The New York herald., 1862-02-08
FINANCIAL AND CONNER CiAL


the House had cheering effect upon business cir
cles to-day, though much regret was expressed TO
| find the names of several members who were
elected as supporters of the government and OF SO
| prominent business man as Mr.. Erastus Corning
of Albany in the list of opponents of the measure
side by side with the names of yallandigham and
May. 1t is not saying too much to observe tha'
had the bill been defeated the prospect of sup
pressing the rebellion would have been slender; for
byno other measure than the one which has passed
| the House could the government have obtained
money for the prosecution of the war, while new
difficulties, arising out of the financial collapse OF
government in presence Of an army of 600 600
men. would have rapidly supervened. and aggra-
waited the situation to degree and in form which
seem to have altogether escaped notice at Wash.
ington. The passage Of the bill is worth deci-
sive victory in the field.
The money market is easier. Money is offered
freely at per cent and none Of the bankers pre-
tend to get more than 6. Good paper sells at Q a
2. II Mr.. Chase viii put the audited accounts of
his creditors into proper shape they can readily be
shaved in Wall street, and much suffering wlthus
be avoided.
Foreign exchange rose to-day to 1l4H per cent
for sterling, and 4.s711 4.92H for francs. Gold
also u per cent, being freely taken at 1885.
The advance in both exchange and gold is the
work Of speculation, and If left to itself rates will
presently decline. There is no reason whatever
for premium of 31s per cent on gold, of which we
have very much more than usual in the country,
with diminished demand for it for circulation;
and in the same way and for the same reason ex-
change is unwarrantably high at ll41a. In the
course of few days both bills and gold will pro-
badly fall to more natural figures.
The news of the passage of the Treasury Note
bill through the House. and the cheering news from
Tennessee, impaired confidence to the bulls on
the Stock Exchange to-day, and prices ad
vanced throughout the List. Governments were
the first to feel the effect of the new financial poll
cy: the skies of 1881 rose per cent, and the $50
notes ~, closing in demand at $685. All the spe.
culative shares were active; but it does not ap-
pear, from the reports Of the commission brokers,
that the public are as yet taking any active part
in the movement. The commission houses gene
rally say that their customers regard the effect Of
the Treasury Note bill as having been discounted,
and consider the leading railway shares quite high
enough. The most active shares on the list to-day
were Erie, which advanced ~; Erie preferred
which rose 23SS; Toledo, which, rose q, and Rock
Island which rose 11<. The advance of the day
In the other stocks was as follows:-TennesseesM a,
Miasouris III, Pacific Mail 94+ New York Central I,
Hudson Is, Harlem II, Reading ~, Michigan
Central lH, Southern old 1, guaranteed z, Pana-
ma 1, Galena l. The market closed firm, the fol-
lowing being the last quotations of the day.
United States 6s, registered, 1881, 90 sO11<<;
do. e's, coupon, 1881, 90H a 9OH; do. SIS,
coupon 1874, 1871 1914 Indiana SIS, IS; Virginia
6's, 50; Tennessee S's 431. . "A; North Carolina
6's, 81 621s; Missouri S's, Az 4211aa; Pacific
MAIL 991< 9s1lI; New York Central, s31< s3ssSs;
Erie, 34zs q 35; do. preferred, 575s 57S4; Hud
son River, ssT 3sZ; Harlem, l2sS Is; do.
p,Gfsrred, 3O4 81; Reading, 4l1z a AZ; Aishi.
gan Central, 81 5l114; Michigan Southern and
Northern Indiana, % q 221SS; do. guaranteed, az
Az; Panama, ia ll41s; Illinois Central,
571s 5s; Galena and Chicago, 81 q 6714; Cleve
land and Toledo, 421.a 42sss; Chicago and Rock
Island, 81 q "a; Chicago, Huntington and Quincy,
6lH 62; Milwaukee and Prairie du Chen, 1917
2Os4; Cleveland, Columbus and Cincinnati, log
lo7I; New York Central rs, 1876, 103; Erie
third mortgage bonds, 93h "a; Michigan Central
SIS, first mortgage, 997s = 100; Illinois Central
bonds. re, % e311Is; gold, 1885 1O3s4.
The passage Of the Treasury Note bill through
tuc houSc vi ncpicseueodscsp INC ucCibNc votc
of 90 to "a may be regarded as securing its
triumph in the Senate. 1t is possible that by the
time these lines are read it may have become q
law. We congratulate Congress and the country
upon the victory of principles which, at the time
they were first broached in this Journal
two months ago, appeared to meet with
much more opposition than support. With
out wasting time in retrospect, however,
we may now observe that the country is fairly
launched upon the sea of paper money, and that
the ultimate fate of our financial system will de.
pend largely upon the vigor and prudence of Con-
gress in dealing with the financial questions which
remain to be adjusted. The $3.50, 600 600 of Trea-
sury notes TO be issued will not necessarily
any great disturbance in values, if they are not
followed by further and larger issues. IL the
$50 COO 900 now to be authorized are 10 be fol-
lowed by $3.50, ,000, 900 more in the spring, end
much more in the summer, values will inevitably
rise so prodgously that great disasters will
ensue, and persons with fixed incomes viii be
ruined. 1t should, therefore, be the business Of
Congress at once TO provide against the necessity
for further issues. This can be done by acting az
once upon the Tax bill, and rendering large pro-
portion of the taxes payable within sixty or ninety
days. II this is not done in the course of a month
or two the Treasury viii again be empty, and there
will be no means of replcnishing it except by fur
ther issues of Treasury notes made legal tender.
With proper taxation $3.50 100000 of Treasury
notes ought to be enough to supply the
wants of government, provided they can be
made to flow back into the Treasury
as fast as they flow out. But If provision be not
made for their speedy return to the Treasury
through the channels Of the collectors of customs
and tax commissioners, this will only carry on
the war for some ten weeks--will leave but small
balance in fact, after payment Of the present oat
ing debt of the Treasury. Not an hour should be
lost therefore, in adjusting the details of the tax
levy, and putting it through. Mr.. Chase ought to
be assured Of receiving hundred millions from
taxes before the middle Of April The people can
pay taxes just as well six months hence, and
Congress can pass as good bill next week as