The New York herald., 1864-07-13
FINANCIAL AND COMMERCIAL.

Wall street has been fun ~ rumors for the last two
days with regard 70 tbe probable policy Of Mr.. Fcsseu
den IN providing The necessary ways and for
ryirg the Since Ills arrival IN town he has con
ferred with large number OF leading financial men
ana to-day meeting held in the subTea build
Ing, at which all the managers OF the old banks we're
present the result q the conference being that commit
tee OF appointed {. devise plan for supplying
the wants OF the government with as little DIS
tarbance 70 the money market possible. The
committee Is 10 report Tomorrow, when we
shall learn TIE Treasury is In Immediate
need e least sixty millions OF dollars, and in the
present stringent OF the money market the banks
are unable this amount without frst appealing
Che people by the sale OF bonds The direct the
Secretary 10 is therefore, make banks
boh State and nsioulgovernmsnt agents in dsposlug
o. It's bonds at nxed price, TO be agreed upon between
the Treasury and the banks, the
pensatiou In the torn OF commission its equivalent
to deduction from the selling price OF the bonds and the
proceeds 10 be the credit the Treasury TO be
drawn against required of public creditors
In order TO show what the Treasury empow
cred by bonds and n order 20
meet the expenditure cf the In excess OF tne
revenue We ma kc the following cnumerat.on:-
Under existing Of Congress there remain to be Is
three millions Of the twenty years
bonds OF 1861 which have seventeen years TO Ihese
teohoicsly known "reected SKIES" and form the
unaooeped balance OF the last million loan
pus on the marsss ov Mr.. Chase. eecondly-There
one hundred and twenty millions unissued Of ten
forty bonds, being the balance OF the two hundred
million loan authorized by the Of March, 1865 Third
~. There are four hundred millions OF five thirty
bonds TO be issued under the new Loan bill But
the 8ecretary has the option Of issuing two
hundred millions IN Treasury notes, bearing interest
u rate not higher than and three tenths
per cent. payable In currency. In lieu OF the
sane amount in bonds the necessities OF the Treasury
demand It. He has Also the pswer OF making them legal
tender on their face or not As he may ht If they
are made legal teder the interest must be paid with
the principal at maturity and II not legal tender the
Interest must be paid semi annually without limitation
FourthyThs Treasury mas power issue certificates
Indebtedness redeemsble In one year from date,
Win interest at the rate OF six per cent in cur
reocy, without limit 10 smount. Firthy-Ibe
Secretary may receive temporary deposits repay.
able days notice after the expiration OF thirty
days TO the extent hundred city Millions ana
pay interest the the OF SIX per cent
currsscy. sixthy-He can issue Afsy millions OF
rsncy under the nav Loan b 70 b. applied 10 payment
oe temporary deposits when required, which amsuns
must be Withdrawn and placod assio In tho
Temporary deposits Increase. " the hundred and
nts millions OF temporary deposits referred 10 seventy
two millions already therefore only
eight millions 70 be borrowed under this head
Taus viii be that, although the legislation app
oabe TO abe Treasury Is not such give entire
DON ef acstoeto Mr. Chasos successor, it nevertheless
allows him considerable scope for tho Of sourd
iudgmcnt IN the management OF finances
the present creai juueura That the difficulties Of the
situation great perfectly obvious but unless
they met boldly shere danger Of their becoming
The Mr.. has thus far pursued
however strengthens IN the impression that he vii;
mako tns best Of bad OF things, that
y viii have 70 be satisfied with the result Of his
policy.
T0e money market and the temper os the people
nsv such - to b easily inueOced and caution
nscessary In ordsr 70 guard against panic than
any We have yet Witnessed Mr.. Fcsscnden. for in.
stance determined raise loan OF only
<wenty ave millions to be paid into tho Treasury
dstely, say within month, panic would be the
evitabie consequence Of the excessive srugency
duced Gold would probably rise nfy per above lie
present premium. Large numbers or small holders Of
sreenbacks would lose conndencs 10 government paper
ard rush into Wall street 10 buy soad AZ whatever price
u might BE- selling At: and. gold being In strong
hands, the holders could name their price This
Aow currency paucs originate during the suspension Of
specie payments and nothing could greater disaster
10 government Is Is toerefore evident that Mr.
Fesscnden must avoid m king forced loan which lie
easily do by relying temporary deposits and the issre
or Treasury notes. while people allowed
gradually 70 the new loan be may put the market
through the banks The experience OF the ncrty loan
;us;aes the calculation that million per day may be de
rived from the sale Of bonds (bcarug six per ceu,
ierest payable god the people that being about the
extent OF their capacity 70 absorb them. This together
with daily issue OF three-quar,ers OF million in Treasu
~ notes, added to another three quarters of million
which about the amount Of the daily revenue At this
particular time exclusive Of duties which, being
payable in gold and pledged fr the payment OF uteres,
on the public debt. out OF the question, will
enable the Treasury with the help OF the
provided for It's relief. 10 the current
peDditure, or so much Of Il at least as
must be pad promptly. Other and many claims
Ne know there on tine government amounting pro.
badly half aggregate OF the national debt according
70 Mr. Chases las, rcpsr, the payment OF which viii be
indefinitely postponed IL is such claims these, chiefly
for the destruction OF property and the many accidents
and irregularities useparable from war 80 grand
scale ours, that swell the expenditure Of all govern
.mepts for long period after their return 10 poace
Mr.. Fessenden has thus the means OF providing the
sinews si tho next meeting OF Congress, when
such measures be devised as the situation
may c.n for. The most important subject thea
consider will DO taxation. This 10 order to furnsta
sound financial basis for the country TO work upon,
shou equal half the amount OF the national expen
dure aud consequently 10 order 70 keep pace with the
dsbur sements will require TO be enormous. But there
s remedy, II currency is to escape the fate
ot the French assispa and the old Continental money
The strogeocy IN the money market continues una
ba.ed owing % the drain OF currency ofhe West 10
The crops the speculation prevailing
on Exchange had the eaccs OF rss
ting price q the aecessaes of lie 70 extent which,
a compared with TIC prices years ago,
IL equal 70 ssor. .~o hundred per cent; whic even
within nipet, days wheat has I'D vsnced dollar
per bushe -four Dos than four dollars per barrel, and
pork nlteeu dollars per barrel Lenders however
COW declining discount the paper Of these produce
spectators. believing tha,s wholesome break down 10
prsces must shortiy We trace ths diversion
Of tho capital formerly employed the stock market 10
~ Produce Exchange TO tho absurd Ind disastrous
strategy OF Mr.. Chase which produced the great