$80,000,000, this is equivalent to a recent loan of $80,000,000 to
the Government for all purposes within the country. Whenever the
precious metals are not required, and for domestic purposes in such
a case they are not required, notes will buy what the Government
want, and it can buy to the extent of its issue. But, like all easy
expedients out of a great difficulty, it is accompanied by the
greatest evils; if it had not been so, it would have been the
regular device in such cases, and the difficulty would have been no
difficulty at all; there would have been a known easy way out of it.
As is well known, inconvertible paper issued by Government is sure
to be issued in great quantities, as the American currency soon was;
it is sure to be depreciated as against coin; it is sure to disturb
values and to derange markets; it is certain to defraud the lender;
it is certain to give the borrower more than he ought to have. In
the case of America there was a further evil. Being a new country,
she ought in her times of financial want to borrow of old countries;
but the old countries were frightened by the probable issue of
unlimited inconvertible paper, and they would not lend a shilling.
Much more than the mercantile credit of America was thus lost. The
great commercial houses in England are the most natural and most
effectual conveyers of intelligence from other countries to Europe.
If they had been financially interested in giving in a sound report
as to the progress of the war, a sound report we should have had.
But as the Northern States raised no loans in Lombard Street (and
could raise none because of their vicious paper money), Lombard
Street did not care about them, and England was very imperfectly
informed of the progress of the civil struggle, and on the whole
matter, which was then new and very complex, England had to judge
without having her usual materials for judgment, and (since the
guidance of the "City" on political matter is very quietly and