The New York herald., 1863-09-04
FINANCIAL AND COMMERCIAL.
THURSDAY, Sept. 3-6 p. M


This has been a day of fever, excitement and
panic The decline in the stock market and the
advance in gold are almost unexampled even in
the present era of rapid fluctuations. At one Z. NJ
to-day Mr. Cisco met the presidents of the asso
ciated banks and explained 70 them that the
Secretary of the Treasury required money ana
desired to dispose of $50 900 900 of new legal
tender notes, one year to run, bearing per cent
interest. He asked the banks to take them, pay
ing for them in the old legal tender issue, in in
s.alments the first instaiment of per cent being
payable at once, and the last before November
80 The proposition was at unanimously
agreed to, and the money passed to the
credit of the Treasury Deartment. We under
stand that similar conferences have been or
will be held at Boston and Philadelphia, and
that sl5 900 900 more of the same class of interest
bearing legal tender notes will be placed in those
two cities, making the total issue $50 900 900.
The notes I'LL probably begin to be delivered to
the banks by lst proSmo. 1t was this negotiation
which led 20 the excitement in gold and stocks to-
day. At first blush it would appear that the
arrangement merely amounts, in plain English, to
further issue of fifty millions of rredeemabe
paper and in this view the gold operators would
appear to have acted more ntelligently than the
legal tender for their face, aud for some time to
come the smaller denominations will evidently pass
current as money from hand to hand, thus in.
oreasing, not diminishing, the supply of money
available for purposes of speculation and COM
merce. After time, when certain amount OF
fnlAfssl has accrued the notes will not circulate
freely but will be boarded for the sake oi the inte
rest tIey bear, unless moneyrules alta high rate oil
interest. 1t money becomes active, operators IN
merchandise stocks will be able to AFFORD 10 dis-
regard the accrued interest on these notes, and so
long as the activity lasts they will be used as
money for their face. Nothing has transpired
with regard TO the times at which the Secretary
will cali upon the banks for payments under the
new negotiations; but, Judging from the experience
OF past loans and the natural probabilities OF the
case we presume that the calls will be Tor ten per
cent at time, say s3,50O,00O. at intervals OF
eight to ten days each. The Sub-Treasury ba.
lance il large, and the Secretary stands in no
pressing need of large sums of money. Our banks
could afford to pay 50 500 900 every ten days with
out creating any disturbance in the money market,
especially as the experience OF past loans shows
that the money returns to the banks almost as fast
as they pay il into the Sub Treasury. II any scar.
city OF currency occurred, they could draw upon
the SO 900 900 Of temporary deposits in the Sub
Treasury for the redemption of which the Secre-
tary holds $50 900 900 Of old legal tenders in add
tion to the 500 900 OOD now afoat.
Notwithstanding reports to the contrary, the
money market, though quite active, has not beer
stringent to-day. Several loans were called in th!
morning partly by banks who desired to strengthe,
themselves in view Of the government loan ant
partly by lenders who sought 10 get higher rates
ior their money hy increasing the disturbance il
the market. But AZ the close Of bank hour,
many II moi most, Of the leading stock houses and
many OF the bankers had money over which thcy
would have been glad To lend at per cent III,
sitting process which is going on IN the stock mar.
kct IL reducing the volume of Tho loans outstaud.
i1g. In a day or two the amount of stocks under
hypothecation will he considerably reduced.
Gold opened this morning at lgSa4 and rose
steadily to 1917, at which point il stood At two
PM In the afternoon il sold at l3l, l30. l3l
Is2 and 1879. and closed at five p. NJ. at 1872
Exchange was lil, li2. III. li5, and lit54 at The
clo.e. The advance in gold il due in part TO the
low price Of breadstuffs. which forcshadows
heavy export Of bullion this fall, but more direct,
10 the prospect Of further issues Of irrcdeemabl,
paper. There is rather more speculation IN gol,
than there was. But, in view Of the probable ial
of Charleston and Chattanooga, the buyers for Oh,
rise must he endowed with remarkable courage.
The panic in stocks to-day was the most severe
that We have had for years. AZ the first boar
there was a perfect rush TO sell stocks, seem
ingly Tor account Of parties whose margins
wetc becoming exhausted. New York Cen
tral tell 3 per cent Erie 1, Erie preferred
1is Hudson River ~, Harlem :. ReadinS
81. southern old 6lS, guaranteed 3 Fort wayn,
6[ illinois Central Piusburg G. Toledo I. Rocl
Island 4, Chicago and Alton :, Quicksilver ]. IA
ciHc Mail 4. There was no change in governments
Missouri, sympathized with the general market !,
,l,a cN'snt Of one per cent. At the close Of m,
session there was at first more steadness: but a
usual. happens in falling market, between tn
bvagAa ac SNAIL BY VI stgsei spee eator. al bega