Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1864-02-04


that no part OF that admirable exposition OF the
financial situation of the country gave us more
satisfaction than the announcement OF Mr.. CHASE
that in his opinion not only had the limits pre-
scrbed by laaO to the issue of United States notes
been reached, but also the limit prescribed by imam
cia prudence. And in this view he held that
any addition to the volume of our monetary cir
culation in excess over the requirements for real
payments and exchanges must, in our case, as in
the case of all other countries, tend inevitably to
depreciation and depreciation, if addition be con-
tinued will find its only practical limit in the utter
worthlessness Of the augmented mass. He there
fore recommended that the Government, in raising
means for the future prosecution Of the war,
should henceforth borrow like any other employer
@of capital temporarily requiring more than income
will supply, and rely for the credit which will Sc
cure advantageous loans upon good faith industrial
activity accumulated though not Immediately avail
able capital, and satisfactory provision for punctua
payment Of accruing interest and ultimate reim-
bursement of principal" And to this end ne
added that " no one can be more profoundly con-
WINGED than himself of the very great Importance
of providing even larger amount than Is estl-
mated from revenue. To check the increase of
sdebt must be, in our circumstances, prominent
object Of patriotic solictude. The Secretary,
therefore, while submitting estimates which re-
fouire large loans and while he thinks it not very
difficult to negotiate them, feels himself bound,
sby prudent regard to possible contingencies to
furge on Congress efficient measures for the in
crease of revenue"
We hope these suggestions will not be lost on
Congress, and that no considerations of convent
ence founded on the facility with which paper
issues may be indefinitely increased, will be suffered
to blind the minds of the National Legislature to
perce ption Of the evils that must result from
transgressing the bounds of prudence in this
matter
When Congress authorized the creation of debt,
to certain extent, in the form of United States
notes, and impressed on these notes the qualities
of circulating medium it was careful at the same
time to require that the amount of such issues
should not exceed the sum of $500 900 600; and
Mr. CHASE, in his last report, was equally careful
to say that he proposed ono change of this limi-
tation, and placed no reliance therefore, on any
increase of resources from increase of circulation
Additional loans in this mode would, indeed, al
most certainly prove illusory; for diminished
value could hardly fail to neutralEe increased
amount"
We have REQUIRED to this subject not only be,
cause of its paramount public Importance, but be
cause, in perusing the second volume of the Diplo
matte Correspondence just communicated to Con
eress by the Secretary of State, we were reminded
sfresh of the dangers which beset our preson
financial policy, as that policy is viewed by intelli
gent and friendly bankers and capitalists in Eu
rope. We particularly allude to the communities
ton made to the Department of State by Mr. PIKE
former Washington correspondent Of the New
York Tribune, but at present our Minister at the
Hspue We arc not aware that Mr.. Pike has ever
given any study to the laws Of finance, but, as an
experienced and faithful reporter of opinions and
events in our own country, he is presumed to b
well Qualified for the collection and state
ment Of the views entertained in Holland amont
the wealthy and enlightened bankers of that coun
try with regard to the weak points of our presen
financial system
It IS known to our readers that when the bill
authorizing the issue of Treasury notes was pend
ing in Congress- and while it still question
whether it was competent, under the Constitution
to impsrt to such notes the quality of legal ten
der, we felt constrained, in company with jurst,
like Senator Coamer and others, to doubt the ad
instability Of legislation to that effect. And hav
ing, after careful inquiry convinced ourselves tina
the Constitution not only did not authorize bu
forbade any such legislation, we could not turl
aside TO confer with the economists and calculator
who sought to show that the measure was expe
dent. We are superstitious enough to believe tina
the right is always the expedient, and that tn
moral Governor Of the Universe has bound politi
cal recttude and economical utility in such an in
dissoluble union that the former can never be dis
regarded without, sooner or later, bringing damsg
to the latter 1t is quite possible that we wer
mistaken in our convictions under this head, ye
we should have been false to our conscience if w
had testified against the truth as it was revealed
US by the lights under which we pursued our in
vestigations Of the subject.
7 But while we were searching to know what wa
right according to the Constitution, it appears tina
intelligent and experienced fnanciers in Europe