The New York herald., 1862-12-29

vor m. vaak A0'0' sia'oso 2ss $50
Previously Pre- rspria 4S,lsssss ss4Oa.aaS S0,issSls
Since January .s46, ,iss, ,eas e7islso se,Aee.asa
The banks last Monday showed specie average
of $35, ,s54 1886, being decrease OFFS ,l64 ls from
the preceding week; . deposits average OF
$15l, ,S2l sol, being increase Of $l3S ,S3o, ana
loans average Of sl73 s5S 5S6, being an increase
ofssls $50. The banks have for some time steadily
pursued policy Of expansion. Though mer'
camille business has been greatly contracted In
consequence Of the war, and the old plan OF sehng
ON long credits has fallen into disuse, the bank
discounts have sweled from sl20, 100000 TO
s173, ,000, 900. It is just year to-day since the
banks suspended specie payments. During that
year gold has advanced from par to l32, and ari-
cles produced, manufactured or imported, have,
with few exceptions, advanced in the same ratio,
thus swelling enormously the cost of living, and
the burthens cast upon the poor man by the war.
This advance was originally caused by the policy
OF the government in issuing paper money; but II
was greatly assisted by the bank expansion. In.
stead Of pursuing cautious policy, which might
lead to an early resumption of specie payments,
our banks no sooner suspended than they began
to increase their discounts, and to lend, without
stint, upon stocks, gold and merchandise. The
consequence 10 the present condition Of prices,
and bank expansion without parallel in our his
tory, and which viii probably call for investiga-
tion ct the hands Of our State Legislature this
winter. M
The financial policy Of Congress remains unds.
termined. Financial schemes appear In the papers
from day to day, purporting to emanats from the
Treasury Department or the Committee of Ways
and Means. But many Of these are pslpable i'm.
postures contrivsd In the interest Of Wall street
SPECTATORS, while the others are probably
nothing more than shrewd guesses. Thus bill
aseribsd TO Mr.. Chase makes him ask Congress for
power to issue $500, ,00o, 900 more legal tender
notes, in the teeth Of his emphatic declarations in
his report that he was opposed to further issues Of
paper; and another bill, purporting to come from
the Ways and Means Committee, authorizes the
issue Of $500, 900 900 six per cent bonds but does
not mention how long they are to run. The publ
cation Of these imaginary projects Affects the
stock and bullion markets. and this is probably the
object Of their authors. More than q week will
slspse before the public can ascertain whether
return Is to be made to sound principles of finance,
or whether, in the language Of the Presi-
dent, we are to drift on the waves Of
more legal tender issues towards "Conti-
mental prices" The President, and "
has been generally supposed Mr.. Chase also, to-
gether with the more experienced members Of
the Senate and House Of Representatives, are
known to be hostile to any further manufacture of
irredeemable paper money. On the other hand,
many members Of Congress, who are directly or
Indirectly interested in the further imitation Of
prices, and the entire lobby, are bent on obtaining
issues Of paper % copious as those which flow from
the Treasury Department at Richmond. Wall
street, on the onel hand, and, on the other,
Western spectators, who are hent reviving the
land speculations Of 1867, exert powerful pres
sure in favor Of more paper They care little
whether tee sells at IS pound and boots at $25
pair, provided they can realize profits on the
stocks, lands, houses, merchandise or gold which
they have bought. It 10 nothing to them that
new issue Of paper will swell tho expenses
Of the war from two to three millions
day, and that the soldiers who are fighting our
battles at q stipulated rate Of wages will find,
when they are paid that their SIS month will only
purchase a. much food and clothing for their fsmi-
lies as 81 would have purchased when they enlist
ed. These are considerations which do not affect
them in the least The issue rests with Congress,
and the vote will determine how many members Of
that body are disposed to legislate for the people
ct large, and how many for the spectators. There
Is nothing to be said on the subject that has not
been reiterated over and ovor again. We will only
add here thst the evils Of permanent dissolution
Of the Union-enormous and jntoerable as they
would be-would probably prove less ruinous to
the Nofthern people than the mischiefs which
would inevitably result from the unlimited paper
issues now demanded by spectators.
Money was worth . 6 per cent on call ct the
close yesterday. The course Of the money mar
ket, like that Of the stock, bullion and exchange
markets. depends 60 directly upon the policy pur.
sued by Congress that It is idle to speculate upon
the prospect in advance Of Congressional action.
II Congress pursues the reckless course Of issuing
paper money as fast rs il 10 wanted money win 70
time be cheap; If . return be made TO sound
principles II will be worth more. Certificates o.
public indebtedness sell Of four per cent dsconnt.
Gold fuctuated last week between 1917 and 1913,
closing yesterday At l321<. The advance was due
to prevailing rumors Of new paper Issues. The
gold market has been very tame for some time.
and brilliant military success would cause II
10 decline. Exchange on London closed yesterday
at lag, but few frst class bills being
offered ct lt5Z y at the close Of business. A
very large amount Of money continues to be
boarded in foreign exchange BY foreign houses
who have no faith In f0e ultimate success Of the
financial or military pV]icy OF government. In
this, in all financial st the present time,
everything depends upoaN the policy pursued by
Congress. II is in the power Of that body to put
exchange to 200 by more pal vr issues. aud to add
so much TO the cost OF the : tea, coffee, sugar,
spices, hides. and other foreig y goods consumed
by the people; whereas . returiA to sound princi-
Piles would at once cause bills . fall l5 20 per
cent, and effect corresponding sduction in the
price Of foreign goods.
The following table shows the course OF The
stock market for the past week and month
Aou. % Dec .. Der 1S d, y 20 Dec ~.
Z. SEES, ,regist a los He.il0o 9ei< VIZ 9!
yirginss 81 81 90 IVY 5l