The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-06-03

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Toledo ........ aaX 2sH 22& 2lx 2ss
Fssss a sSe. s 50 g g ssx e. az
As the above table shows, the general market i'm
proved during the week. The advance is due, how
ever not to any increase ofbusiness the roads, or
to any improvement in public confidence but SIM
ply to the scarcity stock and the large amount of
stock sold short by the bears ON the Stock Elk
change. The commission brokers report uniform
ly that they are doing no business, except in sell
ling stocks for their customers. But the ease of
money enables the spectators for q rise to keep
the market bare of stocks, and the bears suffer
accordingly. Gradually, as the negotiation of
new government loans, and the fall in public secu-
rites proceed, the supply Of railway and specula-
tive stocks the market will naturally increase.
1t is announced, on semi.ofical authority, that
the extra session of Congress which has been con-
vened for the 4th of July, will be short, and that
the chairmen of committees are already preparing
the business to be laid before the two houses.
This business may naturally be classed under four
heads There must be legislation for the perma-
nent increase and maintenance of the army; there
must be legislation for the increase of the navy;
there must be legislation to provide ways and
means for carrying on the war; and lastly, there
must be legislation for the relief of those classes
which have been or will be ruined by the out
break of hostilities. OF these four subjects the
last two are the most important To the bills for
the increase and support of the army and navy
there will probably be no opposition. But mem
bers of Congress are not likely to be unanimous
either on the financial policy of the government,
or on the general principles which should govern
our commercial legislation. Already, we notice
that quite large number of methods and systems
for raising money for the support of the govern
ment have found expression in the newspapers.
The cardinal principle on which the financial
policy of the United States government has rested
since its first establishment has been indirect
taxation by means Of customs duties. Where this
resource has failed, recourse has been had to
loans. These are the only two methods by which
our government has ever raised money; and it is
obviously inexpedient at the present time to dwell
upon the manifest superiority to either of the sys
TEN of direct taxation. We must either adhere to
the old plans or discover an entirely new one.
Unfortunately for the government, the UNIV Use
tariff adopted by the last Congress has had the
effect of most seriously curtailing the revenue
from customs duties. Such articles as carpets,
blankets, woollen cloths, several kinds of
steel, wood screws, &C., which formerly paid
large revenue to the government now
pay none at all, being practically excluded
from the country by the prohbtory Morrill,
tariff. The same act has raised the duty so high
on other articles of prime necessity that their
consumption has been vastly reduced, and the
revenue has suffered in proportion. 1t thus re-
suits that, at the very time above all others when
most money is needed by the government, its chief
resource fails almost entirely. On the other hand,
the depreciation of government credit, which
owed its origin to the base treachery Of Howell
Cobb, and was assisted for many months by the
imbecilty Of Mr.. Buchanan's administration, has
placed it out of the power of Mr.. Chase to borrow
money except Mt 8 ruinous sacrifice. In October,
1860, United States fves were taken by the public
at par. In April 1861, United States skies could
not be disposed Of by the Treasury Department
above 81. In May the highest bids for them were
65 At this rate, before the end of the year. Mr..
Chase will be borrowing money at fifty cents on
the dollar. -here is good deal OF talk in some
quarters about the issue of Treasury notes.
Some people think that toe public will
take many millions OF SIX per cents at
par. Others call for dsSigaots bearing ten per
Cti-t IHleIcsI. AHesc diS viz aOuSihcS. SoPiO
who have money will not lend it at six when they
get eight for it. Nor is there any necessity to
set so foolish precedent as the issue of ten per
cent dSSignOts.
Congress may, by the adoption of a very simple
system, supply the government with money in
larger amounts than can be raised from customs
duties, and at a cheaper rate than it can be Dor
rowed. One Of The gravest causes of embarrass-
ment at the present time arises from the condition
of our banks With few exceptions all the banks
in the country ore uDsound. The banks of the
West are absolutely rotten; in Chicago gold is
now the only recognized currency. The banks of
the rebel states are all broken; those of New
Orleans, even, have suspended specie pay
ments. In New York city, Boston and Phi
ladelphia, the banks are stronger But il
is evident that they must all hold an enormous
amount of worthless paper and as to the condition
Of the country banks in this State and New Eng
land the recent disclosures at Albany leave moth
ing further to be inquired about 1t is evident that
one of the prime difficulties which will embarrass
the North in this contest will be the want of re-
liable circulating medium. We have not gold
enough for the purpose, and any increase of the
circulation of the few strong banks would render
them as weak as their neighbors. Now, the es-
Enlistment, under charter from Congress, OF
great bank at New York with capital OF S75,-