MR. CHASE'S RESIGNATION.

Southland Times, Volume I, Issue 52, 29 September 1864, Page 3

MR. CHASE'S RESIGNATION.

Mr. Chase has resigned, and no one can, wonder at it. In' his last Budget he expressed ''ai hope and a belief that he should be able to get on without issuing any more inconvertible currency. We cannot: quote precise figures, but we believe there is no doubt that uncontrollable necessity has since compelled him to issue many ;. md.ro" inconvertible notes. A short time ago he wrote a letter saying that no financial measure could be effectual unless Accompanied by military success. And, whatever, dthcrepithe't we may be inclined "to apply to Grant's expedition to Richmond, " successful " is the last thing which any one as yet would call it. The preponderating probability is that Richmond will riot be takcu this year, that next year it will be as well defended as now, and that one other year at least, with £200,000,000 of war expenditure mu3t be faced, before even Richmond could bo taken. After that it will be time to compute the money lost in conquering the rest of the South. That Mr. Chase should have shrunk from such difficulties is no blame and no wonder : we know of no financier in history who would not have shrunk from them. At the same time, it is a very considerable event that at such a juncture Mr Lincoln should have lost the support of the only Federal civilian who has exhibited conspicuous ability during the wl o o of the civil war. Speaking generally, the magnitude of American events is scarcely more conspicuous than the littleness of American men. A petty struggle in a lew counties — for such, in comparison, was the English civil war — elicited many instances of civil greatness amc ng both Cavaliers and Puritans. But, if the American war closed now, history could only say that Mr. Lincoln was a vulgar man with some respectability and a little humor, and that Mr. Chase had got much money under great political difficult!"*, and with very little taxation. The diiliuulty of Mr. Chase was a difficulty, at the outset at ie;.Bt, rather political than financial. The Federal States are a rich counh-y — not, indeed, a vast moneyed country like England, where there aro largo capitalists, vast accumulated securities, and an immense store of ready wealth, the owners of which are willing and eager to iuvest it wholesale in Government loan?. The Federal States are a rich country of another type. They have a vast comfortable class, vast lower and lower middling order, very large incomes according to our notion for such classes. An income tax, going low down in the scale of income, would have effectually reached them, and a popular loan — a loan in small amounts and considerable interest — would have readily attracted a diffused subscription. If the financiers of the Federal States had looked round, much money would have been forthcoming from England and from Europe •, and, though it may seem absurd to say so, the moral judgment of England and of Europe in the civil struggle would have been profoundly influenced by the financial contract. If the Federals had raised money in what we call a "respectable way," and if we had been lending them largo sums from time to time, we should havo been rather ready to appi-ove the cause which seemed so rich, and wliich we were helping so much. Now, however, the Federals have not only thrown away this advantage, but the Confederates have, to a small extent, acquired it. A Confederate loan secured on cotton is an article of daily speculation in London and on the Continent; but no new Federal security is familiarly dealt in on any Bourse in Europe, and, save from some enthusiastic German sympathisers, they have not borrowed a shilling in Europe since the war began. We do not, however, attribute this as a fault either to Mr. Chase or to the American people. The politicians at Washington did not care to impose any adequate taxation ; we believe the taxes, if imposed, would have been heavy) ; there was then at least a popular enthusiasm which would have ensured the payment of the impost, or at least, if there was not, the whole case of the Federal Government was a fraud and a lie. They said that the people of the Federal States were ready to fight ami die on behalf of an"abstiict idea" of the Union." But we need not care much at the present day about the readi-^ ness of a nation to fight and die for any object, if it is not also ready to pay income tax for that object. The number of persons who can help by money is much greater than those who can only help by fighting. Unless the Federal people are willing to be taxed at the outset of the war, they were bound not to go to war ; if the Union was not worth a little money, it would not be worth so many lives. We belfeve that if the politicians of Washington had called on the people, money would have been obtained. They can hardly be blamed themselves for not paying taxes which their Government has not asked them. to. pay. If or is Mr. Chase in all likelihood much to blame individually. The whole political class at Washington seems to have agreed that at first taxation was wholly unnecessary. If Mr. Chase or any other single person had attempted to stem the current, he would have been left solitary, and his words would have fallan to the ground. But, except in this first defect, for which he was probably not responsible, Mr. Chase seems to have managed with much judgment. He has found much money, — much more than most people would have found. His loan schemes, his currency schemes, and even the tax schemes which he has brought in lately, have not been unsuccessful. Up to the present hour lao lias never beetl a-fc a. loss for ready money, the demands upon him have been exorbitant, though the war has been costly beyond precedent, though he had no previous experience in such work. Though it is a much smaller matter, it is worth observing that the style of his Budgets well deserves the respectful admiration of most ; European financiers. It is perspicuous, animated, and precise, and in business writing these are the three cardinal excellencies. The matter, too, at least the precepts, ars often exceedingly good ; — better sense about the necessity of taxation, the danger of excessive loans, the mischiefs of a depreciated currency, could hardly be found, elsewhere. "'■*: From the defective arrangements of the American Constitution it is impossible to say whether :Mr. .Chase is or is not .responsible for the bad legislation which has recently brought so much discredit on American 'finance. Under a parliamentary constitution it would be . of .course impossible that. a. vitals finance ! act could be pro■?poscd except at the instance and with the sanction of the responsible Eiriance Minister. But by the American Constitution, administration and legislation are two distinct wholes. Congress, is • supreme '-in r but has scarely any^influence upon administration ; oh the_ .other hand, - 'th^ President and the ■.Ministers, -have, supreme control of the administratiori,. ) buthave_ no ; control or influence over legislation. The obvious inconvenience of this- has, it is 'true, ; in some degree ..effected^remedy. vjThe Congress appoints sepa-. rife &hitoitt*fc'foV eifih of tfte grt&t q^mrtmeafs

i of Government^ Jv eommitWetffor .fltiaiifte^'** .ifcom?-. i mittee for foreign-aifairs, - arid-nQW-»-«ommitteo ■for the manageineut ofHljo war. r Thenchairmen iof tWse ''-committees' r bavo grffat^irii; ifluence both in the committee itself and in 'ConSgres3. And though the" practice is unknown ■to the latter, and: rathcrropposed .to.-rthe spirit of ithe Constitution/ thesV'charnnerT'cZb, in matters lof fact, consult" with, bo G guidod by, and suggest ;to the ministers of the corresponding departments. •But auch an in direct jbetyVeeif tfcfe legislative' and executive powers, though" a great help jwhere an explicit and- unalterable Constitution jkeeps them apart, is, as the present case shows, j .utterly; .insuSyiientTfit an iniport^\fe.@i9J||'[andxtt miserabre substitutefor ministerial responsibility. j Congress has lately-passed a series of stupid '[enactments to, present dealings, in gold. They made it penal ib buy' gold at : ' : ii ?i premium, to sell it at a premium, to cxport_gold, to deal under certain circumstances in remittance bills. Thg design off t\Miv~mwatrneitiay?&s^ lettigg^goM dg&jj, to paF; tile tffecC to raise tEo premiums some 50 per cent. Andjthp ; least knowledge of political economy, or the^siniules't "conVefsuncy with that branch of business, would. Jiave enabled any one to predict that result beforehand. All jmpedimentSltolthe'Sale (of;?an\ artiuleT^ffdHMl^iso'th 6 price of that article. If a person wants gold, and the law interposes "a-difficulty in the way of his. getting ..it, he must^pay- niore^ for. it. -r Beoplo, do nonstop buying what tliey." mu3ti''Eave t becaußej: it is illegal to buj; it ;.'%o^^onl^^h J are i tq.^ay^io. much more as will 1 compensate* the seller for the' risk of dealing, hi it. Congress,, however, forgot this or never knew it; it J fahbied"'tha l t~ legislative enactments would keep_jdown the price of gold and prevent the depreciation of paper. In fact, the. nevr-lawßjsent.up the price of -gold [excessively and suddenly, and so the ;new ; laws, hiive: to; be hastily repealed; ; -;•: } ....-!"/ :<■] \y ■■':■:. "A We confess that we,;cannotj;bi^ieve ii Mr. : ;Chase, to be responsible, at least not primarily responsible, for this childish and ignorant legislation. The writer of liis financial statmehtsYwell knew the principles of political economy and the true .limits of legislative power. He may, havo acquiesced in these errors but he cannot have proposed or desired them., Whether he did so *or m ot,, ianotTvery material' now. Wliat »V material is the state in which Mr. Chase has left the Federal Treasury. Gold is at 271,—- that is a sovereign in gold would be .worth about 21 14s in paper. The loans are inadequate if not aided and 'eked out by the issue of new paper, by .a further depreciation of what is already so depreciated. The taxation is as yet even more inadequate.' ■ Meanwhile the war is unsuccessful, and the' expenditure stupendous. Mr. Fessenden has to .meet large demands out of Bmall resources. The' following is an abstract of the legislation in Congress on the dealings in gold, which is well worthy of being preserved as a curiosity : — 1. It is. penal to purchase or sell, gold coin or bullion deliverable and payable the next day. 2. To purchase or "sell gold coin or bullion payable the same day, but deliverable the next day. Therefore, it is a penal offence to purchase or sell gold coin or bullion which has just arrived on board a California steamer too late to be delivered on the same day. 3. To purchase or sell gold coin or bullion in exchange for a cheque on a bank or a banker, no matter how large may be the amount to the credit of the drawer in the bank or at tlie banker's on whom the cheque is drawn. 4. To purchase or sell exchange for delivery in 11 day* ; but it is perfectly legal and proper to purchase or sell it for delivery in 10 days ! 5. To purchase or sell exchange deliverable to-day and payable to-morrow. It has long been customary to purchase and sell exchange one or two days "before packet day, payable on that day. This now becomes a penal offence. 6. To purchase or sell gold coin, or bullion, or foreign exchange at the Board of Brokers, at the Merchants' Exchange, in the street, or in the j office or house of any other person than the pur- i chasers or sellers.