The New York herald., 1863-03-16

eesei subsequently to March 5, find ready salt
- ! ai'couGt Of about 3% per cent
,sod hactnated last week between l54 and lG3
closing ,ast evening at about l5734. Exchange
vared ir.m l6o 10 1872, closing yesterday at about
40 Of she future Of the gold market there il
but one 'inion among the experienced operators
IN The street, and that is that the price must de-
chne-especially If we have the least military sue
cess. Tho decline which commenced nearly a
lof.night ago was mainly arrested by the exces-
slse opera OF the bears. They have succeeded
IN cornerIng gold-making it SO scarce that an
e'ghh Of one per cent is daily paid for the nse Of
gold for Ensle day. 1t need har,! :. -. remarked
that corners Of this description never last long.
mere is plenty OF gold in The country, and soon
as is known that it can be lent at q per day.
even half or quarter of this sum, it will find its
way into Wall street for employment. But We ap
prehend that the policy of the Secretary OF the
Treasury will solve the gold problem much more
directly ana rapidly than it can be solved by an
increased supply from zeal holders.
The Secretary Of the Treasury arrived here at a
late hour on Friday evening, and is in town still
He has had no conference with the banks and has
expressed 10 wish for any such conference. 7.
has been no bank meeting whatever on the subject
Of the national finances. II is surmisc Of course.
that he intends, before he leayc. to gather the
sense Of the financial cor...nnunity on the sub.
ject Of his financial policy. But thus far
he he's sought no advice from the bankers
cqlteotye,,y; and persons supposed to be in his
seczets assert positively that he has no idea what
ever OF offering a loan until the military and naval
operations which are in progress have strengthen
ed public confidence 1t is presumed that his visit
has moyc particular reference to the negotiation
of loans abroad than to any other point Of policy.
Within the past few weeks the high rate of the
foreign exchanges, and the low price at which this
rate enabled Foreigners to buy American scc,ri-
ties, have developed considerable speculative
inquiry for United States bonds abroad This in
qury has caused United States skies of 1881 to
advance per cent, 7.30 notes to advance So and
the ives of 1874 per cent. Some time since u
scheme was set on foot in London for the purchase
by the joint stock banks and THEN customers of $50,
coo, ,0Go OF United States per cent bonds at given
price We are not informed how far the project pro-
gressed hut have the best authority for stating
that . position has been made to Mr.. Chase
by bankers or the contincnts of Europe fer the
purchase Of Oo,Vo0,0o0 OF United States long
six per cent bonds at given price, and under con-
ditons which would give the purchasers the con-
trci of the market for certain number of days.
We have 10 official information with regard to the
rate OF the bid. 1t is understood in Wall street,
however, that It would net the Secretary, at the
present rate Of exchange, about par for his bonds.
| If this be so there can be no doubt. we should
suppose, of its acceptance. If the Secretary had
authority to draw 500 OOe 900 Of bills on Paris or
Frankfort he would enjoy as complete control Of
the gold and exchange markets as he now wieds
IN Al, ,fr14 Ia
gold down at once 20 a rs per cent and exchange
in prop ortion anthe would Of course hasten to
do so. The practical effect Of such a negotiation
would be the same as if he suddenly came into
possession Of 500 600, 900 Of specie and was able
to throw it or he market.
IT, in addition 10 the money obtained from this
source, the Secretary were to negotiate a loan
payable exclusively in overdue debt certificates
he would find himself IN velvet. He has o very
large amount Of legal tender notes Oh hand and
authorized. he receives daily about $3.50 600 from
Internal taxes and nearly as much from the con
version of legal tender notes into $40 bonds. His
debt certificates, which are very popular secur-
| ity, may be issued to any amount Congress has
conferred unlimited powers upon him with regard TO
them. By udicious of these certificates Which
| can be funded from time to time in long stock: by
issuing his LOCAL tender notes freely, to reduce
the price of money here TO four per cent or there
| abouts and put government securities to sub.
| stantial premium, and by scrupuonsy avoiding
| any steps which would create needless alarm or
! embarrassment in tn, money market, the Secre-
| tary may pave the way for satisfactory negotia
on--on the heels of the next victory--of long
loan Of fifty hundred million dollars. The
country at large is prosperous and rich notwith-
! standing the war. The volume of money afoat-
though more than dcable what it was before the
wars no more than is needed 10 transact The
enormously increased internal business created by
the government expenditures and the prosperity
| caused by tic increase OF paper money. Money is
| no cheaper than it was two years ago,
though paper currency is 1926 900 900 against
1912 100000 in the whole Union in 1861. and hun.
drcds Of millions Of debt certificates, Treasury
notes and other paper Securities have been set
aioat and used the basis Of bank discounts
All that is wanted to engineer the public finances
safely and smoothly during the next six months is
| little circumspection and prudence.
Tha tah shoxa af tI,a eto