The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-03-23
FINANCIAL AND COMMERCIAL.

eDUeO
tions Of foreign goods and inerehand'se exclusive
of dry goods, amounted to s2s437 ,4s9; to wAcn
add the declared value of the dry goods imported,
81, roe 7sl, and the aggregate foots up A,lss,l7O
A against this we exported 81 67l ,223 Of domestic
produce, and 81 POI ,9O7 of epecie-in all IS s73,
1870. Besides these experts, which are regularly
entered at the Custom House, We sent abroad last
week large amount Of United States and railroad
securities. 1t is very difficult to estimate the
amount Of the securities which ere being sent
abroad; no banker likes to report his own transac-
lions, and the aggregate of the operations OF all
the bankers is mystery which cannot be deter
mined with anything like certainly. 1t is safe to
assume, however, that, including American secu-
rites shipped to Europe, our exports last week
were very largely in excess OF our imports, and
that the balance of trade has been made to lean
still more in favor of this country. The decline in
specie from l73 to l54 has not thus far operated to
check the export of produce; the lower rate is
quite high enough both to stimulate the outward
movement of food and to tempt foreign spectators
to invest their means in American securities.
The money market was very easy last week, and
rates underwent a sensible relaxation. At the
close yesterday it difficult to place money at a
higher rate than five per cent call, and the best
mercantile paper in demand at five. Debt
certificates, issued since Sd Of March, principal
and interest payable in currency, are wanted at
974. The old certificates, on which the interest
is payable in gold, are within the merest fraction
of par. The notion which has been entertained in
some quarters, that Mr.. Chase will cause strin-
gency in the money market by forcing loan upon
Wall street, appears now to be pretty generally
abandoned.
1t is, of course, the policy of the Secretary of
the Treasury, who is essentially borrower and
not q lender, to keep money as easy and as cheap
as he can. Common sense indicates that no step
should be taken which could interfere with the
present generous tender Of means to the govern
ment or chill the present willingness to purchase
United States securities at premium.
Government is now receiving at very low rate
of interest more money than 10 required for the
payment Of the entire expenses Of the war. On
Friday and yesterday the receipts at this point
alone Of money on deposit at per cent on call ex
ceeded million per day, which supposss at least
million and quarter at all the sub-treasuries.
The receipts for conversion for the past day or two
have averaged $750,0O0 per day, and it may fairly
be assumed that the average will not fall below
$500 900 from this out, so long as the money
market is undisturbed. Add to this $500 900 day
from internal taxes-avery low average-and we
have an aggregate revenue Of 50 100000 day
more than the total war expenditure. Besides this
the government is receiving $500 900 each work
ing day in gold from customs, and the bank note
companies are printing 81 $50 900 a day of paper
money. What more could government want? So
long as the total expenditures occasioned by the
war are betrayed by voluntary contributions ia
this manner, it would be obviously impolitic to
| attempt new schemes that it may be safely
concluded that they will not be tried. When the
500 600 900 limit Of call loans has been reached
| 1t may be proper to offer q loan, and II we have
some military successes it will sell well. In the
meantime the obvious policy of the govern
menti to take all the money which is offered at five
| per cent and in exchange for $40 bonds, and to
| avoid any measure which would have tendency
| to check deposits either on call for conversion
An issue of interest bearing Treasury notes icon
vertbe into legal tender and therefore practically
money! will probably be made as soon as tn,
limit fixed by law to the per cent deposits hal
been reached. But IL is hard to believe, as some
of the money lenders do, that such an issue will
create an active money market. These new notes
disguise them as you will, will still be paper
money, and the law of political economy is clear
that every addition to the volume Of currency must
increase the supply of money and diminish its cur
rent value. They may for day or two absorb
some idle capital But II money becomes at all
scarce they will be converted at once for it will
be profitable to convert them. The banks will re-
ceive them as money, and if money be in demand
at per cent above the rate which they bear they
will enter into circulation as currency. Meanwhile
the present prospect is that money will continue to
grow plentiful and that the rate of interest will de
cline to the minimum fixed by the government.
Gold fuctuated last week between l54 and l57
closing yesterday at about 1854. Exchange clio ed
at 100 40, with very light demand. The law
Of Congress and the law which is about to pass the
State Legislature will pretty cnectually check
the speculation in gold, which has so pre-
posterously deprecated the national currency
It is not expected that the Secretary Of the Trca
sury will adopt any violent measures for the pur
pose Of depressing gold 20 per cent at blow
The effect Of such measures would be to cheek
exports Of produce, to deprive the farmer of the
foreign market which he now enjoys, and to stop, al
once the foreign demand for American securities
Any such policy as this would do harm more thar
good. To keep the people of the North firm in
their fealty to the government there must be no
financial tours de force which would lead either to
financial crisis in Wall street, or to such col.
lapse in gold should denolish the market Tor
| domestic produce, or stop the foreign demand for
American wheat, corn. provisions and stocks.
Gold must be left free TO fall gradually under the
combined effort Of increasing confidence and vcto-
ries. Government can do nothing unless the peo-
pie kept in a state Of comfort and prosperity.
II they are kept in this state they viii support the
war and pay taxes checriully. Nothing would
so quickly disgust people with the war and stop
the collection Of taxes any crisis in financial
1 affairs.
The following table shows the course Of the stock
market for the past week and month";
Fj ~. FL 20. Mar. 7. Mar. ID. Nor q.
u :. 6s, reglstd. OK 10 90 lOiis 1O3