The New York herald., 1862-05-07
YORK HERALD WEDNESDAY, MAY q 18s2-TR1PLE SHEET

instances fell off "a. Central fell back to ssT,
after having sold at $685. Erie was done at 3911s.
| But Toledo and the Western shares gene
| rally were very firm. The market was called
unsettled at the close, the following prices being
| the authorized quotations at hafpast three:-
| United States 6s, registered, 1881, 1915 y;
do. 6's, coupon, 1881, 1919 l02; do SIS,
| 1874, "a "a; Indiana 5's, 81 as6; Tennes-
see 6's, 6OT 81; Virginia 6's, 58 591l; North
Carolina 6's, 7lA 72; Missouri 6's, 52T So;
Pacific Mail, ll7% 49, New York Central ssH
q; Erie, 39A a ss; do. preferred, 66A 67; Hud-
son River, 4O1a Al (; Harlem, l4a4 Is; do. pre-
ferred, 36% 81; Reading, 4s a "A; Michigan
Central, 6ls n; Michigan Southern and North
ern Indiana, 25H 2S; do. guaranteed, 49A so;
Panama, l29H al3O; Illinois Central, 63A as;
Galena and Chicago. 7lA az; Cleveland and To.
ledo, 461s cs; Chicago and Rock Island, 62'
a; Chicago, Burlington and Quincy, 69I 20;
Milwaukee and Prairie du Chen, 1914 70;
Cleveland, Columbus and Cincinnati, ll41% q;
New York Central rs, 1876, los LOG; Erie third
mortgage bonds, 97a I Michigan Central s's,
first mortgage, lO4 l05; Illinois Central bonds,
7's, 9lA "a; gold, 1925 az.
The United States have, in this war, revolu-
tionized the science of finance as thoroughly as
they have revoutionized the science of artillery,
fortfcation and naval architecture. The custom
of European governments, for the past century,
when they wanted money to carry on war, has
been to effect loan of a large sum, through the
medium of leading bankers, who, in effect, i'm
posed their own terms on the borrower. This is
dogmatically pronounced by the leading British
writer's on finance to be the only sound and busi-
nesslike way Of raising money. When the En-.
peror Of the French in 1853, undertook Is raise
money to carry on the war with Russia by
popular loan, without appealing to bankers, the
British statesmen, financiers and journals pre-.
dicted that the experiment would fail. 1t sue
ceeded, however, SO brilliantly that it has since
been repeated, and the method may now be con-
sidered a settled feature Of the French financial
system. In this country, when the war began,
we followed the beaten track, and Mr.. Chase un-
dertook to borrow money from the bankers, who
were to sell their government securities to the
public. 1t soon became evident, however, that
we required so much money in so short period
of time to carry on the unexampled war in which
the country was engaged that it was out of the
power of any combination of banks and bankers
to furnish funds fast enough for the purpose. Mr..
Chase then resorted TO the issue Of paper money
securities of the United States. When this plan
was first proposed in this journal it was hailed
with perfect storm of denuncation by the par
tsans of the old methods in finance. British
critics especially foresaw that the fnancesof the
country were ruined; Mr.. Russell predicted that
the troops would be disbanded from want of money
to pay them, and friendly observers in London
expatiated upon the terrible financial crash which
could not fail to occur in this country about the
month Of February last. We are now in position
to Judge the expedient upon its merits. And
there can be no hesitation in pronouncing it per-
feet success. Resting the substantial basis of
thorough system of taxation, the issue of paper
money made legal tender has proved the most
simple and the most economical way of raising
money ever devised. The very effects of the issue
itself going to its conversion into bonds
The bonds Of 1881 are now selling at 102; the new
bonds, into which the legal tender currency
is convertible, will probably rule at or near
par when they first come on the market.
The moment they rise to premium, which
they will soon do, the holders of the legal
tender currency will hasten to convert
them. Mr.. Chase will reissue, in payment Of the
ordinary expenses of government, the currency
exchanged for bonds and thus, practically, he
will be paying the expenses of government with
per cent bonds which the issue and reissue of his
paper currency will always keep at premium.
The Sub Treasurer exchanged another half mil
lion of 7.3O Treasury notes for gold to-day. The
business of the Office was as follows:-
Receipts. 81 ,579, ,I92 45
For customs. OBSERVATION-DISCLOSURES. 900
Payments ACKNOWLEDGEMENTS. 1y074,425 SO
Balance. ,oS3,OSI 20
The exchanges at the Bank Clearing House this
morning were $29,334, ,095 63, and the balances
81, ,554 200 34
Mr.. r. T. Haws, the City Comptroller, invites
proposals for s25O.00O New York County Court
House Loan, until Saturday, the 18th instant, at
two o'clock p. M. The loan will bear interest at
the rate of six per cent per annum, payable half
yearly and the principal redeemable in install
ments of 100000 annually, commencing in 1875.
The Chicago and Rock Island Railroad earned
in April
April, 1867. .......................$7l o76
Decrease. S4157
The earnings of the Michigan Central Railroad
for the same month were:-
1851 SII26l3 %
Increase ......................... 30S2 Is
The weekly statement of the Philadelphia banks,
made up Monday afternoon, presents the following
aggregates as compared with those Of the previous
week.
April 2s Nay 8.
Capital stock $11 ,965 1856 IL ,964 1876 Dec 81 60
Loans. ....... 2S,7o31l6 % 324 432 hc.. 531 316
Specie. e......... 49,. 6,D52627 6,049635 Dec 2192
Due from 9TH bks 3,l2s 06a 3S23659 Inc. sos 500
Due 9th. banks a,4l0674 531 1871 Inc. 81 1853
Deposits 20 ,223556 q ,316 GA Inc 093 05S
Circulation. 3.613,y94 3,759 500 Inc. 145,59S
The Assistant Treasurer has issued the follow.
ing notice =
UNIFIED STATES TREASURY, New YORK, May 5, 1862.
Under instructions from the Secretary Of the Treasury
hereby give notice TO all holders Of certificates Of de-
post bearing interest," issued prior to the 14h day Of
March utmo and payable in " United States notes is
sued acts prior to- February 8, 1862 that they
are required present such certificates within DAYS
from tho date hereof for payment of prncipal and in