The New York herald., 1862-12-04
FINANCIAL AND CONNER clAL.

WEDNESDAY, Dec 36 T NJ.
There is an active demand for money at per
cent. Spectators are borrowing freely ,ou call
al This rate Paper continues undisturhed at about
5 per cent for the best names Certificates of in
debtedness arc selling at 21< n discount. A
liberal use Of these certificates, which are payable
in twelve months. with interest, at 6 per cent,
would enable Mr.. Chase to dispense with the use
Of legal tender money, except for the payment OF
the troops: and the latter would be very glad to
accept payment il any currency which was pro-
perly secured, and which passed current in the
section where their families live.
Exchange was higher to-day AT tie opening
there were transactions at i45L and i46, and the
market closed at l46 for bankers sterling bills.
Gold advanced again to-day to 1925, closing at
1925. This advance in gold, which is mere
conventional method Of describing the dcpreoia-
ton of the national currency, arises from a belle
among spectators that Mr.. Chase will recommend
and Congress sanction a further increase of legal
tender money. Mr. Chase has already issued
1920 900 900 of this currency and has $4,000 900
more to issue. besides reserve OF $50 600 900 to
reimburse. temporary deposits, and the banks
throughout the North have for more than year
been increasing their currency as rapidly as they
could; SO that the aggregate paper currency Of
the North is now considerably larger than the total
currency, of paper and specie, which was afoat
before the rebellion Yet still it seems to be be-
lcyed at least in Wall street, that neither the
Treasury Department nor the Committee of Ways
and Means have the nerve to look the situation
squarey in the face, and revert to the DID, safe,
honest and legitimate method of raising money
for the prosecution of the war. 1t is said by the
partisans of more issues Of paper that the people
want them; that they are popular, and will be
readily absorbed. This is undoubtedly the case.
But see the cost of this absorption. Gold is al
ready selling at 1872, and every article that is con
sumcd by the people has advanced in proportion
Living is fully 80 per cent dearer than it was
Sugars, tea, coffee, dry goods, tools. manufactures
Of all kinds arc more than thirty per cent dearer
than they were. Seventy five cents in paper
year ago, would pay for as much as a dollar will
now. Further issues of paper--such as we are
told the people want-will cause further increase
in prices Just great as the last Gold would ad-
vance under the stimulus of 5000 900 900 more lc
gal tender notes to $50 160, and sugar, tea, coi-
fee dry goods manufactures and merchandise OF all
descriptions to corresponding prices. The rich
would grow richer, and the poor poorer-for wages
always rise after everything else. dollar OF
legal tender money if $500, 600 900 areset afoat
and the bank currency left to .crcuate-wiil only
buy as much tea coffee or dry goods as can be
bought now for seyenty-hve cents and could be
bought year ago for fifty And. notwithstanding
all these Inconvenience, Issue viii not make it
any easier for Mr. Chase to borrow money than il
now. Money is dearer now in this city than it was
before Mr. Chase issuesa dollar OF paper. There
is no reason to suppose il would be any cheaper
&c
legal tender money, BY enhancing the price of
everything, increase the demand for and consump.
ton Of money in corresponding ratio Goods or
stocks which could be carried year ago for
800 600 now require 500 600 10 carry them.
More money is required foI the purchase OF every
article that is consumed in manufacturing indus
try, commerce or private life. The demand, in
fact, increases with and adaptsitse to the supply
Such a thing as plethora of money, created
by the arbitrary fiat OF Congress, assisted
by few printing presses, IL palpaby impossible
All that lies in the power of Congress to do ia to
disturb values, and ultimately involve the poor in
ruin. A few days will now decide whether this is
to be done. The Treasurer's report which was
promised to-day will, we learn, be sent in to-
morrow.
The stock market opened dull aud heavy this
morning, and a the commencement Of the first
board prices looked as though they would decline.
But when Michigan Central was reached
on the call a lively demand sprang up,
which extended throughout the list The buying
was confined to one or two prominent
houses, whose speculative operations have lately
been large. At the close Of the first board an ad-
vance Of 2 per cent had been realized on the
leading active shares and the market was so buoy.
ant that most of the bears covered their contracts
Between the boards there was good deal OF real
izng, and prices reacted "A * per cent. AT the
second board prices were fraction lower. with
less speculative activity. The public arc taking
no interest in the movements of stocks at presents
both the bulls and the bears Wall street specu.
lators. The future of the market is too uncertain
to tempt outside operators to take part. The fol-
lowing were the closing quotations
sreg, 81 1901 1901 Hud Riv RR. 76s,s 55r,
uses, cot, ell0t,f losts Harlem RR... I'D 22ls
w 's,cou, -. g2}s ~ Harlem PREF So 52f !
Treas nj 3.lO.l0l l045s loading Rll. 76Sa ~