The New York herald., 1862-11-26
FINANCIAL AND coMMERc ciAL.
TUESDAY. Nov. 2s-sP.M.

TUESDAY, Nov. 25-6P.M.
n Is nov pretty well understood that the Secre-
tary Of the Treasury win propose to Congress
when il meets ne xt week n essentially new fnan-
cial policy. The advance in gold. and more espe.
cially the advance in all articles of-merchandise,
have created wide spread dissatisfaction at the
West; and though il has not yet been demonstrate
ed that the proposed departure from the financial
policy heretofore pursued viii remedy all these
evils ii is nevertheless considered due TO the peo-
pie who complain and TO the party which has car
ried tile Northern States partly in consequence Of
the dissatisfaction al the depreciation of the
rency that some other plan of finance should mt
all events be attempted. The only ground upon
which issues OF paper money, made a legal TENDER
have ever been justified by sound hnan
ciers, is the ground Of absolute necessity.
Mr.. Chase's friends have all along held that
without resorting to paper money the war
could not be carried on. 1t is now claimed by
financial authorities who are entitled to respect
that the money required for the prosecution OF the
war can be obtained without issuing another dol
lar Of paper and it is proper that the experiment
should be tried. A country with resources such
as ours and revenue from direct and indirect
taxes Of from $3.50. 900 900 to 5000 0eS per an
mum, ought, they say, to be able to borrow as
much more, without submitting to undue extor-
tion at the hands of money lenders. II it can it
win be infinitely better to do so rather than at
tempt further issues of paper. The Secretary of
the Treasury is understood to favor, in the first
place, the establishment Of banks of issue
throughout the country, whose issues shall be
based exclusively on government currency. and
shall be exempted from taxation; and secondly
long twenty year six per cent loan to be nego-
stated at the market price. At the first blush it
Is difficult to discover how the government will
derive any pecuniary aid from the bank scheme,
who will undertake to establish any such banks, or
what use they will be to-any one But ifCongress
will relax tile Sub Treasury act, end the Legal
Tender act of last session, as to permit bidders
for new loan to pay in any kind Of money that
will pass current a six per cent twenty years loan
might perhaps sell at or par; especially if
the money were called for in instalments, as, for
instance four or five millions week, SO
that the government might disburse with
one hand as fast as it received with the
other. The advantage Of this system of finance
would be that il would cause speedy decline in
gold, and likewise in all the commodities which
have advanced in price in consequence Of the ap-
parent depreciation of the currency, and would
thus gradually relieve the farmers of the West
Of tho terrible burthens which the enhanced cost
of dry goods groceries and other merchandise has
laid upon them. The argument against it is the
doubt of its practicability. This problem cannot
he solved till the experiment is tried. Deputa-
tons of bankers 80 ON from here every day or two,
each recominen ndirg some scheme or other; but as
the question new stands, we have reason to believe
that the Secretary occupies the position above
codx viii To
the paper money system, at least for the present.
Money is worth six per cent on call. Some Dor.
rowers on stock collateral are paying seven per
cent. First class paper sells at IA S per cept.
The banks are generally pursuing a prudent
course. and are preparing themselves for the con.
tingencies of the future, by keeping their loans
down.
Exchange fell this morning to 1897 IA, clos
ing in the afternoon OF las l43N. The decline
was caused by the fall in gold, which, after open
fng at 100, fell to l2ss between the boards, sole
at l29 in the afternoon, and closed at 1891 bid
The bears have a fine prospect of profit on thei
gold contracts. It is commodity not easily cor
nsred
The stock market opened lower this morning
was steady between the boards, irregular at the
second board, and closed very heavy. About a
year ago when government was first recommended
20 issue paper money as the only means of carry
ing on the war; the jobbers in fancy stocks argued
that they must rise, because the country would be
saturated with paper and every one would want
20 get rid OF il by buying something or other.
They pointed to tho state Of things at Richmond,
and showed that indscriminate issues OF paper
money there had caused State stocks worth $50
to sell above par there, and railway stocks which
never had even a nominal value to advance to the
nsighborhood of par. Acting upon this theory the
jobbers all begsn to buy stocks; and after time
the public caught the infection, and Wall street
witnessed one Of the most remarkable bull move
ments ever known in this country. To give an idea
ofthe extent of the advance in stocks which has
been predicated the expected excessive issues of
paper we append the following table,
Socks. Price Nor. 1861. Price Nou. 1852
Now York Central ............. rs los
kris... ............................ BOX 81
ftuason .....................s.. oi4 "a
Reading Observation-Disclosures. 34X II
iynu en-