The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-05-18
FINANCIAL AND COMMERCIAL.
FRIDAY, May It's P. M.

FRIDAY, May It's P. NJ.
There is nothing new in the money market, and
rates remain unchanged. On cali money Is abun-
dant at q 6 per cent. Transactions in the dis
count market are limited by prevailing distrust.
4omlgn exchange Is very dull. Bankers are
b@neDs 100 . u, and selling at 1867. But very
littlUO doing either way.
Stocks were all lower this morning, though 'ne
bears did not crowd the market With their opuons'
Tia fact seems TO be that there is no outside 40
,nand whatever for stocks; whenever the necessi-
tn. ~ tha shorts do notoblge them to buy, prices
IN A the morning board to-day, Pacific Mail
81, IL New York Central 50, Erie u, Michigan
Central a. Illinois Central n, Galena n, To-
,aAo X, State stocks were steady, with
the exception Of North Carolinas, which
advanced per cent. After the board the
market was at first dull, but afterward rallied,
and improved beyond the mornings prices AT
the second board little or nothing was done, and
prices were generally fraction lower. The fol-
lowing were the last quotations of the day-United
Bates SIS, 1874, 1874 u; Tennessee IS, 1874
a; Virginia 6's, 4SN Il; Missouri 6's, 1874
"a; Canton, 81 . 81; Cumberland Coal preferred,
SIX g. Delaware and Hudson Canal, 81 49, Penn
sylvania Coal, 76 . n; Pacific MAIL 60H n;
New York Central, TIA . ss; Erie, 2lH "A;
Hudson River, 35H Il; Harlem, IN
u; Harlem preferred, 27A %; Reading,
81 q "A; Michigan Central, 44H R;
Michigan Southern and Northern Indiana,
l2L u; do. guaranteed, % 70; Panama,
100 lO2; Illinois Central, 65A Sc; Galena and
Chicago, 591l a "a; Cleveland and Toledo, 23L
"a; Chicago and Rock Island, 36H n. Chica-
go, Burlington and Quincy, SO SO; La Crosse
and Milwaukee land grant bonds, 6 g. Illinois
Central bonds, slH 81.
The people of the United States have under
taken for the first time in their national history
70 suppress q vast political movement by force
of arms We must confront at once the
absolute certainty that the conflict now be-
gun will entail upon US, and for wholly
uncertain length Of time, serious redaction
in the national income, coupled with serious
increase IN tho national expenditure. We can all
of recognise the accuracy Of the latter OF these
propositions; but it is equally nay it is more i'm
portant that we should anticipate the force of the
former as well. War in all cases destroys so much
wealth that the accommodations ofyears of peace and
the reserved resources of established populations
must be drawn upon to meet its demands. The
experience of modern history demonstrates that
no nation is rich enough to carry the burden of
great modern war without extending its drafts
from the income to the capital of the State, and
thereby contracting the normal activity of the
population. It Is only when the reserved fund of
society is replenished again after several years of
peace, and the current necessities of production
and consumption can be met with fresh materials,
that the war arrangement ceases, mona
tAry circulation RECEIVERS its ordinary course,
and liberated capital can once more meet
the demands Of the nation. We see to-
day, on the continent Of Europe, the
most remarkable illustration of the financial effects
of serious conflict. When the Italian war broke
out, in 1862 Austria, Germany and Russia were
still suffering from the exhaustion produced by
the war of the Crimea. The Italian difficulties
aggravated this exhaustion, and we find Russia,
with her vast resources and her efficient govern
ment, to-day reduced to the necessity OF raising
the rate Of interest to from 10 IL per cent while
the current value Of her standard CON- the roube,
has fallen nearly one-tenth. Our own country
occupies q peculiar attitude in relation to this
financial phase of war. Enterprise, rather
than investment, Is the characteristic Of the
American capitalist; the increase rather than the
employment of his capital is his leading object.
In time of peace we have seen the enormous
effect upon the general prosperity of this trait.
We are now to witness correspondingly enor-
nous effect produced by its sudden paralysis.
Within very short time the profitable employ
ment of capital in this country must be sen.
sibly curtailed by the sudden and formidable con-
traction of the markets of national industry.
This contraction will be brought about by several
concurrent causes, any one OF which might
suffice to dersnge the whole financial ma
chnery of the continent. In the first place,
we have the complete interruption of commercial
relations between the vast belt Of country south
and that north of the Ohio river The first pres
sure Of this interruption has already been severely
felt In the financial circles Of this city, seriously
aggrayatng the difficulty under which our banks
have for three years been resolutey laboring-of
discharging the deferred and extended obligations
of commerce consequent upon the crash of 1857.
The policy Of war and blockade Numerically re-
versing the relations which existed under the
peaceful conditions of the Union, must either be
impoten altogether, OF il must PROSTATE one whole
tier Of our financial system. In the second place,
the diuinution of our foreign commerce, insepara-
BILE from a condition of war, must react formidaby
upon our domestic exchanges and our domestic
industry. Setting as ie as chimerical for the mo-
ment all fears Of damage to our commerce from
Southern privateers il is morally certain that the
market Of foreign goods and Herewith the activity
of domestic distribution are to be limited by the
direct interference Of war with consumption in all
the region south of Washington and St. Louis, and
by its indirect interference with consumption
throughout the rest of the country.
There IL no warehouse in the Bsst,
no railway in the West, the proprietors Of which
must not, from this, have prepared themselves for
sensible dminution in the vitality Of their capital
invested.
The leading bank managers met to-day, at three
o'clock. to discuss the subject Of the new public
loans. They will meet again before deciding
finally on the course TO be pursued. The dispo-
sition Is to that each public loan Is taken IA II
is offered, at or near the market price. The bids
for the new nine million loan will be closed here