The New York herald., 1864-09-05
FINANCIAL AND COMMERCIAL

abroad when credit al the lowest eoo oy wncn
that she unable 10 borrow oouar IN the
world And Il is less true that these United states
daring the Revolutionary war were equally insolyent but
h neither case did the worth essness or the paper money
OF either patton interfere materially with is political
prospects the present day the rebel conederacy
has furnished another illustration Or the aeontroverble
fact thar bankrupt exchequer is not Incompatible wlha
vigorous prosecution OF under despotic govern
BG, with France during the Revelation, the South.
era confsderacy and, extent the old Tnrteeea
Colonies, lighting for their independence bankruptcy
under the circumstances in which they placed,
almost unavoidable. The OF France were
equal she heavy demands upon the public treasury
old colonies, throwing of the yoke OF Great Britau
too young and in rapid state transition
form Of government to another to be capable organiz
ing an elective system OF taxation and loans 10 meet the
expenses OF the and the southern conede
racy was unequal to the gigantic task imposed upon
it OF organizing and providing for such immense armies
has pat into the field and resisting the power OF the
United States without incurring an expenditure out OF all
proportion with Its means or paying For The first year
and half however even the government succeeded
keeping up appearance OF soivency but the longer
the progressed the moro evident i became that
the depreciation OF the rebel Treasury notes would
force abandon all pretenslons 10 sound financial
basis and rely upon artificial one, based on the
confidence enforced support OF the people
II therefore resorted funding OF the old currency
OF the rebel States the 5ls OF December, 1862,
$3.50 los 0d3 to which must be added fifteen millions in
cotton loan bonds, to for twenty years, with
per ceat interest payable thereon semannuay, March
and September Oh the former amount the funded debt
consisting twenty years eight per bonds, with the
interest payable semannualy SIS $50 900, and the
floating debt consisting three years osary
notes bearing S.65, aud $50 per cert interest
respectively, and PLAIN legal tenders not bearing
vi
about bali that bearing The certificates 0.
deposit, carrying six per cent interest," payable on re
demption, am united to the remaining SEQ, iSS,47o.
But, as every successive year OF carried by
losns-currency being form Of loau-nus Of
sily than the year that preceded it, The embar
rassments OF the rebs treasury increased compound
ratio with the progress Ct the war, and dnaly,
pared With the accepted standard Of gold rebel paper
became asnost worthless. But, with military desposm
reigniug Richmond long the itself offered
the means of carrying on the struggle the
question of finances of subordinate Importance
and in process of time issue Of treasury fol
lowed the enforced withdrawa If the old from
circulation. This system OF dnancering may be put in
practice under such dsspotsm where life and property
will be equally sacrificed on the altar cf mistaken pari
osm to the bitter end, but under government which
is free proesses respect the property Of its cit
subjects this independence OF bankrupt trea
sury exist for the moent the rights property
any country it degenerates into a
despousm in fact England during her long
struggle with Napoleon the danger which
threatened the destruction OF the whole fabric of her
government and institutions she failed in the proper
management OF her finances during that critical period
And by the foresight and practical craftsmanship OF
William Pitt she enabled throughout her long
pension Of specie payments lasting from 1897 to 1921
to prevent Bank of England notes from ever falling
than forty.one per cent below par, the average,
however, being less than twenty. And Great
Britain bad fewer resources for carrying the and
raising the large she did than the gov.
ernmeat Of the United States had when this
commenced, stih has, in spite Of the fiscal
mismanagement which has marked its policy,
and by which it has adoed bundreds Of millions
needessy TO the national debt, besides placing tie bur-
den OF deprecated currency upon the entire people,
There reason why this country should have been
plunged into such . ruinous condition short time,
great expenses of The necessarily were. and
grave responsibility rests the late Secretary of the
Treasury for the consequences OF his acts as well as
Congress for its obsequiousness sanconing them with
question argument Surely the disciples Of Adam
Smith have died out with the science OF political
economy IN b,th houses.
But warn the government that bankrupt Treas
ury and worthless currency at the North will mean
something than did at the South and that the
people will call ii to terrible account for its wilfu sacr
ice OF their interests ever reach that dep Die
condition Yet regardless OF the future, the Treasury
still pursuing its policy of currency imitation and
recklessly throwing its six per cent gold bearing
bonds the market for which i, receives little
than forty cents on the dollr, while ii has 10
pay hundred cents in pledges for every forty
cents worth it buys And with every increase 10 The
huge debt bearing upon the nation the tendency Of
the currency the present policy towards further
RAPID depreciation Does the expect the
Ior. diati
or is 1t simply blind and Indifferent Consequences
With good craftsmanship the danger which threatens
the nuances could be easily averted. TO fund
portion Of the currency and stop all further
issues Of legal tenders, so bringing down the
premium on gold, Is quite within the power
OF the nation, which could afterwards rely upon
the OF bearing bonds al the mar
ket price aud taxation and import duties But so long
the cure1ey remains at its preseat deprecated value the
goveromeut must continue paying between two and
times the ordinary specie price for everything
buys. viii be the business Of Congress, when
IL assemblies, take into consideration the state Of the
and devise remedies Tor the future; and
1t will incumbent the Secretary OF the Treasury
whoever be be- TO advise that measures be enacted
contrary which have thus far Impoverished both
the government and the people II this be rot done, aud
the continues while the country allowed 10 dritt
10 its present course, there will come time when
the government will hnd itself With empty
Treasury and no means OF repenshiug ~, ana WIN
the commere> the country Frustrated uneer the coi
lapse Of the pSpS money system, and the consequent,
struggle returf specie paying whcn would then set
In as did n France when the assgnats became worth
less and discredited by the people Then, too,
would be the hour OF danger for free govenmeut Would
the e ample OF the South be followed or resisted,
Tue following are details Of the circulation accord.
ing to the last statement Of the national debt for the
week end ug August 30
NuWeo STATES n3esss luOsobs
Five per one year notes ........- "A 500 900