The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-05-11
FINANCIAL AND cOMMERCI AL.

SUNDAY. May 10, ise3
The feature OF last weeks financial transac tons
was the extraordinary 6rmncss and constancy lis-
played by the public in the face Of the distressing
news from the Army of the Potomac Govern
ments did not decline over one per cent gold rose
at time 10 l57, but instantly declined to the
price which had ruled before tho battles at Chan
cellorsville; there was scarcely any check TO the
fusding Of currency. The military news had led
the most experienced observers to anticipate en-
tireiy different results. 1t had been confidently
expected that the repulse Of Hooker would cause
gold to rise to l65, governments to fall to a dis
count, and conversions Of currency to cease alto
gether. The disappointment Of these confident
expectations must be ascrbcd, FIRST to the convic
tion-which is now universal-that the United
States can and win prosecute the war for an in
definite period Of time in fact, till the object Of
the contest has been secured independently of re-
verses and disasters; and, secondly, to the infa
ton which is now going on. II has long been OBJ
vious thas we are in the midst of the most stupen
dous imitation ever witnessed on this continent
Every one is interested in maintaining the price Of
some stock or article of merchandise and the
whole financial and specializing community is
united in opposition to anything like collapse or
even serious decline. Every symptom of alarm
rallies the entire public in support of the stat quo
the steady advance of prices and the gradual de-
velopment Of speculation. Government itself
is carried along by the general tide. Specu-
lators in stocks and merchandise support
governments because their particular inter-
ests would be injured by marked decline in
any class of leading securities. All operators are
joint and several underwriters, 30 to speak,
Of the flush times in which we live. That these
flush times rest on an unnatural bass-namely, q
basis Of paper MONEYS perfectly true; and it is
equally certain that the imitation now in progress
must lead to disastrous collapse sooner or later
But 80 long rs the war lasts, and the government
continues to spend two millions day, there is no
prospect of any immediate change in the financial
prospect, especially as the issues of paper money
are ever on the increase. On the contrary, the
present prospect--clear and readily discernible-
is that, so long the war lasts, and the
expenditures of government continue on
their present scale, the imitation and con-
sequent seeming prosperity must continue and
increase in geometrical progression; and
this for the that each advance in the price Of
any particular article affects other articles, which
in turn react upon each other. Never was there
time in the history of the United States when in.
dustry, agriculture and enterprise yielded such
large returns as present. Farmers are making
fortunes by the sale Of their produce. Labor of
all kinds commands largely increased hire, and Is
scarce at the advance. Manufacturing companies
in New England which used to earn 10 o IL per
cent per annum, and deem themselves prosperous
now divide SO per cent; railroads which in former
times could barely earn minute dividend on their
stock are new making Is to rs per cent. Prices
arc higher, it is true; but the sdvance is uniforEi
and is thus only just to the producer, and not un.
fair to the consumer. Land which was dear ~
$50 an acre vixen grain was at fifty cents is cheap
at tl00 when grain commands 81 so. Stocks which
were dear at so per cent when the property
they represented barely canned interes. and
expenses are cheap at par when the property
earns 10 per cent per snnum. Paper money,
flowing through the country like summer rains
through parched meadows, has started life and
vegetation on every side. and until the day Of
reckoning cohesive shall witness constantly 10.
creasing imitation, which will counteract the de.
pressing effect of any rcverses or military defeats.
Money was active last week, in consequence Of
the increased inquiry for loans, arising from the
fresh development Of stock speculation. Yester.
day the supply was more liberal. and the rate at
the close Of banking hoursw about five per cent,
though most Of the loans effected early in the day
were at six. In ordinary times the brokers rely
upon five or six bankers for the money they need.
When speculation develops, the resources Of these
few houses become insufficient for the wants
Of operators, and for day or two the money
market is said TO be tight, which state Of things
Immediately brings new lenders into the street. In
effect there is more money discussed by govern
ment and available for loans-if only it be placed
within reach Of the brokers-in week than the
Stock Exchange can absorb in month.
Gold rose last week at enc time to 1877, but fell
off, and closed yesterday at 1907. Exchange sold
as high as ITO, but closed yesterday dull at 1917
l65. Speculation in gold and exchange is dead.
No one can afford to carry gold on speculation,
and the hoarls laid aside by merchants are being
gradually forced into the market. heavy de-
cline in gold can hardly be expected 80 long as the
government continues to issue paper money as fast
as it be printed; but there but few believers
in immediate and substantial advance in the
premium. The copperheads have learned a lesson
in this matter which they are not likely to forget
The following table shows the course Of the stock
market for the past week and month";
Apl II. Ap1 is. Apl25 xdy2 Moye
u. s. 6's, roglstd .101k 103. 1OlX LOT 1867