The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-07-25
FINANCIAL AND COMMERCIAL

ho.-a mi. ,oornng New York Central closed q higher
than a, the second board on Saturday, Erie ~, READ
ins X. Illinois Central Ia, Northwestern Ax,- koc<
Island v Michigan Southern was unchanged Govern
meut securities stronger Coupon nvetwentes
xvera x higher skies of 1851 y, ten-forties H -
After the board the market was strong the
chief activity being in Erie and at the first open
hoard there was a general advance OF 4 I
per cent At the second regular board, however,
prices we're a shade lower portion Of the list New
York Central closed higher than at the nrst board,
Erie TX Illinois Central 1. Reading declined u, Mch
gan Southern "a North Western ~ Rock Island r. Fort
Wayne y. Government securities neglected. At
the second open board prices shade lower, Erie
closed at s5ss Hudson River 10sH, New York Central
93A, Reading lO2A, Michigan Southern eSx, Rock
Island l06X Cleveland and Ptsburg 67K, Quicksilver
81, Cumberland (b.10)42.
Afterwards, on the street. the market steady.
The buoyancy the market checked by the state
ment of the associated banks for the week. which shows
decrease in legal tender notes Of AIT in deposits
of 193 and in specie OF $67 53S The decrease in
the legal tender line Is remarkably heavy, and may be
attributed to the sales Of gold made last week by the
Sub Treasury, well to tho cotton sales and
drafts upon the sub-agents OF the Treasury on
account Of the thirty loan. The decline
In deposits is owing TO the large amount
Of current funds having diverted from the banks to
y.
$222l 27s the deposits in the last return, although
Same statement showed decrease Of 81 405 oo2 in
the legal tender notes. which, added to that of the pre-
sent week. makes total Of more than nine and a hai
mllions If this movement should continue the loana
bio resources Of the banks will DO so far curtaed
that the latter will be likely to withdraw portion OF
their temporary deposits from the Sub treasury IN
which case the Treasury will be forced to draw more
closely upon its sub agents for the OF payment
,Jtop Of tba matte ApapC and
such arc necessities Of the Treasury, that tho
tnuance of monetary is Indispensable The Treasury
is making seventy-fve per cent, more or less, OF
its disbursements in certificates; and in order to float
these and keep up the price of bonds, easy money
market is sine qua non. The national bank currency
being issued the rate Of three millions per
week, and the smaller denominations Of seven thirty
notes used currency to large extent throughout
tho country and thus constant stimulus to imitation
being employed Under these circumstances therefore,
a stringent money market is not to be expected, al
though money likely henceforward to command higher
rates
Meanwhile II Is rumored In Wall street that in order to
carry the national banking system In accordance with
the views Of Mr. Chase and his disciples another three
hundred millions OF currency to be asked for from
the next Congress to be used in the establishment OF
banks in the Southern States. Mr. Jay Cooke, in
his recent pamphlet, referred to the desirability
and LIKELIHOOD OF a thousand mllOns Oh currency
being issued under the banking system. Yet we
already that the of the national banks in the
country being discredited by the national banks
IN the cities and meeting Of the bank Committee Of
Thirteen Is to be held to morrow at the Clearing
House, to adopt the plan which explained yester-
day. It may, however, be that the meeting will
adjourn without agreement, in which case 1t will
be all the better for the credit OF the national
banking system. The moment that redemption party
formally declares its adoption Of such plan national
bank notes acquire local character and longer enjoy
a national one. The committee may BIO composed Of
Intelligent far seeing men, but they engaged in a
cause which those they represent will ultimately have
In all probability, occasion regret having embarked in.
They, by their action. lay bare q weak
spot In the nat onal banking system, and
suggest the people the possibility of future national
bank note depreciation. National bank notes
intended by the law to be-as they really legal
tender national banks everywhere for every debt due
them but they not legal tender from the national
banks 70 the people. Thus national bank is com
peled to receive the notes OF othor national
banks wherever located but their dcpositors may, II
fhoy choose payment in greenbacks other
Of tho Treasury issue If the people, therefore, should
begin dscredt the national bank notes refuse
receive thom what would become Of tho pet scheme Of
Mr. Chases The bank Committee Of Thirteen will do
well 70 rohect upon the danger attendant upon making
invdious distinctions between the notes Of national
banks In different sections Of the country for IL they
doit may be the first step towards downfall Of the
entire system
It telegraphed from Philadelphia this morning
that only fifteen millions Of the thirty loan
NAMED untaken, and this is all that the Treasury
has 10 rely upon except certificates OF indebted.
ness loans not authorized by Congress, pending
its next meeting the close Of the year. The
current expenses Of tho government are, not
wlttstanding, enormously in OF its receipts,
and the progress OF disarmament in the army and navy
IL very SLOW II Is also estimated that II these expenses
long continue any approach to the present rate the
national debt within the years will be little
less than Ave thousand millions Large bodies OF troops
retained under pay throughout the Southern country
when it would be better If they Out Of existence
Tho South would be far better without them and the
people want fight let them do among themselves
Great Britain dsbanded her army very rapidly after the
termination of the Napoeonic wars and why should not
do likewise whom there longer any further use
for them 81.
The increase OF the national debt Is 10 be guarded
against by every meansin the of country FORTS
increase involving increase OF the burdens TAXATION
will add 10 danger OF that political agitation which
may resolve itself into reputation. The continued
increase of the debt viii throw less discrcdit
involving depreciation upon bonds both at homo and
abroad The interest the national debt must be reduced
three per cent in co and the heterogeneous mass OF
securities aHoat must be funded into one common
stock England reduced the rate Of interest her
tonal debt three times, and why cannot WEI Lot Mr.
McCuloch take heed OF the financial charlatans who
advocate an indefinite OF the debt In bonds and
currency and do his guide the ship Of state safely
through the shallow and troubled waters Of finance In
which II Is drifting
There report the street that there remain thirty
millions OF the forty loan available for issue but TINS
A incorrect II Is true that nearly this amount OF
prn,ed bonds is lying in tho Treasury but the forms
mere waste paper
BY an act Of Congress- passed March g. 1864 the Sec
Rotary OF the Treasury authorzed to borrow from
time TO time, on the credit Of tho United States not ex