The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-03-06
FINANCIAL AND CONNER GAL.


The past week has Witnessed duh and rather droop-
ing stock Market aud continued heaviness and stagna
ton in the gold room. The demand for money during
the time has become active, owing chiefly TO
the curtamen the oanabe of the national
banks by Treasury drafts and the general rate for call
loans has again risen TO seven per cent Although no
srngency Is to be apprehendcd the indications
favor easy condition OF the loan and discount
ket than have had Of late arising both from an in
creased demand for speculative and legitimate purposes
diminished supply consequent upon the government
balances with the national banks being kept low. Al
though the decline OF the gold premium 10 It's present
point should contribute 10 the abundance Of currency at
the great ccntres this effect has not been sensby felt
owing its not having been attended by correspond
ing decline In marketable commodities. Indeed, con
trry tendency has been shown among the retail dealers
and the necessity which every person is under Of
keeping considerable amount Of currency within mme
date roach has diminished and amount Of the
paper money OF the country Is Of 70 be found in
the pockets and wallets Of the people.
s'bear party is organizing the Stock Exchange,
in view Of the probable future successes OF our armies
and tho adjustment Of prices towards specie basis.
Operations, however, begun now, and based upon
prospect SO remote and beset by many contingencies
complications and uncertainties would be likely to fall
short OF their mark; and although such movement
might be TO certain extent successful It would
reach point when . reaction would be inevitable, and
the market might rise and fall often enough before
prices we're reduced TO specie standard. Nevertheless,
there Is room for decline than an advance at
existing prices under the promising aspect Of affairs
Those arc false prophets however, who see the future
only in light Of those brilliant successes which have
o, late crowned our The hour OF victory Is pre-
cscly that in which judgment Is most likely TO be
warped and when have most TO visw aiinirs
under their gravess aspects The great mistake Of the
government its fiscal management 10 10 be recognized
in It's shor, sghedness and consequent false estimates
The exceptions the general dullness the Stock
Exchange have been the clique movement In Cumberland,
based on the sale Of the companys Slope Mine and
feeble effort to rally Mariposa
Governments gold bearing securities heavy during
the greater part Of the week, but Friday afternoon
they improved and ten fortes particularly Since the
agency system for the sale Of the sevenhry loan has
been established and the decline in gold the godbearing
bonds have been neglected in favor of the former while
have sold out their long stocks 70 convert the pro-
co Dis into the three years notes. having two years
and a half 10 run, for the sake Of the
privilege attached 10 them Of conversion into
currency maturity It Is understood 10 be the nten
ton OF the probable successor Mr. Fessenden TO rely
upon the sale OF the sevenhiy loan long possible
and this will be certainly preferable TO The direct issue Of
gold bearing securities. The power Of adding to this
form Of debt invested In the Secretary Of the Treas
ury under the six hundred million Loan bill, Is
already exertng unfavorable effect upoa the market
price OF national bonds Had Congress sanctioned loans
bearing nine per interest currency only allowing
the Secretary Of the Treasury the option OF substituting
sevsn-thirty notes, convertible into . six por cent
stock, the market price Of the gold bonds already
issued would have been enhanced, and the new
form Of loan would have been a. successful
II the interest promised In gold for with every
fresh issue OF stock bearing interest In specs the public
credit is impaired in proportion the aggregate interest
Is likely 70 exceed in the future the receipts from
toms Since the increased tariff wont into operation the
customs receipts At this port have dminshed at ratio
equivalent to twenty one and half millions year, the
total from the LIST Of July 1894 the ls Of February
1885, having been only s2s 4o whereas those for the
corresponding period in 1864 sl 2os,S l2 The
shoraehtedness Of the past would still appear 70 prevail
| In Congress and the Treasury Department
How the new tariff will operate remains 70 be seem but
the changes are neither sufficiently material numer
70 promise very different reula The probabilities
however, are that tho imports and receipts for duties
during the ncxt few months will be greater than they
have been recently, for supplies win require 70 be
newed and large stock Of goods has accumulated In
| the bonded warehouses;
The greatest safeguard Of national credit lies In
heavy taxation, and 1t not be overlooked that tho
measures relating 70 internal revenue adopted BY Con-
rcss GRE insufficient TO meet the Requirements Of the
| government wc have hopes, however, that the
| committee appointed TO investigate the subject Of
taxation, which 10 to sit during the recess, will
make such recommendation a. viii BE- calculated 70
increase tho resources Of the government available for
meeting s current cxpensoa II " 70 be hoped II the
lima 80 vfly