The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-07-18

tho demand leaa odsrs 70 look the quantity held
q ss. Re tenders yiss 10 - ssy ss. vhs they q.
unable 70 put them 10 circulation, then We may safely
Scud so psOduo. snsacy q s: nosy
What b The fact nowf Tho banks srs alarmed 81 the
vss :::. e %sz 90 Z
n ariess from well known causes that n constantly
igDOssd Our go.srsnsoi u 1881 cam. .so .as ep:s
lions per day or seven eight hundred millions per
year. In i1 dsalug . new currency Wa introduced,
in which the government paid 10 creditors.
anything bot legal tender notes thus bank and linda
vdusi credits were totally disrewardsd BY this now
create end use large credit Il once ana independently
OF all other credits The volume Of money demanded
BY this plan q business ignores on former rules = to ~
To illustrate. When the crops Of the West aee 70
moved oys ss q
mission houses. and . Of the mercantile buslnssa
county before .is var ~ Individya bank
checks, and not b. gold @ bank osrreocy. How al
soldiers sailors and oihers employed BY the
oil Purchases Of provisions. clothing, mutations q
tnro.eS ' pay masters, Who are ssa.isueS every.
where, and who ! visit al parts OF our Wide
tepcs And a. the currents o. trade through hs south
ar Southwess mp, consequently follows mat
millions q these legal tenders arc Distributed .nons "
ia the strife that prevails millions OF
these mus be toss Or Destroyed 10 ses 70 cset
mate from end the absence OF these pesss
from the banks Of Neg York that M issue o. ave hun
dred millions more legal tenders would not supply ths
legitimate demssd for currency. Mother is the high
price produce and gcsA great calamity = many
suppose. What would follow sncedy return of specie
and g .as
iow that would not pay freight and charges % this
S q ss .s . o =
could not ay eoses and tte nsepess on their debt
TO return u this ssass, Of things WOULD produce :
universal stagnstion, which would b more nolerable
Than high prices. me agricultural interest prcdom
saiea IL this country. ard when rrices cause snis
uece Tho country has been made rich and Is rich 10
consequence Of tho high pricc OF agricultural produces
jury 70 our country 50 long = bo current Ok sha
bring rich rcuueyntiop 10 the cullivatnr Of the SOIL
s ere ns sss' S s00e . rs
merchants have already mmesced returning TO Europe
tho e.cs,s q goods nov ~ bond ana .ns price o. sS
And thus tbose and other causes are now 1t wo 70
postpone and adjust tho debt due 10 Europe and by the
process OF the wolf known Law OF equilibrium provisions
OF all kinds and gold will grainaly but certainly fall
from ths time. aud within six months there win be a
difference 10 favor u tho consumer aud declor o. more
The rules which think should eovorn the action Of the
chief OF tho Tro ssury may DO sumei up briefly
Firs-Borrow no bank credit. Bank credits are
secondary, and based upon legal tender paper Why
pay interest 70 oann ana give them ne money o. .ns
Your predecessor came to this city some time since aud
disturbed the money market b. making bargain with
tho York hanks 70 give them legal tenders fearing
au interest o Eve per for legal tenders that bc
interest. Any creditor Of tho government wnud pre-
money bearing mn interest OF ono per cent TO money
bearing no interest.
Sscond-lssuc moro loyal tenders. with or without 10
terest and puy nothing but legal tenders or bank
notes secured by government bonds 10 the Currency
Bureau.
Thnd-Mako depositarios OF all banks that deposit
bonds take currency The Treasury; author
tbese banks to sell bonds at par and collect
the stamp tax Of the government
Povh-!facc the bonds OF the government for sale at
par 10 NIL parts OF country whcrc suitable agents
be fund $500. = F.
These simple rules II Invariably adhered to- will fur
nish Treasury with all the the country I'LL
need addition TO It's receipts from revenue and taxes.
have the honor TO be your obedeut servant,
slLAS n. SrlLwELL.