The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-07-21
FINANCIAL AND COMMERCIAL.

WEDNESDAY, July eos r.
The prevailing be,f in Wall street. Is that Mr. Fessen-
Don inepds place loan the market at axsd PRICK
and have already pointed out the immediate eject
this policy In defeating its own purpose by whdrawns
ths bank deposits forcing the banks into the msrke
s sellers or the government securities they already bod
price which would rapidly tend lower than that Of
The uew loan thus checking subscriptions 10 1t ana
placing lho banks 10 the nvdious position or undersesl
ing Treasury Bat apart from this serious objection
ineress another aud sta greater ono IN the stimulus
20 ,ndallon which loans on securities ~ liked
price arori TAey exert steady influence, in proportion
tbor amount. Ia depreciatng tho currency, and
stitaie weight Increasing in compound ratio with
each successive loan which, by law settled tina,
orgavaatlcn. lowers the Of the payer dollar by
raising the premium gold
In order to noat long series or heavy loans or this
character without seriously damaging the money market
aud interfering with commerce. continuous OF
tho volume OF currency would be needed and It's value
bong correspontngy impaired. the Treasury would 10
fact receive no more By selling its bonds OF par with gold
al $50 than II would 10 selling them for isss with gold At
500, for rs expeadsre would increased according
70 thc decline ia va;as OF its paper issues.
IT. on chs other hand the currency Is 70 be
contracted coo6psd 10 its present limits the bonds
wu not continue for indefinite period TO com.
mand the prcs they hitherto done aud 30 long as
the disbursements far in OF income o.
shs government It must submit to OF the two evils
aud It Is much better for the Treasury to receive
less Tor bonds taan thai the currency should be further
diluted To guard against this should be Mr. Fessendeus
careful study aad 10 succeed he Will have study the
value y the currency hrst and of the bonds afterwards
thai the latter being entirely subordinate 10 the other
Ia national Importance
This Is especially ia view OF the enormous prospec
tive increase or the OF The public expenditure conse
oasnt 70 = great extent on the addition to the
military torces under the recent call o. the
president IN making his estimates for the future Nj
Fessc1isa must take into consideration tho probable Al
Deat'on 81 The Customs for the lex hscaiysar
Although more than hlnlrcd and three millions we're
derived from ,h.s source during The year Just closcdsn
amoua Dearly dosae that required pay that portion
o. the interest 81 the national debt which Is payable III
goid-this large yod viii not continue owing he pres
ent high tariff, which less prohbltive 10 some
Of It's features, aud the reduced demand for fore IGN pro
docts 10 consequence OF growing disposon the
majority OF cases absolute necessity, TO ceunorlise
Taat ths is fact bsyoud dispute is evident enough
from last week exports from this port the estimated
valae OF when eight millions OF dollars, and these
chiefly consisted not Of native produce foreign pro-
ducts Tor which profitable market could be foaad
among
Mr. Chase letter to the Chairman the Committee
or Ways and Means estimated the receipts from customs
duties For the ensuing year at only sixty millions and
those from Internal two hundred and twenty
millions The prospect that more VIII be ro
ocysl FOR duties IS necessary pay interest
the gold bearing debt, whsle, owing to the
witodawsl from the ordinary pursuits OF life
~ tho North Of the two millions or who already
taken part 10 the since its commencement, excia
size OF she militia, the hundred days mon and the
coiorei troops ani the prospect OF another half million
beiog sddsi TO their Number, must have its effect in
onsckag native Industry and the general increase Of
popu aai wealth, Leading US under the present
Tax bu 70 look oT ittle any, augmentation Of the 10
terual revenue
The arst problem Mr. Fessenden has to solve is there
FORE che best way Of raising money by loans in view Of
s permanent interests Of the country ami The second
the best way OF increasing the by taxation
fuat taxation Is asciencescapable OF being carried
very hsh degree OF perfection the revenue rstafps
OF Great Britain for the year oHang the lst instant
amply sdoy. The aggregate amount OF
within tribe 0. seventy millions Of pounds sterling and
ccmpetect authorities declare that double this large
sum ,ghs be collected without bearing heavily upon
the people, 80 enabling the government necessary,
to carry en long aud costly without dollar OF in
debsedpass or resot,ng TO single loan Twenty
tcn years ago would have been considered Impossible
10 raiae seventy millions OF pounds 10 this manner,
ami i Is a. the more remarkable because q the
free teade principles which have laery progressed
far 10 Eaglapd resulting 10 the reduction OF most and the
Abolition OF many Of the taxes and duties before levied
Money meauwhile abundant there, and IS easily OBJ
tainaoe Tor large undertakings OF any kind 1t is clear
that have not yet arrived at ths pitch OF financial
aud prosperity but spite Of the heavy drain upon
adult maie population for military purposes, and it's
consequent evils Congress next session mag do much
towards developing the means Of taxation and 60
ooarasns thu Increase Of customs receipts
q Great Britain, with poPaaiion OF twenty nine mil
loos and . national debt Of hundred and ninety
millions OF psnds, ofstwen;y seven pounds five shirgs
pee nsad prosper WE'LL there is reason by the
Uoted states with It's boundls resources should sink
into bankruptcy and finally throw OF mighty incubus
or dsDt by indirect reputation.
Ar. Fessnocn VIII probably advertise the new loan
darns tae week II promises to be, as We indicated yes
tsrdsy cbsay, mol entirely, in the form OF subscrip
toos al par. to $40 interest in currency bearing
Treasury Notes, convertible at their maturity 10 three
years nto six per interest In gpld bearing bends
Toe latter he may also pu, on the market AZ par, In
ccounct,u Nth the former, and meanwhile be paying
oui 10 public creditors the compound interest Elk
ceot ootss OF which there were the lsh iIs withna
fracl on OF lfty millions at his disposal
Ths arguments We have already adducsd against ad-
herring 20 axed price for legal ,esder securities
streng by the market price Of certificates Of In
deoesdnoss, which about seven below par These are
rsdssmabis IN ono year from their date with Elk per
cent interest currency AS they car now be ocugha
o. the actual interest them will be Is per cent, aud
,asegusnty becomes questionable how far the enfhu.
or the people In subscribing TO popular loas at
10 10 per wi carry them when they pcTchase
certacaIes on more advantageous terms lbis po.Lt
however requires special illustration, "a the argument
cable 10 The public securities the possession
or tho banks aud the power OF The latter TO sell them q,
any price, applies equally 70 he certificates aaost
Tue reported evacuation Of Atlanta, although the War
Department wac said 20 have positive Information Of IT,
had 90 upon the price Of gold government secu
rites although tbs latter had submitted TO decline IRE
yioasy, the news not being credited.
Aess7 continues to work little easier on the Stock
Encusags under the very limited demand for Il. and
seveu per the ruling rate to frsi class houses