The New York herald., 1862-09-08


hieSly greater II amount than the foreign tradehas
paid an average tan Of one per cent for the past
1sny years to bankers through our imperfect system
- paper currency. And 30 immense was the
capital embarked in the various banks, and 80
powerful the influence welded by them, that
nsthing short Of the present national crisis could
have afforded an opportunity Of correcting the
srrors Of the private bank system, and rsverting
% the scheme Of . uniform currency al devised by
tAe fathers. II would have been utterly impossi-
bio in time Of peace TO have uprooted
Ae old banks Of issue, and supplied the
public with . uniform standard cur.
Seucy, at par everywhere. Tho rebellion, which
has done such vast harm in other respects, has ct
least rendered us the service Of enabling the gene
raj government to resume the powers conferred
upOn it by the constitutions in regard to the curren
ey. We have now in circulation about $l25, ,000,-
600 Of government paper, and in the course Of the
next three months this amount win be doubled. II
Il doubtful whether $3.50 900 O0o even $500, ,ooo,
o00 Of paper will suffice for the wants Of our in.
ternal trade especially as the new currency takes
the place, to large extent, of inland bills of ex
change, and ss specie, pending the var, can hard
y be expected to resume its place to any extent
IN general circulation. Possibly it may become
necessary to empower Mr.. Chase to issue $780,
oc0.0c0 more paper, SO as to swell the amount oI
government currency TO the figure at which our
aggregate metallic and paper currency stood be-
fore the war. But there is no likelihood of the
ksues exceeding this amount. On the lst proxmo
She Tax law goes into effect, This law, together
with the customs tariff, will afford the govern
ment revenue amply sufficient to defray
the ordinary expenses of government, to meet
the interest on the debt, and TO provide an ade-
quate sinking fnnd for the extinction of the war
debt. As soon as the present crisis is over, and
people recover from their panic in regard to the
safety of Washington and the invasion of the free
States by bands Of rebels, conversions of currency
into United States bonds win proceed with sufl-
cient rapidity to defray the expenses of the war.
A moderate amount Of success and q reasonable
prospect that the immense resources placed at the
command of government by the loyalty of the
Northern people are going TO be used with yigOr'
efficiency and effect, would lead 10 such an ad-
vance in government securities as would insure
conversions Of . million day at least. That
British nanciers should fail to grasp the leading
features and the cardinal merits of Mr.. Chases
system is q matter of no surprise. In Great
Britain, which is the especial domain of routine,
1nonGt6L
isg through great banking houses. When the Brit
ish government wants money it goes to the Roths-
childs or the Barings, or the Hopes, or some
ether similar house, and makes the best bargain it
can with them. And, with the insular ignorance
for which Englishmen are famed, British tnancers
do not conceive it possible to manage differently
or better than they do. When the Emperor Of the
French called for popular loan the British jour-
mails were sghast, and declared dogmatcally that
such departure from their peculiar method could
NOT but fail. The London Times vituperated the
Emperor with much the same epithets as it now
iavishes upon Mr.. Chase, and predicted the bank.
ruptcy and collapse Of the empire with the same
tatuous arrogance and stolid mpudence as it now
predicts the "Anal crash' Of the finances Of the
United States. The French loan nevertheless
proved perfect success. We risk little In pre-.
dieting that Mr.. Chases agstsm will in like mau.
uer give the lie to the cavls Of its detractors and
tAat the future historian will pronounce Mr.
Chase's administration of our finances to have
! .an surpassed in ability by no administration
since the days Of Alexander Hamilton.
Money advanced last week TO per cent on call
at which rate IL was abundantly supplied. There
j. very little mercantile paper in market; prime
names sch at q & per cent. Certificates Of public
Indebtedness, one year to run, interest payable in
coin, are selling at 1854 = =, decline OF about
one per cent since last week. Demand notes have
advanced, by sympathy with gold, to 1857 u.
The exciting rumors Of the week have led 10 a
fresh exercise os canton in the employment of
money.
Exchange and gold were both affected las. week
by the news from the seat Of war. Gold advanced
nt one time to ll9H, closing yesterday at 1ls,'..
Exchange on London, bankers bills, rose to 1870
Isl, closing yesterday ut about 123,1 l30. There
have been very few transactions at these high
rates Every fresh runor causes the bankers TO
put up their rates. But the importers have been
90 profuse in their remttsnces that they are not
compelled to buy when the market advances, and
each upward turn produces period of dulness.
II, however, the importations continue 10 be AZ
heavy as they are at present, we Dast expect an
active demand for bills and an export inquiry for
coin
The following table shows the course of the
stock market for the past week and month
Aug. q Aug. 10. Asc. - dug so. sep