o our
financial affairs by placing the money power where it always should
be,--in subservience to the people,--instead of allowing it to become a
grinding task-master. The importance of this measure can hardly be
appreciated yet. A member of Congress, himself a merchant, and an able
financier, says:

'My theory in regard to it is, that as the currency is increased by the
addition of these notes to its volume, prices generally will rise,
including the price of U.S. bonds, until they reach par; at that point,
these notes, being convertible into bonds, the rise in the price of
bonds will stop, because further additions to the currency, whether of
these notes, bank notes, or coin, will only stimulate the conversion of
notes into bonds; and that conversion will check the increase of
currency. The _excess_ of notes will then be gradually withdrawn from
circulation for conversion,--leaving only such an amount in circulation
as a healthy and natural condition of the currency will require.'

A theory in which we fully concur. We see growing out of it a
restoration of business: government creditors paid in a currency equal
to gold; low prices for all government contracts; a consequent
diminished expenditure for supplies, and an annual payment for interest
on the debt we shall owe, which can be easily met without heavy
taxation. However it may turn out in the conduct of the war,--and we
have full faith in that also,--it is very certain that in the conduct of
the finances we have found the man for the times. The whole country
feels this, and breathes easier for it. The arch rebel, in a recent
address to his satellites, admits that he altogether underestimated the
patriotism and loyalty of the men of the North, but takes fresh courage
from the certainty that we shall shortly back down under our load of
debt. A little further on and he will find that he has just as much
mistaken our power in that respect,--that as his own worthless promises,
based upon nothing, fall to nothing, the notes of the Union will stand
as firm and as fair in the money market as her banner will on the
battle-field.

Men and money are the sinews of war. In our first trial, patriotism has
furnished the men, and the presiding genius of the Treasury has clearly
pointed out the means for obtaining the money. _Laus Deo_!

* * * * *

Note.--For the benefit of those of our readers who do not understand
currency facts and theories,