On the question of prices, if the policy Government intends to pursue could be known it would serve to increase confidence. Is the volume of currency to be gradually diminished, or is it to be increased? Probably the answer to this question depends much upon who is to be our Treasurer. It is now said that the Hon. HUGH M'CULLOCH is to receive the appointment. He certainly has had more experience than many of the other persons named, and would, we think, fill the place more acceptably. Many of the opinions he has expressed have been sound; and yet we cannot but remember that Mr. CHASE argued against the paper money system while he fostered it, and Mr. M'CULLOCH differs just as widely between his theory and his practice. At the end of December, 1863, he issued a circular to the National Banks, in which he predicted a financial collapse from the policy of the Government. He said that the seeming prosperity of the loyal States was owing mainly to the large expenditures of the Government and the redundant currency which they seemed to render necessary," and that this currency would work great evils; and yet Mr. M CULLOCH has been since that time at the head of a branch of the Treasury Department which has increased the volume of the currency not far from a hundred millions, and which, unless the law is amended, promises to increase it two hundred millions more in the future. The contrast between the preaching and the practice of our financiers has been so wide as to reflect discredit upon them and make them utterly unreliable. What the new Secretary of the Treasury, whoever he may be, may do, will depend. to a great extent, upon contingencies, or, in other words, will depend upon the interests of those by whom he surrounds himself. If he will only have the wisdom to take the advice of sound men, rather than speculators, he will give satisfaction. Paper money is the life of speculation, and the issue of it will always be encouraged, and the retiring of it be deprecated by all who are thus trying to make money very fast. Professor BowEN, of Cambridge, in a recent letter, suggests the following method of contracting the currency, a measure he considers of vital importance to the best interests of the country : "In order to meet our present current expenses the receipts into the Treasury, from taxes and loans united, must average nearly three millions a day. Let the faith of the Government be pledged, that one fifth part of this sum shall be regularly devoted, as soon as received, to redeeming and destroying an equivalent amount of greenbacks. At the end of each week let an official statement be published of the amount thus redeemed, and let this amount be publicly burned. The sum thus canceled would be an average of three and a half millions a week-too little to create any immediate agitation or alarm in the stock market or the ordinary channels of business, but enough to contract the currency uniformly and without jar at such a rate that in seven months over one hundred millions would be permanently withdrawn from circulation, and gold would fall to about $1.30. I suppose, of course, that the Treasury should be deprived by law of any power to issue new greenbacks or any other form of legal tender notes to take the place of the sums thus canceled. Now my position is, that the mere formal announcement of this system would at once so buttress the public credit, depress the price of gold, check speculative enterprises, raise the relative value of the 7-30's, as compared with other government bonds, and thereby increase the rapidity with which this loan would be taken up, that within a fortnight the increase of the daily receipts into the United States Treasury would be so great that, even after the deduction of one fifth, the remaining sum available for use would be as large as it is at present. In other words, as soon as this policy could be fairly reduced to practice, the daily receipts would rise from $3,000,000 to at least $3,800.000; and four-fifths of this latter amount, or as much as we need at present, would be available to meet the current expenses of the government." In the mean time our foreign commerce shows gratifying changes compared with previous years. The following is a comparative statement, for three years, from July 1st to February 21. The imports are given in gold at their foreign cost, freight and duty unpaid; the exports of produce are given in their currency value at this port : he 54. 46 54 31 1864-65 12 35 162.534,422 07 26,035,417 The exports, as will be seen, have largely increased, while the imports have, at the same time, diminished. A statement of the value of the imports and exports at the port of Boston, for the month of January, 1865, show the same tendency. The total value of imports amounts to $1,192,653, and the total value of exports to $1,991,971. This shows an increase of exports over imports of $799.318. The amount of merchandise withdrawn from warehouse for consumption is $1,151,397, and imports entered for consumption $181,026, showing the value of merchandise thrown on the market to be $1,632,423. The condition of the public debt on January 31, is, by a published statement, not official however, described as follows: די 036719 I The unpaid requisitions continue to increase, notwithstanding the large receipts from internal revenue and the seven-thirty loan. The Secretary of the Treasury has authorized the payment of the March coupons on the ten-forty bonds on presentation, and those wishing to avail themselves of the privilege can do so either at the Sub-Treasuries or at Washington. The total interest on the semi-annual coupons will amount to about $4,000,000, the principal being not far from $160,000,000. The following are the prices of the leading Government stocks. There has been an increased demand on European account. The continued victories, and especially the news of the taking of Fort Fisher, made United States securities very active in London, at a decided rise, so that, although the price of gold has fallen, these stock reach a higher figure. The price The price of the 5-20's abroad was from 50 to 501, February 10. of gold has gradually declined through the month, as the successes at Fort Fisher, Charleston, Columbia, Wilmington, &c., have been announced. movement through the month is as follows: The specie The shipments of specie from California, since the first of January, 117 a 121 97 a 106 1138 a 120 109 a 114 1044 a 109 104 a 1054 1981 a 1994 have been 10 ...Per Light of the Age, to Hongkong.. 13....Per Sacramento--To New York.... 8,000 00 15,000 00 $1,456,359 36 To England... To Panama... 100,386 93 20,870 00 $610,226 47 338,204 80 ... 65,000 00 34,500 00 1,077,931 27 37,639 77 $2,693,187 33 3,287,816 78 $594,129 45 The following is the amount of the imports and exports of precious metals from and to France during the whole year of 1864, compared with the two preceding years: 5 B 309,845,757 229,340,861 217,615,905 The countries from which the imports came, and to which the exports went in 1864, were the following: Turning the preceding totals for 1864 into American money, we find that: Deducting the excess of silver exports from the excess of gold imports, it appears that during the year 1864, the stock of precious metals increased by $15,078,530. As to the amount sent to the East, it was $11,893.620 in gold, and $974.680 in silver to Egypt; $26,555,560 in silver to British India; and $2,621,080 in silver to China. The rates of exchange since the first of January have been as follows: New York City Banks and the National System-Defects of the National Law-Bank Notes a Tender for Bank Debts-This is a defect, and is interfering with the re-organization of the New York City Banks-Are Certified Checks Circulation?-United States Securities Exempt from Taxation; Decision of U. S. Court-How to avoid this decision-Mr. M'Culloch Secretary of the Treasury and Mr. Clark Comptroller of Currency-City Banks Returns-Returns of Bank of England and France. So far as the New York City Banks are concerned, the movement, looking to a change from the State to the National system, has made no progress during the month. The more the law is examined the more defective it appears, and, therefore, prudence leads these old institutions to hesitate before entering into a common fellowship with the new organizations. Many of these defects grow out of, and are inseparably connected with, our paper money system; but others are simply mistakes in the law itself. We have frequently referred to the peculiar features of this Bank circulation. The one which requires every National Bank, no matter where it is located, or what its condition, to receive for its debts the bills of any other National Bank, is certainly an error, and likely to interfere with the organization of first-class institutions on that basis. How can a bank be safely managed and yet be compelled to receive notes which may be at all shades of discount in payment of its debts? There are now, for instance, eight hundred and forty National Banks authorized, having a capital of $189,449,736, and $93,666,380 of circulation. This circulation is increasing nearly a million |