Charles City intelligencer. [volume] (Charles City, Floyd County, Iowa) 1864-1866, 1864-07-28
The Financial Question,

Secretary Fessenden's negotiation
with the local bankers and capitalists
has failed for the very sufficient rea-
son that he wanted to borrow $50, 600
600 and tbore were but $4,000, 900,
all told, in New York. The banks
seem to have proposed to lend to the
Government their credit, in this way
If the Government would hand over
to them it's legal tender bonds. either
6 or Z $40 per cents, by installments,
they would furnish the Government
with their own bills by installments,
and as fast AZ they could get them
with greenbacks. This was like
agreeing to give their notes if the
Government void deposit with them
an equal amount of gold as collat.
eral. The New York banks had sent
all their greenbacks West to buy pro.
duce because the West would not take
their own bills. and having done SO
they wanted Secretary Fessenden to
become the agent for the distribution
of their paper and to deposit legal
tender bonds with them as collateral.
This, for banks who have nothing to
lend, is refreshingly cool
The New York Tribune intimates,
we suppose upon authority, that as
the New York banks have failed to
propose any assistance to the Secreta-
ry, he will adopt the only alternative
remaining-appeal to the people for
money upon 1905 in currency, the
6's Of 1861 at a moderate premium, or
the l0-40's 5 per cent. at par. There
is demand for all these, and from
this source good deal Of money can
be drawn from bank deposits, now u.s.
ed as the basis of gambling operations
in produce, the boarding of imported
goods, and gold gambling. The chal-
ice which the New York bankers have
offered to Mr.. Fessenden's lips may re-
turn to cmbitter their own.
IfMr. Fessenden should appeal to
the people for aid, millions of green
backs now held by red-dog bankers
in the shape of deposits. would be
withdrawn to aid him, and just SO
much would be placed beyond the
reach of spectators and gamblers.
Speculation and gambling would be
killed, and the present fictitious pri-
ces which the devotees Of these vices
have been enabled to create by means
Of tho facilities afforded by the "Asso-
ciate banks" would sink to their true
level. .. ........
Let Mr.. Fessenden offer his bonds
to the people for their greenbacks, and
he will be sure to get them. AS soon
as Mr.. Fessenden puts Mt the command
of depositors 7-30 notes, they will set
afoat the notes bearing less interest
and forco the banks to contract. The
national credit is the safest for men
Of small means. better than q Savings
Bank, and its paper payshigher ints f.
est. Now is the time for people to
help tho Government with their mon.
ey, and whoever is able to divert bis
capital to the service of the Treasury
should do it. 1t is right to force a
bank contraction and crush specula-
tions stimulated by bank loans. Mr..
Fessenden can do it by popular loan,
and the people can largely aid him by
lending the Government the money
now bearing smaller interest in other
directions. In view of this policy, it
will be safe for people in debt to be
careful, and for those out of debt to
keep out.
The New York Times says that the
Treasury is in no such Strengthened
circumstances as to compel sacrifices
or hasten the farther issue of paper OF
any description to float as money so
that the market which has been made
stringent, by outside speculation,
must be left TO its own correction, and
the high premium on gold left to find
its justification or downfall in the
course of the export movements oil
commerce rather than longer rest on
the false pretext Of an inflated green.
back currency.