The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-03-08
MONEY mARKET.
Sunday: March TO p. Nj.

The stock market closed yesterday in rather feversh
state There appears to be no possibility of getting up
any speculative movement in the ancies in the face of
the existing condition of the money market Fancy stocks
do not draw in outside SPECTATORS we'll they used
when the banks had the complete control of the mo-
ney marketwhen these institutions could expand and
contract pleasure, without having any thing to inter-
fsre with their movements In those tmas fancy Stock
were sought after by the outsiders in consequence of
the large profits limited sAsances produced But the
times have changed for the better in fsct but not so
Ear as fancy stocks are concerned The banks longer
have the power Of extending their operations to an un
limited amount, regardless Of all laws and legsia-
tive checks There regulator IN existence stronger
than all the enactmsnts any legislature ever per-
fected We allude to the independent treasury act;
there is evading the checks that act places uPo
the operations of banks and their very existence de-
ponds upon proper administration of their affairs The
independent treasury system keeps up steady drain
upon the banks for SPECIE and this drain being regulated
almost entirely by the extent Of import trade 1t be-
comes the policy Of these institutions to prevent any
mansion of credits or any extension Of this trade beyond
such limits as the actual demand from the consuming
classes requires Their safety will compel them to
adopt such course, and shall in this way escape
those evils which have heretofore been SO frequently
experienced in the financial and commercial world. We
must strike ct the root we wish to eradicate great
evil and we have done so in establishing the indepen-
dent treasury system That will prove the salvation Of
oil our best interests, and will tend more to preserve
uniform value and volume of the currency, than any
other passed by the general and State 20
vernments combined
We shall not have this system in full operation until after
the close of the war; While is such large amount
of treasury notes floating round the specie clause Of
the independent treasury act cannot be strictly en-.
forced but when all these notes become fundedwhen
the expenditures of the Government reduced to the
ordinary amount and the expenses Of the war are
merged into funded debtwe shall have that act ri.
gdly enforced, and surplus revenue then will be a
matter of very serious consequence to the banking ns
tutons Of the country.
Athe close of the war; and after the debt of the
try been largely increased by the expenses of the
war; the ordinary expenditures Of the government will
be larger they have heretofore been; but the pros
perty Of ell classes and has become so firmly
established, and everything connected with trade end
commerce will receive such impetus by the procla
nation of peace, that the from customs must
for time be very large, from the immense importaons
we shall re quire and there wi be great danger Of
plus accommodating in the hands Of the sub reasurers
This surplus in the event Of any sccumuatng must he
in specie and the drain from the banks must be constantly
kept up. What will become Of fancy stocks under thi'
state of thingst This question some Of the bulls OF Wall
sreet can best answer specie currency must
the value of stocks of artificial character willie il
must the value of stocks representing property
greater value than themselves dollar In specie under
the independent treasury system, will be worth two
under an inflated paper currency and good stocks such
as government and State securities, will then be worth
much in gold and silver they have been in
paper The specie value Of fancy stocks is just about
one hundred per cent. below present prices that is
nothing at all The contractions which have already
taken place in the money market and in the
banks by the partial operation of the independent
treasury system have deprecated the market value Of ell
kinds of fancy stocks from so to rs per cent and the
natural supposion is that when that system gets
fairly and fully in operation, the fictitious value still
left will be totally exterminated
We have vast deal Of faith and confidence in the sd
vantsges all classes will realize from the new financial
system Of the government believing that while II will
maintain greater uniformity in the value of our staple
productions 1t will enable to carry more produc-
tive export trade and prevent those sudden and enormous
fluctuations in import trade Apapor currency sucn
this country has, within the past fifteen years peel
inflicted with has been Its greatest curse we are now
in fair way Of bringing 1t within proper limits 90 long
can keep there, prosperity VIII ne pefma'
nen and our growth rapid aud healthy; but the momen
we permit TO approach its previous extent at moment
we sow the sscds of a revulson which will not only
arrest our progress to commercial greatnen but will
throw us back from point which will require years
10 regain In preserving currency estaelissed.up"a