The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-08-09
FINANCIAL ANO CONNER GAL.

| uNANOtAI AJNO COMMERCIAL.
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THURSDAY, August Sc P. M.
| Nothing new Is reported In the money market.
Call loans are offered almost everywhere at per
cent. Commercial paper is extremely scarce, and
parties who are generally buyers are beginning to
turn their attention TO Treasury notes.
| Foreign exchange is dull and lower. The lead.
ing bankers have lowered their rate to 1919 and
there are some good commercial bills in market NJ
| 1867. But the bankers sell little or nothing even
at the decline, and the volume Of commercial ex-
change offered is extremely limited
Stocks continue extremely dull. The commission
brokers complain bitterly of the stagnation in bust.
ness This is always dull season OF the year; but
this year there seems absolutely trade in stocks.
Even the spectators discouraged. Neither
bulls nor bears make any money and both
seem dsinclned to operate with any bold
ness There are few orders in the market-ap'
parently from the South--for Southern State
stocks North Carolinas rose this morn.
ing lN per cent, and Missours "a; Vir-
ginias and Tennessees were steady. Govern
ments were inactive. We quote sale of one OF
the new six per cent bonds at an advance of e per
cent over yesterdays closing price. The six per
doing ip railway bonds. Railway shares are ire
salar. Erie advanced "a and Chicago, Burlington
ard Quincy H; New York Central fell off "a per
cent, Reading u, guaranteed 4, and Rock Island
r. There is so little dong in these stocks that an
order to buy sell three or four hundred shares
unsettes the market. AT the second board the
market was even duller than in the morning, Cen
trail and Toledo being the only shares in any de-
mand 1t closed steady at the following quota
Constituted States 6's, registered, 1851. s7N
Is; do. 6s, coupon, 1881, s7A q; do. 5's, 1874,
80 "a; Indiana 5's, 76 II; Virginia 6's, 54%a
55%; Tennessee 6's, 45H d; North Carolina SIS,
69% a 20; Missouri 6's, 43I a A; Pacific Mail "a
Il; New York Central 76I a rs Erie, 1874 Is;
Hudson River. ssA a; Harlem, 1917 a II; do.
preferred, Is 2s; Reading, 36N "A; Michigan
Central Az a.; Michigan Southern and North
ern Indiana, l3 u; do. guaranteed, 2sH u
Panama, l07 q l0s; Illinois Central, 63% a 81;
Gaena and Chicago, 631SAa u; Cleveland and
Toledo, 29H u; Chicago and Rock Island, 40%
H Chicago, Burlington and Quincy, SO; Della
ware, Lackawana and Western, 65 a 10; Milwaukee
and Mississippi Is l6; Illinois Central bonds, rs,
| s9Z 90; Delaware and Hudson Canal, S41 IS;
| Pennsylvania Coal, 79% 80.
Public opinion Ia gradually coming round to
more rational view of the commercial and financial
consequences of the war than prevailed some time
! since. Three or four months ago civil war, even
for year, seemed certain to destroy our foreign
and domestic commerce, to parayze our industry,
to deprive agriculture Of its necessary supply of
labor. and to spread ruin and misery throughout
the country Southern politicians were fond Of de-
plotting the overwhelming distress which the war
would inhict upon the North, while tho South,
freed from its late associates, would move rapidly
onward in career Of prosperity, progress and
| plenty. It must be admitted that the event has
| not justified either Of these vaccinations. The
North is not ruined; its people are not paupers;
| trade and industry are not destroyed but at the
| South, disorder suffering and financial distress
prevail to alarming an extent as to justify the
| belief that a reaction among the Southern people
is not improbable. Nor is It likely that the progress
| of the war will produce any material change in the
| relative position Of the two sections. At the
| North, government Is about to issue its paper
| for two hundred and fifty millions Of dollars,
| and, one way and another, it will find its
| way into circulation. Early next spring-if the
war lasts so long-other $3.50 900 900 will be issued
in like manner that by next fall $500 900, 900 in
Treasury notes and United States stocks likely
to be aioat. This large addition to the circulating
medium and the general volume of credits will be
followed rather by imitation than depression, by in
| creased rather than diminished trade. To all prac
teal ntents and purposes, for the time being. the
| effect win be the same as il $500 900 GOO in gold
more than California has produced altogether
| were suddenly added to our stock Of the precious
| metal Il is just 80 much money borrowed Of the
future, at certain rate of interest, and expended
in the country in food clothing, arms, materials of
| war, horses, wagons ships, ship stores and sol
| diers and sailors pay. The trade Of the South
| which we lose this season--docs not amount to
| one half this amount; our whole foreign trade is
represented by less sum than government will
spend within year in the prosecution OF the war.
1t is obvious that such an expenditure distributed
over the Northern States must create considerable
commercial, industrial and agricultural activity,
and more than compensate the people for the loss
of trade Occasioned by the 1t will, Of course,
reyouGonize our commercial system. The war
and the war tariff will prove fatal to the present
race of importers just the failure of country col
| lectons proves fatal TO the jobbers. But in the
place of these merchants a new race will spring up
! whose fortunes will rest upon the internal trade
growing out of the war; and at the close of the
test Inc country Will III all pTODdDlllIy DE Iu as
rich, if not richer, than it was when it began
| This has been the experience Of all nations. Il
! was the great Napoleonic wars which raised Eng
land to her present pitch Of prosperity by forcing
her to devclope her internal resources and to de-
vote her energies to manufacturing on the one
| hand and navigation on the other; it WAS to our
war of 1872 that our first factories owed their
origin. The war tarif-though not desighedly a
protective measure-wll have the practical effect
of teaching our people to dispense with foreign
luxuries and to supply their wants at home; while
the war debt will prove not less beneficial, az it
will constitute substantial guarantee for the
future cohesion of the States, and will compel the
people to discharge their duties citizens with
more circumspcction than heretofore.
/ Efforts have been made in certain quar-
| tiers TO crsste alarm at the act per-
hitting the banks 10 retain in their vaults the
amount of their, subscriptions to the national loans
! and 1T the payment OF government debts ia Trca
sury notes. Apprehensions on this score are
groundess. Whatever may be thought Of the wis.