The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-01-04
FINANCIAL AND COMMERCIAL
euHpAY, Jan. 3, 1854.

. lr MN SUNDAY, Jan. 3, 1854.
The commencement Of the new year finds ail
the sslniIlcatons Of finance in this country inflated
20 an alarming degree and, stimulated by enc
spirit Of speculation aud extravaganza, We are
discovered in state Of ntoxication w ich rendefs
u almost unc onscious Of position II Inc situa-
ton in which we have placed ourselves was en-
trely novel or il we could plead ignorance or The
disastrous effects which succeed excuses, we might
be excused ii We permitted ourselves to drift on
ward in fancied security until we were awakened
10 a sense OF our condition by the whirling and
ioaning rapids that announce the close proximity
Of the cataract But moments reflection would
place in oar possession al the information could
desire 70 enable as TO partially avert the danger
which has been set before ne through the incom-
potency and ignorance Of those in whose hands we
have placed our financial destines. We know by
the teachings of history and our own experience
that the day Of reckoning cannot be far distant,
and that If we do not very soon commence to
practice economy and gradually lessen the money
power which is now impelling US onward at
rapid rate towards our ruin, we will no doubt
witness o collapse that will shake the monetary
circles Of the world, and perhaps wreck the
credit Of our proud and powerful nation. A pie.
thoric currency has sent wild into the fields Of
speculation, and spread before us temptations
which were almost irresistible; and now, when
our strength is more than ever needed, we find
ourselves, like weakened inebriate, toss
ing and tottering onward, uncertain Of whore
or in what condition we shall end our
career The test may be applied to our mis-
givngs and warnings in regard to our financial
prospects The same has been done before, and,
if conviction did not follow in all cases. the sequel
proved their soundness; and we now reiterate the
adnloniticn that if the course we are pursuing is
not checked, and that gradually before the close
Of the present year, consequences will be likely to
be produced that unthinkng thousands will find
cause to deplore. The continuance of the war
affords no excuse for prodigality in the affairs OF
life or for extravaganza in the administration of
the government. 1t is these excuses and the
morbid desire for speculation that must be eradi-
Gated before we are in condition 10 defy
the danger. When the present unhappy war
commenced we had healthy circulating
medium spread over the entire country, which did
not exceed all told, three hundred and fifty mil.
lions Of dollars, and that amount was found sufi-
oient 70 meet all requirements. We have now in
tic rhaDe of money
Observation-Disclosures. $40 600 600
Loyal state bank issues Observation-Disclosures. $50 600 900
4is1sufy Aoter 4oo,UVO,UVV
tai................ .sIs5 600 ooo
BY this 1t will be seen that we have circulating
medium of seven hundred and eghty-ive millions
Of dollars with which to do the legitimate business
that was done with three hundred and fifty mil
lions, easily and satisfactorily two years and
half ago. We know that the war produces add
tional requirements for currency; but then it
must be recollected that the inhabitants of at
least eight of the States do not recognizes
the great bulk of our circulation, or are forced
to forego its use 1t is that excess of paper money
which has engendered the present widespread
spirit of speculation and extravaganza; it is that
which has fastened upon coin premium of fifty.
two per cent; it Is that which has inflated the
prices Of fancy stocks and railroad shares, and
added impetuosty to stockjobbing; it is that which
has enriched ehoddy contractors and made mil.
onaires of government steamboat agents; it that
which has placed heavy tax upon the necessaries
Of life, and reduced thereby the value Of the wages
Of the laborng classes; and If we fail to avert the
threatened difficulty we must turn to those four
hundred and thirty-fye millions Of surplus paper
promises to seek out one of the prime causes
which produced it.
The following table win show the prices Of stocks
at the close Of the past five weeks:-