur not those which the
banks alone able 70 offer, ard, instead Of
Studying public utility IN bis negotiations, no
allowed himself TO be governed by technically, ard
finally returned 10 Washington vita The object OF his
mission uuaccompishea. With remarkable obtuseress
he have argued that If be could not get Tho
money no required from tho banks he could by an ap
peal 10 The people, the OF popular loan based
seven and hreetentbs Treasury bonds
siderng that such loan, II successful woud
cause rapid absorption OF the bank deposits,
and force the banks, IN self defence, to throw
upon the market core.aerable portion OF the
government secr-..es they hold, probably TO the
amount hnndred and twenty millions which would
depreciaie their value below the price OF
the loan The government benz uudersold in this
manner subscriptions the loan would be checked
mstter OF course, and it would prove failure.
Therefore Fessenden considers be control OF
the banks, he is seriously mistaken. Tho Is
just the opposite, and to lie successful in his
financial career he must open his eyes 10 this
spicuous and important fact and place himself in
harmony with them borrower. IL will not
do for him to the risk of depending private
agencies and the national banks for support this crit
cal period, ignore the representatives Of the real
wealth OF the land. To rely upon advenurers and
speculation OF the national finances would be likely to
end in the ruin OF the country and The Secretary
utter failure as q fnancier We would therefore seri.
ousy advise Mr. Fessenden, before he finds late
reconsider his decision with regard making State
banks depositares Of the public funds the Of
their loans TO the Treasury, and would urge
upon him the necessity which exists for harmonizng
conflicting elements that threaten the alienation the
national Treasury from great banking CONNER
cia sections OF the country His duty the people
mands this unity OF interests to neglect it
disaster and add TO the legacy OF evils left him by his
The following Is the latest statement Of the public
debt and bears the 18th of July. 1t signed by the
acting Secretary Of the Treasury and its
suggestive figures TO the careful perusal Of Mr.