The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-07-18
THE NATIONAL FINANCES.
Letter from MIR. SiIas NJ. sttilweil q,
So crctary Fessendcn.


Letter from MIR. siias NJ. sttilwen 10
Secretary Fessendcn.
Nsw YORK, Jsy IL, 1862
Hon. ". P. FEsE,pKS, Secretary OF the Trcasury:-
SlRYour accession to the Treasury Department will
justify TO myself laying before you facts as
to tho system OF which, in my opinion, you should ad-
minister the Treasury
First-Pay all government creditors In legal tender
notoa, bearing interest otherwise.
Scond-Allow all holders OF legal tenders 70 invest in
gold bearing six per cent bonds at par
fhid-luvte all the banks TO 10 the Currency Blu.
reau and receive currency for six per cent
bonds.
Fsurth-Aaks every bank that receives currency for
bonds financial agent sell bonds and to collect and
pay tho revenues and debts Of the government.
What will these simple rules eGet?
Fna-Ease 10 the money market.
Scond-concert Of action between the government and
the banks. s-f +.
Taird-A rapid and continuous sale Of bouds.
To carry this out you boldly pay legal ten
DORIS" Allow to iliustrate:--
Cold 10 money from being stamped "legal tender''
paper Is now money because made " legal teudern
Gold 10 for export, paper for homo use
Why 10 gold quoted higher than legal tender paperf
This must arise from adequate cause. Government
paper has not deprecated below bank credit any other
credit 10 country. How Is IT, then, dcprcciatcds
what credit better 10 the narket' 70 is not that our
credit as government individuals CT corporate
bodies has deprecated, but that special cause
which, according the laws OF political economy regu
ating supply and dsm1nd, has, this dsointed state
Of our political affairs like wandering cmst, disturbed
tho natural order Of supply aud demand. Cotton is no
csger supplied This not effected By currency b..
W s s
for cotton These articles are consequently much higher
Ia price Bat we have been tod that the abundance Or
price q labor influences the pfee OF the PROTECTS Of
labor. We have taken coo OF the lsbores for the
armies and for the support OF the army. Can this bs
done without advancing the price OF labor, This
adequate cause for the advances 10 The prices OF all the
cause for The advance in the price Of god Then what
produces this demand for gold beyond the ordinary sup
Pra-Toe English feeling against induced the return
and sale Of many American credits This induced 10 TO
This again raised demand for or produce, and. .
consequence for gold pay debts We must pay balances
D ~ to for s 1
prioe. They have continued to rise price until
produce and gold are up to 40. Now for the cause.
Frs-we have imported this year sa7 Oooo 900 in cx-
ssssad-wo have exported this year "a, 100000 less
This mikss very great difference sg.us. Us in the OK
10 the price Of produce and gold fners Is an apparent
speculation IN gold; but Id that Il Is apparent
than when We ind that at the quotstions there was
sent abroad from January June Of this year
x27 900 600 Of gold There two classes OF fde
gold and exchange dealers In our Market They the
exporters OF produce and the importers of foreign goods
The Interest OF the produce dealer agent 10
TO get 40 high pricc for bills drawn upon his Foreign
agent possible. VI course he will oil. the OF
the seller 10 increase the price and the importer
poy for his goods exchange god, produce ship
The arts OF these two classes are used for their own
interest," ard they should be left fight 81 in
their own way. lne Treasury at one time nterfered
furnished Inc importers with gold be ow the market
price, which very seriously injured tho produce trade
Until our commercial debt shall be paid otherwise
n. hen ouP
foreign debt shall be psid produce and gold win fall
Tue price o. eou Is sustained oy The demand Tor ship
as may be seen by tho price OF other metals Iron lead
& &C. have aay.%S,S % mor: Than
1850 than any other thing Nor has the high price Of
god Injured the couStry, When this war commences
the states OF Missouri Illinois Iowa. and part several
other ssates found their best market New Orleans
and on the Mississippi river. When this market
would NOT pay tine charge Of transportation to The
..srn %..s. 4, tho same time the lacs q bus.
msmassgsmeut, had 50 thotooshy destroyed pub.
lie cc.naeoce 10 the stocks and bonds Of these
then Eve hundred millions Of dollars was really q
no marketable value; Millions o. money also due
low - 70 admit q but fam, hopes q speedy psymsn
spsss FOR produce a. Ss od ana usssa
advanced IN price the reishts on railroads and canals M
that debts were adjusted posds paid, idsnds made
and thus this dead capital ID railroads. was made active
susessios * ave hundred millions q rs,rosd SouSs and
stoek all The benefit. The wsst able and actssIly
paid s debts 10 The East, aud thus New York became
pethoric with money in fact. more from these causes
than from four PEARS trade with the cotton stalss
Hsuce the prosperity Of The country real ACCOM-
pshed tact, and all produced BY the snmy ID Englana
10 sesdug back our securities asd causing N suspend
The press daily declaring that the issus Of govern.
mont legal tenders .snes toiahason, and that ihs
| counts for increased prices.
fhs result referred may be produced BY the ,ssss 4
bogus money ~ inoonvsrtbls security. But WHERE
an issue win always purchase . gold bearing iniersse
hend Of this govsrnmept u y 80 easy matter 10 naks
arrangements 70 gauge the quantity ~ currency actually
required BY the Country me currents Of With
certainty ana sscs from the West The East N
TIE United States tbe waters 81 ths rivers tho
ocean from their Fountains. Ths ssvpius wassra q
rivers grayltsts 20 The ocean, and a, ths ssuri
! ees thss can be caehed cheaper IN the Fast viii
~ cent Sbege even The WeeA In1sress 10 hie&os -
Che West and therefore all iseal tenders bearing Low
interest," uAsrest will drt down the soaboar6
otles nescs excess Of sgs tender currency woald
gravtse into the banks Of ev York With "a much coo
cgi, Il u"slso rsrs y AZ cas- aud cst,<a lsiox .