The Sun.
London, England, 1853-08-26 00:00:00

TAE UNITED STATES MONEY MARKET.

_ The recent advices from the United States represent a
to_ndition of financial affairs which has an important
~..earing on the money markets of other countries. Two
peculiar causes are in operation to produce an unusual
eh "nee, and although one of them is of a more local
erecter than the other, they are both of sufficient
magnitude to occasion striking results. Until recently,
the laws of New York have required the various bank-
ing institutions of the State to publish their accounts of
_liabilities and assets only once every three months. The
"ncequences, however, were found to be such as to ne-
cessitate a reform. No system could have been more
transactions
for gamblers, or more hurtful to the regular
-transactions of commerce. Within a few weeks of the
Period
of the issue of their statements, the banks, in or-
der to exhibit a position of great safety, were accustomed
to call in a large proportion of their loans ; and as soon
the
nnecessity was over, they would then again accom-
date their customers with greater liberality than ever.
a quarterly panic in the stock-market, followed
3r,a1l equally violent rebound, was an event always to be
uPled for, and speculators of large means, acting upon
s knowledge, could realise profits with a deeTee of cer-
tainty that afforded a singular illustration of the blindness
°f* the smaller dabblers among the general public, who
Were invariably its victims. To remedy this a new
or has lately been passed, which came into force on
the 9th of the present month, and which requires from
a°ll bank, for the future, weekly instead of the
larterly publications. The last intelligence from New
ork reached to the lgth inst., and by confirming the
anticipations as to the effect to be produced by the first
Operation of this measure demonstrated its usefulness.
The same rapid steps of contraction had been pursued
IT the several institutions preparatory to the appointed
uay as had been witnessed previously on the approach
of each quarterly period. The rate of discount even on
the best commercial paper was suddenly raised, the quo-
tation of exchange on England declined so as to check
the amount of specie remittances, advances on all kinds
of securities were required to be repaid, and even mint
notes against deposits of bullion were sold at a con-
liderable discount to avoid the few days' delay before
their amount in coin could be obtained, a simultane-
'°us fall of 5 to 15 per cenG. in all except the most
established securities being likewise reported. From
this time, however, no such convulsions can recur.
The returns of each bank being made from week to
Week cannot admit of sudden fluctuations, and there
Will be no inducement beyond such as the fair course
(4 the market may offer to vary the amount of accom-
lodation to the commercial public. After this date,
therefore, as far as mere bank regulations bear on the
question, a more steady state of affairs may be expected
adld the causes of the momentary pressure being recog-
nised, a return of confidence can be relied upon.
The other circumstance, however, which is now affect-
:tug the American money markets is far more general
" permanent in its influence, and is one that will re-
quire to be taken into account even in the calculations
lthat have lately excited attention regarding the move-
petits of specie throughout the world. When the Na't°nal Bank system, on account of its having been made
LPolitical instrument, was abolished in the United
1-,',_tes 15 years ago, the Government resolved to trust
,„-° banks whatever, and a law was adopted requirbag all
rtaYneents on account of revenue to be made in specie,
being provided that the funds thus received should be
ePosited in sub-treasuries belonging to the State.
while the disbursements of the nation were equal, or
nearly so, to its receipts, this plan produced little incon-
°Ulence although even at those times, as the incomings
and outgoings were not always simultaneous, a dis-
turbing effect would be produced on the money mar-
I,
°3' a large sum being accumulated for a few weeks,
it then poured forth in one or two extensive pay-
inei°otc- But since the introduction of the reduced tariff,
'°46, the Customs duties have gone on yielding in-
t:aced totals, until a surplus has been hoarded up of ex-
.eordMary magnitude. Its total, according to returns
Just made, is- now, equal to about 4,500,0001. or
th' at this
sterling ; and when the fact is tone in mind
a, this heavy Bum, which would, according to ordi-
IltiVr notions, be an ample basis for a circulation of
„ Lee times its amount, is actually lying idle and wire-
-4Vließented in the Government vaults, so as to be virtu-
ally in the same position, as regards any effect it can
s a 0 On the world, as if it were at the bottom of the
irte idea will be arrived at of the important element
sta ""e questions regarding the counteracting circum-
kures in connection with the recent production of gold,
"fututhe effect that m at any time be produced by a
.tio" influx. At some not distant day the appropria-
eel,- and disbursement of this surplus will be decided
elatedd will create effects such as few have contem-
go • But, meanwhile, the accumulation can only
courin increasing. The revenue receipts of the
teaci:l7, owing to the extraordinary prosperity of
just are augmenting month by month, and in that
ended—namely, July—they exceeded any sum
this received for a similar period. The enlargement
fa Year of the sub-treasury hoard will, therefore, be
terb beyond the original estimate. It is true the Secre-
lasi" of the Treasury, according to the advices by the
the Packet, has, with the view of reducing it, exercised
the Powers vested in him for applying these funds to
bra
extinction of the Federal debt, and has adiertised
au Hess to purchase a sum of United States' Sixes,
dualv to 1,000,0001. sterling. Much of this stock,
is such is held in Europe, and the price at home also
eoeces as to render it doubtful if the bid will prove
the a,„sful• Just to the extent of the purchase will be
duce mount of specie liberated, and this specie will pro-
Csairoill A the same effect as if it had been dug up in
Statest:nia or Australia ; but if no sellers of. United
- securities should be found on the proposed con-
by lns, the evil must go on until it shall be terminated
orneegislativ appropriations for public works, or by
krise increase of national expenditure, such as would
°aYAvlrtatcr. leo.r a purchase of foreign territory.—

Tll/4 RARVEST IN THE NORTH OF
IINGTON, Ang. 24. We have had reni
consequently, the
Weather during the past month, an
beautiful wheat have
EarTabrjAilly nfi.n—e wpaArnn;
hrest has commenced bout a fortnight earlier than
ti_ ae predicted. Several fields of
thetll the
ljeell cut throughout the county of Durham
Past seven or eight days, and in several
In
consequence
er°Ps will be soon ready for the sickle,
4:ltf the cold, bleak weather being protractetdheinTteoesMdaalye
during
districts
hi!. Year, spring wheat will be late, and in
Barley
Tao Weardale districts oats look very
.26k8 well, and it seems the general o
contrary—
be has been expressed previously to the eon
will
that if this th - holds out, the crop of cereals _
be , . Nvea weather
sound.
a lair average. Winter wheat will be very _
in
ion—though
fat
,„tiliPe Deed rain. The harvest has also commenced _
tr4..."°toe of the districts of Tyneside, and reports speak
jorably of the progress of the crops in the southern
also of Northumberland. Farming operations are
I,l° reassuring in North Yorkshire.
it —RaTri OP GENERAL MONTHOLON.—The Debats an-
-4'lllloes in a sing
*dances this le line the death of General Count de
kentholon in Paris. When and under what circum-
tw event took placelad is not sa
son, who tated. He leaves
y), and ,
widow (who isver, it is believed, succeed to the title in consequence
of the circumstances contiected with'his birth. General
likentholon must have been more than 70 years old, and
whita suffered occasionally and severely from a wound
had h he received in battle under the Empire, and which
withnever been thoroughly healed. The general was
Emperor Napoleon from a very early age, and
trilaa a great favourite. He had at one time a large for-
la,ti%bs.utli,ost it in commercial and manufacturing specu-
limited, or some years his means must have been very
4
TRAINS BETWEEN PARIS AND BRUSSELS.—The
trot trial of the new fast trains from Paris to Brussels
id-atus..nzesetodpepdagbeyond expectation ; 232 English miles
;_vere got over in less than seven hours, and allowing an
the average speed was more than 37
14411 WWI and a half per fiour.