The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-02-04
FINANCIAL AND CONNER CiA,-.
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few call loans AZ aud per cent called IN this
morning. The general bank rate to be fairly
fixed at six per cent and though few private hackers
and capitalists willing TO lend their balance night
at no loans which are expected 10 remain out for any
length Of time done below the bank There
little mercantile paper making that rule rreguarly
the discount Market but dsregardipg the ope
rations of individuals who have theories of their own and
carry them out in practice the minimum rate FOE the best
paper may also be quoted at six per cent
good deal of is aoat with regard to the
Of the present increased activity in the money market.
Some people call it a furry, and expect to
money down again 70 four per cent IN
few days. These views not easily reconclled with
the facts At the time the last ten millions the 1853 loan
were awarded, viz, Oath of January ult the New
York banks held in round numbers, $9 900 900 of spe
cie and had 600 OF loans. A. the great
financial centres, viz, New Orleans, Philadelphia and
Boston, there held in the aggregate about as much
specie there New York. say (sxtesn
million of which at New Oreans) aud had been
discounted and Obligations of kind another
to an aggregate amount of slo7 900 OO0n New Orleans
bank loans barely exceeding their Specie Out of this
specie reserve ten millions DO paid into the Sub
Treasury between Goth January and 18th March The
sta,e of the domestic exchanges showed would not
during that PERIOD out of the New Orleans banks
It destined evidently be taken from New YORK,
Philadelphia and Boston. But the bank loans a. New
York ard Boston already large as the whole of
the specie reserve in their banks justified The New York
banks had loaned 81 50 Tor every dollar they held in
specie the Boston banks So 80 for every dollar of specie
they held. How was it possible for them to do
business or even to keep aoa the loans they had with
the prospect of losing ten millions weeksp
The Boston banks did what they ought to have
long BEFORE they began 10 decline TO discount any
further, and large quantities Of Eastern paper
sent on to this city to be melted down. II Is
likely that the extra demand arising from this
source gave the first impetus 20 bank managers But
even without it, their policy must later, have
been the same. They could not, with safety to them
selves, have allowed their discounts to remain at
1929, oOO when few days, their specie might be
reduced 10 the neghborhooi Of $40 900 o00 The rmness
of foreign exchange by the non export of bread
stu forbade the hope tina. they could any par: Of
the supply from California The increased amount Of i'm
portatons foreshadowed large specie payments into the
subrreasry for duties. And lastly, the pending agia
ton respecting the establishment OF a bullion bank
alone sufficient TO warn every prudent bank manager
against placing his institution attitude Of danger On
the whole, are inclined rather 10 admire the bold
ness with which banks held out so long against the
necessity for curtanent Of loans than wonder that
money has risen in value Any sudden disaster concur
~
have placed the banks in position Of much embarrass-
ment and though, from the fact that very large pro
portion Of their loans made securities
and might be available at very short notice. little u
mate loss need be apprehended any event, STILL much
mischief would be caused in consequence Of the undue
bank expansions the newspapers any day to
nounce such political catastrophe as a revolution
France or war in Europe
VIII thus be seen that tho prospect Of speedy return
four per cent money market rather slender at pre-
sent II the banks are wisely conducted they will gra
duay relieve themselves Of so much OF their call loans
viii enable them 70 the means Of accommodating
the commercial community without any further expan-
SION f adopting sx their minimum rate for the pre-
sent, they Will probably achieve this end few lenders
may for day or two lend under the bank rate but in
The course Of week these will disappear, and the
street rates wiz usual rule a per cent over those
current at bank. Iiurther complications should aris
political troubles should oc,ur-if the United States
should war other twenty Millions money would Of course
rise again indeed The ordinary exgences Of
VIII probably cause another rso before mdsummerbut
Tor the present. II AL seroae and favorable per cent
seems likely 70 be n safe minimum
Tho principal iealufe a the stock market continues to
DO the fluctuations IN Pacific Mail The announcement Of
Commodore vanderbits new line ~ Asplnwall TO com
muncate with Garrsons line from Panama TO san Fran.
cisco, terrified the holders Of Pacific Mail 80 yestcr
day that they cold their siocs down b 70 This morning
there we're many orders for the stock and up TO So
alter"~d declined 10 II, and closed in afternoon
after moderate business, as 7sH The long mystery
which has overriding this stock now cleared away
people can at last tell whether or no it worth buying
We oeeveh The company has something like 81 100000
IN reserve that has several boats beyond those needed
for the service of tho route; that has quantity Of
coal, and various other property, including works
which have cost far more than they are worth,
On the other hand, il seems likely that il is
going to enter INTO contest Of the sharpes description
with the riches, and abest steamboat man in United
States. If what is currently reported Of the business
the route be true " Is possible that even two ncs-the
Pacific Mail and vandeblps-may Ind profitable employ
meDt, and may come to an ndcfsaDding at 8xod
rates of fare alternate weoks New York Central
again freely taken BY the bears this morning close their
contracts Itopened very strong above TIC elosug price