Year: 1862

who are willing to lend their money to government,
for six or twelve MONTHS at six per cent per an
mum. There are hkew.se plenty Of people in this
country and abroad Who are willing to lend their
money to government .or twenty or thirty years
or longer period, - six per cent. But there are
no people anywhere Nho want 10 lend money to
government, for five years, ct six, even at seven
per cent per aunGha. II Congress forces Mr.. Chase
TO use the siN per ceuts ls.lorized by the act of
February he VIII be compelled TO sell them at 80
OF IS cents on thc dcl.ar and will find il difficult to
dispose OF large amounts even at this rate. The
insertion Of the clause in the act rendering these
bonds redeemsble after FIVE years is an indication
Of the financial inexperience Of Congress, and
should have been resisted to the last by the Com
mittee Of Ways and Means If the nation pre-
serves its existence and puts down the rebellion,
az there is no doubt Of its doing, large demand
viii arise for United States six per cent bonds
for Investment. But no one wants to in.
vest money in security which may be
redeemed after five years. The proba.
bty is that in next month or the month after
Congress win find it necessary to pass o supple
mentary act, making the new bonds twenty year
bonGs like those of 1884, 1t is clear that the 60
vernment will not be able to redeem them in 1867;
to preserve privilege which cannot possibly be
exercised, and which will initiate seriously against
the sale Of the bonds, appears on the face of it,
to be very idle proceeding. Whether it will not
become necessary to authorize further issue Of
Treasury notes, it may, perhaps, be yet premature
to inquire. This country is so vast and its wants
in regard to currency are 80 imperative, that the
sixty millions of demand notes now afoat have
been absorbed and are now at premium. In the
course of the next sixty days ninety millions more
will be set afoat. Many experienced fnanciers
believe that they, too, will be absorbed and dsap-
pear, and that in May next cry will arise for
more currency. The ordinary rule is that curren-
cy should be to population as ten to one-that


is to say, that q people numbering million re-
Quire SIC, ,000, 900 of currency. At this rate the
people of the United States should have $500 900,
900 of legal tender Treasury notes.


The money market was tranquil all last week.
Call loans are quoted to per cent and first class
paper at the same rates, with occasional excep
tions-as bankers short acceptances-at s. The
government continues to allow five per cent on
temporary deposits of Treasury notes at the Sub
Treasury; certificates of public Indebtedness are
quoted 81 "a. These certificates have absorbed
a certain amount of floating capital; but, on the
other hand, they are now beginning to take the
place of money, and to serve as a basis for bank
ing and mercantile operations. The National and
the American Bank Note companies are sending
daily to Washington large amounts of the new
legal tender Treasury notes. They will probably ap-
pear in Wall street this week. What with these
and the certificates of indebtedness, the volume of
currency will be swelled nearly two hundred mil
lions in the course Of the next sixty days. AT the
same time the withdrawal of gold from circulation
will probably have the effect of causing some Of
our banks to increase their circulation, which is
much needed by the public. Our city banks might
put out four or five millions more with great ad-
vantage to their customers.


Foreign exchange was languid all last week.
Bankers bills huctuated between lll1 and liz for
sterling, and sos $40 for francs. At the close
yesterday there was slight revival in the demand,
and liz was declined by some Of the leading
houses. There is very little inquiry for bills from
the importing houses, as the bulk Of the goods at
present imported have been paid for in advance.
But there are so few bills in market that bankers
find it unusually difficult to cover their exchange,
and hence do not about selling at rates which
do not permit their bills to be covered by ship
ments of coin. At liz, with gold at 1917, it is


Just possible to ship coin; bat the advance of yes.
terday to 1917 will probably oblige the bankers
either to raise their rates or to withdraw from the
market. We cannot but adhere to the opinion
that the rates, both of exchange and coin, must
advance, at all events until we begin to receive
cotton in quantities sufficient to pay for q substan-
tial portion of our constantly increasing imports.
If the crop prospects in Europe should be fair, our
exports Of food will very shortly begin to fall off,
and the bulk of our exchanges will have to be
effected in gold.


The following table shows the course Of the stock