Year: 1861




Government Paper Money.


The Journal Of Commerce says that while so
many questions involving the very existence of
the Union remain unsettled, there is danger that
propositions, affecting only our current material
interests will be lightly considered; and thus the
country plunged in a sea of troubles by reckless
or unskilful legislation, even though we escape
the tempest which is threatening to engulf all our
hopes. The crude and ridiculous project for re
vsing the Tariff is a measure of this class; it
makes the most radical changes in our whole
commercial system; and yet this bungling scheme,
compounded of malice, favoritism and fraud, has
passed the House of Representatives, and with
but few of its delormities pared off, has also
passed the Senate; and unless storm of indigna-
ton prevent, will soon be forced upon the coun-
try. The same party majority are still at work
upon other projects equally inimical to the pros
perity of the country. One of the most odious
and dangerous of these pet measures, we alluded
to the other day; but it has since been fully
indOrsed by the Republican leaders and is now
pushed rapidly forward to its final consummation.
This is plan to food the country with small
treasury notes, thus substituting several million
dollars of incontrovertible paper money for the
currency now in use. The first proposition was
to commence with twenty dollar notes this has
been changed in the bill to fifty dollars for the
present but there is no prospect that this limit
will be retained, if the scheme is once adopted ;
and we shall have twenty and ten if not five
dollar notes, as soon the people become
familiar with their appearance, and the larger
amounts move slowly, or fresh necessities require
a new loan. These issues will be more discredit-
able and inconvenient than the bills of National
Bank, since they will not be redeemabe in coin,
and can only be dsbursed in payment of dues at
the Custom house. 1t is true that they are to
bear interest, in order, like sugar coated pills. to
render them less obnoxious to the public, but
their real character is not altered by this gloss
They will be national paper money, inconvertible
in specie, and designed for general circulation.
Are the people of the United States prepared for
these issues? Since the days of Continental
money, have not the people set their faces with
more and more firmness against this sort of gov
ernment financerng, and fixed the seal of their
condemnation upon all connection between the
National Treasury and paper money?


The Republicans have, as we suppose, two
fold object in adopting this expelient. They
wish for money, and they can thus cajole it from
the pockets of the people, giving them these
paper promises as a substitute. But the knowing
ones see more tangible, present gain for their
party in this movement. 1t is well known to all
who are familiar with financial affairs. that every
sudden addition to the volume of the currency,
produces a corresponding initiation of prces and
thus the issues OF a few million dollars of paper
money, to be retained in general circulation,
would cause an immediate, although fictitious ad-
vance in the nominal value of all descriptions OF
property. 1t is true that payday must finally
come, when this airy bubble would collapse; and
that in the meantime, all industrial interests
would be placed at a corresponding disadvantage
in the exchanges of the world; but present popu-
larity might result from this seeming prosperity
and as that is likely to be scarce article with
the dominant party they willing to sacrifice
much to obtain it,


1t is really humiliatng to see these old project:
raked up from the ruins where they have so lone
been buried, none the lovelier from the meritec
death they have suffered, to be once more gal
vanized into being now that their friends are
clothed for the moment with a little brief author
ity The most determined opponents of this part,
never charged them, during the excitements o.
the political campaign, with more monstrous
projects than these, to which they now com
mitting themselves upon the very Threshold o.
their administration. 1t is no sufficient reply te
the objections which should be so fatal to these
measures, that the Treasury is empty, and tha
money must be had by hook or by crook. That Is
the brigand's plea the world over. Besides, no
sufficient revenue can come from such assaults
upon commercial and national prosperity. The,
will prove but temporary expedents, and bridge
over only step from bad to worse. All these
schemes of war upon commerce, whether in the
shape of restrictive legislation, protective tariffs
or inflated paper currency, will serve, as in the
fable of the goose and the golden egg, to destro.
the very channels Of national prosperity. through
witch the Treasury should be filled. Let thos'
who have the power, do what they can to give u
peace and restore confidence, instead of stirring
up further strife. A government applying its en-
ergies to such noble work, would find itself il
the midst of ample means for its support. Blu
, if ours be madly bent upon civil war. and deter
mined to risk the substance for the shadow, pape
dollars and other irredeemable promises, will sool
be too common to excite remark, and the COLDER
tide of prosperity will be dried up at its very foun
= tain.