The New York herald., 1863-05-18
FINANCIAL AND CONNER GAL.
SUNDAY, May ~, 1863

SUNDAY, May ~, 1868.
The feature of last weeks financial movement
was further increase Of speculation especially
developed the Stock Exchange. Never, in the
history of that body, has the volume of its busi-
ness been as large it is at present. never in the
history OF the American people, did there appear
20 be SO much money to invest or so much TO
hazard in speculation; and, while the speculative
excitement is much greater than it was in October
or February last it does not appear in any degree
70 rest as it did then, upon actual or expected
depreciation of the national currency. While
stocks have been going up, gold has gone down.
The rage 10 buy stocks, which seems 10 possess all
= Glasses and conditions Of people, grows not out
OF any dread of n collapse in the currency,
but out Of wide spread conviction, based
ON fact, that the increase Of internal
traffic and the general prosperity ere.
ated by paper money are going to render pro-
dnctive properties which have been unproductive,
and to largely increase the profits Of concerns
which have been productive before. As a general
rule, the brokers and bankers of Wall street do
not comprehend and cannot realize the crisis in
XBish We stand: Haying been. accustomed to
much lower prices for stocks, and having fnahy
times in their life seen speculative upward move
msnts, predicated upon temporary and trivial
causes, followed by equally lively reactions, they
cannot understand the steady advance in values
which commenced eighteen months ago, and which
haa never been followed by panic or even
any reaction worth mentioning. Having been
accustomed TO deal in Erie and Hudson at
20 30, they cannot understand the present
active inquiry for them at 100 1870; though
really both were dear at 20 when they could not
earn interest on their bonds, but are cheap atl00
$50, as they earn Is rs per cent per annum on
their stock. In point of fact, there is nothing
unnatural, and nothing which should have been
unexpected, in the present speculation, or the
present rise in values. They srs !hs inevitable
eonsequenesaQ Qc isspes Of paper money. m *as
the paper money system" says Alison (Iistory
Europe !, 22), (Which enabled the British empire
TO carry on for 90 long period s2 s9sty Z war;
and TO maintain loY years armamenis greater than
had been raised by the Romans in the zenith of
their power. To this system must be ascribed
tho continued and progressive rise Of cents 6hd
an In us value 81 money, Increased expenditure,
the growth Of sangune ideas and cxtravagant
habits in all classes Of society, unbounded specula
zion, prodigious profits, increased wages. general
any age Of the world; creation of property in
some and destruction of j. m others" &e., &c
In another place he remarks that, under the in.
nuence Of this paper money system, g the price
of all articles of lie more than doubled rents ad
vancod all persons who lived by buying ana sell
Eng found their commodities constantly rising in
value; credit. both public and private, immensely
improved; industry was viviilcd, and difficulties
were overcome by the rapid diminution in the
weight Of money debts, &C." This paper money. Of
which the historian thus writes II will be remarked,
never collapsed, like the French sssignats or
the continental money, but simply, like our legal
tender money, .el TO a certain point Of deprccia.
zion as compared with gold, and remained there.
It is very essential that this example should be
borne in mind II right understanding Of the
present condition of cur financial affairs is to be
formed. The advance in piices, the increase oi
speculation, the development Of traffic he aug
mcntation OF profits and the growth OF extrava
gance which we see around MS, are no, unnatural
but, on the contrary, are the natural results o
well ascertained causes, aud those persons WHIT
keep shaking their heads wisely, dcnolucing tn
present speculation as crazy, and looking out 10
q collapse any hne morning, simply fail to con-
prehcnd TIE age in " ldch they live. There can b
no collapse SO long as the war lasts aui tile eS
pcnditures Of government continue as large a
they are, and the paper money issues az ccpicui
There win be rauses and there will DC Sigh. rcac
tions; but the Uniform course OF prices mast bc up
ward, and tie Uniform tendency OF Speculation
must be toward increase, until the great cause
above mentoLed cease 90 operate. 60 far tror
having reached ~ climax, the indications ave ,ha
wc arc only on the threshold CT the speculation
Al the present time the aggregate amount OF pa
per money aicsl u only about sj75 900 ,0o0 sto0
poO 600 government currency and si75 .oo0, 90
bank eurrcncy)--say twire.as much money (of Al
kirds) as VIZ had before the war. Now govern
uncnt ha. Sl5c 200 ,ooe more legal ieader money (
Issue, which It's necessities will compel il TO ~
forth before New Year ami Mr.. Chase's act pr,
vides fos $50 600 600 more bank currency, mo,
Of wlieb IL row seems likely, viii be cot s0o;
this year. We can thus zoe our way clearly TO q
aggregate Paper currency Of 81, ,326, 100000, and
Ahc war lasts longer than this year, ai least anoN,
ssoOcC 900 vii. have 90 be added TO this eve,
twelve months.
Ttsre is 90 prcssn, rcascn 10 believe, howsve
thai thIs paper money viii collapse as the sss
mats abd ctpt;asn.al money dId. These currepci,
we're issusi 10 countries where there was no con
osres 10 absorb them, and no Geld for tnc