It was not a pleasant predicament for a nervous or a faint-hearted man to be placed in.  But then Mr. Chase is neither nervous nor faint-hearted, and when Congress came together he not only told his wants frankly, but proposed a neat little plan for supplying them without selling notes at fifty per cent. discount.  Taking into view the want of a sound currency for business purposes, and the want of some currency to pay out from the Treasury instead of the gold which had disappeared and left a vacuum, he proposed to borrow $150,000,000, by issuing Treasury Notes, payable on demand, without interest, and making them a legal tender for the payment of all debts, with a proviso that any parties who should at any time have more on hand than they wanted should be allowed to invest them in bonds bearing six per cent interest.  It was a very simple proposition—­almost sublime for its simplicity; there was no mystery about it; and yet it was the very turning point of the ways and means of crushing the rebellion, without being ourselves crushed under an unbearable burden of debt.  The money power stood aghast, and hardly recovered breath in time to oppose its passage through Congress; but the common sense of the people hailed Mr. Chase as a deliverer, and Congress endorsed common sense.  Seriously, this splendid invention of the Secretary has given a new face to our financial affairs by placing the money power where it always should be,—­in subservience to the people,—­instead of allowing it to become a grinding task-master.  The importance of this measure can hardly be appreciated yet.  A member of Congress, himself a merchant, and an able financier, says: 

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  The excess of notes will then be gradually withdrawn from circulation for conversion,—­leaving only such an amount in circulation as a healthy and natural condition of the currency will require.’

A theory in which we fully concur.  We see growing out of it a restoration of business:  government creditors paid in a currency equal to gold; low prices for all government contracts; a consequent diminished expenditure for supplies, and an annual payment for interest on the debt we shall owe, which can be easily met without heavy taxation.  However it may turn out in the conduct of the war,—­and we have full faith in that also,—­it is very certain that in the conduct of the finances we have found the man for the times.  The whole country feels this, and breathes easier for it.  The arch rebel,