The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-03-12

The War and Our National Fin.nces-
Rebel sad Federal Paper Currency.
When gold in Wall street, against the paper
money of the government, stands a. one dollar
to one sixty-hve, and is still tending upward
from day to-day, the question, like en- unwel-
come apparition, still thrusts itself upon US,
where is ell this to ends When, instead Of re.
ducing this volume of paper currency, we are
constantly swelling 1t by new issues, the pub
Lie confidence in the Treasury becomes unset
tied, holders Of "greenbacks" and government
securities become uneasy, doubts prevail,
speculation RACES and general scramble fol-
lows to escape the threatened shipwreck Of the
public credit.
We are now rapidly drifting to this cond-
ton of things. In round numbers, including
''greenbacks," fractional currency and interest
bearing legal tenders, the government has
mass Of paper money adoat amounting, we will
say, to six hundred and fifty millions OF dol
lars. Before the expiration of another year
there will probably be added to this volume
the other two hundred and dfty millions of in
terest bearing legal tenders authorized, and per-
haps hundred millions of the issues OF the new
national banks, which will give US federal
paper money circulation Of q thousand mil
lions of dollars. If, therefore, upon our
present national paper money issues Of six
hundred and fifty millions, gold rules. at
sixty-fve per cent premium, will it
not be more likely to rule above
than under one hundred per cent premium
upon government paper circulation Of
thousand millions? And when the ten dollar
"greenback," bearing the portrait Of "Honest
Old Abe" shall be REDUCED, upon the gold
standard to Eve dollars in value, IS It not likely
that at the end Of another year 1t may be
diminished to three or two dollars, or as low as
| one dollar, from the downward tendencies of
public confidence, with the still increasing
mountain Of our national debit And what
then! Let the paper money system of the first
French republic and our old Continental cur
rency give the answer.
Upon an estimated aggregate Of three thou
sand millions of national debt In 1866, after
July l, there will be yearly interest to be
paid of one hundred and twenty-five millions,
more or less. This, with the extraordinary OK.
penditures resulting from the war, even with
the complete suppression of the rebellion in the
interval, will be as much as the country can
| quietly bear; for it is probable that, with the
return of peace, in settling the claims for the
losses incurred by loyal men, corporations,
&C., on account of this war, two, three, four
or five hundred millions Of dollars will be
| added to the immoya BILE burden Of tho Treasu-
ry. Disappointed in King Cotton, foreign in
| -, 81.
the Northern peace democracy, the leaders Of
| the rebellion now rest their hopes Of success
on the collapse of our national paper money
system. They say, lot us hold out but for
another year, and in the overthrow Of the
ricketty financial fabric Of the Yankee govern
| ment, from the ruin and confusion which will
| follow throughout the North we shall yet Sc
cure the recognition Of the " Confederate
States" Nor can we deny that in this matter
lies our greatest danger. Nine hundred mil.
lions of expenditures against two hundred
millions OF receipts cannot safely be ventured
beyond the present year.
| The paper money system Of JEFF Davis has
already collapsed. But he learned in Missis-
sippi-and much to the disgust of John Bull
the saving virtues Of reputation. There are
now, or were lately, in circulation in the re-
bellious States some seven hundred millions of
| rebel Treasury notes, or bluebacks. The
rebel Congress has neatly provided for the
! funding" of this trash after this fashion:-A
new issue of four hundred millions of Treasury
notes has been ordered, two dollars of which
till April to be equal to three dollars of the
old issues, aud all of the old issues outstanding
after December noxt are to be taxed one hun
dred per cent Thus at least two hundred and
thirty millions Of Jen's paper money is re-
deemed at once; and by this law he will dou bt-
less. make five hundred millions clear profit be-
| fore December. Such are the fiscal beauties of
the 'confederacy;" and though at respectful
| distance, we are, from the immutable laws Of
paper money gravitation, drifting in the same
| direction.
Are we not, then, called upon to provide
against such possible dangers as this funding
| system Of JEFF. Davis What are our safeguards
| against such base, domoralizing and ruinous
expedients! Congress might do much to uphold
the national credit; but when Congress dalles
| with the gold gamblers, and joins hands with
| the whiskey spectators at the public expense,
we must look elsewhere for relief We are
reduced to the alternative Of depending upon
our armies, under the direction Of General
Grant, to rescue the Treasury and the national
currency and all the business affairs Of the
country from ruin and confusion. The country
looks to General Grant for the extinguishment
Of the rebellion in the grand campaign which
is soon to open. Meantime let all concerned
prepare for a grand carnival of speculation,
extravaganza and high prices, unsurpassed, ex-
cept In the dominions Of Davis, where, even in
his new Treasury notes, whiskey commands one
hundred and twenty dollars . gallon, and
i as~rSu khron tksJc