Year: 1864

mr. McCullOuSu, tue SouPTohei vi VIC
Currency, as addressed to the officers OF the
new national banks cautionary circular in
relation to the management of their -insti-
tutions, from which we extract these true
and timely remarks:


Bear constantly IN mind, although the loyal
States appear superfciallg to be in a prosper
ous condition. that such is not the fact. That
while the Government is engaged in the sup
preston of rebellion of unexampled fierce
ness and magnitude, and is constantly drain
ing the country of its laborlng and producing
population, and diverting its mechanical
industry from works of permanent value to
the construction of implements of warfare;
while cities are crowded, and the country
is to the same extent depleted, and waste
and extravaganza prevail as they never be-
fore prevailed in the United States, the na-
ton, whatever may be the external indica.
tions, is not prosperlng. -a s,.ssT.


The war in which we are involved is a
stern necessity, and must be prosecuted for
the preservation of the government, no
matter what may be its cost; but the country
wiA anquestionably be the poorer every day 1t
is continued The seeming large prosperity
of the loyal States is owing mainly to the
large expenditures Of the government and
the redundant currency which these ex-
penditures seem to render necessary.


Keep these facts constantly in mind, and
manage the affair of your respective banks
with perfect consciousness that the appa-
rent prosperity of the country aoM be prored
to be unreal ,chen the sear IS closed, V not
before; and be prepared, by careful manage
ment of the trust committed to you, to
help TO save the nation from a financial
collapse, instead of lending your influence
to make it more certain and more severe.


We showed yesterday that the vaunted
prosperity of the country is false and hol-
low that, while spectators and army con-
tractors are acquiring sudden wealth, the
great body of the people are stinted IN the
= common necessaries Of life. We are glad
to see this disagreeable truth Sd honestly
admitted by government official whose
position should make him an authority on
questions of this class. There was never
period when caution, circumspectelon, and
close management were so much needed In
business men as at time when the country
is borne on strong current toward com
mercial chaos .


"When the war is closed, If not before,
saws the Comptroller of the currency, this
deiu;xve show of prosperity will be proved
unreal. Passing over the admonitory IF not
before it is easy to D. why the return OF
peace will be period Of fearful trial-the
more fearful the longer peace Is deferred -
We must then return (or at least make
ready to returnl to specie payments. But
the amount of taxes will not diminish with
the amount of the currency. We are not
ileyying taxes enough now co pay the inter
est on our present debt and maintain such
peace establishment as would be necessary
were the war to close to day. The interest
on the debt will not be paid a! lower rate;
the debt itself is still destined To large
increase. When the war closes taxes VIII
be double what they are now, and money
not half so ABUNDANT. :. .-.....


If we reach the close of the war without
a crash tae pressure will first fall with ter
ribIe severity on the laboring classes. The
disbandiHg of the army will overstock the
labor market; the stoppage OF the manu-
facture of army supplies will throw stll'
another army of laborers out OF employ
ment. The means of living will be expen-
sive, employment precarions, and money
scarce. Business will be curtalled by the
contraction of markets consequent on pow
erty aud enforced idleness.A The whole
, debtor class will be ruined by inability to
meet their engagements, in tho general
scarcity of money. Things are already ten
ding to such combustible state that the
least spark will cause all explosion. :,


The danger that commercial CRISIS Will
come before the close Of the war results
from the certainly with which this state OF
things can be foreseen by those who stand
at the head waters of business end regulate
the volume of the stream Those who snp-
ply commodities at first hand, whether lm
porters or manufacturers, foreseelng the
contraction of the market and OF the cur
rency. will haul In sails They will dimin
ish their business refuse to give credits, and
attempt to collect their dues, Banks for
the same reason, will contract their dis'
counts and refuse accommodation. Some
houses will fail; panic will set in; and then
the whole fabric of trade will tumble like
house of cards. e-''


The country will ultimately recover, but
il will rise like fallen man groan'ng under
heavy load. The immensity of the ma
tional debt, and the consequent weight OF
taxation, as we'll as a more universal un'
hingement and prostration. will make re-
cuperation much slower and more difficult
than it y as after che great fina6cial crashes
of '37 and 81. ..,,. ,.--.


But what are the abolitionists doing t6
break the fall and alleviate inevitable ca
lamity7 How will their policy affect the
energy and resources on which We must rely
for recovery? These abolitionists are de
liberately trying to render the great section
for which we are fighting Of no value when
reesined. 1t is their purpose to derange
ana upset its whole system Gere the very
veers when we shall most need the assist
snce Of the South in bearing the common
burdens. When the war ends it is for oui
interest that the South should be in con-
d,tfon to help us pay taxes; that its indus
L.i~s.Id .t lnnce revive. that its export