Year: 1862

i Among MI tu0 uniHCial pneHOluena WHICH


have been exhibited in our midst within the
i past few weeks, none is more remarkable than
the fact that our currency, in its relation with


specie, has fallen to the extent Of thirty per cent
| This difference in the relation OF specie with pa
per is 50 great as to deserve particular inquiry
into the causes which have produced it.
! When we reflect upon the different positions


and conditions Of the two sections of the nation,


now in hostile array against each other, there


is nothing to excite surprise that the Confederate
paper should be, as at the present moment it is
at discount of sixty per cent or NOR 9; while,
on the other hand, it is portentous and surpris-
ing that our Northern paper should be dcpreci-


ated by only onehalf OF the other. The rebel


rulers of the South exercise an absolute despot
ism over Southern people in this respect. and
force the circulation OF their paper by the seve


rest penalties against all who refuse to take it.
Its value, such as it is, is only kept up by the
strongest military despotism. But with us the
case is different. We share with England all
the trade and commerce Of the civilized world
we possess in our midst all the elements of
wealth in the undiminished development of in
dustry and the unceasing abundance of produc-
ton. while our Southern " wayward brothers"
are shut out from commerce with the world, and
are destitute of all our immense commercial
| and industrial resources.


There exists, therefore, no natural cause why
this excessive perturbation in the relation Of
specie aud currency with us should be eyhib
| tied as it is ut this moment. Nor does history
! assist us in the solution Of the question. We
| can refer to period Of English history when
| the financial difficulties of that country far ex-
cecded those under which we may be said at
the present time to labor. England then was
engaged in a war OF even greater magnitude
than our present war; she rc5orted to a much
larger issue ot paper credit than we have hith-


erto done or shall probably ever nave to do.


Yeti the greatest height OF her credit expansion
the bills OF the Bank oil England seldom were


lower than about seven or eight per cent, except
for brief interval towards The close of the
war, shortly before the battle of Waterloo.
when Dank OF Ensiaud bills lc;. tov day or
two low rs thirty per cent or, more. and at
length stnod at twenty-five per cent discount
as compared with gold = ~t .te


But thcs same causes are not in operation with
us to produce the effects. We are not
Obliged ~ send out several millions sterling in
gold to sGbsidize foreign armies and keep
foreign allies in the field. Our position. is moi
prccarious. and our people are more prosperous
in commercial affairs nj the present time than
was England at tha. time. We are not shut out
from the commerce of any part OF the world. a.
England at that period was from all CONNER
ciai intercourse with Europe. Taxed as we are
now beginning to be, QUE taxation is not by one


halt 80 great and oppressive us hers thcr was
and still is There are, therefore. unnatural
causes operating with us TO ptoduce an effect
which would not be witnessed under proper
course aud management OF Che Treasury Depart
mcnt.


Disguise the fact az we may, the conclusion
| remains inevitable that. since no special com


mercial or popular distress bas led to this


disastrous depreciation Of our currency. nor is
| it caused by any Tears as to the conduct or


suits OF the WARRIOR stocks oil all kinds are
| Lig!-tGe cause OF II must be looked for to the


injudicious conduct and incompetent acton OF


the Treasury Department. particularly in re-
| !ation TO special specie deposits in the Sub
4 Treasury. which we wilt explain hereafter.
| In other words. we have not u statesman s,icn


as William Pitt. or approaching in any degree
| to his standard, to manage and direct our fiscal


department. Our chief ia this department
| departing from the wise and conservative


course he showed himself at the beginning of


his career inclined TO pursue--ior which we


chcerfully gave him due credit at the time
/ l.. IL.


sphere of his duties and Office to mix himself


up with abolition schemes in connection with


future aspirations Of inopportunc ambition


He has been so busted in uudigniied squab-


bles i'm relation TO the command oil the army,


laboring to put down and set up generals one


above another, that he has lost sight OF what


was going on in the specie market, and Of the
Fatal consequences OF bis fabulous gold spccu-


lations. Hence all the b!undering which has


lately emanated from the Treasury Depart.


ment; hence tie unnatural rise Of gold aud


consequent depreciation OF the currency; hence


the adverse condition IT exchanges. proceeding


from the cause above referred TO and from want


Of confidence in the action OF the Treasury De-


partmcnt; hence the perturbation between


the relations OF currency and specie. II is, we


are thoroughly convinced, owing to these causes


that the commercial world at large has lost


all confidence in the Secretary; aud where con-


fidcnce is once withdrawn from any depart


meat OF the government tho most disastrous el.


fects are cure to follow in that department, as


we daily witness In our specie quotations at


the present crisis.


1


L O,-s. EIl,Irr GnAnn IoN.AI Al.