Year: 1867

O~r FINANCES Currency aud National Bank


System.


We have been going wrong in the manage
ment of the national finances through nearly
the whole war and up to the present time.
Tho first step taken to raise money for the
prosecution Of the war by calling upon the
capitalists Of the country for loan was the
right one. Fifty millions was soon raised in
this city in that way, and Ave hundred millions
or more could have been raised in the came
manner If the government had called for loans
in time, in convenient sums, and running over
sufficiently long period. Indeed all or
nearly all the money needed for the war
could have been 80 procured If our finances
had been properly managed and a suitable
system of taxation had been established. With
revenue approximating that which we raise
at present-and such q revenue could have
been raised-the loans required would have
been comparatively small, and the credit Of
the government with such resources, would
have stood SO high that capitalists would have
supplied money on easy terms; but, unfortu-
nately, such policy was not pursued. Like
reckless spendthrift heir, who mortgages his
estate regardless Of the future, Congress
mortgaged the industry and wealth Of the coun-
try to the amount of nearly three thousand
millions Of dollars within period Of four
years. Nothing to be compared with this
recklessness and ruinous mismanagement Of a
nations finances can be found In the history of
the world.


1t was great misfortune that we had not at
the time statesmen capable Of managing such
important matters. But our present financial
condition was not all the result of ignorance.
There was q class Of shrewd fellows and cum
ming politicians who saw they would make i'm
mense fortunes and acquire political power
through the troubles Of the country. Salmon
P. Chase, former Secretary Of the Treasury and
now Chief Justice, was the head and front of
these spectators. He flooded the country
with paper money, which caused gold to run
up to a high premium, and thus enabled those
who took the bonds Of the government to get
them at less than half their real value. Eng
land, in her most trying times during the great
European war at the beginning Of the century,
never had her credit reduced 80 low. Yet our
resources were almost boupdless. A large
class Of bondholders was created who OBJ
tanned their bonds at very low rate, in con-
sequence Of the same Chase party having pre-
viously deprecated the currency by flooding
the country with it. Jay Cooke, country
clerk, but shrewd fellow, was chosen by Mr..
Chase as bis great financial agent Mr. McCul-
loch, who had also been brought from the
West, first to be Comptroller Of the Currency
and thcn Secretary OF tho Treasury, wss
another tool Of Mr.. Chase. We owe to
Mr.. Chase chiefly the whole Of cur corrupt
and ruinous system Of finance aud currency,
national banks and all. Jay Cooke Is said 70.
be worth six to eight millions Mr.. Chase him
self is reported very rich, and number Of
Chase and McCulloch's satellites aud friends
are known to have made large fortunes. All
this has been made out of the government
within four or Ave years. A M ional debt, q
food Of paper money aud plenty Of bonds at
cheap rate were indeed blessings to these
follows One Of them Gay Oooke) asserted
that national debt was national blessing,
and he has certainly found it to be 50. But
for Chase's miserable system Of finance and
those spectators we should have specie pay
ments now; We need not have had suspen-
sion Of specie payments at all.


These men seemed to control the legislation
of Congress. The next step, after having got
out food Of paper money and the bonds at
less than half their real value, was to estab-
lish the national banks Here was another
mine Of wealth. The property Of the bond
holders was increased in value, the privilege
of circulating three hundred millions of cur
rency produced an immense profit to the
banks, the trade and industry Of the country
were under their control, and vast politi-
cal machine was set going for the pur-
pose Of making Presidents and Congresses
and for controlling the destinies Of
the republic. Now we find Chase, McCulloch,
Jay Cooke and all their numerous associates
and partisans making the most desperate
country these national banks, their circulation
and all their privileges They WELD vast
power; and Ii Ia yet to be seen whether there is
strength enough in Congress TO break up this
infamous monopoly. Some successful move
ments have been made already to limit their
power and privileges, but tho great work re-
mains to be done; that Is, Congress should
withdraw their circulation and substitute legal
tenders in the place Of that This would be an
immense saving to the government, and the
national banks could bank on legal tenders
just as well and still do profitable business.
The profit on the currency Of the country be-
longs to the government and people. II Is an
outrage TO give 1t away TO an overgrown
monopoly. Let Congress drop political squab-
bling and turn Its attention to rem0delling our
financial system, beginning with the national
banks-thcse pet establishments Of Chase,
McCulloch, Jay Cooke and the other rich bond
holders and spectators.