Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1864-04-04
nenrecIafFOu.


money issued by the government has deprecated.
The Secretary of the Treasury has recognized
this fact. and admitted the holders. as a special
favor, to the privilege ofdepositing il in the Sub
Treasury as substitute for gold at discount
of Ihirty-three and one-third per cent. The
actual depreciation must be greater than this.
since the offer is accepted as boon, and has
been made with view Of limiting the rapid de
cline. Other measures, having the same object,
are under discussion at Washington. all showing
that the national currency" provided by this
Administration. for the use of the people is really
worth in the market only sixty cents to the dol
lar.
1t may seem, at first sight. as IL we were stat.
ing very trite fact, which has been patent to
the whole country for months past; but little
examination will show that its recognition by the
Treasury Department has given to il at this time
a very great significance. The origin and pro-
gress of this paper money scheme forms one of
the most Illuminating chapters in national
history. Ii had no foundation in the national
necessities. 1t was not conceived by any lore
thought however limited. nor adopted through
anv policy. however short sighted. There
no system about il. Tine Secretary blundered
into il through want of financial system, and
because he was controlled by views Of mere ex-
psdency. When the first issue Of Treasury notes
to be used as currency was proposed, they were
ostensibly redeemable in coin. Notwithstanding
this pretence we sounded the note oil alarm at the
outset, pointing out the inevitable tendency OF
such an expedent
| Our predictions we're met with a sheer, and our
warnings totally disregarded contemporary
who applauded the measure, remarked-"The
| Treasury notes which the Journal of Commerce
go periodically decries as IAN immence volume
of pager money in five, ten, twenty and fifty
dollar notes are payable in specie on demand.
/ With the heavy taxation for which this Congress
/ has provided they will be so rapidly absorbed by
I the Treasury, that they cannot materially depre-
ciate" Ii was easy TO see to what such be-
ginning would lead, but those who we're in power
willfully closed their eyes to the truth, while the
nation drfted further and further from all the old
landmarks which the wisdom of our fathers, and
the experience of all ages, had so firmly estab-
ished.
OF course, the issues although "payable in
specie" were not paid, and further issues fol-
| flowed, alike irredeemable in coin. Gold ceased
TO be the currency, and paper money, made n
| legal tender rs far as the act OF Congress could
do it, became the nominal standard OF value A
variable standard it was, huctuating from day to
day, and uusetling all the ordinary relations OF
lite. Still, the advocates of the new currency
secuted the prediction that il must necesslrily
depreciste, and tried a great variety OF methods
To sustain their theory that it was as good as gold
The growing difference between paper aud coin
was ascribed to the operations of spectators,
instead of the redundancy Of irredeemable nrom
I Uses from the Treasury; and this fiction has been
encouraged in the face of the most appalling
dangers into which we were rapidly plungiug.
But the case now assumes new aspect The
Secretary of the Treasury admits the deprecia-
ton of the currency. and proposes to limit il to
one third of the nominal value. 1t is the old
story OF he monarch who tried with powerful
menaces to drive back the flowing tide. and was
at last forced to secede before the advancing
waves Mr. Chase proposes, however, to make
only partial concession. He takes his stand al
&c and here he will renew the fight The spec
tacle is one which may well attract the attention
of the whole world. The chief financial officer
of the most enlightened government on the globe
offers to limit the depreciation of the National
! currency to one third of its valuel BY what rule
is this measured
When bank suspends and its notes sell FOR
only two thirds of their face that is supposed to
be the popular estimate of the value of its assets
With nations promises. the measures of one oil
confidence in IFS perpetuitv, ability, and honesty,
calculated 10y the moteneSs of the period when
redemption may be expected All the skill and
resources of the government are now To be Ill
rected to keep the depreciation of the currency
within the estimate thus publicly made.
How much longer is this wicked trifling with
pointed out this result at the beginning of the in
hatiOn. lending Administration paper, deceived
by the apparent success which followed. said thai
| theorists must change their data, aud those who
are always measuring the new by the old mus
| give it up Now that the old measure has win
Dictated ITSELF and the new has proved to he such
| a weak reliance. are not its advocates ready t.
make Surrender. and TO fall back upon thai
| which wisdom has estabshed2 1t can now be-
seen who were the truest friends of the national
credit, and who are they that proclaim its promise
worth but sixty-six on the hundred!
But while we point TO this sad result of The
weakness and folly which have brought such dis
credit upon the nation, we are bv means ready e
deSpond and to give up all lost II may b,
that the turning noint is not vet reached, and We
must submit Ca further humiliation before cal
begin to- retrace our steps; but the change mus
come at last Repentance is ever bitter: and v,
are now strewing the way over which we mus
return. with curses that will wiring the nations
heart. We shall be sadder, as well a. wiser
when We turn our faces toward the point from
which we have sirayed; but the grief will not bC
uumixed with hope We commend to the whole
people. the gmmer orIruth which is presented il
| tue official acknowledgment that the currency Sc
f6hg aud SO loudly commended to them as III.
equivalent of gold. cannot be maintained at it'
nominal value. The admission has a logica
connection which cannot be severed. and may
be regarded therefore the beginning of re
form that has been too long delayed IN. Y
Journal of Commerce.