The New York herald., 1863-09-14
FINANCIAL AND CONNER CIAL.

| FINANCIAL AND CONNER CIAL.
-~-~~~~~--~--~-~~~>~~~-
SUNDAY, Sept l3, 1868.
/ The money market opened close and rather
stringent last week, but closed easy yesterday.
On Monday NO loans were made below seven per
cent, and some large borrowers, who required
heavy sums, paid commission besides. Yester.
day money was offered to all the leading houses at
seven, and to most Of them at six. Many houses de-
clined to allow over five for deposits on call. The
furry in the market is over, in fact. It was, in
reality, like most of the money panics we have
, had during the war, fictitious strngency pro-
duced by few large speculative bankers, assisted
by few prominent banks. The supply of money
was as copious throughout the panic as it had
been before, and the inquiry for money was not
greater than it had been when money was easy at
five per cent on call. The new government loan
will probably begin to be paid for in instalments
of ten per cent this week or next. Some nneasi-
ness was created on Friday and yesterday by ru.
mors that the supply of legal tender notes in the
hands Of the banks was inadequate to meet the
calls of the Secretary of the Treasury. But, in
the first place. there s4OO 900 900 of legal ten
der notes afoat somewhere, which will come here
4uASniy "AouSh a ShCy oiV WdutCu. oSSoHuiyJ
the Secretary of the Treasury has announced his
purpose of accommodating the banks in every
way possible, even to the extent Of postponing
calls which might inconvenience them; and,
thirdly, the banks have reserve of SIS, ,OOO, 900
in the hands Of the government, which, in the
event of any scarcity Of currency, they are en-.
titled to demand in legal tender notes. fresh
issue Of $50 ,0OO. 900 having been placed by Con.
gress at the disposal of the Treasury Department
for the express purpose Of meeting such demand
But, whatever specializing bankers or greedy
lenders may allege, it is not believed by sound
nanciers that the recent negotiation will diminish
the supply Of money. On the contrary, it seems to
be generally understood that the new $50 900 900
of legal tender money thereby set afoat will in
effect, increase the currency of the country. At
the same time it Is but fair to add that the admin.
stration Of the public funds at this point has
given rise to considerable cavil For some time
past the Sub-Treasury balance has averaged
s25 900 000 Last evening it was nearly 7.000,-
600. 1t is understood that nearly the whole
Of this money has been for weeks and
even months placed to the credit Of dis
bursing officers, who, after clamoring violently
for appropriations until they were made by the
Treasury Department, no sooner got the money
they wanted than their zeal evaporated, and they
neglected altogether to pay the creditors of gov
ernment. II, as the newspapers report, the heads
of departments at Washington are bent on shelv-
ing red tape and inefficient officials, we suggest
that these disbursing officers, who gave Mr.. Chase
no peace till they got money, and now that they
have it let it lie idle in the Sub-Treasury, are IT.
ting cases for the application Of the new rule II
ID -
munity that the Treasury Department is blame
less when people see Mr.. Chase convulsing the
market by applications for new loans. at time
when he seems to have f25 ,oOo,Qg TO his credit
with the Sub.fressnfer at this Point. = -
Gold sold as high last week as 1897, and as
low as 1881 closing yesterday at about 130. Ex-
change rose to lac and was done as low as 141.
The frmness OF gold, in the face Of the fall of
Knoxville and Little Rock and the
inevitable fall Of Charleston has given rise TO con-
siderable astonishment. II may be explained,
however, by variety ofreasons In the first place,
there is a very large short interest in gold, and
limited supply. Again iinportations are large;
almost every article Of foreign growth or manufac
ture s selling at price which affords fair profit
to the importer; while, on the other hand. ex-
PViN7, W consequence VI thc uVuheh"i si''s''
both abroad and at home, are lees than they
were at this time last year. Hence many
merchants argue that we shall be compelled
to export large quantities Of bullion this fall, In
order to keep the balance OF trade square. Final.
ly, ting persons doubt very seriously whether
the end OF the rebellion is near as has been sun.
posed by some sangune patriots. We possess by
military force the whole or ,aearly. the whole, Of
Tennessee, and large pcrtion OF Louisiana. tits
well known ktweye7, IL official circles, that the
authorities dare hot order popular election in
either s..ate. Until the rebel army commanded by
Lee, and the remnants Of the armies commanded
by Johnston and Bragg, have been thoroughly
beaten and dispersed, 1t cannot be fairly expected
that the populations which have friends and repre-.
sentatives in those armies will vote to sustain the
government that is crushing them out. And, under
these circumstances, IL il regarded in many quar-
ters as only natural that gold should con.
tinue to command a substantial premium, as II is
clear that II the war lasts another year the Trsa.
sury Department will 30 compelled 70 issue A.
least s2oo,ooo,ooo more pabtf 5asJ n5asj. On Ne
other hand, Europe is taking large amounts Of
American securities Of various kinds. all of which
supply exchange; and II is clear that IL the fall Of
Charleston, and the dissection, east and west OF the
rebel con'ederaey, which would appear inevitable
after that event, should lead to collapse Of this IN
ierha rebellion scry would arise for the resun,p
uon OF specie paypt nts, which would hardly G,,.
I" ne ahoptsd as party cry by the Opposition 10