The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1861-08-23
Business and Financial Prospects OF
New York.

From the New York World-Money article.
Capitalists are waiting to invest in gov
eminent securities and the impression exists
among we'll informed parties that Mr..
Chase, on his visit to this city, which is ex-
pected in few days, will have no difficulty
in making satisfactory arrangements for i'm
mediate loans to the full extent of the gov
eminent wants. On the present specie basis
of the New York banks, this city could
take at once from SAC, OOO,O 900 to 0,O0O,-
900 of government securities with great
benefit to the money market and trade OF
New York. The prompt distribution Of
this amount of money into the channels
of trade will speedily impart healthy ac-
tivity to achievements of commerce. Since
November, 1860, to the present date, we
have been suffering from severe CONNER
cial crisis-produced by the non payment of
about $l5O,OO0,OOO of Southern indebted.
ness, and Western bank troubles and de-.
faults, and aggravated since April by the
evils of civil war-but we have not yet ex-
perienced any of the benefits which large
war expenditure must necessarily bring with
it.. Hitherto, the money which government
has expended comes from peace appropria-
lions for the last fiscalIyear, ending June 30,
1861 the extraordinary expenditure for
the war is just beginning. The commerce
of the country is stagnant from variety
of causes. Domestic produce AMI for"
eign exports, both North and South, for
the last two years, have exceeded fair
average; our importations from abroad for
the last year are much decreased, and the
influx of specie, and gain in active floating
capital by the country, are beyond all
past records. The country is really possess
ed of more means and capital than at any
past period. Mercantile credit is, however,
curtailed, and this curtailment has taken
from the basis of operations in regular
trade at least $6OO,0OO0 0O-equivalent to
the withdrawal of capital to an equal
amount. Specie and capital are 10 excess /;
but confidence and credit are wanting in
order to use them. The business of the
nation is at stand still because nobody
feels disposed to move, and just so it must
remain until somebody does move. Gov
eminent proposes to move by borrowing
the surplus capital which is at present use
less to commerce, thereby bene6tting every
interest, and employing the money which
nobody seems to want. Government pro-
poses and possesses the power to change
the present dullness and lethargy of our
business men into activity and enterprise by
becoming cash purchaser for $25 100000
per month of American labor, agricultural
products and manufactures. Three hundred
millions of dollars per annum spent among
ourselves must produce prosperous activi-
ty, and can in no way weaken our finacial
or banking system by unhealthy expan-
sion or exports of specie to foreign countries.
There is, therefore, evidently no event or
policy in our history which can rival in i'm.
portance this war, in the powerful impetus
which its expenditure, directed by the poll
cy of the government, must necessarily give
to the domestic manufactures, industry and
enterprise of the nation. Domestic fabrics
are used wholly by the troops; cloths, boots
and shoes, hosiery and underclothing are all
made here. Women are using more of do.
nestle cotton and muslin prints, delaines
md cashmeres; also ladies' shawls, mems
Maids and blankets, and fannels OF domestic
manufacture are more in demand; and it is
in accordance with the principles which
regulate the consumption Of every article of
commerce that, as these domestic fabrics
are superceding foreign during the war,
they will ever after permanently retain the
market against foreign goods, from motives
of economy, convenience and habit among
our people. After the expected visit of Mr..
chase to this city, the government will
doubtless arrange to disburse rapidly large
sums Of money, and beneficial results will
speedily manifest themselves in financial and
commercial activity, which will impart con-
fidence to business men and capitalists, and
lead to gradual increase in mercantile credit.
During the last eight months we have dis
counted all the financial and commercial
evils OF the war, and also of our overtrading
and paper expansion in 1857 to 1860. We
shall henceforth begin to reap the good.