The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-06-30

",
There has been good business in Stocks to-day and
prices have generally gone up Illinois So rose III New
York 81 Ii Indiana fell Il City IS rose !; Long Island
fell /; Harlem per cent.
At the Board the appearance Of affairs is nearly
the There less speculation at that board than
formerly.
The Great Western has not made her appearance yet,
and the desire obtain her advices which will be twelve
days later grest-msre especially the mail for the
Boston boat closes omorrow and should she arrive early
her letters may be answered on the same day.
Mobile funds are at 20 q ~ discount.
The taking ofthe loan at lOl l-lOO per cent gives
an interest OF 496 per cent the investment for ten
years The six per cent stock to yield the rate
should command l2 but the high premium able for
me stock not rembursable when the stock is redeemed
The six per cent stock redeemable in twenty years
Hence the present value of annuity Of 81 for twenty
years added to the value Of the Eve per cent stock
Will form the value oil the six per cent stock The presekt
value Of an annuity of 81 for twenty years at compound
interest OF five per cent $l2 46; which, added to the
price OF the five per cent, will give $l3 AZ the equi
vaent for the six per cent stock the rate the loan
was taken, supposng the stock taken for permanent in
vesment That loan was, however, taken on specula-
ton, looking for a further fall in the value
Of money The present price of the six per
cent stock, is, say III; equivalent for a five
yielding interest Of l2 per the investment
The government stock stands the highest in the market
and yields the smallest of interest 1t is beyond
all risk and may therefore be said to be the true index
oil the value of money In February last the six per
cent stock was taken at par and the taking the
per cent loan at 0l OF is in effect reducing the rate of in
terest from per cent to 96 per cent per The
banks loaned a cal freely the former stock at 3
st. and no loan at per cent The taking Of this loan
at such high rates evidence of that opinion which
is frequently expressed in influential quarters, viz
that the stock will ultimately 60 abroad Indeed in
other light could the operation be considered matter of
congratuation to the people at large To suppose that
for period of ten years. money, in young country
like this where capital is the only thing wanting to
lie comparatively dead to the extent of the
amount Of government debt, yielding than s6
per cent interest is far from being Of triumph
The money indeed does not leave the country, but its
channel of employment is changed 1t is drawn from
those reservoirs of money designed to assist commerce.
and poured through the official channels of
patronage. The bankers give up their accumulated
funds to the support Of which should have
lived within its income aud which has increased its debt
in the last two years The banks hold the
ticates for the money lent to the government. IT,
during the next ten years. there is to be revival of
trade that will yield greater profit than that now derv
ed from the government stock the prospect gloomy
ene 1fsuch revival does take place. the stocks held
by the banks must be sold to other parties and without
loss. Such purchasers only be found abroad and
the shrewd sagacious and experienced men who have
taken the loan, look to such result certain. The
proceeds of this loan will in great measure return to
the banks, but it is damage to them. For instance
the Bank Of Commerce held 900 of Treasury Notes.
yielding per cent INTEREST," for those they now receive
yment. but can employ the money only at Al per
cent, making difference of per cent in the revenue
from that money
The only obstacle apart from political causes which
stands in the way Of revival Of trade firm basis and
of prodgous extent the nature ofhe existing
tariff and the uncertainty which attends its continuance
In our article Of Tuesday referred to the instrument
tay which bank credits in this country and in England
formerly had in extending the import goods and fore.
ing their sale throughout the country credit Those
credits have ceased for the present to influence trade
The foreign credit of the United States is almost gone
Neither the open credits af the London Houses nor the
sale OF State stocks are any longer available in making
large purchases of goods. Hence under low tariff the
purchases would be confined to the means of
paying for the imports The effect of the high
tariff is to limit the assortment of goods which it is
profitable to buy with the proceeds of produce Sales
For instance, last year woollens at 20 per
cent duty; they now so per cent, 80 per cent
than last Many other articles also lower. The
disposition to purchase goods here has also undergone
great change. First agricultural produce has been so
low in money value that the farmers who are the great
of consumers have not had the to buy for
cash. Second, very large proportion Of those Dealers
who formerly bought credit and sold credit failec
and have just passed through the absolvng process
of the Bankrupt Act In Illinois, for instance according
to the census there 25O6 persons employed in CON-
merce-of these 1900 have taken the benefit Of the act
Now these persons all the Union being released
from debt douby cautious how they proceed for the
future The credits they extend very small and very
SAFE $70,oO0Oso of banking capital which formerly
backed their has ceased exists and the
wreck ofthat capital is finding its way back to the At
antic Cities The population and industry of the whole
Union is rapidly increasing consequently their wants
an the means of gratifying them rapidly advan.
cling 1t is the development othe sound trade growing
out OF this that the tariff checks Facts are much better
than theories conseq uently, will take from the Trea
sury tables the quarterly imports and yearly exports for
three years, as follows
IMPORTS INro THE UNITED STATES
an qudrr
1910. 1871. 1912 1912
Sc cond I" gz,239.l8O al aaIiIa S6 iii hi