16765. banks of New York (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
December 30, 1861
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
117d3606

Response Measures

None

Description

Multiple contemporaneous articles report that the banks of New York suspended specie payments on December 30, 1861, citing heavy drafts for government advances and Treasury advice. No article describes depositor runs on these specific banks or a permanent closure; historically these suspensions were temporary, so I classify as suspension_reopening. Bank name is plural (system-wide suspension), bank type not specific in these pieces.

Events (1)
1. December 30, 1861 Suspension
Cause
Government Action
Cause Details
Suspension was precipitated by heavy drafts for coin due to large advances the banks had made to the U.S. government; the move was reported as concerted and advised by the Treasury Department/forced by government financing needs and heavy coin withdrawals for government and foreign account.
Newspaper Excerpt
the banks of New York suspended specie payment
Source
newspapers

Newspaper Articles (10)
1. December 31, 1861 The New York Herald New York, NY
Article from The New York Herald, December 31, 1861

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Financial Position of Congress. Yesterday the banks of New York suspended specie payment, with some twenty-five millions of gold on hand. Only a few days ago they had forty millions, and it is probable, if the suspension had been deferred a little longer, the last dollar would have been drained from their varits. We learn by telegraph that the Boston and Philadelphia banks have followed suit. The silent panic among the depositors which thus prompts them to withdraw their deposits has been brought about by the infamous conduct of members of Congress, who, since the opening of the session at the beginning of this month, have done nothing in the direction of a provision for the financial necessities of the country in its hour of need, with the exception of a tax upon tea and coffee, which will but slightly increase the revenue. Their whole time has been squandered in miserable squabbles about the everlasting nigger, who has monopolized the attention of the Senate and House of Representatives for so many years, to the exclusion of the real business of the na. tion. And now, with a war on our hands, costing, it is estimated, about three millions per day, the Treasury will be without a dollar by the middle of January. By that time the loans of one hundred and fifty millions made to the government by the merchants and the banks will have been expended, and no means what ever provided for a further supply of the indispensable sinews of war. By the magnanimity of the President, and the masterly diplomatic skill of the Secretary of State. the angry threats of the English government and its press are hushed, and their violent denunciations will recoil upon themselves. Henceforth nothing remains to distract the attention of the administration or divide its energies and resources. Its whole power by land and sea will be occupied in the suppression of the insurrection for the next two or three months. To accomplish this great purpose money is wanted. How is it to be raised? Hitherto the government has obtained funds by heavy loans from the banks and merchants. by the popular 7:30 loan and by the issue of demand notes. But loans of this kind cannot last always, and a more comprehensive system is demanded by the crisis. Some loans must and will be still obtained; but what is most required is a currency consisting of Treasury notes bearing a small interest. and to be funded at a certain time hereafter, at the option either of the holder or the government. These financial operations must be based upon direct taxation. We are twenty-five millions of population, including the loyal States and paris of the disaffected: we are rich in all the sources of material wealth, and are as able to bear taxation as any people on the face of the globe. Let all kinds of property, therefore, be taxed, real and personal estate, together with income. including that of newspapers. according to their circulation and advertising patronage. In addition to the ordinary revenue, which, under the present commercial circumstances of the country. will not amount to more than forty millions for the ensuing year, it will be necessary to raise by a direct tax some eighty or ninety millions to support the loans and Treasury notes. Now, this is what ought to have engaged the talents and attention of members of Congress during the last month, instead of wasting their precious time, by night and by day, upon fruitless discussions about the negro-a question with which they have nothing whatever to do. As they have so long neglected the interests of twenty-five millions of white men of the North for the sake of three or four millions of Southern niggers, who need not the sympathy and desire not the legislation of Congress. it is high time for them to redeem their error by the prompt adoption of judicious and comprehen sive measures of finance, such as the exigencies of the country and the voice of patriotism imperatively demand. INFORMATION WANTER

2. December 31, 1861 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, December 31, 1861

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THEGENERAL HANK SUSPENSION. Our dispatches announce that the banks of New York, Boston and Philadelphia Lave suspended specie payment. It will doubtless be followed by the suspension of all the banks in the loyal States.

3. January 1, 1862 The Weekly North Iowa Times McGregor, IA
Article from The Weekly North Iowa Times, January 1, 1862

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0708 Satest News. No War with England. Mason and Slidell Given Up. UNION VICTORY IN MO: An abstract of correspondence between Secretary Seward and Lord Lyons, resulting in the delivery or Masen and Slidell is received. See'y Seward yields to to demands of England, and announces that they would be liberated in such manner as Lord Lyons would be pleased to indicate. They will go out in the Niagara, which will call at Ft. Warren for them. Thus ends the contingency of war with England. The publication of the Norfolk Day Book is suspended for want of printing papers. Col. Rankin has tendered his resignation of the Lancer regiment, and the resignation has been accepted. On the 58th Gen. Prentiss with 430 troops encountered and dispersed 900 rebels at Mt. Zion, Boone county, Mo., killing and wounding 150, capturing 35 prisoners, 95 horses, and 105 guns. Our loss was 3 killed and 11 wounded. A fight is impending in eastern Kentucky. Col. Corcoran has not escaped; his condition however, is to be rendered more comfortable. The banks of New York and Philadelphia have suspended specie payment. Mr. Stevens has introduced 2 bill in the House repealing certain laws creating ports of entry in rebel stotes.

4. January 2, 1862 The Democratic Press Eaton, OH
Article from The Democratic Press, January 2, 1862

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pelled to work twice as much for the same money. We had the love and respect of all people, who sought our shores as an asylumnow strangers fear us, our citizens are unlawfully imprisoned for opinions, and many seek their safety by refuge to foreign lands. Our country is now no longer "the land of the free and the home of the brave." How sad is this thought; and how sorrow will weigh down the soul, when the people awake to the reality 'that the Government has employed forty thousand eager hands to pick their pockets, to pay the interest on, a national debt that no man can count-the cost of a Union lost, the price of our shame in the eyes of the world.How great is the crime for which abolition must answer? How fearful will be the retribution when it comes?-and it will come. The telegraph states that the banks of New York, Boston and Philadelphia suspended specie payments last Monday. Next the Administration may suspend specie payments, if it can't help it. Would that prove that we have a Government ? A year of trouble has closed.We fear the worst has not come yet. The wisdom at Washington does not excite much admiration The future is covered with clouds.

5. January 13, 1862 Daily Democrat and News Davenport, IA
Article from Daily Democrat and News, January 13, 1862

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NIGHT DISPA I CHES. From " whington. WASHINGTON, Jan. 11. Secretary Chase expects "⑆meet on Monday delagetion Ful resenting the banks of Boston, New York and Philadeipsis, for conference in financial matters. Since the suspensions, this eity has been flooded with small notes, many of them wortbless. Nest week the H use Committee on Wars and Means will offur, and hope 10 carry their bills imposing toxision, and revival of the tariff by an increase of duries. There are numerous applications for he mission Rome, which the North-western members claim is belonging to some one from their section. The Commissioner of Paten's is to be cal ed on by Congress to state whether Mr. Brown, formerly Agricultural Chief Cleak, is now employed by nim in Europe to purchase seeds. The.e was much fruit found with Brown's official conduct while are, and it he has been sent abroad is wil make 1 divirbance. The King Philip came up from the Lower Potonac this Lorning, and repor's meeting the Penes. cois between Mt. Vernon and Washington, bound "www The for was so thick lost night that the Stepping Stone was ob! ged 10 lay off Alexandria till his worning. At GOOD, she again started to run the rebel

6. January 17, 1862 Daily Richmond Whig Richmond, VA
Article from Daily Richmond Whig, January 17, 1862

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# THE FINANCIAL EMBARRASSMENT OF THE YAN- KEE GOVERMENT, BANKS AND PEOPLE, A circular was prepared in New York and sent over to Europe on the first of the year, having for its subject the financial condition of the United States It contained the following leading statement upon the suspension of the banks: The financial crisis impending at the issue of our two previous circulars culminated by a suspension of specie payments by the banks of the cities of New York, Boston and Philadelphia on the 30th inst. Bya singular improvidence, Government allowed itself to be dependent on their contributions to meet its daily expenditures, and consequently was compelled to follow their example and suspend payment on its demand notes, although the interest on its bouds, and probably on all its obligations to mature, will unquestionably be promptly met. The suspension was caused not by any lack of capital in the country, but for the want of policy or scheme of finance adequate to the emergency. The country never presented more substantial evidence of wealth than at the present moment. We have taken frequent occasion to set these forth, and have contributed something, we believe, to advance the credit of Government both at home and abroad. But the policy that has been steedily pursued by Government, from what motive we will not itquire, has directly tended to precipitate the crisis, and to leave it without means, while those of the country have been really untouched. The remedy is perfectly obvious and simple-which is to adopt a policy which, by drawing upon the resources of the people, shall give the Government abundant means and fully restore its credit. For the calender year which closed yesterday, we presume the current expenditures of Government were $300,000,000. Its revenucs were which derived from lands and import duties, did not probably exceed, if reach, $35,000,000, or one-tenth the expenditures. To make up the deficit loans were resorted to, the greater portion of them being made in the city of New York. The expenditures being largely made in distant portions of the country, the balance of indebtedness at the close of the year turned against the city, so that the payments of coin by the bauks failed to return to them, leaving them no other alternative but to discontinue their advances, as a means of retaining the specie still remaining in their vaults. At the close of the last week the amount held by the banks was $29,357 712 This soon will be reduced by the amount of $3,500,000, which they agreed to advance for the purpose of enabling the Treasury to meet, in specie, the January interest upon the liabilities of Government. Upon the third $50,000,000, the banks will have paid $25,000,000, making their total advances $125,000,000. Of this amount, the Government has returned, say $38,000,000, being proceeds of sales outside the banks, and has agreed to account for $12,000,000 more as proceeds of such sales. We take it for granted that the banks will go no further upon the agreement of the 19th of August. It is neither for the interest of the Government nor the public that they should. It is now clearly seen that the alliance between them and Government was both unbusinesslike and unfortunate, as it bas in effect converted their capital into Government bonds, which are not money-capital should never lose the attribute of money-while it led Government, so long as all its wants were supplied, to put off the adoption of any plan or system of finance, necessary to produce even its expenditures upon a peace footing, upon the enlarged scale which the rebellion rendered inevitabl. The arrangement was a most improvident one for both parties, and both were equally interested in bringing it to an early termination. The aid of the banks should only have been availed of to meet a present emergency. When this was passed, the advances made by them should have been returned, and the expenditures of the Government met by the people, either in long loans or by taxation of one kind or another. For this reason, we have for some time past advocated a suspension of specie payments as the necessary step to the adoption of a permanent and adequate policy. Such a policy should be a system of taxation, which, with customs revenues, will yield annually (say) $150,000,000 to $200,000,000. Customs may be made to produce probably $50,000,000 or $60,000,000. We are then left the various modes of internal taxation, such as property and income tax, stamps, and excise tax or duties England raises in all some $350,000,000 annually. We can certainly raise one-half this amount with as much ease as she raises the whole. We have an equal population, and in many respects superior resources. No one doub's the ability of our people to pay such tax. Its collection, as far as Government is concerned could be anticipated by demand Treasury notes, waich by being made receivable in payment of such tax, would be readily taken by the government creditors, and till redeemed, pass current as money. Government could thus at once be placed in funds to the amount of the probable revenue from all sources for the year. Its credit may in this way be so fully re-established that it may continue to negotiate loans to an amount sufficient, with its revenue derived from taxation, to meat all wants. The plans suggested as alteruatives to that stated, appear to us to be not only inadequate to the emergency, but as likely to prove disastrous in their results. The one to which Mr. Secretary Chase inclines that of Frew Banking, tased on Government bonds, would, if reader-od obligatory, force the banks of the country into general Equidation instead of creating new ones. If left optional with the public no one will avail himself of it, as no one is going to purchase Government bonds as a conditicu of issuing circulation, when the same thing can be done now under State laws, without any such deposit The bank notes of the New England States, which are whollyğunsecured pass throughout the country at alless rate of discount than those of this State which are amply secured. The guaranty of a deposit of United States stocks for all the bills issued by the former would not add in the slightest degree to their solvency. They are now abundantly secured by an admirable system of banking. They are equivalent to gold, which is certainly all the pubiie demand. The great dinger resulting from Mr. Chase's scheme is that Congress will waste time over it which could just now be better employed. The suspension by the banks operated as a great relief to the public mind. Prices at the Stock Exchange rose very rapidly the advance over days previous being, in many instauces as great as 5 and 6 per cent. Gold was never more abundant than at the present moment. It will not probably command for the future any premium The effect of the suspension will be to correct a vicious system of national finance, which was an incubus upon the operations of business and trade no longer to be borne. We have no doubt that this system will be followed by one fully adequate to the crisis, although much precious time may be lost upon impracticable schemes, and in experiments which are always incident to new experience. AN IMPORTANT ARRIVAL -The Houston Telegraph of the 1st inst. legros from good authority that a steamer has arrived in a Texts port within the past week, under British colors bringing 45 tons cannon powder, a large amount of rifle powder, 700,000 army caps, 5000 cannon primers, and a considerable amount of coffee, dry goods, bagging, rop, etc. Columbus Enquirer. DIED, Near Centreville, at 5 o'clock the morning of the 9th of January, WM BROOKENBROUGH PEEGPS, son of the late Major Jefferson Phelps, of Covington, Ky., and grandson of the late Judge Wm Brockenbrough.of Richmond, in the 25th year of his age. Mr. Phelps.

7. January 18, 1862 The Texas Republican Marshall, TX
Article from The Texas Republican, January 18, 1862

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SUSPENSION OF THE BANKS OF THE EAST. ERN CITIES. From the Louisville Journal of the 31st ult, we learn that a general SUIR of payments was the banke of pension upon by specie 1) eastern resolved cities, on the 30th ult. The movement was simultations, 80 far as the banks of N. York, Beston, and Philadelphia, are concerns which shows a concert of action The determination in New York was, it 18 apologetically stated, unani nously r solved upon, in consequence of the heavy draft upon the banks for coin, caused by their large advances to the government." Their financial condition, rendered the step coin to twenty-two cordary-their from it was thirty-nine considered, having been millions reduced ne. in two weeks The telegraph says the banks of Philadelphia resolved to BUS pend in consequence of the suspension in New York," while it is simply ancounced that the banks of Boston held a meeting and resolved to suspend forth with." The Journal states that all the talk in the business circles of Louisville, was concerning the suspension of the easternbanks, an announcement of which was made by telegraph at noon on the 30th. It was previously known that the movement was advised by the Treasury Department at Washington, and generally thought " to be a wholemovement." also that the suspension can some expressed The opinion is "have and no serious effect upon the trade of the Western States; on measure commerce the contrary, the favor." In is connection generally regarded with with this subject the financial article of the same paper says: "Our local banks which have withsfood the financial revolotions of the past, will con inue to redeem the issues of the branches local ted in loyal districts, and we are advis. ed that the Ohio and Indiana banks will likewise continue to pay specie, at least for some time to come." The movement of the New York banks was forced upon them. During the week ending the 28th ult., their balance sheets exhibted the following resuits : Decrease in loans. $1.017,912 decrease in circulation, $119.898 de crease in deposits, $845.560. These figures were favorable to the banks to the extent of $55,454 and had there been no other transactions would have created no alarm. But the loss of specie, on government and foreign account, was $7,955,932. which exhibited a difference against the coin balance of $7,900,479 The neceasity of an inflated circulatin the may ing medium Ohio and West, Indiana enable keep the banks of to their notes afloat in their own localities for a while, but they cannot maintain the position long. The suspension must become a general one, and financially our will 8 on ocempy the same as position enemy commercially the South.Memphis Appeal.

8. February 20, 1862 The New York Herald New York, NY
Article from The New York Herald, February 20, 1862

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purely speculative, revived. If the recent victo. ries should defeat the passage of the Treasury Note bill, the gold speculators would be punished even sooner than they will be if the bill passes and an adequate tax bill is at once pressed forward. The scheme of the sub-committee of Ways and Means for a tax bill was laid before the whole committee to-day. It is to be hoped that it will be reported to the House without delay. The stock market was lower to-day. The want of outside business renders the task of the bull speculators very difficult, notwithstanding the ease in money and the improvement in public feeling. The public appear to be buying State stocks with some boldness. Virginias rose 2 per cent, Tennessees 1, North Carolinas 11/4 and Missouris 11/6. Inexperienced persons must be careful how they are tempted to purchase the securities of the rebel States. It is impossible to say what bonds they may not have issued during the past year, under the pressure of war: and, though the proceedings of the Confederate government are of course null and void, it is clear that each State may be held answerable for any securities which may have been issued by the proper State authorities, even under the influence of the rebel leaders. The debt of Virginia was quite as much as she could take care of before the rebellion, and the resources of the State were not increasing. Railway shares were irregular to-day, but generally lower. At one time there was quite a smart decline in some stocks; but at the second board the speculators bid up the market, and prices closed better than they had been. We note, however, a decline of 2 per cent in Pacific Mail, 5/8 in Erie, 3/8 in Hudson 1/2 in Illinois, 1/2 in Galena, and 1 in Toledo. The market at the close steady, the following being the last quotations:-United States 6's, registered, 1881, 90 a 901/4; do. 6's, coupon, 1881, 89% a 90; do. 5's, coupon, 1874, 7934 a 79% Indiana 5's, 75 Virginia 6's, 57 a 58; Tennessee 6's, 55 a 55 1/4; North Carolina 6's, 66 1/4 a 6634; Missouri 6's, 48 a 4814; Pacific Mail, 941/8 a 94 1/4; New York Central, 821/2 a 825/; Erie, 34 1/2 a 34% do. preferred, 581/2 a 585/; Hudson River, 381/4 a 385/5; Harlem, 121/2 a 1234; do. preferred, 30 a 30; Reading, 43 a 431/2; Michigan Central, 535/8 a 53% Michigan Southern and Northern Indiana, 2214 a 22 3/6; do. guaranteed, 43 1/4 a 433/; Panama, 119 a 11934; Illinois Central, 62 a 621/4; Galena and Chicago, 68 a 681/4; Cleveland and Toledo, 44 1/8 a 44 1/4; Chicago and Rock Island, 541/2 a 54% Chicago, Burlington and Quiney, 621/2 a 63: Milwaukee and Prairie du Chien, 20 a 201/2; Cleveland, Columbes and Cincinnati, 1081/2 a -: New York Central 7's, 1876, 1031/2 a 1041/2; Erie third mortgage bonds, 96 a Michi gan Central 8's, first mortgage, 1011/4 a 1011/2; Illinois Central bonds, 7's, 931/4 a 93 1/2. The business at the Sub-Treasury was as follows to-day:$557,329 Receipts. 172,000 00 -For customs 521,462 Payments Balance 5,203,444 74 The exchanges at the Bank Clearing House this morning were $16,488,296 24, and the balances $828,248.53 By the Kangaroo we have advices from London to the 5th inst. The London money market is reported as easy; but gold continued to be drawn from the Bank of England for transmission to the Continent. Consols were dull and without fluctuation, closing on the 4th at 923/4 a 92% The London Shipping and Mercantile Gazette of the evening of the 4th inst. thus notices American stocks:The transactions in American securities comprise:Virginia State, 471/2: Erie shares, 7 per cent Preference, 48 to 8; Illinois Central, 1872. 79% do. $100 shares, $85 paid, 44; do.. all paid. 531/2 New York Central $100 shares, 721/2 Pennsylvania Central bonds, first mortgage, convertible, 82. The position of the British money market during the past month is thus described in the Bankers' Magazine and Commercial Digest:The progress of affairs, financial and commercial, has been certainly more satisfactory than it was supposed it could be. considering the late position of relations with America. Previously to the receipt of the answer of Mr. Seward to the demand of Earl Rassell great anxiety was expressed. since it was confidently predicted that no reparation would be offered. but that hostilities must eusue. The natural result was that trade experienced a further check, business at the Stock Exchange became restricted, and the only movement by which profitscould be secured was the enhancement in war risks at Lloyd's When, however it was announced that Messrs. Slidell and Mason would be released, and that the attitude of the a federal authorities was altogether conciliatory, then general recovery occurred: the markets became animated. the appearance of affairs having entirely changed. Thismay be well imagined when it is intimated that the bank reduced the rate of discount to 21/2 per cent. the abundance of money through the payment of the dividends, with the influx from other sources, having lowered the quotation out of doors for first class bills to 2% per cent. The Bank of France subsequently reduced their terms to 4 1/2 per cent. which indicated an improved condition of things. Such is the current plethora. notwith standing the Indian railways have been in the market, completing dehenture and other subscriptions to the extent of about £2,000,000. actually absorbing that acunt, that prime selected paper has been taken as low as per cent. On the Stock Exchange money has positively gone 'begging' at 1 per cent, and is now only quoted at 1 1/2 per cent. It must, nevertheless. be admitted that this plenteousness arises in a great degree from the stagna. tion of general mercantile business and from the indis position manifested to engage in adventures of any description without they are based on the most solid foundation. The suspension of specie payments by the banks of New York, Boston and Philadelphia, and also by the federal government. bas not created any surprise, and. beyond marking the effects of the civil war in Ameri ca. has not been regarded with any great interest. is Stock Exchange. WEDNESDAY, Feb.

9. October 24, 1862 The Weekly Pioneer and Democrat Saint Paul, MN
Article from The Weekly Pioneer and Democrat, October 24, 1862

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THE WEEKLY PIONEER AND DEMOCRAT Our Financial Troubles. During the past month the price of gold has been gradually ballooning up until it has reached the high figures of 32 premium over treasury or bank notes. There are various explanations given for this rapid rise in the value of gold. Some attribute the appreciation merely to speculation while there are many who perceive it the result of other causes. It is known that the European holders of our stocks have become seriously alarmed for the ultimate safety of their investments, and therefore are realizing by selling their stooks in New York for gold. Of course vast amounts of securities thrown on the market, to be remitted in gold, must compel a rise in the value of the precious metals. But this fact alone would not suffice to explain the rise. When a government is issuing an irredeemable paper currency, there is more confidence in it when people can perceive the probability of some cessation in the cause which compels the issue. The war is known to be that cause. Could we see the end of this war, gold would decline. So many think that we have progressed but a small way towards crushing the rebellion and establishing a lasting peace. The truth is, the value of our paper currency depends upon the success of the army. On this subject, Thompson's Bank Note Reporter of this week says: When the banks made the first loan of $50,000,000 to the government for the war, it was virtually agreed that the war should be prosecuted economically and vigorously to a speedy result. When General Halleck took the position of commander-in-chief, Secretary Chase sought an interview with him in hopes of coming to a better knowledge of his own position as minister of finance, anxious, of course, to re-assure the capitalists of the country that this money and the strength and resources of the nation were applied fixedly and determinedly to the object for which the money had been borrowed, taxes levied and the nation mortgaged. What this interview amounted to it is not in our province to know, suffice it to say that the Hon. Secretary is as fully sensible as any other man in the country that the success or failure of his financial measures rests entirely with the army, and if he has been anxious and even nervous on the question of generalship, such feeling evinces nothing short of a commendable anxiety for our country generally, and for our finances especially. After the adjournment of Congress in July, the financial measures of the Secretary have all been passed and approved, so fully did we feel that the army only could sustain the credit of the government, that we jocosely said Mr. Chase's next great move must be on the battle-field. Little if any military progress has been made since. Hence Gold is twenty-eight and thirty per cent. premium, and our currency and securities are correspondingly discredited. This is a question that goes to the pockets of all the people. Every treasury note, bank note, and postal note afloat, is shorn of its value. The people may not yet see it in this light, nevertheless nothing is truer. How can the minister of finance rest, feeling, knowing that we have the power of progress, yet still sink under inaction. Under existing circumstances, it would be quite natural for Mr. Chase to canvass the advantages and disadvantages of a change in the financial measures of the government. Without argument on the subject, we will simply say, that any effort to revive lost credit before victories pave the way, will only make matters worse. Press right on; pay the army; pay the navy; pay the contractors with currency, though it be depreciated. Individually it may not be their fault that the currency is depreciated, but collectively it is. The possession of Richmond and the destruction of the rebel army of Virginia, would at once check the rise in gold. Until we obtain a decided success in Virginia, we cannot expect to see much decline in the value of gold. That success would also induce foreigners to withdraw the stocks which they are pressing for sale upon the New York market. Peace might not be directly at hand, but there would be a more probable prospect of it. Now with our army near the Potomac, foreigners think that we have not made an impression on the rebellion. To illustrate to what extent the success of the army influences the value of gold, after the banks of New York suspended specie payments in December last, gold rose to a premium of 6 per cent. The victory of Fort Donelson reduced it to 3. The reverses to McClel-lan's armg advanced the valne of gold from 8 to 20. Other reverses have carried it up to the high figures of the present-bearing in mind that the extent of the increased issue of irredeemable paper is dependent upon the prolongation of the war. The problem is brief. The longer the war, the more irredeemable paper, and of course its diminished value, and a relative rise in the value of gold. NEWS AND OTHER ITEMS. Hon. S. Colfax is elected by the "skin of his teeth," if elected at all. Two years ago the district voted as follows: Colfax (Republican)...16,860 Cathcart (Democrat)...13,458 Colfax's majority3,402 --A fellow named Christian Gantenbein recently married the widow of the late John Symonds, at Platteville, Wisconsin, and since then it has been ascertained that the widow makes his eleventh wife. One of them came to Platteville and testified that he deserted her in Dubuque several months ago. It has also been ascertained that he is a deserter from the United States army. He has been committed to jail for trial. -Accounts received from other than newspaper sources, show that since the battle of Antietam there are less indications in Europe than previously to recognize the Southern Confederacy, and that the result of that engagemeut, so far as the government of the United States is concerned, has decidedly had a beneficial influence. -We are now in the midst of a most delightful Indian summer. The air is soft and hazy, and everything around conduces to that peculiar sensation of delight which is always felt in the fine climate of Minnesota at this season of the year. Winona Republican. The air was hazy enough yesterday, but being mixed with sand and gravel, and driven into our faces with the force of a hurricane, we found it anything but "soft." -The Louisville Journal says: "We hear nothing of Humphrey Marshall now. We don't know where he is. Wherever he may be, he is no doubt doing the worst he can. Everywhere his presence excites abhorrence. He shows himself a remorseless robber, and an insolent and disgusting blackguard. He is a large bulk of infamy- "A monstrous mass of foul, corrupted matter, As all the devils had spewed to make the batter. -The agricultural department has received gratifying intelligence from various sections of the country of the success attending the culture of cotton. Those from Southern Illinois are especially encouraging. -Military indications and privately known facts are entirely at variance with the current reports that the Army of the Potomac is preparing to go into winter quarters. -The Elbert County (Georgia) Supreme Court had decided the Confederate Conscript Law to be unconstitutional. The argument of the Court upon the points raised is of great length. We append the concluding paragraphs of the decision. The palpable infraction of the Confederate compact is sometimes-indeed, principally-defended on the plea of necessity. What a dangerous fallacy! We have expended one hundred thousand lives and untold millions of money to maintain the Constitution and the independence of the States, and shall we now violate it, and destroy the State Government. As reasonably might we commit suicide to avoid personal danger. Whereupon, and for these reasons, it is ordered and adjudged by the Court that the act of the Confederate Congress known as the Conscript Law, and entitled "An act to further provide for the public defense," is void; and the plaintiff, James M. Lovingood, be released and discharged from the custody and control of Sidney P. Bruce, and from the custody and control of the sheriff of this court, and he be set at liberty, to go wherever he pleases. -Colonel DeGraff is at Winona, making an effort to start up the Transit Railroad. -Captain Rockwood, of the Marshall Guards, now at Mankato, received some days ago, from his friends in St. Paul, a very handsome and costly sword, belt, sash, etc. -A Washington correspondent says there are at least $50,000,000 in claims waiting payment on the desk of the Secretary of the Treasury. The reply to the claimants is that the funds have all been exhausted in paying soldiers' bounty. -Immense quantities of cotton are on the way to England from India. The London Daily News says: As the cotton supply question and the capabilities of India are now occupying so much of publie attention, our commercial readers will regard with much interest the following statistics of the cotton on the way Bombay, and which amounts in round numbers to about three hundred and seventy thousand bales. A few of the vessels have already arrived, and in two or three cases the ships have been either lost or otherwise freighted, but in the main the calculations may be relied on. From the Land of the Dakotas.

10. December 6, 1862 The New York Herald New York, NY
Article from The New York Herald, December 6, 1862

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$899,300,701 22 Making an aggregate of A tabular statement is submitted with this report, and as part of it,rexhibiting clearly the details of the receipts and expenditures of the financial years 1862, 1863 and 1864. Another table is also submitted. in which may be seen of what particulars the existing debt consists, in what years it was contracted, and when and in what amounts it will become due. The other tables required by law also accompany this report. In order. the formation of sound opinions as to the measures required for meeting the demands disclosed by the estimates and yet unprovided for, it may be useful to review briefly, in connection with their actual and probable results, the measures already recommended and adopted, or yet under legislative consideration. MEASURES OF RELIEF PROPOSED TO CONGRESS. With a view to the necessary provision for the expenditures then anticipated, the Secretary proposed to Con. gress, at its last session, such measures as seemed to him best adapted to the attainment of that object. These were (1st) an increase of duties on various imports; (2d) an increase of the direct tax: (3d) the levying of internal duties; (4th) a limited emission of United States notes, convertible into coin; (5th) the DO. gotiation of loans, facilitated by the organization of banking associations, whose circulation*should consist only of notes uniform in character, furnished by the government, and secured, as to convertibility into coin, by United States bonds deposited in the Treasury. At the time these recommendations were submitted, the banks had not suspended specie payments, and there was reason to believe that economized expenditure and decisive military action would secure the means required for the suppression of the rebellion without serious sacrifices on the part of the government, and without resort to any other currency than that of coin and equivalent notes. Unexpected military delays, however, increased expenditures, diminished confidence in public securities, and made it impossible for the banks and capitalists, who had taken the previous loans, to dispose of the bonds held by them except at ruinous loss, and impossible for the government to negotiate new loans or coin except at like or greater loss. SUSPENSION OF SPECIE PAYMENTS BY THE BANKS These conditions made a suspension of specie payments inevitable. The banks of New York suspended on the 30th of December. 1861. Their example was followed by most of the banks the ughout the country, and the goverminent yielded to the same necessity in respect to the United States notes then in circulation. These changed circumstances required a change of measures. The expenditures had already reached an average of nearly a million and a quarter of dollars each secular day. while the revenue from all sources hardly exceeded oue tenth of that sum. Tt was necessary, therefore, to raise by loans in some form about thirty millions a month, or sixty millions every sixty days. Careful inquiries satisfied the Secretary that the first $60,000,000 could not be had, in coin, at better rates than a dollar in bonds for eighty cents in money, and that each succeeding loan would involve submission to increasingly disadvantageous terms. To obtain the first $60,000,000 would require, therefore, an issue of bonds to the amount of $75,000,000, and, of course, an increase of the public debt by the same sum: the next $60,000,000 would require, perhaps, $90,000,000 in bonds and debt; and the next $60,000,000, obtainable at all, would require, perha S, $120,000,000. It was easy to see that on this road utter discredit and paralysis would soon be reached. The adoption of a plan of finance involving such consequences was not compatible with the Secretary's ideas of public duty. THE NEGOTIATION OF BONDS. There remained but one other possible way of raising money by the negotiation of bonds in the usual mode. That way was to receive in payment, of loans the notes or credits of the banks in suspension. To ascertain what would have been the consequences of a resort to this expedient, it is necessary to remomber that the bank circulation of the loyal States amounted, on the 1st day of January, 1861, to $150,000,000; that had been reduced to $13,000,000 on the 1st day of January, it 1862, and that this circulation was diffused throughout the country in all the channels of business. In these circumstances the collection by loans of sumcient amounts to meet the demands upon the Treasury in season for prompt payments would be extremely difficult. The negotiation of such loans to the extent required by the public exigencies would create a demand for the notes which would involve the necessity at tires, of sacri fices not greatly inferior to those attendant on coin loans. If subsequent negotiations should bee me practicable as seemingly better rates, It would be because the government demand had stimulated the making and issuing of bank notes to an extent far beyond the ordinary needs of business. The increase of circulation thus stimulated would be unlimited, except by the possibility of obtain. ing interest on loans of it, or, in other words, by thepossibility of obtaining credit for it with the community and the government. This Hasit. certain to to Snalls /