The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-11-14

October $40 soses. ....... LOG lo7X l07s ITO
The money market has been, on the whole, easy
to stock houses at per cent on CALL although
under brisk demand on Wednesday it was rather
active and unsettled. Rumors of new currency
loan. and other government measures at the same
time, added to the caution of lenders. The dis
count line has been inactive. and prime paper has
ranged from eight to twelve per cent.
Foreign exchange has been dull and bankers
bills OF sixty days closed at 1897 1897: three
days, ll0A lll1%. Merchants bills were offered
At 1os 1887.
From the somewhat iubilant strain Of the re.
marks of Mr.. Jefferson Davis on the financial con.
dition of the confederacy the world would natu.
rally suppose that his Secretary of the Treasury
would be equally hopeful in his report; but we
look over it in vain for anything to war
rant 40 sanguine q view Of affairs as
Mr.. Davis took in his annual message
The tone Of Mr. Trenholm's report is through.
out dubious and the exhibit he presents could
hardly have been worse or more ominous Of fu-
ture disaster to the rebel government. The certi-
fcstes Of indebtedness provided by the act Of
February, 1864, It says, did not produce az favo-
rite an investment aswas anticipated. and only two
millions of these securities were taken IN payment
by public creditors up to the LIST Of October The
new issue of Treasury notes is acknowledged to
have been failure. The new notes are received
by the public at . value scarcely any higher than
the old, and as consequence the expenses have
not declined. This should act as . warn
ing to our Secretary Of the Treasury and
Legislators against any new issues of currency
after the funding Of the greater portion of that
now in circulation takes place. Mr.. Trenholm
Ia evidently aware of the evil Of the system in
operation when he remarks that the large and
rapid issue OF Treasury notes is the more to be
regretted from the failure of the measures
relied upon to sustain their value and reduce
expenditures. He therefore admits that the cur
rency demands the immediate and the gravest
consideration Of Congress, and that unless uni
form and stable value can be given to the Urea
sury notes, the effort to catry on the through
their fundamentally must Of necessity be aban-
doned. That this is no exaggeration the fact that
one hundred and thirty-fve dollars in currency. the
price OF Q one hundred dollar six per cent bond,
IS worth but six dollars in specie sufficiently testi
hes. This disposal Of rebel bonds as ninety.
four per cent discount leads the confederacy along
the high road to ruin with q rapidity which is
very naturally alarming to the rebel Secretary.
The depreciation of the currency is attributed
In the first place to it's redundancy, and in
the next 10 the want Of confidence in its
ultimate redemption, and this, blandly observes
Mr.. Trenholm, can only "be corrected by mea-
sures that will both diminish its volume and sus-
tain the public confidence The rebel Con-
gress may diminish its volume, but it will find it
hard 20 sustain confidence that has little or
no existence; but If IL fails to restore
or sustain its value, Mr.. Trenholm thinks
1t will be its duty to make provision for its honora-
BILE redemption, after which the government will
have to resort the Of specie and bank notes.
But how il the administration at Rchm ond to get
the baAk notes and specie' Mr.. Trenholm sees
trouble at this Point and he seriously says the
adoption OF this last alternative would, II is
feared, produce great embarrassment in the
community, and the impossbity Of obtaining a
sufficient supply Of specie and bank notes for the
wants Of the government would create the neces-
sity for q system of universal impress ments, fol-
lowed by incalculsble suffering and distress.
This rs just the direction in which the
South il drifting, and Mr.. Trenholm very
accurately foreshadows its financial future.
Indeed, il may be said that the country
Is already practically in this position, for the fix
ing OF prices Of commodities to the government is
virtually imrressment, the prices fixed being far
below those Of the general market: and under this
system. however worthless the rebel paper may
be, those whose goods are taken have no alterna-
tive but 70 accept IL.
Mr.. Trenholm, sfter urging upon Congress the
necessity for immediate action towards restoring
the value q the currency. attempts to show that
the eopfederacy has the ability to bear the in.
creased taxation by which t.is may be made prac.
ticsble; but his plan appears. faulty and hardly
likely 20 result In much II any increase Of
the revenue. A tax Of twenty-five per
cent upon the circulation Of the banks il
suggssiod, and this on the LIST Of January, 1869.
was a. follows In the several States, and it is not
sow supposed 70 be any less;--
Nmsius siV 5s,54x
North Carolina. .....'s.......''.' o,Uxozt
&1rth Carolina. sl.Vc3a
ssipps.s.
os'Nso~
resA ...............,....... $50 ,7eT, %
We arprehcnd that under such tax as this th'
banks would end II profitable TO withdraw IN ell