The New York herald., 1866-04-09
The Press of u. e Country on
the BilI.
National Finances and the
Currency.
IvIdent Financial Policy Of the
Nation.
&e. ke. &c.
PROM the CINCINNATI Daily Gazette, March 20

foreign clause This omission, and the restriction In
the withdrawal of greenbacks denies the sec
retary of the Treasury great deal OF the power he
asked but In this craied shape ~ Is open 70 seri-
nus obiectou As regards the contraction Of the
rency however Secretary cannot very fast It
would require eight years 10 withdraw the geenbacks
0Bder the House bill, and the compound interest notes
cannot touched nness The banks choose 10 exchange
them for bonds The seven thires viii, from present
appearances, be mainly held unn they mature, unless
gold advances the funding bonds offered at n
dnronnt. The sevcn-thiities are now worth par,
while nvo-twenties, with nearly five months
'efest with gold at I2s, is worth 81 This
Gold at l22l would equalize the interest on the FIVE
and thirties and holders of the latter
have the option of demanding lawful money or Ave
twenty bonds at maturity II is manifest, therefore,
tst the tbrties cannot be funded TO any extent
at present But Mr. Mcculloch has the power, will
have IL the House bill becomes law, to sell hvetwen
ties and the proceeds in buying thirtes But
the better plan would be TO the surplus to
vance of maturity. This may be done to very large
extent while the currency is being gradually contracted
aud thus the interest The gold debt when specie pay
ment shall be reached will not be in excess Of the ab
y Of the people to pay.
through the House. Mr. Fessenden Chairman Of the
Finance Committee, has expressed himself in favor Of It,
From the Chicago Republican, March "a
RESUMPTION OF SPECIE PAYMENTS.
The perncious of the Secretary Of the Treas
ary termed the Loan bill, which was lately defeated in
Congress- has, it appears, been recommitted, and Is
therefore not yet defeated measure Though judging
by the sentiments expressed the discussion Of the
dangerous features, still the entire plan and purpose OF
the bill s In the present condition or the country, based
upon erroneous theories. II is assumed by tho advo
ctcs nj this bill that the first desioeratum in American
Gnancc is very speedy return to specie payments that
this paramount purpose should be pursued almost
sardiess OF all other consequences: that financially
speaking though the people do not know it, they in
very distressed condition. and tho panacea that will
bring immediate relief 10 the unconscious sufferers s
resumption OF specie payments
Let US examine he process Of the euro proposed forns
equivatens OF gold and silver In all monetary
ons throue the United States return to specie
payments then requires as first step that the govern
nen obtain possession OF aud cancel all the paper money
has issued Then the national banks may be compel
led TO redeem their bills IN coin. II In schomc that
may be practically accomplished but ii will be at cat
cost 10 the countrypr0baby that OF general ruin. The
paper money OF the government amounts TO about
e42o, 600, ,0o0 most OF which bears Interest," and
though in legal obligation debt yet bearing interest
this amount Of money requires sales Or = government M %
bonds TO al least an equal amount adding 10
taxes tho interest these bonds SOS 900; and
Tor what goody Merely 10 reduce TO practice abstract
theory. II hepeptc Of the Country doubted c1yency
mny ~ere rsiuctaa to re epe IL and The cause q
o1seaf ana ds'l, trogd fhes, ia realty e an eri
whith should Be removed coud be done acih
practical seffy But 9hfie fully satisfies Tie people aud
gro"tes an easy des.es'c money narke ead is erery
iviy oenshcia, and ia no manner Aurn hke
De sstaed " sratic Conceive This S42o 600 900 OF
money changed TO the form OF debit and how do We
snsr bank na's saoe @ as ION and
OF the government and in all the banks $3.50 O00
q 4 mon Tho
government holds Sl2o 900 OF specie and cur
scncy 1 anu 50 long as we shall be required to pay
public debt dcrray the current expenses Of the
government tho national cofcrs will hold an average
amount OF nooey equal to its prcsont holding thus eav
ing TO The people for business uscs and 70 meet the
enormous amounts OF our taxation the meagre supply Of
saso. 200 ooo-bnt $50 oco, 900 moro than their
nuai dues IN taxes. The machinery Of business,
and government finance cannot be maintained
on this narrow basis; the thing Is impossible Our ag
Sregate Of specie in circulation will be only about tho
amount had before tho war; la tho meantime we
hsvo increased 1000 900 in population and have added
possessons tho magnificent debt Of s. OOo
We shall be down again to the small supply of money
we had In old times when In active business rcriois the
lack Of money induced the OF credits too l!bera for
rs;ety These occasional psnlcs They
could not be avoided with an enterprtsing people Az
sent the Industry and OF the country people
would set 10 trusting each other too much though had
Abe money existed all would have preferred 1t rather than
any mans obligation With annual taxes 10 the amount
or $500 600 COO aud with only $500 900 900 500
boo In money IN all tho country, u would seem pretty
Wenovor previous N tho war had money enough 10 the
country, and present condition requires that pos
sess al least twice much possessed before
Mono o: the government currency should be cancelled
Lot VS. discuss tho the forcble specie pay
every kind shall be par speedily az posslbe and
we have hopeful without resort 10 violent
the ordinary quiet and natural course Of events the pro
Gers OF eouazng the values Of currency and specie
hrnn progressing rapidly since tho close OF the
every person knows Considering how great the dis
erepaney In values aes and considering tho amount Of
debt the rapidly OF approximation is one Of the most
astonishing facts in tbs financial history of nations
.la ,as.ir period cea.sa-aSiy rs.s aam s.o yss, ae
sLs~ism on god has deersased from Asadred sad
wy 30 hisfy per cent The saxse Esdaciai iacs aAd /
s,s sAiA hare cyousat H6 re,si Q vsaiiy ociire
dsss.i dcy oy e,wrney a e. miu ss ses.rsasM ..
satas 70 oold dad siiper. l
while The raging and the event was In any |
degree subject OF doub he public credit especially
~ sarope' suffered 10 proportion m the pubic debt
n Of IA
Of peace ond fie rind,caiacs If e uapai osA ry nc
rs'.e ersrns'ex obligations has rissn sra yapiduy
80 sssp'ieng as q sufisacksy The amount cf The
AAticnAi indebtedness very great; troublesome qucs
os arising cut Of TIE war yea u.s. and confidence
government obligations is not yet fully established But
sycy day adds nrxness and convicson TO what
.so fsr'bes, currency and spece viii represent
equivalent vsiuos Tho natural operation OF the lass
yhs.e laws take cosnrasse Of the validity ia W and v Sol
vsncy Of oslisa,ons and arc themselves subject 1
mus, be given 20 eapiiass ai,road 70 become
cre thoroughly established In their oonud in the
sac,en, for such vast amour, Of .eras,,,es 10 nns
shsr way 70 the hands Of those who can pay for them
S % 600 OC0 s,sy srca. an.un, or money and in
hn time 70 nnd perssns who 10 any way take such
y, y:, s,,ss S9 .s% ssS1.s .sGs 9' sssy :.
nn,y for si the specie in Europe does no, exceed
:ass. Is 600 600 oco Bc,orc The discovery q sold
estimated sf that amount
One prime cause tho depreciation Of american seeu
russ MAS thu orccsve amounts rapidly put upon the
markets There other securities In Che world and
cthsr inter q. 10 be protected; and could hardly be
expected. under any conceivable circumstances tina,
such vsei amounis Of American securities thrown upon
zoe msrken rapidly 80 were ours should or could con
ssnd their par value IA specie All the banks In tho
hiied hees do not a. this time possess In specie four
per cent Of the amount cf the public debt 4
Gradually by sales for oash but by the exchanges
o. uade our government obgstions reaching the |
n@sos o. ihose able 70 hold them They thus be- /
coming permanently placed, and constantly Apprc.
sniDs Ia value.
no class Of government obligations is ncarcy par IN
'han treasury notes, other class popular
s'h I've leope and when the interest bearing portions
ogr national debt shall become par in srcce then also
wn lreaaury notes have a Hke value
Let ~ not mt under impossiblltics let rs ust m
entAy for results Witch time will soon and surely bring
@bd wSich time alone accomplish aud let 10, tls,
s'hucA OF impeience bring upon ne real affictons In