The Continental Monthly, Vol. 4, No. 4, October, 1863

At this present period, the Rev. Augustus Myrtle was but thirty-five, and, from his standing and influence, he considered it no presumption to look forward to the time when he should become bishop of the diocese.

His health was excellent, if we may except some very slight indications of weakness of the larynx, which had been the cause of his making two excursions to Europe, each of six months' duration, which were coupled with an appropriation of twenty-five hundred dollars by his indulgent congregation to pay expenses.

While Mr. Myrtle and his family were still absent, Hiram had made very sensible progress in mastering the mysteries of the Episcopal form of worship, and became fully versed in certain doctrinal points, embracing all questions of what constitutes a 'church' and a proper 'succession.' His investigations were carried on under the direction of the Rev. Mr. Strang, a man of feeble mind (Mr. Myrtle was careful to have no one near him unless the contrast was to his advantage), but a worthy and conscientious person, who believed he was doing Heaven service in bringing Hiram into the fold of the true church. Hiram was again in his element as an object of religious interest. Before the rector had returned, he became very impatient to see him. It was a long while since he had been at communion, and he began to fear his hold on heaven would be weakened by so long an absence from that sacrament. Besides, he felt quite prepared and ready to be confirmed.

The Myrtles returned at last. In due time, Mrs. Bennett talked the whole matter over with Mrs. Myrtle. Hiram was represented as 'a very rich young merchant, destined to be a leading man in the city—of an ancient and honorable New England family—very desirable in the church—a cousin'—[here several sentences were uttered in a whisper, accompanied by nods and signs significant, which I shall never be able to translate]—'must secure him—ripe for it now.'

I think I forgot to say that Mrs. Myrtle and Mrs. Bennett were in the same 'set' as young ladies, and were very intimate.

The nest day Mrs. Bennett opened the subject to Mr. Myrtle, his wife having duly prepared him. The object was to introduce Hiram into the church in the most effective manner. This could only be done through the instrumentality of the reverend gentleman himself. Everything went smoothly. Mr. Myrtle was not insensible to the value of infusing new and fresh elements into his congregation.

'Of course,' he observed, 'this wealthy young man will take an entire pew.' (The annual auction of rented pews was soon to come off, and Mr. Myrtle liked marvellously to see strong competition. It spoke well for the church.)

'He will purchase a pew, if a desirable one can be had,' answered Mrs. Bennett.

'Oh, that is well. How fortunate! The Winslows are going to Europe to reside, and I think will sell theirs. One of the best in the church. Pray ask Mr. Bennett to look after it.'

'Thank you. How very considerate, how very thoughtful! We will see to it at once.'

The interview ended, after some further conversation, in a manner most satisfactory.

It was a magnificent autumnal afternoon, the second week of October, when Hiram Meeker, by previous appointment, called at the residence of the Rev. Augustus Myrtle. The house was built on to the church, so as to correspond in architecture, and exhibited great taste in exterior as well as interior arrangement. Hiram walked up the steps and boldly rang the bell. He had improved a good deal in some respects since his passage at arms with Dr. Chellis, and while under the auspices of Mr. Bennett. He had laid aside the creamy air he used so frequently to assume, and had hardened himself, so to speak, against contingencies. I was saying he marched boldly up and rang the bell.

A footman in unexceptionable livery opened the door. Mr. Myrtle was engaged, but on Hiram's sending in his name, he was ushered into the front parlor, and requested to sit, and informed that Mr. Myrtle would see him in a few minutes. This gave Hiram time to look about him.

It so happened that it was the occasion of a preliminary gathering for the season (there had been no meeting since June) of those who belonged to the 'Society for the Relief of Reduced Ladies of former Wealth and Refinement.' This 'relief' consisted in furnishing work to the recipients of the bounty at prices about one quarter less than they could procure elsewhere, and without experiencing a sense of obligation which these charitable ladies managed to call forth.

There was already in the back parlor a bevy of six or eight, principally young, fine-looking, and admirably dressed women.

Arrayed in the most expensive silks, of rich colors, admirably corresponding with the season, fitted in a mode the most faultless to the exquisite forms of these fair creatures, or made dexterously to conceal any natural defect, they rose, they sat, they walked up and down the room, greeting from time to time the new comers as they arrived.

The conversation turned meanwhile on the way the summer had been spent, and much delicate gossip was broached or hinted at, but not entered into. Next the talk was about dress. The names of the several fashionable dressmakers were quoted as authority for this, and denunciatory of that. Congratulations were exchanged: 'How charmingly you look—how sweet that is—what a lovely bonnet!'

All this Hiram Meeker drank in with open ears and eyes, for from where he was sitting, he could see everything that was going on, as well as hear every word.

One thing particularly impressed him. He felt that never before had he been in such society. The ladies of Dr. Chellis's church were intelligent, refined, and well bred, but here was TON—that unmistakable, unquestionable ton which arrogates everything unto itself, claims everything, and with a certain class is everything.

I need not say, to a person of Hiram's keen and appreciative sense, the picture before him was most attractive. How perfect was every point in it! What minute and fastidious attention had been devoted to every article of dress! How every article had been specially designed to set off and adorn! The hat, how charming; the hair, how exquisitely coiffed; the shawl, how magnificent; the dress how rich! The gloves, of what admirable tint, and how neatly fitted; and how wonderfully were the walking boots adapted to display foot and ankle! And these did not distinguish one, but every one present.

I do not wonder Hiram was carried away by the spectacle. There is something very overpowering in such a scene. Who is sufficient to resist its seductive influences?

In the midst of what might be called a trance, when Hiram's senses were wrapt in a sort of charmed Elysium, the Rev. Augustus Myrtle entered the room. He did not look toward Hiram, but passed directly into the back parlor. He walked along, not as if he were stepping on eggs, but very smoothly and noiselessly, as if treading (as he was doing) on the finest of velvet carpets.

Instantly what a flutter! How they ran up to him, ambitious to get the first salute, and to proffer the first congratulation! How gracefully the Rev. Augustus Myrtle received each! Two or three there were (there were reasons, doubtless) whose cheeks he kissed decorously, yet possibly with some degree of relish. The rest had to content themselves with shaking hands. Many and various were the compliments he received. Their 'delight to see him, how well he was looking,' and so forth.

Presently he started to leave them.

'Oh, you must not run off so soon, we shall follow you to your sanctum.'

'An engagement,' replied Mr. Myrtle, glancing into the other room.

A score of handsome eyes were turned in the direction where Hiram was seated, listening with attention, and watching everything. Discomfited by such an array, he colored, coughed, and nervously shifted his position. Some laughed. The rest looked politely indifferent.

'A connection of the Bennetts,' whispered Mrs. Myrtle, 'a fine young man, immensely rich. He is to come in future to our church.'

'Ah,' 'Yes,' 'Indeed,' 'Excellent.' Such were the responses.

Meanwhile Mr. Myrtle had greeted Hiram courteously, and invited him to his library. This was across the hall, in a room which formed a part of the church edifice.

As Hiram followed Mr. Myrtle out of the parlor, several of the ladies took another look at him. They could not but remark that he was finely formed, fashionably dressed, and, thanks to Signor Alberto, of a very graceful carriage.

The interview between Mr. Myrtle and Hiram was brief. The latter, thoroughly tutored by his cousin, was careful to say nothing about his previous conviction and wonderful conversion, but left Mr. Myrtle, as was very proper, to lead in the conversation. He had previously talked with Mr. Strang, which, with the recommendation of Mrs. Bennett, left no doubt in his mind as to Hiram's fitness to receive confirmation.

It was very hard for him to be informed that his early baptism must go for nothing—what time his father and mother, in their ignorance and simplicity, brought their child to present before God, and receive the beautiful rite of the sprinkling of water.

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. WALKERLondon, 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.