Year: 1862




The Treasury Note Bin Passed.


The passage Of the Treasury Note bill by
such large majority in the House Of Repre-
sentatives is triumph Of the Union sentiment.
The secessionists have been long since used up,
and the sbolitionists who opposed the bill are
now in the same predicament. Old parties are
broken up, and new political combinations are
formed. The new parties are the Union party
and the disunion. That is the issue. The dis
unionists chiefly consist of the abolitionist fac
ton. They have been overwhelmingly defeated
by vote of SO to SO.


We regret to find from the proceedings of
yesterday that the insertion of the words "pay-
ment of the interest on the bonds semi-annually
in coin" in the bill occurred by inadvertence,
and was accordingly stricken out. Now this
ought by all means to have been retained, and
we trSst that the Senate will amend the bill by
its insertion. This will be absolutely necessary
to prevent q depreciation both of the notes and
bonds. Payment of the interest in specie is
the polar star by which Congress ought to steer,
in order to avoid financial shipwreck. 1t will
be false economy for the government and for
the country to pay in any other kind Of money.
It will cost more in the end than specie, while
the national credit will be seriously impaired.
Provision for the payment of the interest in
specie is far more important than provision for
the payment of the principal in any kind of
money. AS long a. the interest is paid in specie
nobody will want the principal paid at all. 1t
will be q safe investment assuring high interest
punctually paid in coin or its equivalent,
and all who desire to invest their money
in good securities will be glad to get these
bonds. But if the interest be not paid in specie
the case is changed The national credit will
be materially impaired, and we fear it will be
impossible to prevent depreciation.


The clause making the notes legal tender
is not sufficient, without specie payment of the
interest, to prevent depreciation. On the con
trary, that clause renders the payment of the
interest in coin the more necessary, because
otherwise the obligations of contracts would be
impaired, and debts contracted with the under
standing that gold should be paid if demanded
would be reduced to the injury of the creditor
and the Unfair gain of the debtor. The bill





notes legal tender for debts incurred in the
past a. we'll az those to be contracted in the
future. The Senate will commit a great blum
der if it do not insert in the bill the words,
" payment of the interest on the bonds semi
annually in coin." 1t is the certain payment
English government that causes them to be so
much sought after as an investment. During
the wars with Napoleon the interest was not so
paid, and hence their depreciation. But on the
return to the specie payment ofthe interest those
stocks went up, and now nothing depreciates
them but the fear of war in which England
might be so pressed as not to be able to pay
the interest in gold. Now the United States
government is not 80 pressed, and such an i'm
preston ought not to be allowed to 80 abroad
The interest ought to be paid in silver and
gold.


sures, comprising the Loan bill, the Banking
bill, the Bankrupt bill and the Tax bill-five in
all. Of these the most important and the
most necessary to be brought forward immedi-
ately, in order to inspire confidence in the
notes and bonds. is the Tax BILL which is the
basis Of the whole superstructure. With COM
prehensive tax measure, reaching the whole
property Of the country, amounting to sixteen
thousand millions, and raising therefrom
$50, 900 900, and with the payment of the in
tercst on the bonds in coin, there need be no
fear of the depreciation of the demand notes
They will be as good as gold to the holder, and
the fact of thus keeping them at par will be the
best refutation of the disparaging and insulting
comments of the British press upon the present
and future financial condition of the country.