The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-07-31
FINANCIAL AND CONNER ClAL.
sArunpxr. July sop. N.

son % loans at rxed pr~o and succession OF new cur
rsncy Issues 10 float them The rssui o. tbs WIN Dc
steady depreciation IN value q cur paper noney pro
portion to the extent those ssuss and ccrrespond
sus rise m the price OF every thing purchase
Previous 90 she suspension Of specie payments the
asuount Of our bank Issues 10 the States row
arrayed against the rebellion MAS aeent one hundred ana
forty Millions 20 which sum In paper money may be
added an equal amount IN specie. As this was FOUND
amply SUFFICIENT for A. the wants OF commerce ~ that
time an Increase OF tho volume OF currency TO any con-
siderable extent could not take place without derange
uept OF values proportioned to the augmenta- |
tios OF the Tho aggregate amount Of paper
money In circulation at the North being
more than eight hundred and ny millions, Il follows that
the inevitable arrangement Of values referred has
occurred and has been In the past II win be in
the future. With every addition 70 tho bulk Of the cur
rency the latter win suffer further depreciation.
hundred ar City millions Was about the amount Of
currency which could have been put 10 circulation 1t the
South after the rebeloB broke out without producing
any material derfngement Of values; bat when the
aggregate had increased to little more than four times
that sum-say hundred mlionsit was found that
prices were nearly times what they were when Tie
currency was IN It's condition. IL was then srgued
by the Secretary the rebel Treasury that the re
duction OF ,be currency was necessary mea'
sure 70 avert impending financial disaster, and
substantially the most efficient means Of rails
ing supplies; far moro 80. indeed, than either
taxes or loans served only provide the
amount which they nominally raised, whereas reduc
ton Of 4hs currency by reducing prices furnished three
or four times the punt OF such reduction.
Il might have been fairly assumed al that time that
areduction OF tho currency to two hundred millions
would have enabled tho rebel government 10
tain itself with expenditure OF only four
hundred millions per snnum and, II the prob
lem be stated 10 figures, It would have re-
CURED the apparently opposite conditions Of raising
four hundred millions OF supplies and Of retiring equal
amount Of currency
the policy OF the government was in favor Of contrac
tion could easily reduce the currency four five hun
dred millions by substituting for loan TO shat amount
and limiting volume the currency thereafter 20 the
sum OF the residue adoat sharp reaction in com
meroal monetary channels would he the nmedia ate
cesut but the fall in prices to which 1t would lead would
place the government in much favor able position
purchaser than 1t occupies at present. would at
the same time strengthen Its banda and &c enabled
10 bear s war expenditure for an indefinite period to
some. while, continues the policy 1, has hith
erto pursued and is still pursuing lie bubble
OF Imitation will eventually collapse. Meanwhile
speculation would have been rampant and prices continu
ally 10 the ascendant.
The natural usra OF this country
great the people ultimate resto
ration OF the national finances sounder basis
strong, that. Notwithstanding the vast volume 0,
renoy and its prospective increase the Initiation OF
prices has been small, even in comparison with
the premium on gold But sooner later,
II the lasts three years longer, there win come
crisis IN which the currency will feel the full shock
arising from It's own weight
Whatever warnings may be uttered, however, the ex-
sng government is likely to disregard II will continue
the 1t has followed from the beginning
country viii reap the harvest 10 due time perverse
and wiliuy blinded organs OF the administration will
continue their decisive assertions that its financial policy
Is OF the specie paying
basis, and spectators will thrive the pation's ex
haustion. 1
The loan k al present almost q blank on tho |
market, owing to the intelligence relating 10 the new
raid into Pennsylvania. With ths subsideucs Of the
Invasion excitement however, and advance In the
market price Of gold bearing bonds likely TO become
more active There is little doing In foreign
change. Bankers sterling bills quoted At ATT 27s
Tor currency, and los l09K for gold Francs range
from SID to SIS Money more active than for
last few days at seven cent under the increasing
mand.
In glancng srsics 10 Fridays issue we OBJ
serve that made TO speak OF o large Of
currency being hidden away in "WaIl street. instead OF
ioaIie as intended.
The stock market little unsettled TO. day, and
while descriptions OF shares exhibited increased
strength there others that displayed or less
weakness Compared with vest erdsy's quotations Now
York Central declined at the board to-day Il per cent
Reading y, Milwaukee and Prairie du Chen X Iinoi.
Central u, and Cumberland CoalsS Erie Railway, Fri
preferred stock and Toledo and Rock
Island sold the Hudson River advanced az, Michi
Central Michigan Southern u, Cleveland and Pitts
burg " Pttsburg and For, Wayne Chicago aud North.
western Mississippi ard Missouri 8, Canton Company
u, Quicksilver Aning LIZ, Mariposa IL, Central Coal ~
and Ohio aud Mississippi certificates y.
The news g. the approach OF the rebel raiders had
tendency 10 weaken government securities to-day, and
the quotations chow decline OF fraction the cescrr
tions which most In demand. Tho registered bonds
OF 1881 sold for 1907 at The nst board andthe coupons
cold at 1851 lo5Ai the hvetwenty coupons sold
Tor losss losx, and the registered at 1861 1o5L;
aud threcseHths Treasury LOT 100, and
the one ysAr certificates nj e3 e5k.
Gold opened 253 but the about the
Of the enemy bad tie eoc, OF raising The price 2ss
The sales small.
The steamship Edpburg TOR Liverpool to day took cot
sies,if9 specie and the America for Bremen had
board ISL 400 The total shipments Of the week
to $50, 100.
The total value Of the mpo rtations, ether than dry
goods and specie at this port for the ending July
% was s.. eos, Sal
The Io,errAi Revenue law far the applies 10
s,smp duties, viii 60 into operation next Monday,
August l. oon., an ,,o
dividend OF four per cent the earnings OF the six
months ending June 30
The Bank Of the Republic will pay, August g. dividend
OF four per cent, frce OF taxes.
The Tore Railroad Company will pay, August l,
Ut the Bank OF North America coupons OF their second
mortgage preferred bonds.
TIE Delaware Division Canal Company OF Peuus Viva.
u have declared dividend OF three per cent on their
capital stock OF all taxes. payable and after Au.
gust l6 transfer books will be closed from the LIST
10 the 18Th OF August
The CT lcago and Alton Railroad Company will pay
gus 20 dividend OF three ard half per cent free Of
lax % preferred and stock; also dividend
Of 1.-Two halt per cent the stock, In Lieu
o. tbs DIVIDEND deferred In January.