The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-05-19
NEW YORK HERALD, MONDAY, MAY ID, 1862.

twenty millions Of hard working and intelligent
people, can never lack financial resources. 1t is not
too much to say that no nation in Europe could
have borrowed as much money as the United States
have borrowed since August, 1861, and could still
in May, 1869, have seen the six per cent bonds OF
their government selling at premium of four per
cent for currency and one per cent a. compared
with gold. The war of 1862 has achieved the
complete financial independence OF the United
States Henceforth European money will be re-
ceived here and invested for the benefit OF its own
ers but we shall never again hear it argued that
this or that financial negotiation will fail because
Europeans will not touch it.
The money market was easy all last week. Money
is freely loaned ON call at 4a6 per cent on
stocks, and at per cent on gold and TO-
reign exchange. There is SO little CONNER
cial paper afoat that it is difficult to give quota
ton. The best names on short paper will
pass at per cent? and good 8
months paper at q 6. There is far more
money here than the present wants of our
community can absorb. The bank deposits have
increased twenty-five millions within MONTH and
money is still pouring in. From every section OF
the loyal States money comes here for employ
ment Business is stagnant. with the exception OF
those branches of manufacture and trade which
are stimulated by the war. OF the future Of the
money market but one opinion is entertained IN
financial circles. Every one agrees that it must be
easy until some time after peace is re-estabshed
Confidence, in mercantile circles, will not be re-
stored so long the war lasts and, after the final
suppression of the rebellion, some time must ne
cessarily elapse before business resumes its ha-
btual course and the old channels Of trade are re-
opened Meanwhile the accumulation of money at
the great financial centres will naturally continue,
and the price of the article will naturally remain
low. The government having ceased to receive
deposits at four per cent there is reason to be-
eve that money will remain at that figure. In
London, where the demand is greater and the sup
ply less than here, money on call is not worth
over to 2H per cent. We are inclined to believe
that unless the rebellion should collapse suddenly
and peace and commerce should be Unexpectedly
re-established, we shall have three per cent
money market here all summer and that all securi.
ties which yield regular income will appreciate
accordingly.
Foreign exchange closed yesterday at ll3Z
z for sterling, and 4.95 a 4.971a for francs.
bankers bills in both instances. The supply of
bills is limited, but there is little or no demand.
none OI the importers are ordering nc6Vy diHouusS
of goods from abroad. There is no prospect of
our imports becoming SO heavy as to exceed our
exports by an amount larger than we can afford to
pay in specie without inconvenience. Gold
closed yesterday at 1885 a per cent. The
course Of our specie market has stutifed the cal
culations of our shrewdest bankers. 1t was taken
for granted that gold would by this time have been
worth 10 per cent premium. Experience has
proved that we are destined to teach the world
. lesson of political economy in regard to the de-
probation of paper currency. There is in this
countryside loyal StatesAan amount of gold and
silver coin falling not far short of $500 0OO, 900
The owners of this large amount of specie are not
willing to allow their property to remain idle for
any length Of time. They ready to sell at three
per cent premium, or to lend to the speculative
sellers on the Stock Exchange; but they object to
hold for high premium. In the gold contest the
bears have fairly won the day.
The following table shows the course Of the stock
market for the past week and month";