The New York herald., 1862-02-05

Foreign exchange opened strong this morning
at ia a q "a. but fell OF afterward to ia, at
which rate most Of the bankers were willing to
draw in the afternoon. Francs range from s5 to
500. Gold rose this morning to 3ss, but afterward
fell of to sH. At this rate there is no profit on
expectations of coin The California steamer,
which arrived this morning, brought nearly q mil.
lion IN gold. and the Karnsk. for Nassau, took
out $3O4 S42.
The stock market continues unsettled. though
most Of the leading operators are BUYERS and be.
levers in an advance. Prices remained pretty
steady throughout the day; but at the close of
business there was an increase of orders to sell.
and the speculative shares gave way fraction.
Comparing the closing prices of the day with those
of yesterday, we note decline of 1 in Central, Il
in Erie, "a in Erie preferred, "A in Reading, "A in
Michigan Central' in Panama, % in Illinois Cen.
trail. 4 in Galena, Il in Toledo, and "a in Rock
Island. On the other hand, United States stocks,
State stocks, first class bonds and Pacific Mail
were in better demand and improved. The 6's OF
1881 rose a, virginas "a. Tennessees d Missouris
u. and Pacific Mail Il. The books of this company
will close in a day or two for the February divi.
dend. The continued decline in Illinois Central is
without just cause. The company has a letter
from government agreeing to pay them for
carrying troops and stores the same a.
other roads. With the opening of navigation,
if the Mississippi expedition is successful,
the road will do an enormous business At tho
close to-day the market was dull the following
being the last quotations. United States 6's, re-
gistered. 1881, sS a "a; do. 6's, coupon 1881,
80 a; do. SIS, coupon, 1874, 70 "a; Indiana
5's, "A 76 Virginia 6's, 50 Ia; Tennessee 6's
4s u; North Carolina 6's, 50 a; Missouri 6's.
Al a Al; Pacific Mail, sss4 u; New York Central
s2H rs; Erie. SO a u; do. preferred. 55A a III
Hudson River, 3sA "a; Harlem, 1874 "a; do.
preferred, 2S1l 2914; Reading, 4O4 a; Michi.
gan Central, 4s1l n; Michigan Southern and
Northern Indiana, 81 a a; do. guaranteed. 4Os.
q; Panama, ll2 ll3; Illinois Central, 5SH q
q; Galena and Chicago, 65h "a; Cleveland and
Toledo, 404 q; Chicago and Rock Island, 52N
y; Chicago Burlington and Quincy, 81 a 62;
Milwaukee and Prairie du Chen, 1878 81; Cleve.
land Columbus and Cincinnati, 1O4 a LOG: New
York Central rs, 1876, l02 a.; Erie third mort.
gage bonds. 931I 81; Michigan Central SIS, first
mortgage, SO a; Illinois Central bonds, 7's, 92H
"a.
The banks paid into the Sub.Treasury this morn
ing the last instalment of their last loan to govern.
ment. So long as they owed money to govern
ment they required a certain amount Of Treasury
notes to pay up their instalments, and most Of
them were consequently willing to receive them
up to certain point Now that they need no
more notes for this purpose. the question has
arisen, will the banks receive them any longer on
deposit? This question will generally be answered
in the negative. Many of our bank presidents are
willing and anxious to assist the government by
every means in their power, and will pursue with
great reluctance policy which tends to injure tho
public credit. But as the Treasury notes are not Q
legal tender, and no one can be compelled to 70.
ceive them in payment of debt the bulk of our
banks will, for their own protection, decline to PC
ceive them except as special deposit. The ia
convenience and confusion which are going to
arise out of this state Of things can readily be
imagined. Four-ifths Of the currency at present
in circulation here in the other Central and in the
Western States, consists of United States notes.
Three-fourths of the business which is giving en-.
ployment to our manufacturers and merchants
grows out Of the war, and is liquidated in United
States notes. All this currency is now going to be
discredited. A man who has a note due at bank
will not be able to pay it in United States notes,
though there is no other money to be had euy.
where. contractor who receives $40 900 from
government will not be able to pay his debts with
it, except by the favor and indulgence of his debt
ors. He will be forced to take his United States
notes into Wall street and sell them for what they
will fetch. And as nobody wants any moro notes,
it may safely be presumed that they will begin to
deprecate at pretty rapid rate. The 7.3o notes
fell per cent the other day on vague-and
false-rumor that $50 900 900 Of them were coming
on the market. 1t is easy to calculate how swiftly
the United States notes-which bear no interest
will decline when they are shoveled ont at the
rate Of two millions day. If Congress delays the
passage of Mr.. Spauldings bill few days longer.
we presume that United States notes will fall ton
per cent, and that all other government securities
will fall with them II need hardly be added that
were the former made legal tender the banks
would cheerfully receive them on deposit, and all
the evils which now menace the business communi.
ty would be averted.
The friends Of Mr.. Anson r. Morrill,, of Maine
are exceedingly anxious that we should say that
we did him an injustice in this mornings HERALD,
by confounding him with Mr.. Justin S. Morrill, of
Vermont 1t is the latter gentleman who not
content with having inflicted incalculable injury
on our cause in Europe by the tariff which bears
his name, now steps forward to impede the pro-
gress Of financial legislation in Congress by re-
suscitating the impractcable scheme which was
pressed upon Mr.. Chase few weeks ago by some
meddlesome bankers from this city and elsewhere.
Mr.. Morrls plan contemplates the conversion Of
the present Sub-Treasuries and repositories into
banks, or, in other words, the establishment OF
about twenty United States banks all over The
country These banks are to begin business by
doing what none of our existing banks have ever
been able to do without running themselves
ly, by allowing interest at five per cent on their
deposits. As these deposits will be partly Trea-
sury notes bearing 1855 interest, and partly notes
bearing 7.30, the government will have the satis-
faction, under this system, Of paying s.65 and
1890 the moneyit gets by this ingenious scheme.
At the same time, as the existing banlss will not
receive any Of this government money on deposit.
it will depreciate in the ordinary transactions Of
business and contractors will charge enough on
their contracts to pay them for the loss on their