The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-28


successes: hyAaainatins between issues Of pa.
I per and negotiations Of bonds, and by conduct
! Ing his department wisely and discreetly, in
view OF the interests OF government, and not
in view OF the speeulations or Wall street or tie
premium on gold, the Secretary may, in the course
Of the year, manage to dispose Of q good many
bonds But to 60 this there must be no more such
needless psnics created as WAS caused by the last
thirteen million loan. The good will OF the banks
and bankers 10 indispensable to negotiations.
Such, in few words, is the financial programme
for the year. That II will involve great and IN
paralleled expansion Of credit and imitation Of
| prices is too clear to need demonstration. These
| are the inevitable drawbacks Of oil great wars,
and it is equally idle to complain Of or to try to
prevent them. The following table win show the
| amount of currency which we are going to have:-
AMOUNT OF PAPER MONEY AFIoAT AND AUIHoRzrp
Bank currency now anoss. $l61 goo EGG
Legal tender under acts Of 1892. ,0Q00 900
Legal tender under OF 1863 ..... 100 O00, 900
Treasury notes convertible into legal tender 400 0oo
''-' ''''', 80 49, ii
Total amount Of paper nonSy ..: 900
This does not include $3.50 900, go Of new legal
tender now authorized to be Used in converting
the Treasury notes. -
AS the total amount Of paper money afoAt in the
whole country before the war was about $2l6 O00,-
200, 1t does not need much experience TO perceive
what must be the effect even of prospective in
crease of paper issues to 81 1867 ,O01OOO and one
cannot but feel amused at the sinlpcty of bankers
who talk about this new plan Taking money dear,
or OF Legislators who recomm nded it to Congress
the ground of its conservatism and its tendency to
check the pending infaticA History will probably
decide that, under the circumstances this was the
best practicable financial scheme, and that Con-
gress had no choice but to adopt it, as the Secre-
tary will have no choice but to carry It into effect.
But very few weeks will probably demonstrate
the utter absurdity Of the notion, which has been
ventilated in Congress and in the newspaper organs
OF the government, and which is still entertained
by some of our bankers and fnanciers, that it is
calculated to check expansion, or that it can do
anything else than initiate, to an enormous extent,
prices Of all kinds.
Money was quite easy to-day at per cent The
scarcity of mercantile paper is embarrassing the
banks and they are very glad to lend on stocks at
moderate rates Of interest. Certificates Of indebt
edness are strong.
Gold was less mercurial to-day. It fuctuated
between 1701 and 17ls4, closing l7l1I bid. Ex-
change was quoted at 1877 1885, few bankers be.
ing willing to draw below the latter rate. We
hear Of a sale of leading bankers bill at 10Y
for gold.
The stock market was steady this morning. and
there was not much change in prices Operators
seemed to be studying the Financial BILL and not to
understand its working thoroughly Governments
were higher The registered 6's rose u, the 5's of
1874 a per cent, and 7.30 notes u. On the
general list Pacific Mail rose per cent on the an.
nouncement of British opposition, which is
laughed at here; Hudson rose u. On the other
hand, Erie fell off 4 per cent. There is large
short interest in Erie, and thelbears hammer it with
vigor, though the earnings continue to increase
at prodigious rate. The road is earning all its
interest charges in three months of the year.
Cleveland and Pittsburg fell Loff Il on rumors
of the chance Of a rejection by the committee fthe
new consolidation scheme. 1t is not believed in
well informed quarters that anything of the kind
will be the result. The main obstacle in the way
of final settlement is the disappointment Of in
dividuals whose importance will be diminished by
the consolidation. This will not long stand in the
way of an arrangement equally advantageous to
both roads. At the one P. M. session Of the pub
lie board the market was steady, without change
Of consequence. At the afternoon sessions Of the
boards the market was rather dull. Many leading
operators were free sellers on sellers, and
the bulls did not seem unwilling that they should
get out short line. At the close the following
<I,a