The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-09
tket during the past week and montb.-

AT the commencement of the week very dull
feeling prevailed, and stocks declined from ono to
two per cent; yesterday and day before reaction
set in, and the decline was nearly altogether re-
covered. The disturbing element in the market
continues to be the apprehension that Great Bri-
tain may give trouble in consequence Of the
Mason-Slidell case. Anxiety with regard to the
report OF the Secretary Of the Treasury, and the
certainty which overhangs the financial policy of
the government, likewise operate unavorably upon
the market by inducing operators to withhold their
orders during the period Of suspense. These
causes OF hesitation removed it is believed that
business would improve.
The chief point of interest at present is tho
financial policy of the government which will be
foreshadowed in the report Of the Secretary of the
Treasury promised to Congress tomorrow. No
one knows what the Secretary is going to recon.
mend, though it is universally assumed that he
viii urge large expansion Of the currency, part.
y in view of the interests OF the government and
rartly in view Of those of the people at large. If
ever there was time when Congress could re.
model the financial condition of the country and
strip the States of the powers-in financial mat
ters-whch they have usurpcd in violation Of The
constitution and to the injury Of the general govern
u.
at which so little inconvenience would be
created by driving ont of circulation all the bank
notes now in existence, and substituting for them
a government currency, at par everywhere, and
subject to no depreciation. Whether this should
be done through the agency of a bank of issue, or
directly by the issue of United States notes. similar
to those authorized at tho last session Of Congress,
is a matter Of secondary moment. It is argued by
some that an Issue by government of several
hundred millions Of circulating notes, and the
forced redemption Of the existing bank notes,
would be unfair to the existing banks, which have
come forward very literally to the support Of
the government at the present crisis. This
is fallacy. Tho really sound banks
those of New York, Philadelphia and Bos-
ton--could dispense with their circulation
without inconvenience. They earn dividends on
their capital by dscounting paper, not by issuing
notes; the Inter branch of their business is incl
dental TO the former and is a source of very little
profit. The New York banks would not object to
call in the whole Of their nine millions Of notes, and
issue government paper instead if the offer was
made to them. The only banks which would be
injured by an issue of government paper would be
the small country institutions, whose profits arc
derived from the issue of notes which are either
never intended to be redeemed in specie, or only
redeemed at a discount. Again: many persons
ask what will be the situation of affairs at the close
of the war, if the government issues two, three,
four, five more hundred millions Of paper, not re
deemable in coin on presentation, yet drawing in
toresR The answer is obvious. 1t is probable that
the necessities of government will oblige it to issue
during the war very much more paper than the
trade of the country requires as circulating me
dunn. Tho first measure after the peace will be
to fund SO much of this paper as is not required by
the people rs currency. Government will give,
say its five per cent bonds at par for two three
hundred millions Of it.; the balance will be left in
circulation, and will continue to the purpose
Of money-a better currency than we have ever
had. The war will thus leave behind it'an actual
amount Of prcperty-bonds and circulating notes
in the hands Of the people equal to the sum ex-
pended in putting down the rebellion To all
practical intents and purposes the effect viii be the
same as If the same amount of gold or silver,
or cotton or corn, or property Of any other kind,
were created during the war and distributed
among the loyal people. The bonds and the circu-
lating notes will represent the labor expended in
putting down the rebellion ard consolidating the
nation; their intrinsic value will be precisely equi.
valcnt to that of pace, national unity and stable
! government. The case of England asfords an apt
Illustration. Great Britain,spent s., 38e, 900 900 in
the Napoleonic wars ard at the close of Their
| there nad been created, sad was IA the hands q
her people, precisely tbs. amount Of property aad
monsy, chiefly consols If during the tweaty
| years which these wars consumed the British gov
erament had by sons alchemiaal process trans
nauted stones, or eacth, air, into 81 900 040 OOt
Of gold. and distributed the amount among lar PEG
pie, she would not have done more for them than sh
actually did. The wars created $4,000, coo COO Q
| preperty-funded public os0t-and t!,ia was diyi
dsd among fifteen to eighteen millions Of Eng
lishrnen. This was the beginning of the grea
wealth Of England, which has been so imposing
spectacle in our day. The war in which this cour
try ia now engaged Will produce the same result
1t will leave with public debt Of ive six, seyc
or eight hundred millions of dcnars. But this SUI
will be property, which wiz be divided anon
our people, and will render The country, after tn
war, for richer thhn it has ever been
CITY CCAIdEncIAL REPORT.
| SATURDAY, Dec TO P. ".
AsHEs.-Ty market was steady, with sales Of 20 };
bbls, nclWng pots at s. 56k and pearls at SIS 80. II