The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-16
&o., would suit the public temper, and prove gene.
ruby beneficial.
The following table shows the course Of the stock
market during the mast week and month

1 sSss ''a 'i. 49,. 81 az So Sax
Hudson so. Ryer.. aos 81 IS s.,s
The fluctuations in the stock market for the past
fortnight have been extremely slight. The atti-
tnde Of operators has been one OF suspense--wait-
ing to see how government was going to raise
money for the war, and how England was going to
receive the intelligence of the Trent affair 1t was
expected that the report Of the Secretary of the
Treasury would solve the former problem; but the
Secretary threw upon Congress the responsibility
OF providing ways and means, and his report con-
sequently exercised no effect whatever upon the
market. The news per Hansa, which had been
measurably anticipated, caused slight though
general advance; but people generally seem to be
waiting for further advces.
The public mind seems quite prepared for &C.
neral suspension Of specie payments, and there is
no sign OF panic or alarm anywhere. Many persons
still cling to the notion that Congress can devise
some means of obtaining money without resortng to
the policy which has been invariably adopted by ma
tons engaged in expensive wars. 1t would be very
agreeable to see these hopes realized. II would
be great thing for financial future if we could
carry on the war to the complete suppression of
the rebellion without disturbing the ordinary rela
tons of currency. But, to calm observer, this
seems as impossible as to vanquish the rebels with
ont calling large army into the field and taking
pains to drill it according to the rules of war. We
must, IN finance as in strategy, submit to the laws
OF nature, and tread the beaten path.
No nation, whatever its financial standing
has ever been able to raise the enormous
sums required in great wars rapidly enough, by
the ordinary process of loans, to satisfy the wants
OF its government. It is not reasonable 70 expect
that we can form an exception TO the rule. Mr..
Chase has thus far done better than any foreign
finance minister ever did He has raised over
$20O, 900 900 in five months by loans at reasona-
bic rate OF interest. But, in order to do this he
has obliged the banks of the three leading loyal
cities to sink their entire capital in government
loans, SO that they cannot now lend any more mo-
Dey to government, unless they dishonesty
lend the money of their depositors, which does not
belong to them. The public have relieved the
banks Of about s4s 900 600 Of 730 Treasury notes,
and have besides absorbed nearly $40 600 900 of
demand notes. They would subscribe literally
still, in the event Of a victory Of a decisive
character; but in the absence of victories
Of this kind it is not likely that, under
any circumstances, their subscriptions to govern
ment loans would exceed two millions o week
less than one-third the wants of government. As
to the reform in the currency proposed by Mr.
Chase, it commands the approval Of everybody
who is not interested in country banks; but it 10
obvious at glance that its operation under the
most favorable circumstances will be go gradual
and so slow that it cannot serve the purpose of a
financial expedient in the present pressing emer-
gency. 1t seems, therefore, that we have reached
the point which has usually been met much earlier
by nations engaged in expensive wars; in other
words, that we cannot borrow, except at some .ex.
travagant rate Of interest," the large sums now i'm
peratively needed rapidly enough to subserve the
necessities of government. If this be go, Con.
gress can only pursue one course, which is to
authorize Mr.. Chase to pay contractors, soldiers
sailors and other creditors of government in
paper which shall not be redecmabe or converti-
BILE till after the war. The country is rich enough
and confident enough to absorb any amount Of this
paper, even if it reached the sum specified by Mr..
Chase as the utmost that would be required to
carry on the war till July, 1853; and there is no
reason why it should fall to anything below mere
lQminal rate Of discount. That it would cause the
banks to suspend specie payments, as precantion-
airy measure to prevent boarding, is admitted on
all sides. The only question which now calls for
debate-admitting the position Of government to
be what we have stated-is when our
banks should take the step Of suspending
specie payments. Many of our bank mana
gers feel natural scruple at doing SO, when
the necessity for the measure is neither immediate
nor obvious to the masses. But it simply resolves
itself into question whether the banks shall sus.
pend while they are strong, or whether they shall
wait till they are forced into suspension, II ia
transparent that when government begins to pour
out irredeemable paper money people will begin
to draw gold from the banks for the purpose Of
boarding, if they can do SO. And experience
warns US that it is much more difficult to get spe.
Gle out Of boards than it is to prevent the begin
ming Of boarding. If the banks wait, and allow
their timid scruples to prevent the adoption of
bold war policy at once, they will probably 70
through rapid process of depletion, and be forced
to suspend with twenty millions of gold on
hand, when they might have suspended with
forty. Whether their depositors will gain anything
by this Of events it is easy to decide If our
associated banks had q recognized head, or were
under one general management, the features of
the case would have been realized long ago, and
there would be no i ~itancy now in adopting the
only policy which can be safely pursued, due re-
gard being had to the separate interests Of depo-
sitors, bank stockholders, the government and the
public at large.
Of November, 1861 were. 1874 S26 10
Earnings November, 1860 Observation-Disclosures. 554, 532 IS
Increase. $50 ,2e3 IS
CITY COMMERCIAL REPORT.
SATURDAY, Dec. l4-6P NJ