The New York herald., 1862-01-04
FINANCIAL AND COMMERCE

day several of the banks are calling in their loans,
with view to strengthen their position. Sound
policy would seem to dictate the opposite course
of conduct. The loan certificate system instead
Of being abandoned, should be pursued to its legi
innate limit-namcly, the amount Of government
securities in the hands of the banks. BY this means,
and by this alone, will the hanks be able to pro-
tect their assets and discharge the functions to the
community which they were established to per-
form. They will find precedent for this policy in
the system pursued by the Bank of England. Con-
gress is not in session. but we learn that on Mon
day the Committee of Ways and Means will be
ready with their project. The papers are full of
reports about the financial schemes OF the CON-
mttee. Suffice it to say that Mr.. Stevens
and his colleagues have no choice in the
matter, and have had for six weeks.
For at least six weeks it has been obvious
that government would be compelled to pay its
way in an irredeemable paper currency, and that
the Committee of Ways and Means could do no
more than arrange the details Of the scheme. 1t
is probable that authority will be granted to Mr..
Chase to issue, say one or two hundred millions OF
Treasury notes, bearing either interest ut all,
a small rate Of interest payable after certain
date and convertible at any time into United States
skies. These will probably be made legal tender
For the security of the payment Of these notes, the
interest on them and the bonds into which they
may be converted, it is to be hoped that Congress
will enact a sweeping and heavy system Of taxa
ton. The people able and willing to pay heavy
taxes for the suppression Of the rebellion; and,
unless sum of one hundred millions a year be
raised by direct taxation, there is great reason to
fear that the government paper will rapidly depre-
ciate. We understand that the refusal of some of
our leading banks to receive government demand
notes on deposit arises simply from desire to
accelerate the action of Congress in the matter Of
taxes. 1t is, of course, obvious that this refusal
cannot long be maintained; the banks cannot per-
sst in refusing to consider the notes as money
when they are made legal tender; but time will be
saved and an unpleasant controversy terminated
at ,nce, if the act imposing taxes enough to yield
an adequate revenue be Immediately passed. Ample
revenue can be obtained by the imposition of
light tax on real and personal property Of all kinds
deeds, bonds notes, wills, and all instr lmcnts
conveying or pledging property; on bank notes,
insurance policies stock in railway, canal, manu-
featuring and other incorporated companies; on
newspapers and other periodicals; the incomes
of foreigners residing here and doing business with
out intending to become citizcns spirits, wines,
ales, tobacco, and on all articles of luxury manu-
factured or used in the country.
Money is in good demand ut seven per cent but
it cannot be stated that there any great difficulty
in getting loans. Gold is wanted by the brokers at
~ per cent premium, and the price seems to be
tending upward
Foreign exchange is firm at l13 per cent for ster-
ling and sos for francs. At these rates gold be
shipped without loss, after paying the ruling pre-
MUM, and we look for substantial ship
ments Of coin. The Asia brought 1920 this
morning. Brok ers in exchange predict an ad-
vance Of a 4 per cent before long. There is,
usual, an active speculation going on in bills.
The large amount of our exports and the steady
decline in our imports do not look like on advance
in exchange; but in the present state of things no
prediction can safely be made. The dry goods i'm.
port for the week only amounts to $4c0 s42, against
81 ,sGo,3 ,3sl same week last year, and 50 o37 %.
same week of 1859. The aggregate for the year
Is 1886 ,ss9, against $l03 100 in 1850, and
:li3, ,l52 ,G2i in 1859. At this rate must be ac-
crmulating balance in our favor on the other
side.
The stock market displays moderate amount of
activity, without material variation in prices.
Yesterday the tendency was upward; to-day it
was downward, but the decline was slight. At the
irst board Central, Erie and the Western shares
fell of Laass, the chief decline being in Rock
Island and Michigan Central, which fell per cent.
Missouris also declined ~. After the board the
market was dull, and continued so at the second
board bat at the close of business there was smart
rally, and about half the decline OF the morning
was recovered. The market closed steady, the
following being the last quotations. United States
Gs, registered, 1891, se1< 81; United States Gs,
OIL Init
pom, 1874, = q 1871; Indiana SIS, "a 7G; Virginia
6's, 49% so; Tennessee 6's, Al a 4l1s North
Carolina 6's, 60 CO.. Missouri 6's, 39L 40;
Pacific Mail, o214 s21s; New York Central, 7es4
7g7s; Erie, 81 q 81; do. preferred, 52IIs 5254;
Hudson River, 81 371a; Harlem, liz a IL; do.
preferred, 291a a 29A; Reading, 35H q 351%;
Michigan Central, 471I 47s4 Michigan Southern
and Northern Indiana, lss@ 10; do. guaranteed,
= 391l; Panama, llO14 llO1; Illinois Gen.
tral, 6lHa 62; Galcna and Chicago, 65ss a 65s4;
Cleveland and Toledo, "a a 3i14; Chicago and
Rock Island, 5OI 5o7s; Chicago, Burlington and
Quincy, sc 81; Milwaukee and Prairie du Chen,
Is 10; Cleveland, Columbus and Cincinnati, lol
a =; New York Central rs, 1876, l0l a 1917;
Erie third mortgage bonds, SO q So; Michigan
Central SIS, first mortgage, 919< 92L4; Illinois
Central bonds, 7's, SO ss.
The business Of the Sub Treasury was as follows
to-day
Receipts $173576 40
-for customs. ........................ ol 600 co
On account OF loan. ............. 1915 s.
Payments, including redeemed ct. notes opo O5
baahce ,076, ,2Q5 23
The exchanges at the Bank Clearing House this
morning were $40, o,64l ,2S5 80, and the balances
81, ,067, 900 OF.
The Bank of Commerce has declared semi-annu
Jf,I, I,,xl
next, 9th instant; the Citizens Caslight Com.
pany, Of Brooklyn, dividend of three per cent,
payable on the 18th inst; the Farmers Loan and
Trust Company, semi-annusl dividend of four per
cent payable on the 10th inst; the Citizens Fire
Insurance Comnany a dividend of ttyelve and n