Daily national Republican., 1863-09-05
The Whole Subject Of Fl.
nances Discussed.
Low PRICE OF BREADSTUFFS
The Effect Of the Fall Of Charleston
and Chattanooga.

We copy thv following important monetary
article from the New York Hrd!do of yesterday
giving a detail account Of the cause of the re-
The author Of tho monetary articles IN the
HonlG (Mr. Bonhcr) j. gentlemen well
known 10 lis aI being always well posted, and
strictly reliable on the great IucI ton of the
I National hnHlrcs.
Financial and Commercial.
THURsUAr, Sept. J. q y. III.
/ This ha, been n LAY of fever, excitement and
panic. The decline in the stock market and
the adv ancu In gold arc almost nncxa,npled
even in the present era uf rapid huciuat ions
| IT one y. N. to-day Mr.. Cisco met the presl
d.nts oi the associated banks aud explained To
them that the ScctrCtary of the Treasury re-
uuired money, aud desired TO dispose of $35,.
| 100, 900 Of new legal tender notes, Que year 10
run, bearing D per cent interest. lie asked The
| banks TO take them, paying for them in the old
legal tender Issue, in nstalments, the first in
| staIinCnt OF per cent. being payable at once
and the last before November 80. The propO-
| siiion was al once unanimously agreed to, and
| the money passed to the credit OF the Treasury
| Department. We understand that similar con
ierenccs have been or will Le held al Boston
aud Philadelphia, and that sl5, ,0O0, 900 more OF
| the same class OF interest bearing legal tender
notes will DO placed In those two cities,
making the total issue $j0,0O0OOO. The
nOtus will probably begin N be delivered TO
the banks by lst proximO. 1t was this nego.
tiation which led 10 the excitement in gold and
stocks to-day. Al hrsi blush 1t would appear
that the arrangement merely amounts, In plain
! English, to a further issue Of nifty millions Of
irredccmable paper, and in this view the gold
operators would appear 10 have acted more
intelligently than the operators in stocks. The
new notes are to be legal tender for their face,
and for some time to come the smaller demon.
nations will evidently pass current as money
from hand TO hand, thus increasing, not dimin.
ishing, the supply Of money available for pur.
poses OF speculation and commerce. After a
time, when certain amount Of interest has
accrued, the notes will not circulate freely, but
will be boarded for the sake Of the interest they
bear, unless money rules at high rate of inter.
cst. II money becomes active, operators in
merchandise or stocks will be able to afford to
disregard the accrued interest on these notes,
and SO long ab the activity lasts they will be
used as money for their face.
! Nothing has transpired with regard 10 the
tilnes at which the Secretary will call upon the
banks for payments under the new negotiations;
but, judging from the experience of past loans
aud tho natural probabilities OF the case, we
presume that the calls will DO for ton per cent
at time, say 80, ,500, 900, at intervals Of eight
TO ten days each. The sub-Treasury balance 10
large, and the Secretary stands In no pressing
need OF large sums OF money. Our banks could
afford to pay 81, 500, 900 every ten days without
creating any disturbance in the money market,
especially as the experience of past loans show !
that the money returns TO the banks almost as
fast as they pay 1t into the sub-Treasury. II
any scarcity OF currency occurred, they could
draw upon the s75, ,O00, 900 of temporary dc.
posits In the Sub b-Treasury, for the redemption
Of which the Secretary holds $50, 900, 600 Of old
legal tenders, in addition to the eiOO, ,OOO, 600
now atoat.
Notwithstanding reports TO the contrary, the
money market, though quite active, has not
been stringent to-day. Several loans were
called In this morning, partly by banks who
desired to strengthen themselves in view of the
Government loan, and partly by lenders who
sought to get higher rates for their money by
increasing tho disturbance In the market. But
at the close Of bank hours many, If not most,
of the leading stock houses and many of the
BANKERS had money over which they would
have been glad to lend at per cent. The sift
ing process which is going on In the stock
market is reducing the volume of the loans out
standing. In a day or two tho amount of
stocks under bypothGcation will bo consideta.
bly, reduced.
Gold opened this forming at 1851, and rose
steadily TO l32 /, al which point II stood al D..
IN. ln the afternoon IL sold at 1871, 1870, l3l, ,
l32, and l3l I, and closed at ) y. III. at 1872.
Exchange was lil, li2, III, las, and IA, at
the close. The advance in gold Is due In part
TO the low price Of breadstuts, which foresiad-
ows heavy export OF bullion this fall, but
more directly 70 the prospect of further issues
OF irredcemablc paper. There Is rather more
speculation In gold than there was. But, In
view Of the probable fall Of Charleston and
Chattanooga, the buyers for the rise must be
endowed with remarkable courage.
The panic In stocks to-day was tho most
scrorc that we have had for years. At the trst
board there was a perfect rush to sell stocks
seeming for account of parties whose margins
were becoming exhausted. New York Central
fell per cent, Eric 4, Erie preferred 4, Hud-
son River :, Harlem s, Reading 81, Southern
old o., guaranteed =, Fort Wayne d., Illinois
Central 1, Pitlsburg 6, Toledo 4, Rock leland
/, Chicago aud Alton !, Quicksilver ), Pacific
Mail 4. There was no change in Governments.
Miasouris sympathizcd with tho general market
TO tho extent OF onc per cent. At the clo.c OF
the session there was at iirht more slcadiness:
but, ss usually happens In falling market, he.
tween tho boards tho small Try oi street elecr,.
lators all began to sell short, aud the panic
was renewed, Eric fell more, Central ., Iii.
nois y, PittSburg ,, Southern old 5, Quicksilver
|, Fort Wayne 1. 1t seemed, for short time, sb
though prices were going back TO the old figures,
and all the courage OF the bulls had disap.
feared.
Al the opening of the second board the mar.
hIl showed rather more steadincss; but on the
call tue attack was renewed on the railway
ehsres, aud prices were again lower. Southern
olu iell ~ per cent, making total fall of III
por cent IN one day. Eric was done at 1OG,
aSa'us. 10 yesterday afternoon; Harlem fell q
" pv, eShu' more making fall of IA per cent in
oT ' c"a "ny. 90 enormous decline as this will
which the bears will lose some pf the nrns,u y,
.ngy nave made on the decline. Il Is ebarac'
lerstic OF this class OF operator, tha, Iho io%or
stsek falls the more they want to sell i, sSor,
'ns p % saI Of the public the
upon Erie, Southern old and oth.r vas I,. niaue
stocks, and they were forced down ,Hra Haau,ng als
cent more. Erie was done as low az ioa aHsr Ssr
the Gala fall Of IL per cent. In one ,S' dsy