A dreadful mistake they made, since no properly consecrated hands administered on that occasion. But nevertheless, Hiram is safe. Lucky fellow, he has discovered the mistake, and repaired it in season.

'I think, Mr. Meeker, your conversations with Mr. Strang have proved very instructive to you. Here is a work I have written, which embraces the whole of my controversy with Mr. Howland on the true church (and there is not salvation in any other) and the apostolic succession. Having read and approved this,' he added with a pleasant smile, 'I will vouch for you as a good churchman.'

Hiram was delighted. He took the volume, and was about to express his thanks, when Mrs. Myrtle appeared at the door, which had been left open.

'My dear, I regret to disturb you, but'—

'I will join you at once,' said Mr. Myrtle, rising. This is Mr. Meeker, a cousin of your friend Mrs. Bennett'—as if she did not know it.

Mrs. Myrtle bowed graciously, and said, with charming condescension:

'Then it is you I have heard such a good report of. You are coming to our church away from——'

'Never mind from where, my dear,' said Mr, Myrtle pleasantly, and he bowed Hiram out in a manner which positively charmed our hero.

That evening Mr. Bennett told Hiram he had purchased a pew for him—price sixteen hundred and fifty dollars.

'Sixteen hundred and fifty dollars,' exclaimed the other, in amazement.

'Yes.'

'Why, I can't stand that. The dearest pews in Dr. Chellis's church were not over six hundred. You are joking.'

'You are an idiot,' retorted Mr. Bennett, half pettishly, half playfully. 'Have you not placed yourself in my hands? Shall I not manage your interests as I please? I say I want sixteen hundred and fifty dollars. I know you can draw the money without the least inconvenience. If I thought you could not, I would advance it myself. Are you content?'

Hiram nodded a doubtful assent.

How fortunate,' continued Mr. Bennett, that the Winslows are going to Europe, and how lucky I got there the minute I did! Young Bishop came in just as I closed the purchase. I know what he wanted it for, and I know what I wanted it for. Hiram, a word in your ear—your pew is immediately in front of our heiress! Bravo, old fellow! Now, will you pay up?'

Hiram nodded this time with satisfaction.

The second Sunday thereafter one might observe that the Winslows' pew had been newly cushioned and carpeted, and otherwise put in order. Several prayer books and a Bible, elegantly bound, and lettered 'H. Meeker,' were placed in it. This could not escape the notice of the very elegant and fashionably dressed young lady in the next slip. Strange to say, the pew contained no occupant. But just before the service was about to commence, Hiram, purposely a little late, walked quietly in, and took possession of his property. His pose was capital. His ease and nonchalance were perfectly unexceptionable, evidencing haut ton. He had been practising for weeks.

'Who can he be?' asked the elegant and fashionably dressed young lady of herself. She was left to wonder. When he walked homeward, Hiram was informed by Mr. Bennett that the elegant and fashionably dressed young lady was Miss Arabella Thorne, without father, without mother, of age, and possessed of a clear sum of two hundred thousand dollars in her own right!



AMERICAN FINANCES AND RESOURCES.

LETTER NO. I, FROM HON. ROBERT J. WALKER.

LONDON, 10 Half Moon Street, Piccadilly, August 5, 1863.

The question has been often asked me, here and on the continent, how has your Secretary of the Treasury (Mr. Chase) so marvellously sustained American credit during this rebellion, and when will your finances collapse? This question I have frequently answered in conversations with European statesmen and bankers, and the discussion has closed generally in decided approval of Mr. Chase's financial policy, and great confidence in the wonderful resources of the United States.

Thus encouraged, I have concluded to discuss the question in a series of letters, explaining Mr. Chase's system and stating the reasons of its remarkable success. The interest in such a topic is not confined to the United States, nor to the present period, but extends to all times and nations. Indeed, finance, as a science, belongs to the world. It is a principal branch of the doctrine of 'the wealth of nations,' discussed, during the last century, with so much ability by Adam Smith. Although many great principles were then settled, yet political economy is emphatically progressive, especially the important branches of credit, currency, taxation, and revenue.

Mr. Chase's success has been complete under the most appalling difficulties. The preceding administration, by their treasonable course, and anti-coercion heresies, had almost paralyzed the Government. They had increased the rate of interest of Federal loans from six to nearly twelve per cent. per annum. Their Vice-president (Mr. Breckenridge), their Finance Minister (Mr. Cobb), their Secretary of War (Mr. Floyd), their Secretary of the Interior (Mr. Thompson), are now in the traitor army. Even the President (Mr. Buchanan), with an evident purpose of aiding the South to dissolve the Union, had announced in his messages the absurd political paradox, that a State has no right to secede, but that the Government has no right to prevent its secession. It was a conspiracy of traitors, at the head of which stood the President, secretly pledged, at Ostend and Cininnati, to the South (as the price of their support), to aid them to control or destroy the republic. Thus was it that, in time of profound peace, when our United States six per cents. commanded a few weeks before a large premium, and our debt was less than $65,000,000, that Mr. Buchanan's Secretary of the Treasury (Mr. Cobb) was borrowing money at an interest of nearly twelve per cent. per annum. Most fortunately that accursed administration was drawing to a close, or the temporary overthrow of the Government would have been effected. Never did any minister of finance undertake a task apparently so hopeless as that so fully accomplished by Mr. Chase in reviving the public credit. A single fact will illustrate the extraordinary result. At the close of the fiscal year ending 1st July, 1860, our public debt was only $64,769,703, and Secretary Cobb was borrowing money at twelve per cent. per annum. On the first of July 1863, in the midst of a stupendous rebellion, our debt was $1,097,274,000, and Mr. Chase had reduced the average rate of interest to 3.89 per cent. per annum, whilst the highest rate was 7.30 for a comparatively small sum to be paid off next year. This is a financial achievement without a parallel in the history of the world. If I speak on this subject with some enthusiasm, it is in no egotistical spirit, for Mr. Chase's system differs in many respects widely from that adopted by me as Minister of Finance during the Mexican war, and which raised United States five per cents. to a premium. But my system was based on specie, or its real and convertible equivalent, and would not have answered the present emergency, which, by our enormous expenditure, necessarily forced a partial and temporary suspension of specie payments upon our banks and Government. Mr. Chase's system is exclusively his own, and, in many of its aspects, is without a precedent in history. When first proposed by him it had very few friends, and was forced upon a reluctant Congress by the great emergency, presenting the alternative of its adoption or financial ruin. Indeed, upon a test vote in Congress in February last, it had failed, when the premium on gold rose immediately over twenty per cent. This caused a reconsideration, when the bills were passed and the premium on gold was immediately reduced more than the previous rise, exhibiting the extraordinary difference in a few days of twenty-three per cent., in the absence of any intermediate Federal victories in the field.

Such are the facts. Let me now proceed to detail the causes of these remarkable results. The first element in the success of any Minister of Finance is the just confidence of the country in his ability, integrity, candor, courage, and patriotism. He may find it necessary, in some great emergency, like our rebellion, to diverge somewhat from the via trita of the past, and enter upon paths not lighted by the lamp of experience. He must never, however, abandon great principles, which are as unchangeable as the laws developed by the physical sciences. When Mr. Chase, in his first annual Treasury Report of the 9th of December, 1861, recommended his system of United States banks, organized by Congress throughout the country, furnishing a circulation based upon private means and credit, but secured also by an adequate amount of Federal stock, held by the Government as security for its redemption, it was very unpopular, and encountered most violent opposition. The State banks, and all the great interests connected with them, were arrayed against the proposed system. When we reflect that many of these banks (especially in the great State of New York) were based on State stocks, and in many States that the banks yielded large revenues to the local Government;—when we see, by our Census Tables of 1860 (p. 193), that these banks numbered 1642, with a capital paid up of $421,890,095, loans $691,495,580, and a circulation and deposits, including specie, of $544,469,134,—we may realize in part the tremendous power arrayed against the Secretary. This opposition was so formidable, that neither in the public press nor in Congress did this recommendation of Mr. Chase receive any considerable support. Speaking of the currency issued by the State banks, and of the substitute proposed by Mr. Chase, he presented the following views in his first annual Report before referred to, of December, 1861:—

'The whole of this circulation constitutes a loan without interest from the people to the banks, costing them nothing except the expense of issue and redemption and the interest on the specie kept on hand for the latter purpose; and it deserves consideration whether sound policy does not require that the advantages of this loan be transferred in part at least, from the banks, representing only the interests of the stockholders, to the Government, representing the aggregate interests of the whole people.

'It has been well questioned by the most eminent statesmen whether a currency of bank notes, issued by local institutions under State laws, is not, in fact, prohibited by the national Constitution. Such emissions certainly fall within the spirit, if not within the letter, of the constitutional prohibition of the emission of bills of credit by the States, and of the making by them of anything except gold and silver coin a legal tender in payment of debts. 'However this may be, it is too clear to be reasonably disputed that Congress, under its constitutional powers to lay taxes, to regulate commerce, and to regulate the value of coin, possesses ample authority to control the credit circulation which enters so largely into the transactions of commerce and affects in so many ways the value of coin.

'In the judgment of the Secretary the time has arrived when Congress should exercise this authority. The value of the existing bank note circulation depends on the laws of thirty-four States and the character of some sixteen hundred private corporations. It is usually furnished in greatest proportions by institutions of least actual capital. Circulation, commonly, is in the inverse ratio of solvency. Well-founded institutions, of large and solid capital, have, in general, comparatively little circulation; while weak corporations almost invariably seek to sustain themselves by obtaining from the people the largest possible credit in this form. Under such a system, or rather lack of system, great fluctuations, and heavy losses in discounts and exchanges, are inevitable; and not unfrequently, through failures of the issuing institutions, considerable portions of the circulation become suddenly worthless in the hands of the people. The recent experience of several States in the valley of the Mississippi painfully illustrates the justice of these observations; and enforces by the most cogent practical arguments the duty of protecting commerce and industry against the recurrence of such disorders.

'The Secretary thinks it possible to combine with this protection a provision for circulation, safe to the community and convenient for the Government.

'Two plans for effecting this object are suggested. The first contemplates the gradual withdrawal from circulation of the notes of private corporations and for the issue, in their stead of United States notes, payable in coin on demand, in amounts sufficient for the useful ends of a representative currency. The second contemplates the preparation and delivery, to institutions and associations, of notes prepared for circulation under national direction, and to be secured as to prompt convertibility into coin by the pledge of United States bonds and other needful regulations.

'The first of these plans was partially adopted at the last session of Congress in the provision authorizing the Secretary to issue United States notes, payable in coin, to an amount not exceeding fifty millions of dollars. That provision may be so extended as to reach the average circulation of the country, while a moderate tax, gradually augmented, on bank notes, will relieve the national from the competition of local circulation. It has been already suggested that the substitution of a national for a State currency, upon this plan, would be equivalent to a loan to the Government without interest, except on the fund to be kept in coin, and without expense, except the cost of preparation, issue, and redemption; while the people would gain the additional advantage of a uniform currency, and relief from a considerable burden in the form of interest on debt. These advantages are, doubtless, considerable; and if a scheme can be devised by which such a circulation will be certainly and strictly confined to the real needs of the people, and kept constantly equivalent to specie by prompt and certain redemption in coin, it will hardly fail of legislative sanction.

'The plan, however, is not without serious inconveniences and hazards. The temptation, especially great in times of pressure and danger, to issue notes without adequate provision for redemption; the ever-present liability to be called on for redemption beyond means, however carefully provided and managed; the hazards of panics, precipitating demands for coin, concentrated on a few points and a single fund; the risk of a depreciated, depreciating, and finally worthless paper money; the immeasurable evils of dishonored public faith and national bankruptcy; all these are possible consequence of the adoption of a system of government circulation. It may be said, and perhaps truly, that they are less deplorable than those of an irredeemable bank circulation. Without entering into that comparison, the Secretary contents himself with observing that, in his judgment, these possible disasters so far outweigh the probable benefits of the plan that he feels himself constrained to forbear recommending its adoption.

'The second plan suggested remains for examination. Its principal features are, (1st) a circulation of notes bearing a common impression and authenticated by a common authority; (2d) the redemption of these notes by the associations and institutions to which they may be delivered for issue; and (3d) the security of that redemption by the pledge of the United States stocks, and an adequate provision of specie.

'In this plan the people, in their ordinary business, would find the advantages of uniformity in currency; of uniformity in security; of effectual safeguard, if effectual safeguard is possible, against depreciation; and of protection from losses in discount and exchanges; while in the operations of the Government the people would find the further advantage of a large demand for Government securities, of increased facilities for obtaining the loans required by the war, and of some alleviation of the burdens on industry through a diminution in the rate of interest, or a participation in the profit of circulation, without risking the perils of a great money monopoly.

'A further and important advantage to the people may be reasonably expected in the increased security of the Union, springing from the common interest in its preservation, created by the distribution of its stocks to associations throughout the country, as the basis of their circulation.

'The Secretary entertains the opinion that if a credit circulation in any form be desirable, it is most desirable in this. The notes thus issued and secured would, in his judgment, form the safest currency which this country has ever enjoyed; while their receivability for all Government dues, except customs, would make them, wherever payable, of equal value, as a currency, in every part of the Union. The large amount of specie now in the United States, reaching a total of not less than two hundred and seventy-five millions of dollars, will easily support payments of duties in coin, while these payments and ordinary demands will aid in retaining this specie in the country as a solid basis both of circulation and loans.

'The whole circulation of the country, except a limited amount of foreign coin, would, after the lapse of two or three years, bear the impress of the nation whether in coin or notes; while the amount of the latter, always easily ascertainable, and, of course, always generally known, would not be likely to be increased beyond the real wants of business.

'He expresses an opinion in favor of this plan with the greater confidence, because it has the advantage of recommendation from experience. It is not an untried theory. In the State of New York, and in one or more of the other States, it has been subjected, in its most essential parts, to the test of experiment, and has been found practicable and useful. The probabilities of success will not be diminished but increased by its adoption under national sanction and for the whole country.

'It only remains to add that the plan is recommended by one other consideration, which, in the judgment of the Secretary, is entitled to much influence. It avoids almost, if not altogether, the evils of a great and sudden change in the currency by offering inducements to solvent existing institutions to withdraw the circulation issued under State authority, and substitute that provided by the authority of the Union. Thus, through the voluntary action of the existing institutions, aided by wise legislation, the great transition from a currency heterogeneous, unequal, and unsafe, to one uniform, equal, and safe, may be speedily and almost imperceptibly accomplished.

'If the Secretary has omitted the discussion of the question of the constitutional power of Congress to put this plan into operation, it is because no argument is necessary to establish the proposition that the power to regulate commerce and the value of coin includes the power to regulate the currency of the country, or the collateral proposition that the power to effect the end includes the power to adopt the necessary and expedient means.

'The Secretary entertains the hope that the plan now submitted, if adopted with the limitations and safeguards which the experience and wisdom of senators and representatives will, doubtless, suggest, may impart such value and stability to Government securities that it will not be difficult to obtain the additional loans required for the service of the current and the succeeding year at fair and reasonable rates; especially if the public credit be supported by sufficient and certain provision for the payment of interest and ultimate redemption of the principal.'

Congress adjourned after a session of eight months, and failed to adopt Mr. Chase's recommendation. Indeed, it had then but few advocates in Congress or the country. Events rolled on, and our debt, as anticipated by Mr. Chase, became of vast dimensions. In his Report of December, 1861, the public debt on the 30th June, 1862 (the close of the fiscal year), was estimated by the Secretary at $517,372,800; and it was $514,211,371, or more than $3,000,000 less than the estimate. In his Report of December 4, 1862, our debt, on the 30th June, 1863, was estimated by Mr. Chase at $1,122,297,403, and it was $1,097,274,000, being $25,023,403 less than the estimate. The average rate of interest on this debt was 3.89, being $41,927,980, of which $30,141,080 was payable in gold, and $11,786,900 payable in Federal currency. It will thus be seen that the whole truth, as to our heavy debt, was always distinctly stated in advance by Mr. Chase, and that the debt has not now quite reached his estimate. Long before the date of the second annual Report of the Secretary, the banks had suspended specie payments, and the Secretary renewed his former recommendation on that subject in these words:—

'While the Secretary thus repeats the preference he has heretofore expressed for a United States note circulation, even when issued direct by the Government, and dependent on the action of the Government for regulation and final redemption, over the note circulation of the numerous and variously organized and variously responsible banks now existing in the country; and while he now sets forth, more fully than heretofore, the grounds of that preference, he still adheres to the opinion expressed in his last Report, that a circulation furnished by the Government, but issued by banking associations, organized under a general act of Congress, is to be preferred to either. Such a circulation, uniform in general characteristics, and amply secured as to prompt convertibility by national bonds deposited in the treasury, by the associations receiving it, would unite, in his judgment, more elements of soundness and utility than can be combined in any other.

'A circulation composed exclusively of notes issued directly by the Government, or of such notes and coin, is recommended mainly by two considerations:—the first derived from the facility with which it may be provided in emergencies, and the second, from its cheapness.

'The principal objections to such a circulation as a permanent system are, 1st, the facility of excessive expansion when expenditures exceed revenue; 2d, the danger of lavish and corrupt expenditure, stimulated by facility of expansion; 3d, the danger of fraud in management and supervision; 4th, the impossibility of providing it in sufficient amounts for the wants of the people whenever expenditures are reduced to equality with revenue or below it.

'These objections are all serious. The last requires some elucidation. It will be easily understood, however, if it be considered that a government issuing a credit circulation cannot supply, in any given period, an amount of currency greater than the excess of its disbursements over its receipts. To that amount, it may create a debt in small notes, and these notes may be used as currency. This is precisely the way in which the existing currency of United States notes is supplied. That portion of the expenditure not met by revenue or loans has been met by the issue of these notes. Debt in this form has been substituted for various debts in other forms. Whenever, therefore, the country shall be restored to a healthy normal condition, and receipts exceed expenditures, the supply of United States notes will be arrested, and must progressively diminish. Whatever demand may be made for their redemption in coin must hasten this diminution; and there can be no reissue; for reissue, under the conditions, necessarily implies disbursement, and the revenue, upon the supposition, supplies more than is needed for that purpose. There is, then, no mode in which a currency in United States notes can be permanently maintained, except by loans of them, when not required for disbursement, on deposits of coin, or pledge of securities, or in some other way. This would convert the treasury into a government bank, with all its hazards and mischiefs.

'If these reasonings be sound, little room can remain for doubt that the evils certain to arise from such a scheme of currency, if adopted as a permanent system, greatly overbalance the temporary though not inconsiderable advantages offered by it.

'It remains to be considered what results may be reasonably expected from an act authorizing the organization of banking associations, such as the Secretary proposed in his last Report.

'The central idea of the proposed measure is the establishment of one sound, uniform circulation, of equal value throughout the country, upon the foundation of national credit combined with private capital.

'Such a currency, it is believed, can be secured through banking associations organized under national legislation.

'It is proposed that these associations be entirely voluntary. Any persons, desirous of employing real capital in sufficient amounts, can, if the plan be adopted, unite together under proper articles, and having contributed the requisite capital, can invest such part of it, not less than a fixed minimum, in United States bonds, and, having deposited these bonds with the proper officer of the United States, can receive United States notes in such denominations as may be desired, and employ them as money in discounts and exchanges. The stockholders of any existing banks can, in like manner, organize under the act, and transfer, by such degrees as may be found convenient, the capital of the old to the use of the new associations. The notes thus put into circulation will be payable, until resumption, in United States notes, and, after resumption, in specie, by the association which issues them, on demand; and if not so paid will be redeemable at the treasury of the United States from the proceeds of the bonds pledged in security. In the practical working of the plan, if sanctioned by Congress, redemption at one or more of the great commercial centres, will probably be provided for by all the associations which circulate the notes, and, in case any association shall fail in such redemption, the treasurer of the United States will probably, under discretionary authority, pay the notes, and cancel the public debt held as security.

'It seems difficult to conceive of a note circulation which will combine higher local and general credit than this. After a few years no other circulation would be used, nor could the issues of the national circulation be easily increased beyond the legitimate demands of business. Every dollar of circulation would represent real capital, actually invested in national stocks, and the total amount issued could always be easily and quickly ascertained from the books of the treasury. These circumstances, if they might not wholly remove the temptation to excessive issues, would certainly reduce it to the lowest point, while the form of the notes, the uniformity of the devices, the signatures of national officers, and the imprint of the national seal authenticating the declaration borne on each that it is secured by bonds which represent the faith and capital of the whole country, could not fail to make every note as good in any part of the world as the best known and best esteemed national securities.

'The Secretary has already mentioned the support to public credit which may be expected from the proposed associations. The importance of this point may excuse some additional observations.

'The organization proposed, if sanctioned by Congress, would require, within a very few years, for deposit as security for circulation, bonds of the United States to an amount not less than $250,000,000. It may well be expected, indeed, since the circulation, by uniformity in credit and value, and capacity of quick and cheap transportation, will be likely to be used more extensively than any hitherto issued, that the demand for bonds will overpass this limit. Should Congress see fit to restrict the privilege of deposit to the bonds known as five-twenties, authorized by the act of last session, the demand would promptly absorb all of that description already issued and make large room for more. A steady market for the bonds would thus be established and the negotiation of them greatly facilitated.

'But it is not in immediate results that the value of this support would be only or chiefly seen. There are always holders who desire to sell securities of whatever kind. If buyers are few or uncertain, the market value must decline. But the plan proposed would create a constant demand, equalling and often exceeding the supply. Thus a steady uniformity in price would be maintained, and generally at a rate somewhat above those of bonds of equal credit, but not available to banking associations. It is not easy to appreciate the full benefits of such conditions to a government obliged to borrow.

'Another advantage to be derived from such associations would be found in the convenient agencies which they would furnish for the deposit of public moneys.

'The Secretary does not propose to interfere with the independent treasury. It may be advantageously retained, with the assistant treasurers already established in the most important cities, where the customs may be collected as now, in coin or treasury notes issued directly by the Government, but not furnished to banking associations.

'But whatever the advantages of such arrangements in the commercial cities in relation to customs, it seems clear that the secured national circulation furnished to the banking associations should be received everywhere for all other dues than customs, and that these associations will constitute the best and safest depositaries of the revenues derived from such receipts. The convenience and utility to the Government of their employment in this capacity, and often, also, as agents for payments and as distributors of stamps, need no demonstration. The necessity for some other depositaries than surveyors of ports, receivers, postmasters, and other officers, of whose responsibilities and fitness, in many cases, nothing satisfactory can be known, is acknowledged by the provision for selection by the Secretary contained in the internal revenue act; and it seems very clear that the public interest will be secured far more certainly by the organization and employment of associations organized as proposed than by any official selection.

'Another and very important advantage of the proposed plan has already been adverted to. It will reconcile, as far as practicable, the interest of existing institutions with those of the whole people.

'All changes, however important, should be introduced with caution, and proceeded in with careful regard to every affected interest. Rash innovation is not less dangerous than stupefied inaction. The time has come when a circulation of United States notes, in some form, must be employed. The people demand uniformity in currency, and claim, at least, part of the benefit of debt without interest, made into money, hitherto enjoyed exclusively by the banks. These demands are just and must be respected. But there need be no sudden change; there need be no hurtful interference with existing interests. As yet the United States note circulation hardly fills the vacuum caused by the temporary withdrawal of coin; it does not, perhaps, fully meet the demand for increased circulation created by the increased number, variety, and activity of payments in money. There is opportunity, therefore, for the wise and beneficial regulation of its substitution for other circulation. The mode of substitution, also, may be judiciously adapted to actual circumstances. The plan suggested consults both purposes. It contemplates gradual withdrawal of bank note circulation, and proposes a United States note circulation, furnished to banking associations, in the advantages of which they may participate in full proportion to the care and responsibility assumed and the services performed by them. The promptitude and zeal with which many of the existing institutions came to the financial support of the Government in the dark days which followed the outbreak of the rebellion is not forgotten. They ventured largely, and boldly, and patriotically on the side of the Union and the constitutional supremacy of the nation over States and citizens. It does not at all detract from the merit of the act that the losses, which they feared but unhesitatingly risked, were transmuted into unexpected gains. It is a solid recommendation of the suggested plan that it offers the opportunity to these and kindred institutions to reorganize, continue their business under the proposed act, and with little loss and much advantage, participate in maintaining the new and uniform national currency.

'The proposed plan is recommended, finally, by the firm anchorage it will supply to the union of the States. Every banking association whose bonds are deposited in the treasury of the Union; every individual who holds a dollar of the circulation secured by such deposit; every merchant, every manufacturer, every farmer, every mechanic, interested in transactions dependent for success on the credit of that circulation, will feel as an injury every attempt to rend the national unity, with the permanence and stability of which all their interests are so closely and vitally connected. Had the system been possible, and had it actually existed two years ago, can it be doubted that the national interests and sentiments enlisted by it for the Union would have so strengthened the motives for adhesion derived from other sources that the wild treason of secession would have been impossible?

'The Secretary does not yield to the phantasy that taxation is a blessing and debt a benefit; but it is the duty of public men to extract good from evil whenever it is possible. The burdens of taxation may be lightened and even made productive of incidental benefits by wise, and aggravated and made intolerable by unwise, legislation. In like manner debt, by no means desirable in itself, may, when circumstances compel nations to incur its obligations, be made by discreet use less burdensome, and even instrumental in the promotion of public and private security and welfare.

'The rebellion has brought a great debt upon us. It is proposed to use a part of it in such a way that the sense of its burden may be lost in the experience of incidental advantages. The issue of United States notes is such a use; but if exclusive, is hazardous and temporary. The security by national bonds of similar notes furnished to banking associations is such a use, and is comparatively safe and permanent; and with this use may be connected, for the present, and occasionally, as circumstances may require, hereafter, the use of the ordinary United States notes in limited amounts.

'No very early day will probably witness the reduction of the public debt to the amount required as a basis for secured circulation. Should no future wars arrest reduction and again demand expenditures beyond revenue, that day will, however, at length come. When it shall arrive the debt may be retained on low interest at that amount, or some other security for circulation may be devised, or, possibly, the vast supplies of our rich mines may render all circulation unadvisable except gold and the absolute representatives and equivalents, dollar for dollar, of gold in the treasury or on safe deposit elsewhere. But these considerations may be for another generation.

'The Secretary forbears extended argument on the constitutionality of the suggested system. It is proposed as an auxiliary to the power to borrow money; as an agency of the power to collect and disburse taxes; and as an exercise of the power to regulate commerce, and of the power to regulate the value of coin. Of the two first sources of power nothing need be said. The argument relating to them was long since exhausted, and is well known. Of the other two there is not room, nor does it seem needful to say much. If Congress can prescribe the structure, equipment, and management of vessels to navigate rivers flowing between or through different States as a regulation of commerce, Congress may assuredly determine what currency shall be employed in the interchange of their commodities, which is the very essence of commerce. Statesmen who have agreed in little else have concurred in the opinion that the power to regulate coin is, in substance and effect, a power to regulate currency, and that the framers of the Constitution so intended. It may well enough be admitted that while Congress confines its regulation to weight, fineness, shape, and device, banks and individuals may issue notes for currency in competition with coin. But it is difficult to conceive by what process of logic the unquestioned power to regulate coin can be separated from the power to maintain or restore its circulation, by excluding from currency all private or corporate substitutes which affect its value, whenever Congress shall see fit to exercise that power for that purpose.

'The recommendations, now submitted, of the limited issue of United States notes as a wise expedient for the present time, and as an occasional expedient for future times, and of the organization of banking associations to supply circulation secured by national bonds and convertible always into United States notes, and after resumption of specie payments, into coin, are prompted by no favor to excessive issues of any description of credit money.

'On the contrary, it is the Secretary's firm belief that by no other path can the resumption of specie payments be so surely reached and so certainly maintained. United States notes receivable for bonds bearing a secure specie interest are next best to notes convertible into coin. The circulation of banking associations organized under a general act of Congress, secured by such bonds, can be most surely and safely maintained at the point of certain convertibility into coin. If, temporarily, these associations redeem their issues with United States notes, resumption of specie payments will not thereby be delayed or endangered, but hastened and secured; for, just as soon as victory shall restore peace, the ample revenue, already secured by wise legislation, will enable the Government, through advantageous purchases of specie, to replace at once large amounts, and, at no distant day, the whole, of this circulation by coin, without detriment to any interest, but, on the contrary, with great and manifest benefit to all interests.

'The Secretary recommends, therefore, no mere paper money scheme, but, on the contrary, a series of measures looking to a safe and gradual return to gold and silver as the only permanent basis, standard, and measure of values recognized by the Constitution—between which and an irredeemable paper currency, as he believes, the choice is now to be made.'

Congress, however, was still unwilling to adopt the recommendations of the Secretary, until the necessity was demonstrated by the course of events. On reference to the laws, which are printed in the Appendix, it will be found, that the great features of the system of the Secretary were as follows:

1. A loan to the Government upon its bonds reimbursable in twenty years, but redeemable after five years, at the option of the nation, the interest being six per cent., payable semi-annually in coin, as is also the principal.

2. The issue of United States legal tender notes, receivable for all dues to the nation except customs, and fundable in this United States 5—20 six per cent. stock.

3. The authorization of the banks recommended in his Report, whose circulation would be secured not only by private capital, but by adequate deposits of United States stock with the Government.

4. To maintain, in the meantime, as near to specie as practicable, this Federal Currency,—1st, by making it receivable in all dues to the Government except for customs; 2d, by the privilege of funding it in United States stock; 3d, by enhancing the benefit of this privilege, not only by making the stock, both principal and interest, payable in specie, but by making it gradually the ultimate basis of our whole bank circulation, which, as shown by the census tables before referred to (including deposits), nearly doubles every decade.

5. By imposing such a tax on the circulation of the State banks, as, together with State or municipal taxes, would induce them to transfer their capital to the new banks proposed by the Secretary.

6. To relieve the new banks from all State or municipal taxation.

7. In lieu thereof, to impose a moderate Federal tax on all bank circulation, as a bonus to be paid cheerfully by these banks for the great privilege of furnishing ultimately the whole paper currency of the country, and the other advantages secured by these bills.

This tax, as proposed by the Secretary, was one per cent. semi-annually, which in effect would have reduced the interest on our principal loans from six to four per cent. per annum, so far as those loans were made the basis of bank circulation. Congress, however, fixed this tax at about one half, thus making the interest on such loans equivalent in fact to five per cent. per annum, so far as such loans, at the option of the holder, are made the basis of banking and of bank circulation. This is a privilege which gives great additional value to these loans, for the right to issue the bank paper circulation of the country free from State or municipal taxes, is worth far more than one half per cent, semi-annually, to be paid on such circulation. That this privilege is worth more than the Federal tax, is proved by the fact, that many banks are already being organized under this system, and by the further fact, that more than $200,000,000 of legal tenders have already been funded in this stock, and the process continues at the rate of from one to two millions of dollars a day. It will be observed, that the holders of such bonds can keep them, if they please, disconnected with all banks, receiving the principal at maturity, as well as the semi-annual interest, in gold, free from all taxes.

This system has been attended with complete success, and notwithstanding the increase of our debt, the premium on gold, for our Federal currency, fundable in this stock, has fallen from 73 per cent. in February last, before the adoption of Mr. Chase's system, to 27 per cent. at present; and before the 30th of June next, it is not doubted that this premium must disappear. No loyal American doubts the complete suppression of the rebellion before that date, in which event, our Federal currency will rise at once to the par of gold. In the meantime, however, gold is at a premium of 27 per cent., which is the least profit (independent of future advance above par) so soon to be realized by those purchasing this currency now, and waiting its appreciation, or investing it in our United States 5—20 six per cent. stock.

But, besides the financial benefits to the Government of Mr. Chase's system, its other advantages are great indeed. It will ultimately displace our whole State bank system and circulation, and give us a national currency, based on ample private capital and Federal stocks, a currency of uniform value throughout the country, and always certainly convertible on demand into coin. Besides, by displacing the State bank circulation, the whole bank note currency of the Union will be based on the stocks of the Government, and give to every citizen who holds the bonds or the currency (which will embrace the whole community in every State), a direct interest in the maintenance of the Union.

The annual losses which our people sustain under the separate State bank system, in the rate of exchange, is enormous, whilst the constant and ever-recurring insolvency of so many of these institutions, accompanied by eight general bank suspensions of specie payment, have, from time to time, spread ruin and devastation throughout the country. I believe that, in a period of twenty years, the saving to the people of the United States, by the substitution of the new system, would reach a sum very nearly approaching the total amount of our public debt, and in time largely exceeding it. As a question, then, of national wealth, as well as national unity, I believe the gain to the country in time by the adoption of the new system, will far exceed the cost of the war. It was the State bank system in the rebel States that furnished to secession mainly the sinews of war. These banks are now generally insolvent, but, if the banking system now proposed had been in existence, and the circulating medium in all the States had been an uniform national currency based entirely on the stocks of the United States, the rebellion could never have occurred. Every bank, and all its stockholders, and all the holders of the stock and notes of all the banks, embracing our whole paper currency, would have been united to the Government by an interest so direct and universal, that rebellion would have been impossible. Hamilton and Madison, Story and Marshall, and the Supreme Court of the United States, have declared that to the Federal Government belongs the 'entire regulation of the currency of the country.' That power they have now exercised in the adoption of the system recommended by the Secretary. Our whole currency, in coin as well as paper, will soon, now, all be national, which is the most important measure for the security and perpetuity of the Union, and the welfare of the people, ever adopted by Congress. It is to Congress that the Constitution grants the exclusive power 'to regulate commerce with foreign nations and among the States;' and a sound, uniform currency, in coin, or convertible on demand into coin, is one of the most essential instrumentalities connected with trade and exchanges.

After these preliminary remarks, I shall proceed with the discussion of the subject in my next letter.

R.J. WALKER.



VOICELESS SINGERS.

A bird is singing in the leaves That quiver on yon linden tree; So soft and clear the song he sings, The roses listen dreamily.

The crimson buds in clusters cling; The full, sweet roses blush with bloom; And, white as ocean's swaying foam, The lily trembles from the gloom.

I know not why that happy strain That dies so softly on the air, That perfect utterance of joy, Has left a strange, dim sadness there.

Perchance the song, so silver-sweet, The roses' regal blossoms shrine: Perchance the bending lily droops, And trembles, 'neath its thrill divine.

It may be that all beauteous things, Though lacking music's perfect key, Have with their inmost being twined The hidden chords of melody.

So pine they all, to hear again The song they know, but cannot sing; The living utterance, full and clear, Whose voiceless breathings round them cling.

Yet still those accents waken not; The bird has left the linden tree; A summer silence falls once more Upon the listening rose and me.



A DETECTIVE'S STORY.

The following is a true story, by a late well-known member of the Detective service, and, with, the exception of some names of persons and places, is given precisely as he himself related it.

Late one Friday afternoon, in the latter part of November, 18—, I was sent for by the chief of the New York Police, and was told there was a case for me. It was a counterfeiting affair. Notes had been forged on a Pennsylvania bank; two men had been apprehended, and were in custody. The first, Springer, had turned State's evidence on his accomplice; who, according to his account, was the prime mover in the business. This man, Daniel Hawes by name, had transferred the notes to a third party, of whom nothing had been ascertained except that he was a young man, wrote a beautiful hand, and had been in town the Monday before. He was the man I was to catch.

It was sundown when I left the superintendent's office. I had not much to guide me: there were hundreds of young men who wrote a beautiful hand, and had been in town last Monday. But I did not trouble myself about what I did not know: I confined myself to what I did know. Upon reflection I thought it probable that my man had been in intimate relations with Hawes for the last few days, probably since Monday last, although it was not known that he had been in town since that day. He might not be a resident in the city; but I decided to seek him here—since, if he had not left town before the arrest of Springer and Hawes, he would not just now run the risk of falling into the hands of the police by going to any railroad station or steamer wharf.

I determined, therefore, to follow up the track of Hawes, and thereby, if possible, strike that of his confederate—which was, in fact, all that could be done.

Hawes was a small broker. He lived in Eighteenth street, and had an office in Wall street.

He lived too far up town, I thought, to go home every day to his dinner; he went then, most probably, always to the same eating house, and one not far from his office.

After inquiring at several restaurants near by, I came to one in Liberty street, where, on asking if Mr. Hawes was in the habit of dining there, the waiter said yes.

'Have you seen a young man here with him, lately?' I inquired.

'No—no one in particular,' replied the waiter.

'Are you sure of it? Come, think.'

After scratching his head for a moment, he said:

'Yes, there has been a young man here speaking to him once or twice.'

'How did he look?'

'He was short, and had black hair and eyes.'

'Who is he? What does he do?'

'He is clerk to Mr. L——, the linen importer.'

'Where does Mr. L—— live?'

The waiter did not know. Looking into a Directory, I ascertained his residence to be in Fourteenth street. The stores by this time were closed, so I went immediately to Mr. L——'s house, and asked to see him. He was at dinner.

'I am sorry to disturb him,' said I to the servant, 'but I wish to speak with him a moment on a matter of importance, and cannot wait.'

Mr. L—— came out, evidently annoyed at the intrusion.

'Have you such a person in your employment?' said I, describing him.

'No, sir, I have not.'

'You had such a person?'

'I have not now.'

'Did you discharge him?'

'Yes.'

'Why?'

'What business is that of your's?' he asked, rather huffily.

'My name, sir, is M——, of the police. I am after this fellow, that's all. Tell me, if you please, why you discharged him?'

'Oh, I beg your pardon,' said Mr. L——. 'I took you for one of his rascally associates. I discharged him a week or ten days ago. He was a dissipated, good-for-nothing fellow.'

'Was he your bookkeeper?'

'No, he was a junior clerk.'

'Have you any of his handwriting that you can show me?'

He fumbled in a side pocket and drew out a pocketbook from which he took a memorandum of agreement, or some paper of the sort, to the bottom of which a signature was attached as witness.

'That's his writing,' said he.

It was a stiff schoolboy's scrawl.

This was not my man then. I apologized to Mr. L—— for the trouble I had given him, and withdrew.

Lost time, said I to myself. I am on the wrong track. I must back to the eating house, and begin the chase again from the point where I left off. I saw the same waiter.

'I want you to think again,' said I, 'Try hard to remember whether there was never any other man here with Hawes on any occasion.'

After reflecting for a little while, he said he thought he recollected his going up stairs not long ago, with another man, to a private room.

'Did you wait on him yourself at the time you speak of?' I asked.

'No—most likely it was Joe Harris.'

'Will you send for him, if you please.'

Joe Harris came.

'You waited on Mr. Hawes a few days ago, when he dined with another gentleman in a private room up stairs, didn't you?'

'Yes, sir.'

'Who was that other man?'

'He is a young man who is clerk in a livery stable in Sullivan street.'

'What are his looks?'

'He is tall and light haired.'

'Do you know his name?'

'His name is Edgar.'

I hurried up to Sullivan street, went into the first livery stable I came to, inquired for the proprietor, and asked him if he had a young man in his stable of the name of Edgar.

He said he had.

'Does he keep your books?'

'Yes, he takes orders for me.'

'Let me see some of his handwriting, if you please.'

He stepped back into the office and took from a desk a little order book. I opened it: there were some orders, hastily written, no doubt, but in a hand almost like beautiful copperplate.

This was my man—I felt nearly certain of it. I asked where he lived, and was told, with his mother, a widow woman, at such a number in Hudson street. I started for the place. It was now nine o'clock. Arriving at the house, I rang the bell. It was answered by a servant girl.

'Does Mr. Edgar live here?' I inquired.

'Yes, sir.'

'Is he at home?'

'No, sir.'

'When will he come home?'

'I don't know.'

'Does he sleep here?'

'Sometimes he does, and sometimes he doesn't.'

'Where is he likely to be found? I should like to see him.'

She said she really didn't know, unless perhaps he might be at a billiard saloon not far off. I went there. A noisy crowd was around the bar. I looked around the room and closely scrutinized every face. No tall, light-haired young man was there. I asked the barkeeper if Mr. Edgar had been there that evening. He said no, he had not seen anything of him for two or three days, I asked him if there was any other place he knew of that Edgar frequented, and was told he went a good deal to a bowling alley in West Broadway near Duane street. Not much yet, I thought, as I hurried on to West Broadway. Descending a few steps into a basement, I entered a sort of vestibule or office to the bowling saloon. 'Has Mr. Edgar been here this evening?' I inquired of the man in attendance.

'He is here now,' was the reply, 'in the other room, through that door.'

I passed through the door indicated into the bowling alley, and accosted the marker:

'Is Mr. Edgar here?'

'He has just gone—fifteen minutes ago.'

'Do you know where he went to?'

'Seems to me some of them said something about going to the Lafayette Theatre.'

I am on his track now—I said to myself—only fifteen minutes behind him. I bent my steps to the theatre—taking with, me a comrade in the police service, whom I had encountered as I was leaving the saloon. We hurried on with the utmost rapidity, but on reaching the theatre, found, to my disgust, what I had already feared, that the play was over, and the theatre just closed.

'Better give it up for to-night,' said my companion; 'we know enough about him now, and can take up the search again to-morrow.'

'It won't do, Clarke,' said I, 'we have inquired for him at too many places. Stay, I've a notion he may be heard of at some of these oyster cellars hereabouts.'

I went down into one of them, and asked if a tall young man with light hair had been there that evening. A tall young man with light hair and mustache had come in from the theatre with a lady, and had just left. I asked my informant if he knew the lady. She was a Miss Kearney, he answered.

'What?' I continued, 'didn't her sister marry the actor Levison?'

'Yes, the same person.'

'He lives in Walker street, near the Bowery, I believe?'

'Yes, I think so,' replied the man.

I considered a moment. Of course no one could tell me where Edgar had gone to; but I was tolerably certain he had gone home with the girl. Where she lived I did not know, but I thought it probable the actor could tell me. So we started on to Walker street. There are—or were at the time I speak of—several boarding houses in Walker street. We passed one or two three-story houses with marble steps. 'Shall I ask along here?' said Clarke. 'No,' I answered; 'poor actors don't board there; we must look for him farther on.' We kept on, and after a little while, we found one that seemed to me to be likely to be the house we were looking for. I rang the bell and inquired for Mr. Levison. He was gone to bed. It was now twelve o'clock. I desired the man that opened the door to tell him that some one was below who wished to see him immediately. He soon returned, saying that Mr. Levison was in bed, and could not be disturbed: I must leave my business, or call again next day.

I thought it necessary to frighten him a little; so I sent up word that I was an officer of police, and he must come down instantly, or I should go up and fetch him. In a few moments the actor made his appearance, terribly frightened. Before I could say anything he began to pour out such a flood of questions and asseverations that I could not get a word in: What did I want with him? I had come to the wrong man; he hadn't been doing anything, etc., etc. 'I don't want you,' I began—but it was of no use, I could not stop him; his character was excellent, anybody would vouch for him; I ought to be more sure what I was about before I roused people from their beds at midnight, etc., etc. His huddled words and apprehensive looks made me suspect there was something wrong with him; but it was no concern of mine then. I seized him by the shoulder, and ordered him to be quiet.

'Don't utter another word,' said I, 'except to answer my questions, or I'll carry you off and lock you up. I have not come to arrest you. I only want to ask you a few questions. Haven't you a sister-in-law named Miss Kearney?'

'Yes, what do you want with her?'

'I am not going to do her any harm. I only want to know where she lives.'

'Oh I she lives in —— street.'

'Do you know the number?'

'Goodness, yes; it is number 34. I have boarded there myself until only a little while ago.'

'Indeed!'

'Yes, I have got a dead-latch key somewhere about.'

'The deuce you have! Give it to me; it is just what I want.'

'Give you a dead-latch key! a pretty notion!'

'I wouldn't give it to any man—not to all the detective squad in New York.'

'Look here, my friend, I am M——, pretty well known in this town. I have a good many opportunities in the course of my business to do people good turns, and not a few to do them ill turns. It is a convenient vocation to pay off scores, particularly to persons of your sort. If you will give me that key, I'll make it worth your while the first chance I have. If you don't, you'll be sorry; that's all."

I gave him a significant look as I concluded. He looked me in the face a minute—as if to see how much I meant, or if I suspected anything; then turned and ran up stairs. In a few moments he came down, and handed me the key. I took it with satisfaction.

'Now,' said I, 'you'll have no objections to telling me where your sister-in-law's room in the house is.'

'Third story, back room, second door to the left from the head of the stairs.'

'Thank you, good night.'

We walked rapidly to —— street, and reaching the house, I stopped a moment to examine my pistols, by the street lamp, and then softly opened the door. Clarke and I stepped in, and I shut the door.

Leaving my comrade in the hall, I crept noiselessly up stairs, and tapped at the door of the room.

'Who is there?' called out a woman's voice. 'Open the door,' I replied, 'and I'll tell you what I want.'

'You can't come in. I have gone to bed.'

'Oh, well, I am a married man; I'll do you no harm; but you must let me in, or I shall force the door.'

After a moment's delay the door was opened by a young woman in a morning wrapper, who stood as if awaiting an explanation of the intrusion. I passed by her, and walked up to a young man sitting in a low chair by the fire, and tapping him on the shoulder, said: 'You are my prisoner.' He raised his head and looked up. 'Why, Bill,' I exclaimed, 'is this you? I have been looking for you all night under a wrong name. If I had known it was you, I'd have caught you in an hour.' And so I would.

It is only necessary to say further, that he was the man I was set to catch. I may add, however, that a large amount of the counterfeit notes, and the plates on which they were printed, were secured, and the criminal sent to Sing Sing in due course of law.



LITERARY NOTICES.

FLOWER FOR THE PARLOUR AND GARDEN. By EDWARD SPRAGUE RAND, jr. Boston: J.E. Tilton & Co. Price $2.50.

J.E. Tilton & Co. are the publishers of the series of photographic and lithographic cards of flowers, leaves, mosses, butterflies, hummingbirds, &c., noted for their beauty of execution. 'Flowers are so universally loved, and accepted everywhere as necessities of the moral life, that whatever can be done to render their cultivation easy, and to bring them to perfection in the vicinity of, or within, the household, must be regarded as a benefaction.' This benefit our author has certainly conferred upon us. The gift is from one who must himself have loved these lily cups and floral bells of perfume, and will be warmly welcomed by all who prize their loveliness. In the pages of this book may be found accurate and detailed information on all subjects likely to be of interest to their cultivators. We give a list of the contents of its chapters, to show how wide a field it covers. Chap. I. The Green-House and Conservatory. Chap. II. Window Gardening. Chap. III, IV, V, VI. Plants for Window Gardening. VII. Cape Bulbs. VIII. Dutch Bulbs. IX. The Culture of the Tube Rose. X. The Gladiolus and its culture. XI. How to force flowers to bloom in Winter. XII. Balcony Gardening. XIII. The Wardian Case and Winter Garden. XIV. Stocking and Managing Wardian Cases. XV. Hanging Baskets and Suitable Plants, and Treatment of Ivy. XVI. The Waltonian Case. XVII. The Aquarium and Water Plants. XVIII. How to grow specimen Plants. XIX. Out Door Gardening, Hot Beds. XX. The Garden. XXI. Small Trees and Shrubs. XXII. Hardy Herbaceous Plants. XXIII. Hardy Annuals. XXIV. Bedding Plants. XXV. Hardy and half hardy Garden Bulbs. XXVI. Spring Flowers and where to find them.

The appearance of this book is singularly elegant, its tinted paper soft and creamy, its type clear and beautiful, its quotations evince poetic culture, and its illustrations are exquisitely graceful. It is a real pleasure to turn over its attractive leaves with the names of loved old flower-friends greeting us on every page, and new claimants with new hopes and types of beauty constantly starting up before us. What with Waltonian cases, hanging baskets, Wardian cases, &c., our ladies may adorn their parlors with artistic taste with these fragrant, fragile, rainbow-hued children of Nature.

'Bright gems of earth, in which perchance we see "What Eden was, what Paradise may be.'

'From the contemplation of nature's beauty there is but the uplifting of the eye to the footstool of the Creator.'

HOSPITAL TRANSPORTS. A Memoir of the Embarkation of the Sick and Wounded from the Peninsula of Virginia in the Summer of 1862. Compiled and published at the request of the Sanitary Commission. Boston: Ticknor & Fields. For sale by D. Appleton & Co., New York.

A book which should be in the hands of all who love their country. The Sanitary Commission deserve the undying gratitude of the nation. Their organization is one of pure benevolence; the men and women working effectively through its beneficent channel have given evidence of some of the noblest and divinest attributes of the human soul. It is difficult to form any idea of the magnitude and importance of the work the commission has achieved. 'Never till every soldier whose last moments it has soothed, till every soldier whose flickering life it has gently steadied into continuance, whose waning reason it has softly lulled into quiet, whose chilled blood it has warmed into healthful play, whose failing frame it has nourished into strength, whose fainting heart it has comforted with sympathy,—never, until every full soul has poured out its story of gratitude and thanksgiving, will the record be complete; but long before that time, ever since the moment that its helping hand was first held forth, comes the Blessed Voice: 'Inasmuch as ye have done it unto one of the least of these my brethren, ye have done it unto me.''

'The blessings of thousands who were ready to perish, and tens of thousands who love their country and their kind, rest upon those who originated, and those who sustain this noble work.'

This book is full of vivid interest, of true incident, of graphic sketches, of loyalty, patriotism, and self-abnegation, whether of men or of noble women, and recommends itself to all who love and would fain succor the human race.

AUSTIN ELLIOT. BY HENRY KINGSLEY, Author of Ravenshoe, etc. Boston: Ticknor & Fields. For sale by D. Appleton & Co. New York.

A graphic novel of considerable ability, and more than usual interest. The tone is highly moral throughout. The lessons on duelling are excellent. Would that our young men would lay them to heart! The characters are, many of them, well drawn and sustained—we confess to a sincere affection for the Highlander, Gil Macdonald, and the Scotch sheep-dog, Robin. Many of the scenes in which they appear are full of simple and natural pathos.

HUSBAND AND WIFE; or, The Science of Human Development through Inherited Tendencies. By the Author of the Parent's Guide, etc. Carleton, publisher, 413 Broadway, New York.

A suggestive book on an important subject. The writer assumes that 'there are laws of hereditary transmission in the mental and moral, as well as the physical constitution. Precisely what these laws are, she does not assume to state. Such as are well known will however be helpful to all, and will facilitate the discovery of those yet hidden from us. Women, who bear such an important part in parentage, should be the most clear-sighted students of nature in these things. It is to woman that humanity must look for the abatement of many frightful evils, malformation, idiocy, insanity, &c., yet the principles pertaining to the knowledge of her own duties and powers, which ought to be a part of the instruction of every woman, are rarely placed before her. Much that pertains to the same phenomena among the lower animals may properly constitute a part of her studies in natural history; but with the laws which govern the most momentous of all social effects—the moral and mental constitution of individuals composing society—with the gravest of possible results to herself—the embodiment of power and weakness, capacity or incapacity, worth or worthlessness in her own offspring, she is forbidden all acquaintance. Yet when she assumes the duties and responsibilities of maternity, such knowledge would be more valuable to her and to those dearest to her, than all of the treasures of the gold-bearing lands, if poured at her feet.'

The laws of hereditary transmission make the staple of this book. It is written by a lady, and will commend itself to all interested in this subject. Pearl, in the Scarlet Letter, and Elsie Venner, are artistic exemplifications of such disregarded truths.

VICTOR HUGO, by a Witness of his Life: Madame HUGO. Translated from the French, by CHARLES EDWIN WILBOUR, translator of 'Les Miserables.' Carleton, publisher, 413 Broadway, New York.

A biography of a remarkable man, written by a constant observer of his actions, almost a second self, can scarcely fail to prove interesting. In this case the interest is increased by its close connection with a popular novel. Indeed, the readers of 'Les Miserables' will be astonished to find what a flood of light is thrown upon that master work by this charming life-history of its author. Marius is but a free variation of Victor Hugo himself. In Joly, the old school-mate of the Pension Cordier, the author of Jean Valjean becomes closely acquainted with a real galley slave. In short, the great romance is a part of the life of Victor Hugo, and cannot be fully understood without the biography—its completion.'

LIFE AND TIMES OF SIR WILLIAM JOHNSON, BARONET.

J. MUNSELL, 78 State street, Albany, announces for publication by subscription, 'The Life and Times of Sir William Johnson, Baronet.' The work is by William L. Stone, son of Colonel Stone, well known as editor and biographer. The materials of this Life were derived from original papers furnished by the family of Sir William, from his own diary, and other sources which have never before been consulted. The work was begun by the late William L. Stone, has been completed by his son, and with the Lives of Brant and Red Jacket, brings down the history of the Six Nations and their relations with Great Britain, from 1560 to 1824. The edition will be very nearly confined to the number subscribed for. Price $5, payable on delivery.

Sir William Johnson was Superintendent of Indian Affairs in this country before the Revolution, was distinguished in Colonial history, and active in the French and Indian war. His life was one of romantic interest and vicissitude. The work is highly spoken of by the literati who have seen the advance sheets. Jared Sparks, George Bancroft, F. Parkman, G.W. Curtis, Lewis Cass, &c., testify to its interest and historical accuracy. From the well-known ability of its author, it may be safely and highly commended to the reading and thinking public.

BEYOND THE LINES; or, a Yankee Prisoner Loose in Dixie. By Captain J.J. Geer, late of General Buckland's Staff. Philadelphia: J.W. Daughaday, publisher, 1308 Chestnut street.

CAPTAIN JOHN J. GEER was, before the war, a minister of the Methodist Church in Ohio, was taken prisoner before the battle of Shiloh, in a skirmish with Beauregard's pickets, passed some months in rebel prisons, made his escape, and pleasantly tells the story of his adventures. He reports that the large slave-holders and the wretched clay-eaters are all Secessionists, but that a large middle class, people who own but few slaves and till their own fields, are mostly true to the Union, in the parts of the South he visited. The book is one of incident, contains many curious pictures of life and character, and will address itself to a large class of readers.

THE AMBER GODS, AND OTHER STORIES. By Harriet Elizabeth Prescott. Ticknor & Fields, Boston. For sale by D. Appleton & Co., New York.

The many readers of Miss Prescott will be glad to welcome the present collection of her very popular tales. It contains: The Amber Gods. In a Cellar. Knitting Sale-Socks. Circumstance. Desert Lands. Midsummer and May. The South Breaker.

Few writers have attained distinction and recognition so immediately as Miss Prescott. Her fancy is brilliant, her style glowing, and culture and varied information mark the products of her pen.

PHILIP VAN ARTEVELDE; a Dramatic Romance. Ticknor & Fields, Boston. For sale by D. Appleton & Co., New York.

An historical romance, cast in a dramatic and rhythmical form, by Henry Taylor. It has been too long known to the community to require any commendation at the present date. It has gone through many editions in England. We are glad to see it in the convenient and pleasant form of Ticknor's "Blue and Gold," so well known to American readers.

THE BRITISH AMERICAN; a Colonial Magazine. Published monthly by Messrs. Rollo & Adam, 61 King street, Toronto, Canada West.

The articles of this magazine are of varied interest, generally well written and able. "What is Spectrum Analysis?" given by the Editor in the August number, is a contribution of research and merit.

THE CHRISTIAN EXAMINER. Boston: By the proprietors, at Walker, Wise & Co.'s, 245 Washington street.

Contents: Tertullian and Montanism. The Reality of Fiction. Rome in the Middle Age. Zschokke's Religious Meditations. Henry James on Creation. Loyalty in the West. Altar, Pulpit, and Platform, A Month of Victory and its Results. Review of Current Literature. Theology.



The Continental Monthly

The readers of the CONTINENTAL are aware of the important position it has assumed, of the influence which it exerts, and of the brilliant array of political and literary talent of the highest order which supports it. No publication of the kind has, in this country, so successfully combined the energy and freedom of the daily newspaper with the higher literary tone of the first-class monthly; and it is very certain that no magazine has given wider range to its contributors, or preserved itself so completely from the narrow influences of party or of faction. In times like the present, such a journal is either a power in the land or it is nothing. That the CONTINENTAL is not the latter is abundantly evidenced by what it has done—by the reflection of its counsels in many important public events, and in the character and power of those who are its staunchest supporters.

Though but little more than a year has elapsed since the CONTINENTAL was first established, it has during that time acquired a strength and a political significance elevating it to a position far above that previously occupied by any publication of the kind in America. In proof of which assertion we call attention to the following facts:

1. Of its POLITICAL articles republished in pamphlet form, a single one has had, thus far, a circulation of one hundred and six thousand copies.

2. From its LITERARY department, a single serial novel, "Among the Pines," has, within a very few months, sold nearly thirty-five thousand copies. Two other series of its literary articles have also been republished in book form, while the first portion of a third is already in press.

No more conclusive facts need be alleged to prove the excellence of the contributions to the CONTINENTAL, or their extraordinary popularity; and its conductors are determined that it shall not fall behind. Preserving all "the boldness, vigor, and ability" which a thousand journals have attributed to it, it will greatly enlarge its circle of action, and discuss, fearlessly and frankly, every principle involved in the great questions of the day. The first minds of the country, embracing the men most familiar with its diplomacy and most distinguished for ability, are among its contributors; and it is no mere "flattering promise of a prospectus" to say that this "magazine for the times" will employ the first intellect in America, under auspices which no publication ever enjoyed before in this country.

While the CONTINENTAL will express decided opinions on the great questions of the day, it will not be a mere political journal: much the larger portion of its columns will be enlivened, as heretofore, by tales, poetry, and humor. In a word, the CONTINENTAL will be found, under its new staff of Editors, occupying a position and presenting attractions never before found in a magazine.

* * * * *

TERMS TO CLUBS.

Two copies for one year, ....... Five dollars. Three copies for one year, ..... Six dollars. Six copies for one year, ....... Eleven dollars. Eleven copies for one year, .... Twenty dollars. Twenty copies for one year, .... Thirty-six dollars.

PAID IN ADVANCE.

Postage, Thirty-six cents a year, TO BE PAID BY THE SUBSCRIBER.

SINGLE COPIES.

Three dollars a year, IN ADVANCE. Postage paid by the Publisher.

JOHN F. TROW, 50 Greene St., N.Y., PUBLISHER FOR THE PROPRIETORS.

[Graphic: Right-pointing hand] As an inducement to new subscribers, the Publisher offers the following liberal premiums:

[Graphic: Right-pointing hand] Any person remitting $3, in advance, will receive the magazine from July, 1862, to January, 1864 thus securing the whole of MR. KIMBALL'S and MR. KIRKE'S new serials, which are alone worth the price of subscription. Or, if preferred, a subscriber can take the magazine for 1863 and a copy of "Among the Pines," or of "Undercurrents of Wall Street," by R.B. KIMBALL, bound in cloth, or of "Sunshine in Thought," by CHARLES GODFREY LELAND (retail price, $1 25.) The book to be sent postage paid.

[Graphic: Right-pointing hand] Any person remitting $4 50, will receive the magazine from its commencement, January, 1862, to January, 1864, thus securing MR. KIMBALL'S "Was He Successful?" and MR. KIRKE'S "Among the Pines," and "Merchant's Story," and nearly 3,000 octavo pages of the best literature in the world. Premium subscribers to pay their own postage.



EQUAL TO ANY IN THE WORLD!!!

MAY BE PROCURED

AT FROM $8 TO $12 PER ACRE,

Near Markets, Schools, Railroads, Churches, and all the blessings of Civilization.

1,200,000 Acres, in Farms of 40, 80, 120, 160 Acres and upwards, in ILLINOIS, the Garden State of America.

* * * * *

The Illinois Central Railroad Company offer, ON LONG CREDIT, the beautiful and fertile PRAIRIE LANDS lying along the whole line of their Railroad, 700 MILES IN LENGTH, upon the most Favorable Terms for enabling Farmers, Manufacturers, Mechanics and Workingmen to make for themselves and their families a competency, and a HOME they can call THEIR OWN, as will appear from the following statements:

ILLINOIS.

Is about equal in extent to England, with a population of 1,722,686, and a soil capable of supporting 20,000,000. No State in the Valley of the Mississippi offers so great an inducement to the settler as the State of Illinois. There is no part of the world where all the conditions of climate and soil so admirably combine to produce those two great staples, CORN and WHEAT.

CLIMATE.

Nowhere can the industrious farmer secure such immoderate results from his labor as on these deep, rich, loamy soils, cultivated with so much ease. The climate from the extreme southern part of the State to the Terre Haute, Alton and St. Louis Railroad, a distance of nearly 200 miles, is well adapted to Winter.

WHEAT, CORN, COTTON, TOBACCO.

Peaches, Pears, Tomatoes, and every variety of fruit and vegetables is grown in great abundance, from which Chicago and other Northern markets are furnished from four to six weeks earlier than their immediate vicinity. Between the Terre Haute, Alton & St. Louis Railway and the Kankakeo and Illinois Rivers, (a distance of 115 miles on the Branch, and 135 miles on the Main Trunk,) lies the great Corn and Stock raising portion of the State.

THE ORDINARY YIELD.

of Corn is from 50 to 80 bushels per acre. Cattle, Horses, Mules, Sheep and Hogs are raised here at a small cost, and yield large profits. It is believed that no section of country presents greater inducements for Dairy Farming than the Prairies of Illinois, a branch of farming to which but little attention has been paid, and which must yield sure profitable results. Between the Kankakee and Illinois Rivers, and Chicago and Dunleith,(a distance of 56 miles on the Branch and 147 miles by the Main Trunk,) Timothy Hay, Spring Wheat, Corn, &c., are produced in great abundance.

AGRICULTURAL PRODUCTS.

The Agricultural products of Illinois are greater than those of any other State. The Wheat crop of 1861 was estimated at 85,000,000 bushels, while the Corn crop yields not less than 140,000,000 bushels besides the crop of Oats, Barley, Rye, Buckwheat, Potatoes, Sweet Potatoes, Pumpkins, Squashes, Flax, Hemp, Peas, Clover, Cabbage, Beets, Tobacco, Sorgheim, Grapes, Peaches, Apples, &c., which go to swell the vast aggregate of production in this fertile region. Over Four Million tons of produce were sent out the State of Illinois during the past year.

STOCK RAISING.

In Central and Southern Illinois uncommon advantages are presented for the extension of Stock raising. All kinds of Cattle, Horses, Mules, Sheep, Hogs, &c., of the best breeds, yield handsome profits; large fortunes have already been made, and the field is open for others to enter with the fairest prospects of like results. DAIRY FARMING also presents its inducements to many.

CULTIVATION OF COTTON.

The experiments in Cotton culture are of very great promise. Commencing in latitude 39 deg. 30 min. (see Mattoon on the Branch, and Assumption on the Main Line), the Company owns thousands of acres well adapted to the perfection of this fibre. A settler having a family of young children, can turn their youthful labor to a most profitable account in the growth and perfection of this plant.

THE ILLINOIS CENTRAL RAILROAD.

Traverses the whole length of the State, from the banks of the Mississippi and Lake Michigan to the Ohio. As its name imports, the Railroad runs through the centre of the State, and on either side of the road along its whole length lie the lands offered for sale.

CITIES, TOWNS, MARKETS, DEPOTS.

There are Ninety-eight Depots on the Company's Railway, giving about one every seven miles. Cities, Towns and Villages are situated at convenient distances throughout the whole route, where every desirable commodity may be found as readily as in the oldest cities of the Union, and where buyers are to be met for all kinds of farm produce.

EDUCATION.

Mechanics and working-men will find the free school system encouraged by the State, and endowed with a large revenue for the support of the schools. Children can live in sight of the school, the college, the church, and grow up with the prosperity of the leading State in the Great Western Empire.

* * * * *

PRICES AND TERMS OF PAYMENT—ON LONG CREDIT.

80 acres at $10 per acre. with interest at 6 per ct. annually on the following terms:

Cash payment.............$18.00 Payment in one year.......48.00 " in two years......48.00 " in three years....48.00 " in four years....236.00 " in five years....224.00 " in six years.....212.00 " in seven years...206.00

40 acres, at $10.00 per acre: Cash payment.............$24.00 Payment in one year.......24.00 " in two years......24.00 " in three years....24.00 " in four years....118.00 " in five years....112.00 " in six years.....106.00 " in seven years...100.00

Commissioner. Illinois Central Railroad, Chicago, Ill.



THE

CONTINENTAL

MONTHLY.

DEVOTED TO

Literature and National Policy.

* * * * *

NOVEMBER, 1863.

* * * * *



NEW YORK:

JOHN F. TROW, 50 GREENE STREET

(FOR THE PROPRIETORS).

HENRY DEXTER AND SINCLAIR TOUSEY.

WASHINGTON, D.C.: FRANCK TAYLOR.



CONTENTS.—No. XXIII.

The Defence and Evacuation of Winchester. By Hon. F.P. Stanton, 481

The Two Southern Mothers. By Isabella MacFarlane, 490

Diary of Frances Krasinska, 491

November. By E.W.C., 500

The Assizes of Jerusalem. By Prof. Andrew Ten Brook, 501

Letters to Professor S.F.B. Morse. By Rev. Dr. Henry, 514

Buckle, Draper, and the Law of Human Development. By Edward B. Freeland, 529

Treasure Trove, 545

Matter and Spirit. By Lieut. E. Phelps. With Reply of Hon. F.P. Stanton, 546

Extraterritoriality in China. By Dr. Macgowan, 556

Reason, Rhyme, and Rhythm. By Mrs. Martha W. Cook, 567

The Lions of Scotland. By W. Francis Williams, 584

We Two. By Clarence Butler, 591

Patriotism and Provincialism. By H. Clay Preuss, 592

Literary Notices, 594

Editor's Table, 598

* * * * *

'EDMUND KIRKE,' author of 'Among the Pines.' &c., and until recently one of the Editors of this Magazine, is prepared to accept a limited number of invitations to Lecture before Literary Associations, during the coming fall and winter, on 'The Southern Whites: Their Social and Political Characteristics.' He can be addressed 'care of Continental Monthly, New York.'

All communications, whether concerning MSS. or on business, should be addressed to

JOHN F. TROW, Publisher,

50 GREENE STREET, NEW YORK.

* * * * *

Entered, according to Act of Congress, in the year 1863, by John F. Trow, in the Clerk's Office of the District Court of the United States for the Southern District of New York.

JOHN F TROW, PRINTER.

THE END