The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-08-03
FINANCIAL AND CONNER CiAL

aNSNtNStNG FfNo
TUESDAY, August 20 p NJ
The expectations or OF the city bank managers
have been realized with regard to the object OF MT
Fessendens visit 10 New York which, Is has turned out
wumsrely nights stopping place Tor him on his way
home to Maine He came and went, but did nothing
IL was supposed by few that there might exist some
foundation for the that he intended TO place
the balance Of bonds OF 1851, amounting 20 thirty
three millions the market but all doubt on this point
has been dspeled by his direct and positive assurance
10 the contrary Not only will he not do this but he
viii do nothing 10 interfere in any way with the
present currency loan until a sufficiently long time
has elapsed to give 1t fair trial which will be In Sep
TENDER Meanwhile, as matter Of course, we
shall have currency issues and speculative period
may be looked for especially in United States gold bear
ing bonds, which, considering the enormous rate OF
interest they are paying, estimated 1t IN legal
tender paper and the strong temptation furn shed to
spectators investors abroad to take advantage Of the
exchange in their favor must advance considerably in
their market price, which is al present far below
their value long any OF the six per cent gold
bearing bonds selling below lilo there Is no induce
subscribe TO the loan on other than patri
otto grounds upon these all history shows,
dangerous to depend The banks, being now in an easy
position and relieved from uncertainty 10 the policy OF
Nj Fessenden, will probably be free lenders at per
cent on call.
Now also have heard the worst OF the news,
which has disturbed speculation and the money market
for last few days, may look for strong dispos
ton to favor a rise both the part OF brokers
and operators. The policy entered upon by
Mr. Fessenden favors pha,iou and week after week the
statements Of the national debt will be likely TO show an
the volume OF the currency for the Secretary
alternative but that Of adding to lis quantity in
proportion extent Of the deficiency Of income
expenditure that subscriptions loan and other
securities may fall to supply.
There must, however, period when the grave
importance of this question OF the currency will be fully
appreciated by the people consequence Of the depreca
ton to wnicn It's weight will lead Beyond certain
limit States Treasury notes viii be exposed 70 the
dangers which attended the issue Of the French assg
and the old Continental msney but the consequences
In would be much disastrous than In either
OF these great historical instances.
The for this country to pursue ct the pre-
sent time would be found In the passage of an act OF Con-
gress authorizing the withdrawal OF the Treasury legal
tender from circulation by teir conversion into
FIVE per cent gold bearing bonds within fixed
time (afier which they would be longer available as
currency, the interest 70 be provided for by .
special specie tax on property. The immediate
effect OF this would be fall OF prices to nearly their nor
NAL standard and ia would be preserved by the pas
sage act contemp orary with the other prohibiting
further issues OF paper money. The government as
great purchaser the property holder and the working
man would be proportiona tey benefited by this check
upon the imitation OF prices and the enhanced value Of real
property, represented by currency Every mans dol
lar would be worth more to him than 1t is now and
persons living fixed incomes would be especially
benefited.
But obvious the advantages OF checking while yet
the gigantic evils Of excessive amount OF legal
tender issues there for suDpnsins 'a' tus
administration at least w~ravor any such project The
policy ORIGINATED apl persevered In by Mr. Chase VIII,
there s any doubt, be continued till reach
.uat climax the financial history Of The when the
danger impending disaster be longer ignored
Meanwhile SPECTATORS will have fat,ened on
the vital element OF nations prosperity,
and an involuntary check VIII be placed the wheels Of
and the action of both people and
II vain encourage hopes Of change in ruinous
financial policy until Congress next meets but then
VIII be incumbent upon every member of both
direct h attention to the q the
expenditure and give the country the eft OF
lis investigation and reflections and ~ after all,
our statesmen devise nothing better than what
have then may we bid acieu to expectations OF the
restoration that sound basis Of taxation
ana by wncn We can alone retrieve the errors or
the past nnd appear before the world solvent people,
This EVIL Of depreciation the hand and ina
ton the other will increase With every addition 10 tho
currency AID will prey upon the vals Of the republic
TIA IL either sinks with exhaustion or makes determined
and successful elort 10 shake OF the usdious
our attention hss been called to irvidous feature in
the payment OF the Interest the ten-orty loan AID
which has. extent, operated as a check upon
subscriptoas Tie interest the bonds FOR iye
hundred dollars aud upwards is payable semi annually
while that bends Of lower denomination Is payable
annually cay As the latter held chiefly by persona
OF small moderate means, this distinction is inconye
rienl as ven ineiuitao!e, and should be abolished.
Foreign exchange continues slightly inactive Bankers
sterling quoted los 1924 for gold. and 80
2sZ for currency.
Thursday being appointed fast day, the Stock Ex
change board VII! not meet on that day.
An improved ieelg manifested in railroad shares
TO day tie miscellaneous list could not be made TO
participate the buoyant Compared with yester
days prices Reading Railroad advanced at tho FIRST
board IL per cent, Milwaukee aud Prairie du CHEN 4,
Michigan Southern u, Illinois Central Chicago and
Rock leland IL, Pittsburg and Fort Wayne Chicago
and ~ Pennsylvania Coal g. and Chic and
Mississippi certificates u. Erie Railway and Cleveland
and Pittsburg sold the Hudson River declined n,
Michigan Central /, Cumberland Coal x, Canton Com
papy 1, Quicksilver Mining tx. and Mariposa l.
In the afternoon the market was steady, and prices
better.