Year: 1863

authorised wrl prove the basis of loans TO - ex-
tent very much greater. Like the debt csrtie stes
banks will hold them and discount on them, thus
doubling the actual imitation Of credit. Bankers
canvass anxiously the prospect of . loan. 1t
would be very desirable that MIR. Chase should ne
gotiate loan ss soon as possible. But he will
lose more than he can gain II he attempts nego-
tiation and fails. 1t is certain that the scarcity of
legal tender notes in this city is such at the pre-
sent time that it would be highly imprudent for
any banker to bind himself to pay over million
of them on given day to the Sub-Treasurer, un
less he had secured them beforehand. Not one OF
the leading bankers whe usually take government
loans would be willing to bid for new one at pre-
sent, simply because they could not feel sure of
getting the legal tender to pay with. Under these
circumstances it seems probable that the Secre-
tary, after taking means to inform himself, will
not run the risk of disgracing the public
credit by an absolute failure, but will proceed to
disburse at this point within few days enough
of his new Treasury notes to make money plenti-
full and will then avail himself Of the good feeling
and buoyancy which will ensue to float his bonds.
This would evidently be wiser than to make ex-
hibition to the world of United States bonds
offered to the public without buyers at rs 7o-as
would be the case IL there were an attempt to
force loan at present.


Gold fuctuated last week between l69 and l73,
closing at about 17lI last evening. Exchange
closed at l89 for bankers bills Congress has
now imposed proper tax on dealings in gold, and
if the revenue collectors will carry out the law
vigorously, especially in regard to loans on gold,
the mischievous traffic will soon be checked
People who want to speculate should find some
thing else to operate in than the credit of the
country.


The financial measures of Congress are now per-
fected far as the ways and means for the prose-
euton OF the war concerned. We published
condensed summary of them in Saturdays HERALD,
showing that they gave Mr.. Chase $3.50, 900 900
more paper and $3.50 100000 more bonds. 1t is
pretty clear that he will have to issue the whole of
his paper this year, and will find himself at the
end Of his resources by the meeting of next Con.
gress. 1t is quite out of the power of this country
to absorb bonds as fast as Congress seems to have
anticipated. Even assuming that our arms are
victorious everywhere, we cannot absorb more
bonds than We have surplus money to pay for
them with. And it is obvious that even with the
assistance of European spectators, we shall not
have million a day, which is about the amount
aHotteu Dy congress, 10 invest IN government
securities, even if there be no investment
in anything else. As we stated few days
since, the rise in gold-whch was mainly
due to the purchases Of spectators at Washington
and Baltimore, and Chatham street operators
here--bewildered fnanciers at Washington, and led
them to restrict the authority granted to the Secre
tary to $3.50 900 900 Of paper instead OO0
proposed by the House. The position of the
government would have been safer had the House
proposition been agreed to, and gold would have
risen no higher on an issue Of 1000 900 900 Of
government paper money than it will now on the
authorized issue Of $3.50 900 900.


The effect Of the compromise on the bank tax
can only be ascertained by experience. We are
informed that the House only yielded on the under
standing that the tax, while calculated to yield
handsome revenue to the government was not
such as to prove oppressive to banks, or to
drive in their circulation generally. Some country
banks, with circulation out Of proportion to their
capital, will suffer; but most sound institutions
will be able to pay the tax, and will thrive
der Il.


The following table shows the course of the stock