Year: 1862

The sinews OF Wharf.-The New National


Currency.


The world, the flesh and the devil-the
World, the Tribune and the Ismes-are in
league with each other and with the banks to
overthrow the system of finance devised by Mr..
Chsse for the purpose of carrying on the war.
Yesterday the World had number of articles
in opposition to it, but pretended that its fire
was not directed against the Secretary of the
Treasury and the government, but only against
the Committee of Ways and Means, who have
matured bill authorizing the issue of Treasury
notes to the extent Of 500, 900, payable on
demand, but not at any particular place, and
not bearing interest, but exchangeable at any
time at their par value, the same as coin, at the
Treasury Of the United States, or at the differ
ent Offices of the Sub-Treasury, for any of the
coupons or bonds which the Secretary of the
Treasury is now or may hereafter be authorized
to issue. As these bonds are to bear interest,
which interest is to be paid from revenues
raised by taxation, the paper is evidently Sc
cured upon the credit of the government and
the public revenues, and is just as good as gold
for all purposes of internal trade. 1t is also
made legal tender for all debts, public and
private-for debts due by the government as
tween one citizen and another.


1t is for this measure that the World assails
the Committee of Ways and Means, but denies
that it attacks Secretary Chase. This is worthy
of the sanctmoniOus hypocrites and pious dis
semblers of the World 1t is notorious that the
Committee of Ways and Means is the Con-
gressional organ of the Secretary of the Trea-
sury and of the government; and the stab, there
fore, which appears aimed at the committee, is
really directed over its shoulder to the breast
of Mr.. Chase, who stands behind.


But in another article in the same journal the
animus is revealed, and Mr.. Chase is directly
assailed because he does not issue the $5O,OOO,-
900 Treasury 1865 per cent notes which Con-
gress last July authorized him to issue, instead
of resorting to the demand notes of the new
bill. Now, what is the difference? The World
answers that the 365 per cent notes would an
swer every useful purpose of the new notes,
while "they do not attempt to create currency,
and therefore do not derange prices by depre-
ciating the currency, which demand notes al
ways have done to frightful extent in times
past"


There's the rub. Hinc lila lachryme. Hence
the lamentations of the World that "the nation
will be swept into the vortex of ruin," when it
really means that some rotten banks will be
swept away, whose currency will be deprecated
and whose circulation will be made ''small by
degrees and beautifully less" The quarter
whence the assault emanates, and who they are
who prompt it, are thus sunconscously disclosed.
The new notes 'create currency" which will
be national, and will supersede the currency of
the State banks. The reason why demand notes
in times past have become deprecated was be.
cause there was no revenue raised to redeem
them or pay the interest, and because they were
not convertible. But these demand notes are
convertible into redeemable bonds, which
bonds bear interest, which interest will be paid
by revenue. Hence they are really a redeema-
BILE currency.


One of the other organs of the banks, the
"Little Villain" of the Times, comes out against
another Of the finance measures Of Mr. Chase,
and constituting a part of his comprehensive
scheme. We refer to the bank bill providing
new national currency, based upon deposit of
United States stocks. By this bill banks may
he organized by depositing bonds of the
United States to the amount of not less
than $4,000, when they shall be entitled
to receive national bills for circulation to
a like amount; in addition to which secu-
rity it is provided that each bank shall keep
on hand in moneys of the United States Gnclud-
ing Treasury notes) onc-.ourth of its circula-
ton outstanding at any one time. The Times
objects to this bill because it gives too much
security to the public against the banks, and
because il does not permit profitable invest
ment of capital. 1t doubts the practicability
of the scheme" and says the "law will be little
better than silent letter upon the statute
book Just like his fellow co-operator of the
World, the sneaking Times has not the manli-
ness to attack Mr. Chase directly for his financial
scheme, but does it in cowardly manner,
through the Committee of Ways and Means.


Both these journals have conspired in the
interest of the banks against the government.
The banks have showed their hostility from the
beginning to the new currency which is to su-
persede their issues, and which will consoli-
date the strength of the government in the
same proportion as the banks are shorn Of
their power. All the influence Of the latter
and all their money will be employed to defeat
the measures of the administration. But banks
and all other things must, at this crisis, be
rendered subordinate to the paramount inter-
ests of the nation, and they must be either
made subservient to the safety Of the govern
ment or be crushcd out Of existence. The best
way to deal with them is to include them in
the proposed bankrupt law, and wind them up
under its operation, like all other bankrupt
concerns. Thus disposed of, they will be power