New-York daily tribune., 1865-12-26


Co., 62i per cent; California State Telegraph Co.,
% per cent.
From The Financial Chronicle Of De- -
Never since the passage OF the legal tender
oct in February 1902 has any important currency
measure received the sanction of Congress han the res
siution which was offered on Monday by Mr. Aley. in
Che House OF Representatives This resolution declares
shat the House cordially c0nculs IN the views OF the
eecreary Of the Treasury in relation to THE necessity
Dd the contraction of the currency with q view 10
o. early aresampuon Of specie payments the interests
u the country will permit and pledges cooperative
action to that end as speedily as possible
The decisive vote of IA to by which this conserya
tive and sound policy was aaopted naturally seals the
Ate Of the msehieyous schemss Of further imitation
&hieb Of late have been urgently pressed forward II
bertain quarters and gives pledge that redundant
currency not only TO receive no further increase, but
viii be steadily contracted from this time forward
I'll its normal value is reached and specie payments
ere resumed This assurance is regarded with the
hvelest sa;isfaction and the various methods which
have been proposed for calling In supeIu0us paper
money everywhere cauvsssed with warmth and
earnestness which show that the public mind is alive to
che delcacy Of the work OF contraction and TO the mis-
chief which will ensue If it be uuvisely done.
We have now afri' ID, therefore at critical point in
the history Of our PoPer money imitation and itInay be
reference TO it. After the suspension Of specie pay.
nents by tie banks IL this State and throughout tht
country the close of ls6l it became evident that
ISSUE Of some sort of Governments paper money wal
inevitable. aud few enthusiasts urged that this pape
money exhaustess mine Of wealth, and that an,
amount of it might be issued without depreciation Bu
She people had too much good sense and sound norma
sion to be led away with the sOphstres OF these per
sons. whose schemes were compared to those Of job
Law, and Of the promoters Of the assignats In I'll
1releh Revolution. The disasters brought on thi
country by the old Continental money caused the mos
gloomy 70 Prevail reatiSe 70 tHe rele
But the necessities Of the Treasury were urgent
We had not then learned how TO raise large amounts b
taxation. Oar armies were 10 be put in the field a
once blOckadiDg feet was to be equipped at q
expense To save the life OF the nation We had 10 d
something quickly and could not await the slow process
nfd aphf ~ ID nr aI
As Of expedieut therefore, Congress- in the oa
acts Of February 2Jth and July llth 1862 authorize
She emission Of 800 millions of legal tenders, incudn,
90 millions of Treasury notes previously issued, whic
were 10 be redeemed and Cancelled. The 10. n>yn,
year. in March. 1863 $50 millions more Of greenback
were authorized. making an aggregate Of 40 millions 0
paper money. Of which 50 millions 10 be held il
reserve. Besides this amount Of currency, 400 mon
of fnteIestbesrng notes were at tie time author
ed These 10 be legal tender FOR their face value
only and hence it was supposed tLey would not initiate
prices. Our last currency law was passed June 81
1sG4 authorizing 200 millions Of compound Interest lega
lenders and empowering the Secretary Of tie Treasury
20 call in al outstanding legal tenders at BIS discretion
and 10 substitute tie compoundiniecs noes Tor them
This last fact authorizing the emission OF compound
Interest notes, produced euggcstlye and gratifying
sesults. Of which should not be slow tO avail our
selves in future efforts al contraction
Under These four acts about 10 millions Of currency
Sf various kinds have been ssued, Of which nearly so
millions have been Withdrawn, leaving Only G2C millions
ehoat on the lst December last But Of this GO mil
Hons only the 426 millions Of groenbackg now eff.
eient paper money the remainder interest bear
ing notes. ana nave ceased to exerc most OF the iuDc
lions OF active currency.
Such then, il a sketch Of the paper money issues
which were Of service 10 tie country dbnng tie war
bet arc by degrees TO disappear, having served
their purposes and flushed their usolunes. We are
cold by some persons indeed that Hr. McCuDch can.
not contract the currency 30 long he ID 10 the market
as borrower IL Is sufficient answer 70 point 70 the
fact that the active currency las been Diminished dur
Ing the last eighteen moYts, though much larger gov.
sInment loans have been negotiating than VIII be ne.
cessary b. cancel currency and 10 fund entire
floating debt.
Again IL has been objected that Congress will not
be able agree any effective means OF contrac-
Eon But little new legislation Is necessary We have
that the Of 3th June. 1864 gives the Secretary
OF the Treasury power 10 convert at his discretion the
whole Of geenbacks ioto compound interest notes
with view TO convenience IN funding. Were nc 70 DO
this, these notes would gradually withdraw themselves
from the current Of the circuit ion They would cease
20 be paid ont as money and the public would hold them
For Investment except In time Of monetary pressure,
when aIono they woad make their appearance from the
boards, retiring into Obscuriy again vixen the crisis
Was over Thus we zee that without any new legisla-
ton tais first step toward contraction be taken
and by means of these compound notes the volume Of
our entire currency Las been already reduced
by $50 OOQ CO. without Causing much II any derauge
uent in the money market.
The chief Congressional legislation therefore that
needed 10 give full force % the contraction rcsola
Zion Of the House is the authority 10 issue bonds on
such terms VIII absorb tue Government notes after
tLer activity shall have been checked by accumulatine
Interest And gucb authority 30 Issue bonds is Vriu
ally all that Mr. McCulOch asks for. The othe rooui
site powers be mas already In the Treasury report LIE
recommends.
that he be authorized ,e bonds Of the United State.
bearing Interest st rate not exceeding six per cent of hs
purpose Of retiring Treasury notes United States lie
sGuet recommends that he be authorized sell Ia Ina dis