AMERICAN FINANCE.

Southland Times, Volume I, Issue I, 14 November 1862, Page 4

AMERICAN FINANCE.

' ( From the Times.) According to commercial jaccounts frpm New York, the financial commi^uhity had at length opened their eyes to the catastrophe that has com euport' them, but were* disposed to forbear from denunciations against Mr. Chase or the - Government [ generally, to whose unscrupulous or ignorant course, they were now conscious it was to be attributed. Meanwhile, the remedies proposed from all quarters aire as wild and riduculous as the original causes of the evil. The nearest approach to a rational admission consists in 'the' intimation that there has been an over issue of paper, but those who make this statement couple it with an opinion that a limitation of this issue would meet the difficulty and prevent any increase of depreciation for the future. The delusion, therefor ,as to the monetary resources of the country is thus still flattered to its full extent. Of course, the real evil cannot intrinsically be either mitigated or aggravated by any decision of Mr. Chase as to the amount of notes he will issue. The only cure must lie in a reduction of expenditure; If the expenditure is to continue on its present scale, the money must be raised, if not by an issue of notes, by an issue of stocks or some or other form of obligation, aad a large portion of the amount so obtained must continue lo flow out of the country in specie, to pay partly for the importation of such raw produce and other articles as can still find admission' under the new tariff, and partly for otlier goods which will be smuggled in at all points. It is j this demand for specie that will control tho value of all classes of securitie , whether consisting of promissory votes, postage stamps, slocks, or bonds. The amount of Federal notes at present our is stated at between 20,000,000and30,000,000. Should Mr. Chase issue 50,000,000 more, the currency would experience a pr - portionate depreciation ; , but should he prefer to issue 30,000,O0fVin bonds, then i^he^ect would momenta} lly be transferred j to the S*ock market.' 1 ' The ultimate bearing woUn? ft>e4|}P same in either case. The issue4j|JS^o,i^-sfljjaper would, by raising the fate of exchange, depreciate the value of United States\stoik when measured in goll, although] not when measured in paper, while the jssue of 30,000,000 in stocks would dej-fceciite their , -r=A«e in United States pape>, which for j the moment would maintain its jtavious j quotation. Under all circun^nigsJLt is ! the total of UniW^lt»c£s oßhgations tliaT must sustain the damaging effect of the general expenditure, and no shifting of ihe/orm of the security issued will permanently alter the result.