The New York herald., 1864-11-28

The money market has been easy for call loans
at seven per cent, with exceptional transactions
at six. In the discount line there has been very
moderate business at rates varying from eight to
twelve per cent for first class commercial paper.
The foreign exchange market has been steady,
with q moderate demand for bankers bills at
1897 at sixty days, and 1907 Ill at three days.
Merchants bills have been quoted at lO71. q
1857.
Tne state Of the finances Of the rebel government
may be easily estimated from the fact that gold
was selling in Richmond last week at the rate OF
one dollar for twenty-six in rebel notes. and
silver at one for twenty.four. Rebel notes
are thus worth less thsn four cents per dol
lar in gold Va This rapid decline of the public
credit of the confederacy is typical Of its sinking
Iourse, and has only parallel in the old Continen
h.l money Of the Revolution. The first three mil.
bons Of this was issued by the authority Of Con-
gross. in 1775, to which was added twenty
billions in 1776, and twenty six millions four hun
dred and twenty-six thousand in l777. Yet four
dollars in notes, after these issues made,
still worth one in silver. But in the fourth year
OF their existence the depreciation became rs
rapid as that of rebel notes has been during the
last year, and the future course Of the latter is
likely to be repetition OF their history. In 1873
Congress, issued $66 1868 ,269 more of this incon-
vertible paper money, and in December that year
one silver dollar equivalent to fortytve paper
dollars. In 1850 $s3 900 900 additional was issued
and after that silver sold at the rate Of dollar
20 one hundred in paper. In 1881 $l2 5s7 900 was
added. and in June that year the market value Of
one silver dollar equal to that OF one thousand
in notes The total issue amounted to 1862 SAC ,s22,
and the population at that time was only four mil
lions. Their downward course was even more
rapid than that Of the French assignats during
the revolution which followed ten years after
wards, and both became equally worthless and
repudiated by the people.
But while prophesying that this is the fate
which awaits the rebel currency, should not
and do not underrate the dangers attending our
own financial situation. We have, including the
State and National bank issues, more than nine
hundred millions of our own currency in circula-
tion, and vast and rapidly increasing national
debt to provide for. This, at the end Of October,
amounted TO $2,0l7 ,O99,5l5. OF this amount
s2,O52.OOo Of the principal of the gold bearing
debt will be payable the first Of January next;
S9,4l5, $50 on the lst of January, 1863, and
ss gOs $40 on the lst OF July, 1868; while Of the
principal Of the interest in currency bearing debt
no less than s27s 1853 900 will become payable
within one year; SIC, 1884, ITO within two years
and sl79 OILS $50 within three years.
Thus the embarrassmsnts Of the Treasury will
thicken with the advance Of time, and it will re-
quire . very different policy to that which has
been hitherto pursu ID to extricate tho country
from the financial difficulties which will press upon
II. By the lst of May, 1882. all but very small
portion Of our whole gold bearing debt will have
matured. The policy Of Mr.. Chase and Congress
In devisng aud authorizing the Issue Of securities
redeemable on their face within such short periods
was bunder, the evil effects Of which we have
not yet felt, but which be easily forcseen. I,
should, however, act as a warning for the future
The payment OF interest as well as the redemption
dates of the Treasury notes intended to be used
currency were unnecessary, and therefore their
issue was q mistake. The plain United States
notes and fractional currency tof which there were
sl53, ,sse ,440 in circulation October 3l), which
carry no interest, answer all the purposes Of pape,
money, the payment of interest on which and
exed time for the redemption Of which are cncum
brsnoss upon the government, for which II receive
no credit, while they encourage boarding, an
thereby ted TO produce the anomalous features q
stringent money market during period of ex
oessive paper money imitation.
The funding Of two-thirds OF the present cur
rency issu,s OF the Treasury into long bonds
bearing not more than FIVE per cent interest II
goldj the stoppage Of further issues beyond thcs
Of similar securities, and the substitution OF inte
rest In currency bonds, are measures imperativel,
called for at the haRds Of the Secretary Of IN,
Treasury and Congress; and nex, In importanc
10 these will be strict revision Of the Interns
Tar bill and the tarin. The former requires 70 ,