The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1867-12-02

| rue CecTeIdIy IeSOEIcu u LegdI-IcH =
der notes, made them currency, and
borrowed them as cash. The patriot
ism Of the people came in aid of the
labors of the Treasury and the legis
lation Of Congress, and the first great
object was made secure. u MA
Ii. To provide against disastrous
results on a return of peace. This
could only be done by providing a
National Currency. There were about
l 800 State Banks In existence which
wanted to make their own paper the
currency of the country. This the
Secretary resisted, and confined his
loans to greenbacks; but he did not
drive out their currency, nor indeed
did he think it exactly honest to so
deprive them of it, without giving
any equivalent. To neutralize their
opposition TO a National currency and
make them allies as far as possible,
instead of enemies. In his endeav-
ors TO secure such results, he pro
posed the National Banking system.
and before he left the Department its
success was assured.
The National Banks were certain
to be useful in many ways, but the
AI61u OOJIG1 W do OIO GSbdO-
lishment of National Currency.
from panic and revulsion at the end
of the war, and is of inestimable value
to men of labor and men Of business
indeed. to every class.
III. The third division of his labor
was to provide funding system. 1t
was unavoidable during the Rebel
lion that every means of credit should
be used. He borrowed money every
way he could at reasonab BILE rates. The
form that suited one lender did not
suit another; and the army and navy
needed every dollar that could be
raised in any form. Hence temporary
loans, certificates of deposit, certi6-
Gates of Indebtedness, Z 30 notes, com
pound interest notes, Treasury notes,
payable after one and two years. &c.
But it was necessary to have fund
ing loans, into which all these tempo
rdry 10 ms could be ultimately merged.
To this end the Secretary established
the 20 loan and the 10 40 loan. His
belief was, that after the S514, 900. 900
Of the 500 loan had been taken, the
additional amounts needed could be
obtained by the 1910 loan and the
temporary loans; but the Secretary
was ready to resort to the 5-20s in
case of emergency. He did get $73,-
100000 in the 1910 loan, and his
successors got about $4,000, 900
more, at par. And Mr.. Chase has
never been able to see any good reason
for making the 80 notes, subse-
quent v issued, convertible, at the
holders option, into ) POS instead of
10-40s Lenders, of course, preferred
the former, bearing six per cent. In
gold, to the latter, bearing only 5 per
cent; and lenders were rather more
favored after he left the Department
than beforehand so, indeed. were
brokers, for Mr.. Jay Cook got nearly
or quite twice. as large commissions
under Fessenden and McCulloch as
Secretary Chase allowed him. -7s
1t is easy to see how Mr.. Chase's
funding system worked, by examining
the last statement Of the public debt,
The condition is something like this:
81, 200, 100000 5-20s: 5000. 00O. 900 10
40s; S2000O0,000 SIS, payable now
after IA years, which can then easily
be put into 10-40s; other loans (ail
temporary, say $500, 900, 900, of which
| three-tourths consist of 7-30S, con-
verlible, and certain to be converted.
into 104Os; and say 800, 100000.
green backs, including fractional cur
rency, making the debt of 81, 800 OeO. =
00. So, it may be seen, the whole
debt except SIS is already funded. or
sure to be funded 10 $40 six per
cents, or 10 40 five per cents.
Can there be better funding sys-
tenn? Mr.. Chase says there cannot.
Yet there is talk Of a new funding
loan!
The object is to catch gudgeons by
apparently yielding to the popular
clamor for taxation on bonds.
The scheme is to offer new six
per cent. loan, with reservation of a
right to tax not exceeding one per
cent; n other words, new nOn-tax-
able ) per cent loan; and it is pro-
posed 10 make this a long loan-say
/ 80 years. 1t will be magnificent"
Mr.. Chase remarks, $ for brokers
bankers, and lenders, but death on
| the people" Of course such loan
I can be negotiated; for a B per cent 80
year loan, untaxable, is worth more in
the. market, because it will collect
more out OF the taxpayer Tor the
bondholder than any tim nOuo cut
Standing ). and nothing is more GER
tain Ia the future than that Govern
ment l0tlt be Tsaying, 10ithin fire gears.
81 10, and eUen 10 per cent for the
privilege Of paying its debt Betore MT
turity.
The Secretary comedies it may be
we'll enough to make the loan in the
form proposed, if the clamor for tax
alton will be satisfied BY 1t. h11t