The Indianapolis daily herald., 1865-11-30
The nh appy Condition of the Finan-
eial Japifer Topans, the Money


DesDof.
The Secretary Of the Treasury. by destroy
Ing the greenbacks, unconstituiionally made
legal tenders, but which the United states
supreme Court dare not decide % be 50, a.
they are taken in instead Of paying them out
f0treuitors, could reduce the volume Of cur
rency, bat that would not bring specie, IL
would only bring distress and ruin TO the
country. Congress, by repeating the uncon-
stitu'ional legal tender law, 30 that people
could demand their Constitutions, right Of
having gold and silver In payment Of debts,
could bring specie into circulation But the
Secretary Of the Treasury will not advise
either Of these things, because he dare not do
IL, and yet he promises n reduction Of the cur
rency; how l. be 10 accomplish ity that redue-
q ton OF currency must be brought about By sell
ling long bond, Of inducing creditors to take
them Instead Of greenbaeks; aud, rs a great
many bonds soon fall due, they must be taken
up by new bonds or grecnbacks. The Govern
nent, then. has got 10 go into the market again
with more bonds. The question now may be
discussed, what would be tho elect Of redue-
Ing tise circulating medium on the price Of
bondsi such reduction would have two ten
denotes:
J. j the volume Of currency were reduced
thc trfces OF all articles would come down
n--dy i'm proportion hence, IL would tend TO
appreciate Government bonds because, the
interest on these bonds Is 50 many dollars n
year, all the time and II prices were low the
holder Of the bond could buy more with those
dollars Of interest than he could with those
same dollars II prices were high. Hence, the
smaller the volume Of the currency, the more
valuable really l. the bond, so be the interest
on Il is paid, but, II, by any reason the Gov
eminent Is unable to pay the interest at all,
the bond becomes almost valueless.
Now, here comes the rub /; the Government
must collect four hundred millions year TO
enable her 10 paw the interest but II she con-
tracts the currency, that brings down prices,
reduces business, stops profits, incomes, and,
hence, leaves the treasury minus the money to
pay the interest on the bonds and just 30 soon
-s there i a failure To pay this interest, down
goes the price Of bonds the market for their
sale closes. and the Government IL without
means % keep herself in motion. She can get
no more money.
We fear this day may come. II will not come
for time. SO long as deception can conceal
our true financial condition from the country,
by partial, mystilied reports, and the country
can be kept full Of paper currency, the Gov
srnmcnt will be able % sell more or less bonds.
but when il shall be finally known what our
debt really i, and that the people cannot pay
taxes sufficient 10 meet the interest on il, a
difficulty may arise in the further sale Of
Government bonds which may bring things 10
crisis. our advice is to all people:
"Set thine house in order, man,
Life Is but ileeting span."
We shall look for the report Of Mr.. McCCL-
LocH with great interest, but shall read il
with little confidence in the truth Of its state
menis and accuracy of its estimates.