The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-23

city, though the first in the country in point
Of capital, has never issued any circulation,
and Is now somewhat overloaded with govern
ment securities. These securities, It is said,
will now be forwarded TO Mr.. Chase, and the
department. will be requested to return ninety
per cent Of their value in circulating notes.
Instead Of staggering under Q heavy load Of 60
vernments, the bank in question will thus without
parting with its governments, be supplied with Sc
veral millions Of money to be lent to merchants or
spectators, and will be placed in . buoyant and
most prosperous position. Under the provisions
of the act the Secretary will be at liberty to keep
his account with this bank, and it will doubtless
supersede the Sub Treasury as the chief custodian
of public moneys in New York. Similar arrange
ments will probably be effected at Boston'and Phi
ladelphia There aAoat in the North not less than
$500 1000 900 of United States per cent bonds and
73o Treasury notes, which at present are mere alb
sorbents OF capital and absolute investments.
These will now be turned to account
as the basis of new bank issues. BY transmitting
then'to the Treasury Department the owners can
obtain, in return, circulating notes, money, in fact,
to within ten per cent Of their market value, with
out parting with the securities or the scni-arnua
interest thereon. The great banking institutions
discover the advantage TO be derived from the es-
tablishment Of branches operating 1nder the
general law. There is probably no town in the
North in which 100000 of government securities
could not be gathered together for the purpose of
establishing q bank Of issue and making money
easy. Our more conservative fnanciers are some
what alarmed at this prospect, and do not con-
cea their opinion that the new Bank law is
likely to produce an imitation more general, more
dangerous and more certain to generate wild
speculation than direct issues Of legal tender
money by government. 1t is clear that the BILL
as passed. imparts to the bonded debt Of the
United States the same initiating capacity as is
possessed by the legal tender notes: in other
words, it "mobilizes' the whole government
debt, bonded and floating, and places it in the
light Of an rredeemable currency, which is certain
to enhance values Of al kinds. Meanwhile it pro-
yides the government with no money. After the
$500 900 900 Of United States bonds now .foat arc
absorbed by banks as the basis Of new issues,
the law may lead to purchases of new
bonds, and thus the Treasury may derive some
benefit from the measure. But it will take some
time to absorb all these securities, and in the
meantime the war must be carried on and the SOL
diers and the contractors be paid
conference committee, consisting of Senators
Fessenden, Sherman and Hicks, on the part of the
Senate, and Representatives Morrill,, Fenton and
Vallandigham on the part Of the House, is now
adjusting the points of difference between the two
Financial bills. These points are few in number
and are susceptible Of easy adjustment. II is un-
derstood that the Senate will yield to the House in
regard to the authority to issue ordinary legal
tender notes, and that the issue authorized will DO
100000. Some Of the correspondents do the
Secretary Of the Treasury the injustice to repre-
sent him as opposing this authority-thus imply.
ing that the Secretary has no confidence in him
SELF and solcits Congress to tic him hand and foot
lest he should commit follies. There is NO reason
to believe that Mr. Chase is fairly represented BY
these writer's. concession of the authority to
issue Legal tenders leaves the Secretary free to
issue or withhold them as he sees lit; and If we
should take Vicksburg, Charleston and Richmond
he would naturally resort to loans in preference
to further dilutions Of the currency. At the
same time, the first duty Of the Treasury De-
partment is to pay the soldiers and the
other creditors of government; and it would be
mere childshness to make such financial arrange.
mcnts as would render their payment contingent
upon our military II Congress and the Sec.
rotary wise, the adjournment will not take place
until the most ample powers have been placed at
the service Of the administration-powcr which
will enable the Treasury to pay every claim though
disaster continuously befal us throughout the year.
If this is done-if, in word our financial policy
be framed with view Of surmounting the worst
disasters that can possibly occur-the Treasury
Department will be in safe position. Then, II
we successful in our military enterprises and
currency is plentiful at the financial centres re-
sort can be had to conservative methods, and loans
can be negotiated II misfortune befalls u.s. the
Secretary will still have funds at his command, and
the troops need not go unpaid. In the present
condition of the currency more legal tender issues
must in any event precede attempt 10 negotiate
loans. In the course of the summer, il we win
victory or two, loans will be quite feasible, not
only ut home, hut abroad But the Secretary should
be left free to take advantage Of events, and his
solvency should not be left dependent upon the
fortunes of war.
The following table shows the course of the
stock market for the past week and MONTH