The New York herald., 1865-05-15

Foreign exchange closed frm at 10 y for bankers
sterling ut sixty days
The enormous subscriptions to the seven-thirty loan,
together with the decline Of the gold premium 10 lower
point than it has reached since September, 1865 ndcae
state OF public feeling with regard to the finances Oh
the country which presents gratifying contrast 10 .ne
gloomy preceding the decisive events oi 'no
war Not however, that the price OF gold Eaeorre'
indicator of the public credit but it reflects public opin
ion more less in It's general course. since Sherman
entered Savannah speculation in gold has been almost
entirely on the bear side The who had before run
the premium up as high they could have been since
ndustrousy running far and as fast as they
can With them IL has been pure speculation; but II Is
to be doubted that there are large numbers who
would sacrifice good deal for the sake Of seeing green
backs appreciate rapidly to par They are ind snant
every they read hear quotation for gold, and
think debt of twen,y.six hundredimDlions which WIZ
he three thousand obstacle in The way OF appre
ciating more than nine hundred millions OF currency to
q value equivalent to the amount In
specie. They overlook figures, and talk like
boys, who, having lost or spent their money,
think hoy ought sA TO have IL and if gold went to par
they would insist that with resources II ought TO DO
al discount There is reason, but good deal OF
passion, in their argument Their zeal Is however,
inspired by the best OF motives; only it may safely be
regarded premature Not being political economists
they have faith in its principles, thinking we ought
To reach the millennium ia day, and they treat prece
dents In history entirely napplicabe to " own case
This cheerful view Of tho financial future not unnau-
rally accompanies the eation which has followed the
sudden and glosous overthrow OF tho rebellion. To
quote homey Phrase everybody feels good, and Is,
therefore, apt be much sanguine than crcum-
stances warrant Our country possesses, to an extent
unknown To any other nation, all the elements Of
national wealth and greatness; but tmo and labor
necessary for their development just time and taxa
tioa necessary for the resumption OF specie
payments and the payment Of the interest and prin-
cipal Of the national debt II cannot be said,
however, but that the has wonderfully deve-
oped strength and nationality, and SEQ this
much in financial history as in anything else At
the commencement of 1850 cur public debt only
seventy six millions and when the broke out il
very difficult Tor the government to borrow money,
as it had always been before. Whom, provide for
the of lSl2 Congress authorized Ia March Of that
year. per loan OF eleven millions Of dollars,
less than onethird Of the six millions which were put on
tho market subscribed for by the people, the rest
being taken by spectators discount and the remain
ing five millions Issued In Treasury notes When, in jan
uary 1913 Congress authorized further six per cent
loan OF sixteen millions II the largest sum ever
asked for by the United States but at the last Congress
loan bill Cor six hundred millions passed and sub
lions a day reported during last week The best
that tho Treasury could obtain for a six per cent
loan Of seven and half millions IN August 1918,
$8s 25 in coin for each hundred dollars in bonds and
during the first year Of the war il borrowed only $23
o76,9l2 The banking capital OF the whole country was
then S75 600 and the circulation considerably less
than slOo 600 0oo including Treasury notes But now
the national banks alone have capital Of s264 Si o2o
and q circulation OF hundred and twenty seven mil
ons while the lst of January, 1883 the state banks
North and South, had capital of s4O5 oio $40, and
circulation Of s23S e77,2lS.
Tho banks, excepting those OF New England,
pended in 1873 and specie TO a premium OF eight
per cent from which progressed to twenty-five per
cent before the announcement of peace D February
1916 but suddenly fell 10 two rer cent that event.
while government securities from s16 20 fss
in coin to the hundred dollars in bonds, and general
bankruptcy ensued The population OF North and
South in that year was only nine millions, including
q million and q half Of slaves. The total deb, OF
the governme mt at the time of peace bat hun.
dred aud nine millions showing increase during the
war Of sixty-nne millions
The dhculties which had been thrown In the way OF
tho government borrowing money by the federal
peace party very great Boston newspaper said
IN 1sl4;-"Any federast who lends money to the gov
will bc called infamous" and large portion Of
deemed necessary Boston for brokers who had gov.
eminent loans sell 10 advertise that the names OF
subscribers would be kept secret ard In February 1915
in that city twenty thousand dollars Of United states six
per cent stock was offered az auction, and only fye
thousand OF taken and that et fsrty per below
par Boston by a comb nation OF Now England capital
had been madc the financial centre of the country
and the New England banks had drained those
OF the Middle and Southern States much
possible OF their specie 10 prevent their subscribing to
the public loans Yet ut the tmo that this drain was bo
gun tho Massachusetts banks had two and bali dollars
in specie in their vaults for every dollar OF hoir crcua
tion. Tho result Of this that In February 1873 the
notes Of the banks Of New York state wcre 10 70 90 per
cent below par; those Of Philadelphia ~ aud those OF
Baltimore 30, while Treasury notes - 10 25 aud
United States six per cents 30 per cent
After the war sudden increase OF trade took place,
aud the customs dutes in 1918 which estimated to
yield only four millions, produced twenty-five millions
TO the revenue. The banks which had suspended we're
opposed 10 the resumption Of specie payment but on the
Goth Of September, isle they began TO pay coin
OF less than one dollar The second United states Bank
was established soon afterwards ars although nearly
bankrupted the entire country preserved the govern
mont credit, and before the close OF 1925 the pub
lilo deb. had been reduced to scvcniy.,hree
millions On the ID of March In that year
Congress passed law reducing tho rate Of interest
twelve millions Of the six per stock four aud
half PER cent aud in 1sa, there surplus Of no ss
than forty millions in the treasury. when we review
c history OF this struggling period with that OF the lat
four years Il sinks into nsgnncance and tho extent Of
national progress becomes apparent o our future
prosperity and greatness there DO no doubt; but
the payment Of the inteses, aud principal OF
debt Of three thousand millions will heavily tax our ro
sources and VIII require Me pateu, and s,ssnsous sr
forts OF one gcnerAos ~ least " oil bs willing to
snse IN tho task which II 10 By means sermn they
will be, for time brings chsDgss, and the mutations Of
opinion rapid.
The shipments 9f specie from the port Of New York
last week, aud since January compare - follows with
she exports drsng The ssms time last year.
-, 1884 1eoA
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