Year: 1862

debt contracted, and finally paying the debt
itself A wise financier will not only keep in |
view the necessity of raising sufficient sums of
money, but of obtaining them on the least on
erous terms possible.


1t is quite a simple matter for Congress to |
pass bill authorizing the Secretary of the |
Treasury to borrow 100000 900 on the best
terms he can obtain, and quite as simple for
the Secretary to call for bids, as he wants money
and except the best that are made. Under or
dinary circumstances this is the method adopted |
and under ordinary circumstances it works well
enough, and the money is obtained on reason
able terms. But all at once we find ourselves
in situation requiring an outlay unprecedented
here or elsewhere, and it does not require much
wisdom to perceive that a reliance upon the Or
dinary method of borrowing will soon become
nous-fnancially-th however cheap the
first 100,000000 of bonds may be sold, the
next hundred must go cheaper, and so on to
the end No appeals to patriotism will prevent
this result men are willing enough to lend
their money to save the State, but they want
all they can get for it, and if the State puts
itself in their power they will use their power
for their own benefit primarily-for the benefit
of the State accordingly. This is human ma
ture, and we must deal with it as we know it to
be. Here and there, possibly man may be
found who will lend small sum to the State,
at a low rate of interest, from patriotic motives,
but we should be 10th to tempt patriotism with
choice between two bonds bearing respective
ly G and $40 percent, small as the difference
is. Following the usual mode, then, let us
make some attempt at guess where it will lead
us, or how mnch money we should get on the
States promises to pay $500, 100000 some time
in the hereafter, and we shall find something
like this resnlt
First, 500 900 900 NAV be taken at 80 pcr


cent. producing sSO,OOO,OOO
Second, 500, ,00O, 900 may be taken at so per


cent. producing sO,OOO,OoO
Third, s1OO,OOO,OOO may be taken at 70 per


cent, producing 900
Fourth, SlOO,Ooo,OO may be taken at 70 per


cent, producing 10000, 900
Fifth. Sl00, 900 900 may be taken at 65 per


cent, producing $1,000, 900


Thus for $780, 900 we may obtain S3s5 100000
But we have not got our money yet, and in Or
der to obtain it must issue at least two hundred
millions more of bonds, making a debt of
$700,000,0O0 at profit to the leaders, and
loss to the borrowers of nearly 30 per cent.


But suppose the State wants and must have
another S500,000,000 to close up the rebellion
with, does any one believe it can be obtained
even on the same terms9 Not unless human
nature changes. We should be lucky to find it
at so per cent, calling for the issue of 81 ,000,-
100000 more of bonds, and making a grand
total of 81 100, 100000 of debt. No wonder
that the State financiers start back from such a
result, and ask if there is nothing else that can
be done!


The burden of national debt is estimated
rather by the interest payable on it than by the
nominal amount of the principal, because the
interest being duly paid, and the payment con-
sidered certain, no one cares about the princi'
pal whether it is ever paid or not. The first
question than that comes up is, therefore, can
there be a doubt of the ability of the State to
pay the interest? And a material element in
making the answer is to be found in the amount
of interest payable. If we can get one thou
sand millions at par, the annual charge will be
SG0. ,000 but if we have to raise it in the
usual mode, with the result above indicated,
the annual charge will be Sl02 ,000,0 900. And
even if it be admitted that the largest amount
will be promptly met it is worth a great deal
of consideration whether or not some mode can
be devised to save this extra annual payment of
$42 100000 for ourselves and posterity.


Setting aside few spectators who are al
ways seeking for chances to "operate," without
any regard to country kith or kin, we presume
there is hardly well informed man in the Uni
ted States who will not agree with us when
we say that if any plan can be devised by which
the State can supply its wants at six instead Of
ten per cent, thereby saving the sum of $780,
/ 100000 annually, that plan ought to be adop-
ted. In saying this we are well aware that
there are great many good man who will op-
pose any such experiment, because they are al
ready committed to the ''usual mode" as the
only mode of borrowing money-a class fairly
represented by Judge Colamer of Vermont in
the Senate, and by Mr.. Morrill, of Vermont in
| the House ; but of these we cannot afford to
! take counsel now-H UW cost too much and
when the saving is made, none will rejoice in it
more heartily than they We all are possessed
of the same knowledge they possess, the ex-
perience of the past, namely, while they do
not yet appear to have realized the fact that we
are placed in position which has no parallel
in history, and that all experience of the past
throws no light upon the way out of it. We
want bolder thoughts, counsel and action-an
eXpedient to meet the case. We can probabty
get money enough on some terms to put down
the rebellion without any such eXpedient. but,
/ beyond that, we want TO be left without mill
stone round our necks atterward.


Pursuing the usual mode, we simply say to
money lenders, we want and must have so
much money! Now let us have it on the best
terms YOU ca1; we have nobody TO look to but
YOU; but you know you will be sure OF repay
ment, and besides you are equally interested IN
the result and therefore you must not be hard
upon us YOU have us entirely in your power,
we know, and we must submit TO your terms,
whatever they are. This is our proposal for q
loan, and taking human natnre as it is, we
submit that the terms we have indicated as the
response of the money power-S4OO of money


for $40 of promise-are better than we are
likely to get.


Mr.. Chase, with sagacity equal to the occa


sion, and boldness demanded by the time


puts the proposal in a different form. lie says


10 the money power, We want OF. you, this


year, $500, 900 900, and we want as much more


next year we offer you six per cent interest


and and first mortgage on all he properly


in the United States as security. Our rate OF


interest is liberal and the secur ty the best II


the world-two facts you are perfectly wei


aware Of You may think the State is cor


nered, and you can make your own terms-l'
! per cent. or - per cent, perhaps-but you


were never more mistaken the State has iiXet


the rate of pay for men, and its rate of interes


for money, and neither will be altered mean
time. while you are thinking of it, the Stat


will issue $3.50 100000 of currency notes, anC
make them legal tender, for the three-tolC


purpose of paying its most pressing debts, en-
ablng is creditors to pay theirs without loss


and furnishing a circulating medium better for


business purposes than gold. These notes vii
finally fall into your hands, and when you pre-
fer our per cent. stock TO them, shall b
happy to exchange with you. And what i
more, Mr.. Money power, for it is best to hav'
fair understa ding, | intend to keep thl