The New York herald., 1862-07-29

| treasury notes, .s-iV per cehti iVH/4 !" AVo
Tennessee 6's, 5oH 5oss; Missouri 6's, 46A {
46ss; American gold, lS6s li6s4; Pacific
Mail, IIlH lIlH New York Central, 92ss {
s21; Erie, 3a7s "a; do preferred, 62H 62K
Hudson River, As 451s; Harlem, l414 l41hs
do. preferred, 351s a5ss; Reading, Sc q Sc
Michigan Central. 6s1s 5914; Michigan Southern
and Northern Indiana, rs a 2514 do. guaranteed
| 54A So; Panama, lSl "a 1926 Illinois Cen
trail, 56A 66A; Galena and Chicago, 67I a
| 6s; Cleveland and Toledo, AZ a 471s; Chicago
and Rock Island, SO a 6314; Chicago, Burlington
and Quincy. 7sI 1915 Milwaukee and Prairie
du Chen, 81 3I1z; New York Central 7's. 1876
| 100 ITO; Erie third mortgage bonds, 981I 9s5s
| Michigan Central s's, first mortgage, LOT . los;
| Illinois Central bonds, rs, 921 q 93.
The Sub-Treasurer ct this port received last
/ week about half million of dollars on deposit at 4
| per cent. As money cominues to fall in value
aese deposits will increase again, and very large
proportion of them will undoubtedly be exchanged,
by and by, for government sixes Time has now
tris3 the system of finance which Mr.. Chase has
adopted, and she public verdict is that it works
we'll There are still few persons who cav and
carp vt it, attempting to make Mr. Chase RESPONSE
BILE for the fluctuations in the price of gold. But
| these oroakers have few adherents, and are re-
garded as either, on the one hand, sneakng trai-
tors, who have not the courage to avow their
sympathy with the rebellion, or, on the other, as
ignorant end silly persons, who are in hopes that,
by denouncing Mr.. Chase, they may get themselves
into notice. 1t is hardly necessary to repeat, at
this late day, that by issuing Paper money
| and making it the currency of the country Mr..
Chase merely followed the examples Of William
Pitt, the greatest finance Minister that England
ever had; and that, in every particular in which
Mr.. Chases scheme differs from Mr.. Pitts, the
advantage is on the side of the former. 1t is q
bad thing, no doubt. that gold should sell at l6
per cent premium. But this is one of the inevita-
Bile results of war; We might have prevented the
rise in gold; but it could only have been done by
acknowledging the Southern confederacy Given
the war, and paper money, and fluctuations in
the price of the precious metals follow "a matter
OF course.
The effect of the issues of paper money
upon values is likely to produce, sooner
or later. change in the direction of
investments on the Stock Exchange. For the
past six or eight months there has been an
unusually large amount of money invested in bonds
Bonds OF all kinds have risen from 10 to so per
cent. None of the first class first mortgage bonds
can be bought below par, except the firsts of the
Pittsburg, Fort Wayne and Chicago. Many of
them, as those of the Hudson. Harlem, New York
Central and Erie, command from LOG to ITO. 1t
is easy to understand the appreciation of these
securities, even without referring to the handsome
traffic on the roads. People who have had
money!. e., legal tender notes-have been
anxious to invest it in something which paid inte-
rest, and they first turned to the bond list as the
safest investment. 1t is now. however, being dis
covered that if the issues of paper money cause
general appreciation of all kinds Of merchandise and
property, the who will be the first to suffer will
be the man of fixed income-in other words
the bondholder. He will be paid in paper, not
gold, and if 81 900 of that paper should only
suffice to pay for as much merchandise as he could
formerly have bought for $500, he will be loser
of the difference. We learn that several holders
of high priced bonds, acting upon this theory
have been selling their bonds, and investing the
money in various ways-to very considerable
extent in stocks. The income on stocks, unlike
the income on bonds, is unlimited, and as the rail
ways are already thinking of raising fares and
freghts, so not to be behind hand in the up
ward movement of prices, they may be enabled to
increase their dividends so as to compensate their
stockholders for any apparent depreciation
dend on the GaIena may be regarded as
an indication Of this policy. In the case
of that road the dividend was raised from
six per cent to eight per cent per annum. Its
stockholders can afford to submit to a seeming
depreciation Of 16 II per cent in the currency,
their dividend is increased s3.per cent. As the
leading roads of the country now. for the
first time in FIVE years, fairly in the hands of their
stockholders, and out of the hands of credit
ors, it may be expected that the example Of the
Galena will be followed by other companies.
Mr.. Chase has directed that parties converting
currency into fivetwenty bonds may hereafter pay
the accrued interest in currency instead of gold.
The business of the SubTreasury was as follows
to-day
Receipts. S362 805 6s
-fof CUSTOMS 2lO,OOO OC
EahnCo u ,03I b5
The exchanges at the Be I. Clearing House this