March 29, 1863, The New York Herald
That there is, both at home and abroad, a healthy revival of public confidence in the stability of our government and the success of our efforts to crush the rebellion, must be evident even to those least observant of popular sentiment. We have had no great victories lately, and have, on the contrary, been subjected to numerous trifling but annoying reverses and delays; but still the revival of confidence is an acknowledged fact, and its cause must be found in a better appreciation of the power and resources of the American people, both on our own part and on the part of Europeans. We now begin to understand us. How this result has been achieved we shall not at present consider; but its influence upon our finances is a matter of the utmost importance and the sincerest congratulation.
Hitherto we have neither asked nor received any financial aid from Europe. The press of Europe has repeatedly warned capitalists not to invest in American securities. Now, however, we find all kinds of projects on foot among foreign bankers for the purchase of large quantities of our stocks, and by every steamer come orders from individuals in Europe to agents here to invest freely in United States bonds. This foreign demand for our securities has caused an average advance of seven per cent; and already foreign capitalists are calling upon us to offer a loan. At home the financial prospect is still brighter. The conversions of legal tender notes into five-twenty bonds, so long and so foolishly neglected, are now remarkably active. The subscription agent announces that one million two hundred thousand dollars were thus converted on Tuesday, two millions of dollars during the last two days, and five millions within the past ten days. These conversions will probably average over five hundred thousand dollars a day during the short time longer that they will be permitted. Assistant Treasurer Cisco is receiving money on deposit at five per cent interest. On Friday last he received a million of dollars, and the deposits at all points will probably average fully that amount every day. The receipts from taxes will average three hundred and fifty thousand dollars a day from this time forth, and by midsummer this amount will be increased to five or six hundred thousand. The receipts from customs duties average three hundred thousand dollars a day in gold. Sum up these amounts of conversions, deposits, taxes and customs duties, and it is clear that the Secretary of the Treasury is now receiving over $2,150,000 every day – more money than the government expends. If we have a financial croaker among us, let him digest this fact.
The sunshine of spring lightens up all our affairs. The speculation in gold has practically ceased. The prices of all staples, no longer obliged to fluctuate with gold, are now gradually and surely settling down to reasonable rates, and thus relieving the masses from a grievously heavy indirect tax. During the past two years the government has issued over four hundred millions of dollars worth of six per cent bonds, 7.30 Treasury notes and six per cent debt certificates (one year), besides legal tender notes, and our own people have not only bought up all this paper, but have also absorbed over two hundred millions of dollars worth of American securities sent over here to be sold during the panic in Europe at the beginning of the war. It is a glorious thought that we are at once our own debtors and creditors, and that, after these immense investments, there is still wealth enough in the country to keep most of the government securities above par, and the whole stock market buoyant. New Jersey disposed of a small war loan a few days ago, at an average premium of thirteen per cent. The war loans of all our States and cities have been admirably managed, having commanded premiums, averaging from eight to thirty per cent. With a single decisive victory as a basis, the government could negotiate a loan at six per cent, and our bankers would take it up with an avidity which would make the world wonder. More than this; specie payments could be resumed by the government, and ought to be, without unnecessary delay. In a word, our financial condition is now most promising. With proper management on the part of our financial officers there need be no more trouble about the sinews of our war. With proper management there would never have been any trouble, and we wish it to be distinctly understood that Secretary Chase is in no degree responsible for the present hopeful condition of our finances. We have saved ourselves from ruin rather in spite of Secretary Chase than by his aid. It is the country, not the administration, which has proven itself great. The people may thank themselves, not their rulers, for their salvation.
Without dwelling upon the deductions which naturally suggest themselves from this subject, let us once more remind President Lincoln that now is the golden moment to strike down the rebellion. Our finances are prosperous; those of the rebels, with gold at six hundred per cent, are most deplorable. We have an immense army in the field, with power to increase it at pleasure; the rebels have exhausted their conscription lists and offering two thousand dollars for substitutes. We have unlimited and inexhaustible resources; the rebels are now forced to conscript grain and meat. In short, the rebellion is now staggering to its final fall, and only requires one decisive defeat to annihilate it. The North is once more united. The abolitionists have apostatized from their emancipation idol; the copperheads have slunk to their holes; the conservatives are again in the ascendancy. President Lincoln must do the rest. We warn him that his responsibilities are as great as the means with which we have provided him, and that, while glory awaits him if he succeeds, no disgrace will be too severe for him if he now lose the cause through mismanagement or neglect.