Year: 1864

| ury mas recOShlLeu tHc ldct, anu "uInleteO


the holders, as a special favor to the priv


ilege of depositing it in the Sub-Treasury


as a substitute for gold at discount Of


thirty-three and one-third per cent. The


actual depreciation must be greater than


this, since the offer is accepted as boon


and has been made with view of limiting


the rapid decline Other measures having


the same object, are under discussion at


Washington, all showing that the ma


tional currency" provided by this Admin


istration, for the use of the people, is re-


ally worth in the market only sixty cents


to the dollar.


1t may seem, at first sight, as if we were


stating a very trite fact, which has been


patent to the whole country for months


past; but little examination will show that


its recognition by the Treasury Depart
ment has given to it at this time a very
great significance. The origin and prog
rcss of this paper money scheme forms one
of the most humiliating chapters in our
national history. 1t had no foundation in
cciyed by any forothought, however limit
ed, nor adopted through any policy, how
ever short sighted There was no system
about it. The Secretary blundcred into it
through want af financial system, and
because lie was controlled by views of mere
expedicncy. When the first issue of Trea-
sury notes to be used as currency was pro-
posed, they were ostcnsibly rcdcemablc in
coin. Notwithstanding this prctense, we
sounded the note of alarm at the outset,
pointing out the inevitable tendency of
such an expcdicnt.


Our predictions were met with sneer,
and our warnings totally disregardcd. y
contemporary who alluded to the measure,
remarkctl-'.Th Treasury notes which
the Journal Of Commerce SO patriotically
decrics as 'an immense volume Of paper
money in five. ten, twenty and fifty dollar
notes are payable in specie on demand
With the heavy taxation flr which this
Congress has provided, ihey Will be 50
rapidly absorbed by the Treasury, that
they cannot materially dcpreeate.' 1t
was easy 10 see to what such beginning
would lead. but those who were i'll power
wilfully closed their eyes to the truth. while
the nation drifted further and further from
all the old landmarks which the wisdom of
our fathers, and the experience OF all ages
had 50 firmly established.


OF course the issues although payable
in specie" were not paid, and further Is
sues followed, alike irredeemable in coin.
Gold ceased to be the currency, and paper
money, made legal tender as far as the
act of Congress could do it, became the
nominal standard Of value. a variSblc
standard it was, fuctuating FROM day to
day. and unscttling al the ordinary rola-
tions Of life. Still, the advocates of the
new currency secuted the prediction
that IT must necessarily dcprcciate, and
tried great variety Of methods to sustain
their theory that it was as good as gold
The growing difference between paper and
coin was ascribcd to the operations OF
SPECTATORS. instead Of the redundancy OF
irredccmable promises from the Treasury;
and this fiction has been encouraged in the
face of the most appalling dangers into
which we were rapidly plunging.


But the case now assumes a new aspect.
The Secretary of the Treasury admits the
depreciation of the currency, and proposes
to limit it to one third of the nominal val
uc 1t is the old story of the monarch
who tried with powerful mcnaces to drive
back the flowing tide, and was at last fore
ed 10 secede before the advancing waves.
Mr.. Chase proposes, however, to make on
ly partial concussion. He takes his stand
at G6 and here he Will renew the fight
The spectacle Is one which may well at
tract the attention Of the whole world. The
financial officer of the most enlightened
government on the globe offers to limit
the depreciation OF the National currency
to one third Of its value. BY what rule Is
this measured.


When bank suspends and its notes sell
for only two thirds Of their face, that is
to be the popular estimate of the
value of its assets With nations prom
iscs tll,, measures of one of confidence in
its pcrpctuity, ability, and honesty, calcu
lated by the remotcness of the period when
redemption may be expected. All the
skill and resources Of the government are
now to be directed to keep the depreca
ton of the currency within the estimate
thus publicly made.


How much longer is this wicked trAing
with the national credit to be tolerated p