The New York herald., 1863-08-19
closed with decided upward tendency. The
following were the closing quotations of the day


Gold. 1891 125X Ciey Pitts .io2 io2X
cssssl aasS a q ssss lls lGss
Pacific Mail a24o Rock Island. .io9g no
.eaa 1sx esa ss' az wsSas cSiss ~. sss s.
Erie preferred. !oo4 q l0I Terre Haute.. 66
Hudson kiver!S9 al49X TEaute pref. 85Ha 85H
Harlem. ..I61k a 1852 Chic u N w.. 3S a 3Sx
Reading. ..lle4 1l9X
In consequence of the heavy falling OF in sales
of $40 bonds the Secretary Of the Treasury has
ordered the printing Of the new legal tender notes
to be hastened, and it is probable that some of
them will be in circulation money by lst proxi-
mo. They are to bear q small rate of interest,
which, however, will not clog their free circuia-
ton until q considerable amount of interest has
accumulated on them. As each interest day ap.
proaches they will gradually disappear from cir
culation and be bought up by spectators. After
the interest them has been paid they will
again enter into general circulation as money and
pass from hand to hand at their face value. The
prospect of this addition to the volume of cur
rency afoat naturally suggests inquiries as to the
future OF the money market. For some time past
the volume of currency has been steadily in
creasing. To replace the $l50,000,0 900 Of specie
currency a60at before the war, we have $780,
600 900 Of legal tender greenbacks, an increase Of
$75, ,000, 900 in our bank currency, and about as
much postal currency there used to be silver in
use. We are now going to have, within six
months, probably $780, 900 Of new legal ten
ders and as much new bank currency, issued under
Mr.. Chase's act But this enumeration of the va
rious kinds Of circulating money aAoat and author
lied affords no reliable guide to the actual guam
tity of money held by the people. Since the war
began all kinds of stocks and many other kinds OF
Lorv Mo ;c
crease is, for the time being. an actual gain Of
just 80 much wealth to the country, just
as the great decline of 1867 and 1853 in
vowed an actual loss Of just so much as all
kinds of securities declined A man who
held one thousand shares Of Erie, for instance.
when it was worth 40, was worth $4,000; the
same man, holding the same property to-day, is
worth $ll5 900, and has made $75 900 as surely as
If he had dug it out Of mine or earned it by
trade or industry. If there are, as is supposed,
al 200 900 900 of railroad securities representing
railroad property in this country, the aggregate
increase in the market value of this property
within the past year cannot be less than $780,
| 100000, and there is in the country just that
| amount of new wealth to be invested, to be used
in speculation, to be spent in extravaganza to
| be turned to good account in industry and en-
| tcrprise. Many other kinds of property have ap-
prccated in market value in corresponding de-
gree, and the effect has been the same. In
endeavorng, therefore, to estimate the increase of
money wealth in the country since the war broke
cut it is necessary not only to compute the
volume Of new currency but likewise to take into
account debt certificates and other paper repre-
scntatives of value--whch are really mortgage
bonds upon all property subject to taxation-and
further to estimate the increased money value Of
| all property of which the price has increased since
| the commencement Of the war. II this estimate
| b. carefully and thoroughly made it will be found
that the relations previously existing in this
try between the supply of and demand for money
h We been completely o~crset, and that
we are entering upon a new era in this
respect. Formerly, in this city, the ave.
rage value Of money was seven per cent. Dur
| ing the railroad building era, from 1851 to
| 1857. borrowers were in excess Of lenders;
money in New York was worth on the
| a. erage per cent, and per cent divi-
dc.d paying stocks ruled usually at 30 q 95.
After the crisis of 1857 money fell in value, owing
| tn the stoppage Of moncy-consuming enterprises.
Eat the decline in all classes Of securities during
aad after the crisis of 1857 wiped so much capital
OH. of existence that the .a in the rate OF interest
was not permanent, and the moment business re-
v;ved the rate rose. Within the past year or two
al this capital has again been called into exist
ence. and the government has added to
i. an immense volume Of paper money,
dgbt certificates and other representatives
OF value. There has been no simultaneous de.
velopment of money-consuming enterprises. We
are building few new railroads, opening few
M " mines building few merchant steamers car.
ryng on very little general business on credit.
The consequence is that the supply of capital is
steadily and gradually exceeding the demand for
it, and the rate of interest s steadily tending to-
wards the point at which it stands in older conn
tries where capital has always been in excess.
| The opinion of many well informed inancers is
that Tor long period after the war-until in fact
enterprises enough spring up to consume the in
creased wealth Of the country-the average rate Of
interest in New York win not exceed five per cent
per annun, and the natural par of seven per cent
| dividend paying securities will be l30. This was
| what the Secretary of the Treasury had In view
when he refused par for 500 900 of thirty years
| fves. at.
The business Of the Sub. b.Treasury was as follows
| today
Receipts. 81 121 $50 81
FOR customs. 2l0aet 30
Payments. .aot toS W
Balance. 24olo,oIs 81
The statement of the Philadelphia banks for the
week ending on Monday was as follows
Capital stock... 81 0s5
q. s demand and legal tender notes ....... 75soss9
nue from otl' banks. 2,l5ss4o
Due 70 other BANKS. bLhl5'3
Deposits ~ sesl2
Circniatiop........ ...''.'...',..'..... 2y3osso