The New York herald., 1866-07-13
PAPER MONEY.

How the United states Have Carried On
Gigantic War on inc3. ver,isie PA per
tho Same Description OF Nonev.
From the London Citizen. Dec lo 1851
Tho first leading article Of the Tme. % Saturday last
devoted to the subject OF Amc rican finance There
be doubt Of the importance o. alis subject
only bears ON the national prosperity Of the. United
States but involves principles closely connected
with the webeing Of the whole civilized world. The
opinion Of the Tes this subject deserves considers
uon not much from It's intrinsic value from the
fact that number Of pesons. both in England and
America think the Tses thinks and accept this paper
as the exposi,or Of. their views.
Now In writing finance, and especially American
nnance behooves the Times 70 express itself with con-
siderable modesy and modesation for subject has
ject has the nexorabie logic OF acts demonstrated the
fascy and folly Of It's reasoning Every reader Of this
the sruege between The North and the sout The Times
deprecated the issue OF "inconvertibe'' paper
money The Tsne' then assured its read readers tha.
insignificant compared with the evils which
rency not based upun gold Ruin, desola.ion famine
shame andsuauonai bankruptcy surely and speedi.
principles which Peel borrowed from Lord Liverpool,
and Lond Overstone endorsed. Again aud again were
such predictions Of the nnsnc,s, u1 RUN Amscs put
implicitly; and many holders Of American securities,
acting this belief sold their securities a ruinous
loss
Meanwhile, what did the AmericansS They issued an
abundance Of 'nconvertibs legal tender paper money
.s %
notes of denomination a. low as three cents What did
this .inconyertibe paper currency, these wcrshless
rags" enable them To do Paper money enabled them
to do hisIt enabled them 70 form splendid navy, TO
raise Of the largest and most expensive armies u
modern times feed clohc and keep In the field their
enormous Armaments for four years. and 70 carry
trade with foreign lands, and support In comfort and
% ns or q .
the Americans that they could not borrow pound IN
any money market IN Europe for their wants
10 the amount Of fo0o, ,0oo, 900 sterling
Thus then facts have shown that the Americans were
able 10 carry enormously expensive with
and as we say, in consequence of-sn inconvertiolo"
et those who are too young to remember the termi-
nation Of the war with France ~ lse-whcn war ike
verbe paper moneyrcfer 10 history for the account OF
what occurred lsi8. Steps were Immediately taken
so overwhelming that u nearly produced revolution
was the consequences Our Statesmen told then that
from war 70 peace" /. was al very we Il was said
and tho thing has been said reccntlyss long
nation went borrowing and expcndng large sums but
when that system stops then comes the collapse. The
Americans experienced this transition FROM
peace they have disbanded their armies and reduced
ihcir expenditure. How has this affected thems
ssThc actual income, says the Tims 'of the American
government for ending Mt Michaelmas last
Of gro 900 900 instead of 600 as estimated
IL Calculated by the Secretary OF the treasury
that tho taxes would produce ESQ COO 900 The pros
pery OF tho country has been such that they actually
producing amount y per cent in excess ~ the cst
mates; al the tie estimate OF the years
pendture has been reduced by Mr.. hc1ulioch from
$40 900 900 10 ca. 1000. 600
Now what under these circumstance does the most
ordinary point out 10 tho Americans but
that their debt. contracted In grccnbacks,
should be gradually paid Of in grecnbacksf But what
does the nuss advise y advises return 70 specie pay
menis and that creditors who lent rcenbacks should be
repaid god and the TrcS has the audaty 70 give
Tor this the following ridiculous assump
tions."A currCncy,n II says based on nothing but
the national credit pus the Treasury ut disadvantage In
every operation u has undertaken throws the markets
introduces IN all bargains an element OF chance which
unsetes the stability OF commercial aialfH, besides
encouraging spirit OF gambling fstal 70 regu.
lar industry Wonderful Is the bartihood of such
a statement Immediate connection with the facts that
the Treasury Of the United States has AZ this moment
at the rate Of fI2o 0oo 600 year. ffy cent
above its estimate aud that ss 70 the markets OF
the word,n tho mportations into New York row aver
ago nearly fib000O week, or moro than twice the
average weekly importation OF several before ths
war; while, 20 'thc stability OF commercial Affairs
and the be spirit of gambling 4" the TisS recommends
q return TO the system we have IN England, under which
the rate or discount has been changed heen times during
the current year and Joint stock companies of the Wild
est and most speculative character threaten TO supcrsedc
Irregular Industry altogether.
The Americans will be much mistaken r. AFTER having
experienced the solid and substantial advantages OF paper
money they sacrifice these advantages and peturn 70
scls pmens TO satisfy the tnecrcs o. the bulionisse
which have signally failed In the Old World. why N
England stili crosning undcr its enormoos dc5tr Ia
aupfg the buonsts insisted paying In gold
dabt contracted IN paper why We visited period
callv with uinous panics but IN consequence OF onr
absurd and obsolete poonctary sysemS The Americans
civil war-can be- rusiavd with the sssis,-
ance OF paper money, based, not on gold, but
on national credit Tley have prosperity
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