Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1863-09-18


BuYING SELLING
New York ............. par Kprem.
Silver....... prem. prem
Demand notes. .2ea3o prem. prem.
Kentucky bank notes. 44s prem
n eng,al' S or w Washington ,.s5 d. ~
Ger ifcates............. 5sSl dis.
Qusrterna~trrs'
VOUCHERS city,. $685.
Quar- ermasters'
Vouchers country. no sale.
Thompson's Reporter says OF financial aff,irs
Of the Government:
Mr. Chase has procured credits on the books OF
the banks in this city for thirty FIVE millions. 81 Il
Tor fifteen millions in Boston aud Philadelphia.
Drafts are To be made during Septe mbtr October
and November
The Secretary paws interest at six per cent 0n
the whole amount from the Sih inst and pays the
amount to the banks ut FIVE per cent. legal tender
treasury notes A. this j. new class OF Govern
ment security, the first issued under the nine
hundred million loan act OF last March il il well
to dicrionze these notes thus:
They bear five per cent interest in currency,
PAYABLE semi annually b. throwing away the
accrued interest. the holder them at any
time for their face. the same as green0acks. even
before they are due Hence call them legal
tender interest notes
Ii is now stated tina, the next issue of securi
ties is To bear ONLY per cent. interest, and THAI
in currency; and that such issues will commence
in October. though we do not expect Ia see them
on the market for the public before November.
We do not understand that the issue OF D - bonds
is to be stopped when these notes begin to be
issued, but We infer
Two questions are suggested in connection
with the bunk loan TO the Government and these
notes First. what effect it will have on the
money market. and second. what will he the eifecl
of large infusion of these legal tender interest
notes on the currency of the country
Having money TO his credit in the banks, sub
ject to draft. Mr Chase can safely use the bll
ances in the sub treasury, even if such balances
stand to the credit of d>bursing officers, and IN
this way lower the accumulation in suh-treasurie'
some twenty millions before drawing on the
banks This would not only keep the monef
marker quiet hut ease it.
On the other hand NJ Chase can draw the
banks faster than necessary. and pile up large
amount of sub treasures This would mike
tight money market. Thus it is that the Sec:
retary has the power To make the money marke'
tight easy. We believe he will keep the mar
ket easy.
We will not now argue the second question
but assert that the legal tender interest note.
will be slightly expansive in their effect on th,
currency
The var being about over what is TO be the
future in a currency and financial point of view
The common remark is that when the countr,
is AZ pence again, revulsion aud a collapse wi.
befali the country. and great contraction a
currency. and great fall in prices must TAXI
place This idea is drawn from former precd
dents. All OF which 90 TO prove that great expin
sion oil paper money and credits are followed b,
reyulsons and contractions. involving decllre
in values
We have no precedents 10 guide us in th.
expansion The paper money and time credits
that are 81 thick among W. are Government
issues Individual and corporate issues are Inn
tied All precedents 90 show that individual
and corporations can press, demand and enior'a
payments: ia this is the element OF u revuisio:
and il q TO work contraction On no
other hand the Government payments can not Z,
pressed or enforced |.
Its quite evident, then. 70 our reasoning. thA
there will be several years of further prosperitr
and even further expansion. between the eStai'
lishment of peace and the reyusion 80 con.
! IDENTIFY predicted. !.
Our theory is, tina, peace will be followed T.
great business activity. and that it will requis
! three or tour wears 20 pile up an Individual a.
/ Joint stock liability of dangerous amount al
/ character.
Daring these wears the Government will reit
/ its demand and short liabilities or what i -
same thing. fund them into long obligations
When the GOvernm ent Is out OF the credit ring. ?
i il will be when il has nothing but interest mon.
and long BOMBS provide for, and when con-
mercial manufacturing and corporate credits y
expanded then, and not before, we may look OF
b Tor - revUlson I!
SAYS one the argument is plausible II suspe1
sion continues. but resump ION of specie pay
menis would certainly bring crisis.
We'll in the first place the Government w.
not force specie payments, Tor political 1t tor {.
other reasnns A money revulSion always OVID
throws the party in office: So the present Aims
istration will be content with things a thew ~
are This will carry the country on upon Dal'e
money until the spring OF 1865 The then "a
coming Administration will have quite enou,
loads To carry without taking up the re~umptt'
/ business Sull We arc not sure that With pc :,
the country will naturally flow into specie pt'
ments and Government money will be a Ing
better than gold. without any effort 20 bring q
such result. in which event there will certairl
be- some years of prosperity between peace and
revulsion.
Our idea Is plainly this The character Of q!
expansion in both money and time credits mt,
change from Government to corporate a.
individual liability. before the Revision com..
This will take some years with suy party.
power
Ne grant that the Government can. oy srr
taxation and a high scale OF interest on lca
bonds. resume specie PAYMENT. and force ge:
raj resumption in which the revuls(
would follow even on the present small indy.
usl and joint stock liability But What Admt
isration would venture upon such financial "a
political suicidel
The weather has been quite warm. and thu
having been good deal of rain. vegetatou:
going on well. and corn that was back ward ~
which had not lis growth arrested by the =
frosts is doing we'll. PAsturage IA Improving
Flour has not changed essentially. althodg
there was a better demand at the close. under u
influence of the news from New York. ~
extra is in demand at 81 05 10 81 .. aud TX
> brand. ~ ~ IS ~ s. 50. Wheat Ia. bern