The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-01-15

quenoe OF the Treas ry drafts the national banks being
just made light in order prevent the recurrence Of
stringency, wh would have the effect OF lowering tho
market prices of tho outstanding securities Of the govern
ment and than three fourths Of the subs
tons tho ten forty loan Of last week payable
throug h the national banks, and payment is made
chiefly In five per cent notes, hitherto removed from
active circulation the process OF absorption is rendered
gradual and undisurbng. The FOR money call is
per cent, and in tho discount limo first class
mercial paper is taken at a 10 per cent
Foreign exchange Is dun. and the demand is likely
decrease and continue Light for long time TO come. The
export Of cotton and other products from the South and
the diminished mporations but effect this result
Bankers bills at sixty days quoted at 1921 109A
sixty days iI0 1lOH Merchants bills stand at los
1Osx. The shipments OF specie Today $3.50 900
by tho New York, sl34, 7eo by tho E,na and
81, $50 by the Havana
The subscriptions to tho thirty loan received AZ
the First National Bank TO day amounted to 1921 $50
The market prices or tho gold bearing stocks operate
uaavorably upon subscriptions tho thirty loan
and are likely to do for q long time to Tho
financial mistakes OF tho government will cost dearly
In tho future and tho glarng inconsistencies OF its
policy will be lasting reproach to it, With the passage
of legal tender aw-tsef Of the crudost public
OF timethe idea Of gold interest national
bonds should have been abandoned IL certain to
provo only element Of weakness to the nation which
by sanctioned distinct and antagonstic currences
and weakened and distressed itself by paying gold when
except for customs duties it only received currency
This error circumstances have forced II 10
the best Of It's ability but It is hard matter to remedy
On evil ggantc for tho present and prospective gold
debt country Is Of tho probable receipts
from ousoms and In view OF light imports present.
the estimated amount OF seventy millions from this
source the year cannot be relied upon Yet
Mr. Fessendcn asked for authority issue hun
bred millions Of seven-thirty notes, making
four hundred millions in all, and these convertible,
NJ the expiration or three years from their date
per cent gold bonds But the gold stock blundcr will
prevent the government realizing its expectations
with regard this loan The public will eager
take Il and the Treasury cannot afford to sell it
The dealers In government securities, who
better friends OF tho government than tho gold specu
ator find their interest to pun up every loan that
offered for subscription because they make money by
the operation Their patriotism lies much in their
pockets as that OF the "bus in the gold room who
chiefly OF the Judas Isca-,ot type and with more
principle than their interest suggests
Mr. Chase and Mr. Fcssenden by their ignorance and
favoritism have practically proved themselves among
the worst OF the country and the hitter gentle
ran will from the Cabinet and take his place In
the Senate next March much loss bonored man than
when he added the national disgrace Of financial
situation by undertaking responsibility which he has
both neglected and misusod and which he utterly
unqualified to assume.
Our gold bearing debt is great and is likely to be.
come 30 much greater under the present nous system
tho country stands in great danger Of being unable
20 fulfil its obligations TO It's bondholders popular
clamor may arise distant date against the burdens
under which the people will begin TO groan, and the
cry will Of reducing the rate OF interest
~. .sl. M ttxxAo .f nlnttnn htnr
Is impossible, and the mutations, both Of
opinion and earthly affairs generally, are labe
10 be singulary rapid The currency in the same
manner may Mt somo future time very remote be
swept OF circulation by panic These possibi-
tics which all men, and the government especially,
should guard against.
The currency is increasing by the agency OF tho
Soual banks alone Mt q very rapid rate and the
full amount authorized Of throo hundred mil
lions will, before long, add is surging weight
20 tho food Of paper money already In cx.
tstcnse. And the policy OF the government We
know is in favor Of further imitation. The seven.
thirty notes. with accumulated interest," have already
boon paid out by the Treasury currency at sub
yosa course) and there ground for the suspicion In
view Of his request for unlimited authority 10 issue
legal tender paper that Mr. Fesscndens recent appca
Zion TO Congress a method for obtaining
tain amount OF available paper TO be used his dscre
zion. and 70 have faith this would DO to build
house upon the sand.
The multitude Of different government securities
now anoat constitutes public nuisance Il is not only
confusing investors but furnishes evidence OF tbs
entire lack OF system in negotiating loans by the Urea
eury and affords living testimony TO the stockjobbna
propenstes OF Mr.. Chase's friends. We printed som'
months ago list Of the many distinct forms Of securi
ties offered by the nation the people, and the arral
about grotesnue and absurd az vincin
Of thefsvorism and Jolly Of those who officially suggeste
ond sanctioned their issue Wall street originated thcs
various bonds and notes the consolidation Of which will
sooner or later take place. and Wall street Ia still bus
making capital out Of the nation
II the nation wishes 70 avert threatened disaster vii
have 70 90 through some very processes To
tnus working under the present financial system will
gunous 70 II, whether peace comes this year or II
three years 70 come paying three prices for every