The New York herald., 1862-10-17
FINANCIAL AND COMMER cIAL.
THURSDAY, Oct. rs -6P. NJ.

Money is in fair demand at 4 5 par cent on ca,i
and some lenders get for their rasans. Bankers I
are generally very careful in inspecting colaterals
though they are not exactiny with regard to |
margins as they were a week ago. Lendera are
getting accustomed to the present prices Of stocks
and III short time will be glad enough to advance
money on the old ten per cent margin.
Exchange fell of this morning to 149. and mo-
derate business was done at that rate ana at 1917
Custom House notes fuctuated all day betweea
l2S and l29, closing at 1881 bid.
Gold opened this morning at l3s, fell to 1927
on rumor that the banks were gong to stop
| lending on it, rallied to l35 when the rumar
| discovered to be false, sold at l35 in the after
noon. and closed 134T bid. The spectacle Of
depreciation Of IS per cent in the national cur
rency is huniliating and unwarrantable at this
! stage OF the war; There is nothing either in the
condition of the country, or the national resources
| or the prospects Of the war, to justify any such
| depreciation. If we had been at war for six
! seven years, with varying fortunes and doubt
| ful prospects, gold might perhaps be fairly
worth premium of thrty-fve per cent. As il is.
| the premium is excessive and preposterous. and
cannot be maintained. 1t arises of course, in the
first place, from speculation. Spectators have
neglected fancy stocks to dabble in gold. Every
| q
and i fascinated by its rapid and eccentric luctu-
atoms But the opportunity for this speculation
| would have been long postponed. and might
never have occurred, if Congress had done it's
duty If the Secretary OF the Treasury had en-
forced upon Congress with more earnestness
and persistence those sound views of finance
which are embodied in his reports, and
brought to bear upon obstructive members the
| Of fla Inns INSTR ratiI apt
authorizing the issue Of legal tender notes would
likewise have provided FOR the immediate or
future withdrawal from circulation Of all existing
bank notes, thus insuring the public against an
unlimited food Of paper money at some future
day: and the Tax and Tariff bills instead Of being
passed at the close OF the session, late that
the former will not be in full operation
before New Year, would have become
laws much earlier, and would have long
ago been supplying the government with money.
If the government now in receipt of $40, ,OOo,
600 month from duties and taxes-as will prob.
ably be the case next year--there would be no
temptation to buy gold at 1856. Every one would
see at glance that the securities of government
with such revenue as this were quite as good as
gold. And if Mr. Ckase's well known views in re-
gard to the substitution Of legal tender notes for
the existing bank circulation had been en-
bodied in measure even looking pros
pectiyely to the forced withdrawal OF all
bank issues, people would have felt
the uneasiness they do now in regard to
paper money imitation. In point Of fact, as can
readily be ascertained by inquiry at the proper
quarter, thege il considerably less money aloat in
the country to-day than there was a year ago.
The amount OF paper added to the general volume
of currency by Mr.. Chase is less than the amount
of bank notes and bullion which has been with
drawn. One great obstacle in the way Of con-
versions is the scarcity Of legal tender notes.
There are not, in all probability, IS 900 900 legal
tender notes in all New York. II is the apprehen.
sion of further issues both by government and
banks. and the fear that Congress will again
disregard Mr.. Chase's recofnme endations and re-
fuse to tax bank notes, which has led TO the talk
about paper expansion, and TO the imitation of
values Financiers continue to ventilate theories
to check the speculation and the rise in gold. The
, banks are asked not to lend upon IL. We have all
along held that the banks were pursuing an un-
wise course in lending on gold, to the palpable
dstriment Of their own assets. But row that
they have set the example Of treating gold as an
article Of merchandise, il they call in their
loans, will not their depostors be glad to
take their place? Again, it is proposed TO
strike gold from the brokers' list at the Stock Ex.
. change. We were sorry to see gold placed on the
list, because IL was evident that its being there
would promote speculation in IL. But, now that
speculation In gold has become well nigh universal,
will anything be gained.by transferring the traoBc
in gold from the open board TO the private Offices
Of money dealers! There are q few houses in wall
street which will make fortunes II gold is stricken
from the list Of the Stock Exchange. But will the
public be gamer by the change, The wisest course
in such matters as this gold speculation is 10 let the
spectators have their wuwsy Auexcessive rise ID