The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-07-30
FINANCIAL AND CONMERC GAL.


confusion in his mind likely TO be the result OF ha
attempts 10 penetrate the mysteries OF American finance
even far enough enable him TO understand what the
government has 10 sell aud In what respect
It's securities differ from each other. What
are nye.twentiesf What ten foriesf What
are seven and three-tenths in goldf What the
seven tnrties in lawful money! What compound
interest six FER cents? What certificates OF indebt
edness, What the 1917 These OF the
questions he viii be likely to put himself, but In
He will ind key but that OF Wall street and
experience TO solve the strange riddle; and, finally.
ne deter TO invest In governments from motives
OF patriotism profit, both. no will surrender
the right OF selecting any particular bond or note
ior himself aud trust oindly 10 chance or broker to
his money into s'coupons," or "regstered or
certificates what not, It happens to be- AT least
ave people OF who purchase governments are
ignorant OF the difference between The various forms o.
public securities In the market
owing to this confusion, arising from the multipi
city distinctions that the six per interest In gold
bearing bonds show marked inequalities OF price What
for instance Is there TO make the fvetwentes (redeems
BILE after five and payable twenty years from May
lse2, which pay six per cent in gold worth than
the skies Of 1881 payable at the pleasure Of the
government after twenty years from June so 1891 and
also paying six per in gold7 Yet the former are
quoted two per higher than the others simply because
the aye-tweuties are better known. II both securities
uniform in price, the sxes OF Isl selling high
the i've twenes now, the government would be the
better for il at present time for the nducement
subscribe to the loan would be all the stronger But
Ia the fact Of the fvetwentes selling l09
assistance TO the latter long another six per
gold bond be bought for two per
less. The advance OF the OF cours,
stimulates the OF other; but II is by the
that comparison with the currency loan is to be ipst4
suted.
The policy Of creating many kindsos securities was
bad one, and only should 4 stop be put to such
fantastic tricks 10 finance for the future but fusion Of
certain Of the securities aaoa ought to be encouraged BY
Congress passing session making funda
Die into great stock under certain conditions
apple sble 70 each.
We shall take occasion at early date give list OF
all The Treasury issues extant and TO make further
gestons with view 10 this desirable result
That Mr.. Fessenden's policy far has tended to
imitation of the currency the last weekly statement Of
che national debt clearly shows BE is keeping up the
ntoxcation OF the hour by fresh stmuants and making
finance reel along the road TO ruin In pretty
came predecessor did But long as our
currency Ii worth much 1t Is today 1t is not too late
60 mend We are, therefore, willing to regard this
currency loan At in the light Of temporary expe
dent But II viii not do to repeat IL time after
time, and each occasion 10 focd the country
with currency In order float 1t. We approve
gold loans but not at fixed price for them
Failure the bulk OF the paper money must be increased
and TO do this Is TO deprecate Its value.
The Secretary OF the rebel confederacy would
Beem TO appreciate this view Of the and, With
example Of the evils OF excessive imitation OF
the currency before him, 10 be on his guard
against it. II, with bankrupt exchequer and
. system. Of finance which il based more upon
Imagination than reality, he siili hope sustain
AhA nkat~ rA0ua
b no reason why Secretary Of the Treasury al
ths time should not absolutely control the
currency. In the following advertisement Mr. Trenholm
She SUCCESSOR OF the much abused Nemninger asks for
loans at call with forr per cent interest," BY
equal Of six per bearing bonds the
proceeds Of which, when solo, to be entirely DEVOTED
10 the payment Of the loan certificates
LOANS THE FIVE HUNDRED Mrrr.os srx
PEE oEN1 FosEAxAHS BONDS, uNrER TIE ssvrSTH SEC
xIox OF CURRENCY
Deposits on call viii he received by the Treasurer In this
city, Assistant Teasurers Charleston and Mobile
the depositares at Wilmington, Raleigh Columbia Angus
nued for the same bearing four per
cent per annurn and secured by the hypotheca,on
khese loans the bonds to be set apart by Treasurer
IND the proceeds when sold applied exclusively 10 the
fhe security and convenience Afforded 70 bsnfu and
other corporations and to the public generally, by this
measure generally adopted in keeping the currency
within moderate BOUNDS, it is bopcd VIII commend II 70
cure TIER prompt co operation in carrying into effect
g. A. TRENHoLh, Secretary Of the Treasury.
RICHMOND, July %, 1854
THIS ia his FIRST publicly Official act and cannot FOR
Dear insttu!ing comparison between il and first
1rmiiar act Of Mr.. Fessender. We wll'adm that the
loan offers slight temptation 10 tskers and that II Is
only an experiment; but IL has the merit or being
harmless one and is In the right direction The rebel
bonds, which pledged FOR the payment Of the loaps
can be sold al their value they win turn out well
enough for those who invest in the loan; bu, not,
Che loss 70 the Investors wiz be in proportion
% their depreciation below tha. value It Is for the
lenders to calculate the and the risk
Meanwhile Whatever the rebel treasury may derive
from this source Is much borrowed without specially
Initiating tho currency for the effect OF The loans win
be 10 depreciae the bonds With the proceeds OF which
they 70 be paid they lead 70 any depreciation at
nn which, however need not say, they may easily
DO. And We have already shown on former occasions
Chat the price Of bonds Is ministerial compared with
Shat Of the currency.
Now the psiicy OF Mr. fesseDden with bis Fixed price
Ioah been 70 initiate the currency extent
nearly eleven millions In week. simply 70 assist In
Coating II at par and this not she fell amount Of the
currency intended mainly for this purpose, for
Ssssh issues arc still going forward.
Without making invidous distinction, may soy
bha, the principle Of the rebel Secretary good but he
may not be able carry successfully, ewing 70
hhe low cob at which the rebel credit has arrived;
But Mr. Fssscnden deliberately selects principle which
Fosters Imitation, the evil results OF which would be
aggravated by every loan ~ . fixed price.
nc proper policy for the government to pursue hero
hfler Of paying Interest Its future
rency only and selling them AZ the best price get
Subscriptions " the loan coming IN yer.
eowly, AID uutn ths lowest priced Of per ce6t
god bearing bonds experience further rise much scsi
Pity IN II cannot be loos ed for
Mr. Aoscs Taylor has, understand, declined the sp
pon.mout OF Sub Treasurer the place OF Mr. Cisco
The stock Market although no, quite a. strong this
tnornns as on tie previous days OF week was never
cheless active, and gave uumstakabie evidence Of
growing speculative epir, in railway sharea COMPARED