The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-05-22

war out Of Of loans BE- obtained for that
purpose.
AMOUNT BORROWED DURING TIE FIRST YEAR or
ma rHBwAR.
The moneys received from loans during the fiscal year
ending September 49, 1919, as folows:-
Eleven millions loan OF March T. 1919. 43S1 4s1
Sixteen millions loan Of February 1884,. l2S
Treasury notes oiobooo
Total .s2a s7s, si2
MANIA FOR BANKING CAPITAL.
In 1918 the banking capital of the country amounted
to about $75 600 and that Of tho State Of Now York
500 $50 o0O OF which STA 900 IN the city OF
New York. Tho circulation, including the Treasury
notes. was estimated at between seventy-hve and
one hundred millions During the latter part
of the year 1918 mania sprang up for increased
banking capital and published Of intended
applications the Legislature of the State Of New York
at its which the LIST Of Janu
ary 1914 for eighteen twenty moneyed institu-
toas with aggregate capital OF nearly sixteen mil
lions of dollars half of which for the city OF
New York. Among the new banks which at that time
sought the OF the Legislature TO commence ope
raons were the Bank aud the North River Bank
OF this city.
TIE FOURTH LOAN.
On the 10th Of March, 1873 Congress passed another
loan bill for s25, 900 oo0 which divided into
parcels The arst call under II was for ten millions,
upon the same terms the previous loans Fourteen
millions subscribed; but the prescribed amount
only taken, Eve millions OF which was allowed to
Jacob Barker Of this city he having proposed 10 take
that In July Of tho year the Secretary Of
the Treasury gave notice that six millions Of the
twenty Eve millions loan wanting, which to DO
paid by the takers in four instruments the tsnth day
Of each Of the last four months Of the year. fe
| CONFIDENCE BEGINS TO wBAKEN-sUHPENeIoN OF
SPECIE PAYMENTS. ~ -,o., q.
Tho financial unachnerv oft o 0ovornmont owing
TO the rapidty. with which the various loans
were placed upon the market, IVES now. fast
becoming complicated, and the monetary anain Of
the country generally threatened % collapse The banks
bad suspended specie payments; gold was selling for the
best Of English bills eight per cent premium and Trsa
sury notes would no longer pass current r,.
CHANGES IN TIE TREASURY DEPARTMENT.
Albert Gslatin who had held the once of
Secretary Of the Treasury for nearly twelve
years had been commissioned BY President Msd-
son, much against the wishes Of Congress, one Of
tho Special ENJOYS to Gottenberg 70 negotiate .
peace under the mediation Of Alexander Of Russia and
the department left charge OF Mr. William Jones'
Acting Secretary On the eth Of February 1874 the
appointments Of Secretary conferred upon George W.
Campbell, Of Tennessee, who, after eight months
Of service Cove 10 Alexander James Dallas Of Penn
sylvana who continued In the Office until the CLOSE
Of President Madisons term These frequent changes in
the Treasury Department had also depressing effect and
to make matters worse the anti party became loud in
thoir denuncations of the administration and the oppo
son members Of Congress attacked every conceiv-
able form the financial policy of the specu-
lators in cotton and tobacco and coffee and bread
stus and provisions, were graspng then they
known to be now and the entire trade OF the country
was fast running into disarrangement. .4
DIFFICULTY IN NEGOTIATING THE LAST LOAN.
The last offer of six millions of government stock could
not be negotiated and European capitalists appealed
TO TO exrcate the Treasury from its embarrassment But
as matters were rapidly drifting from bad TO worse the
President foand necessary to call meeting of Congress
tho 10th Of October 1S14-neay two months before
the constitutional time for the of the reg
ular session The state Of the Treasury Immediately
commanded the attention Of both houses On the I'd Of
December Mr.. Dallas, the Secretary of the Treasury
letter 70 Congress, said XII mail. 5 sl ,f. h.fi
l have never been disposed to disguise the en-
barrassments Of the Treasury frank and full develop
ment Of existing OWLS will always, hope DO bes. cal
cuaed to the attention exorton Of the public
authorities; and, with legislative aid am still conh
dent that all tho difficulties OF deficient revenue,
may be speodiiy and completely overcome Ny only
Apprehension arises from lapse OF tms, as remedy
which would be ccca! 10 day will perhaps only
to increase the disorder tomorrow.
TREASURY NOTES AGAIN REsoRTEp ro-rAx BILL |
.Dit E.lN PASSED.
Congress at its previous session had passed anoberthe
hlosn bill for three millions and was proposed
with seven and half millions that remained unnego-
tiated Of tn, tweny-Av millions loan, IN trans from
stock INTO Treasury mee the pressing demands
upon the Treasury and thereby afford temporary relief
Hon. John W. Eppcs OF Virginia, who chairman OF
the Committee Of Ways and Means the House o, Rep
resen,atves, unrcmttns in his s.sair
the government credit and the principal! measures
that adopted during the early part or the
ses-io Of lnbo An I'd
tax bill introduced which embraced all tn
principal articles of consumption and proposition
made the Goth OF September 1914 to alter the
tuition SO that Congress should have power 10 establish
another national bank As State bank notes could
not be made available BY the Treasury, those Of
one State not passing current 10 another, the
policy Of issuing Treasury notes was found TO
b, the only mode left to the government upon
which it's business Tho public debt which at
the beginning of the year 1918 about ftyfour mil
lions had now reached the proportions OF hundred
millions, which enormous amount as II then appeared,
having essentially weakened the confidence Of the PEG
pic all ideas of further loans during the for
the time abandoned.
RESTORATION or PEAcE-PAS1c AMONG MERCHANTS.
The treaty Of peace which had been signed at Ghent
the oath Of December 1914 reached this country
the 18th February 1915 This had the effect OF partial
ly restoring confidence in the credit but the
accumulated expenses cntailed by the had still to be
provided for and It's ability TO meet It's Obligations
NAMED somewhat in disrust On the announcement OF
peace the reaction in prices caused tho greatest alarm
and effect severely felt throughout all the ramn
cations Of trade Sugar which had been selling at TWEEN
tysix cents per pound fell TO twelve and half; tea
which sold at dollars and fifty cents the day pre-
vous the arrival Of the news purchased for
dollar; and corresponding reduction took place in
almost every other commodity. Specie which had risen
10 twenty-five per cent premium, in the panic which
ensued fell 70 two. per cont Government stocks rose
from to eighty eight and treasury notes from
ninety two to nnety-eight All this change took place
between saturday February H. 1916 and tho succeeding
Monday As natural consequence wide spread devasta