The New York herald., 1862-01-13
NEW YoRR HERALD MONDAY, JANUARY 1s, 1862.

! Listening to the scheme. Confusion enough exists
In government finances already; if the Trea.
sury Department were issuing simultaneously 7.3O
| notes, 6 per cent notes, notes bearing 3.45 per
cent, notes besring no interest and convertible
into 7 per cent stock, and notes payable on de-
mand and not convertible, neither the Treasury
Department nor the public would see their way
clear through such mass of ;acongruous securi-
ties. Spectators and bankers might make money
out OF the general confusion, but it il pretty clear
that both the government and the public would be
losers. So with the fourth proposition, which
looks to the hypothecaton of United States stocks
with banks for temporary loans. The idea of the
bankers is that some time or other they will get
Mr. Chase into tight place, and shave
him. 1t was seriously proposed by some of these
bankers some time since to supply the wants of
government by temporary loan of $3.50 900 900
on the pledge Of $500, 900, 900 in United States
skies, the idea being, of course that the war would
come to an end before the loan had been repaid,
and that the baDkers would be able to sell their
bonds in Europe or here at figure which would
yield them usurious profit for their money. These
bank gentlemen don't seem to understand even
their own interest We take for granted that Con-
gress will lay their proposition on the table, and
will proceed to pass measure based on the plan
heretofore laid down in this column, namely
1. Mr. Chase to DO authorized to pay all government
creditors in Treasury notes. bearing very small rate Of
Those Treasury notes be legal tender and to bo
redeemabe In coin at the pleasure OF government.
after fxed period.
T. All domand notes now aoat 20 be legal tender and
convertible on the same terms tho Treasury notes.
D. revenue TO be raised by direct and indirect taxa
ton OF not less than $50 oo to witt enough to pay
the interest tho entire debt and thirdly constitute
sinking fund which shall sxtngush tho present debt Of
tho United States in twenty -nve years.
Deliberate consideration of the wants of the 60
vernment and Of the capacities of the country will
satisfy Congress that this is the only safe and eco
nomical way of bridging the present difficulty.
1t is clear, plain and precise. 1t renders Mr..
Chase's path smooth and easy. It relieves the
public from anxiety with regard to the public
finances. 1t saves the country from the humilia
ton of looking abroad for money, which is the pet
scheme of some Of our bankers. 1t is hardly ne
cessary to expose the absurdity of the clamor
which has been raised by ignorant persons in re-
gard to large issues Of paper money. Such issues
are dangerous, and are sure to cause On imitation,
to be followed by fatal collapse, if they are put
forth without proper care being taken to insure
their redemption. The French assgnats
and the Continental paper Of our Revolu.
tonary period deprecated enormously, be-
cause no measures had been taken by their au-
thors to obtain q revenue by taxation to pay them
off. If the governments which issued these paper
securities had provided at the time of their issue
an adequate revenue for the payment of interest
charges on them, and for their redemption within
fixed period, they would never have deprecated
at all. So if Congress now passes law to raise
$l50000 900 year by direct and indirect taxation
Mr.. Chase will be enabled to float all the Treasury
notes he needs for the prosecution Of the war, and
they will not depreciate nor is there any reason to
believe that, with the wholesome check of general
and heavy taxation, they will lead to any such in.
fation of prices as has been apprehended by some
economists.
Money has become more abundant during the
past week. It is now offered on call at per cent
and many Of the leading brokers have large sums
rendered to them at a6H per cent First class
paper sells at 8 per cent, and ordinary business
paper at Ia 8 q 10. We have more money seek
ing employment in New York than the trade
of the port can employ. The prospect is that
money will fall in price to per cent, and that
large amounts will remain unemployed until the
war is brought to q close.
Foreign exchange rose last week to lis per
cent for sterling, and 400 for francs-bankers'
bills in both instances The closing rate yesterday
was about ia for sterling, and 4.92H o 95 for
francs The advance in bills was connected with
the advance in gold. Both were mainly the fruit
of speculation though the spectators were largely
assisted by the purchases of persons who invested
their money in gold and exchange, through want
of confidence in government securities. 1t is quite
possible that the crisis through which the United
States are passing may encourage our foreign
bankers to organize new speculations in exchange
and gold, and that the price Of both may rise be-
yond present quotations. But the public
must remember that every fresh advance in either
the one the other is the product either Of specu-
lation or unreasoning panic. Our foreign trade
justi6es no advance in exchange, and our domestic
trade justifes no advance in gold. Shrewd indivi-
duals who wish to make money will therefore
watch the market, and, every time gold rises to an
exorbitant premium, will sell. Gold should not be
worth, intrinsically, one per cent premium at the
present moment.
The following table shows the course of the stock
market during the past week and month";
Dec. a. Dec; 81: Dec; 2s Jan; 4. Jan; II.
N'.;oS5 Nss york; e Central q q ~ 1s as y X
Reading. "a 80 33S 35H 80
M,ss:;, Erg Central sax sa a4 g slis sis si
Illinois Central. soss 5oa coz 81 es,l
SosSDh:i i;oSk Island. 49,. s. ~ sS @ 4sX 81 Ss%
Toledo ........... asX 80 33 34H 81
Panama: :.......1ls lIo exdvlosK Ill 1i2H
Paciac Mail ...... s3e ssT 50 o2ls 90
The whole market has advanced during the
,,ooL Tho p,oyop,ant Ia chioAy duo Tn tho large