The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-08-28
1855
S62s.6l
sss,s2

Increase S62s .65l b3,35s
As was expected, the specie has fallen of con-
siderably. There is nothing in this alone which
need create apprehension; the general recovery
Of the Western country will naturally cause a re-
ducton of our city bank reserve to something like
the figures which were usual before the crisis. II
is not necessary, Tor the prosecution Of the
commerce Of the country, that $40 900 900 in coin
should be boarded in the city bank vaults; three
fourths of this amount, or even less, would
answer every purpose. If in October next our
banks hold IS 900 900 less than they do at present,
there need be no ground for alarm, prorided the
discounts are not und,ly expanded We note with
regret further expansion in the above statement
This is due 10 the accommodation afforded 10 the
West for the movement Of the crops, which could
not well have been refused. II illustrates the folly
which animated the banks when three or four
months ago. with money at a per cent per an.
mum, they swelled their loans 10 nearly their pre-.
sent figure, and placed il out of their power 10 do
their duty TO the country without alarming the
community. The banks which have expanded
since last week are the Merchants, the Commerce,
the Republic. the Metropolitan, the Continental
and the Park.
day, and good deal of apprehension expressed
and in some cases really felt-in stock circles, with
regard TO the future. Several of the banks which
have been cashing Western paper have been can
ing in their demand loans; and lenders, as usual,
have gladly availed themselves Of the circumstance
to excite feeling of distrust, and so obtain al
per cent more for their money. To-day stock Dor.
rowers are paying 6 a6a ~ for call loans. But
the higher grades Of mercantile paper are quite
scarce; prime SIX months paper would be readily
cashed at Z Il il could be had, and choice 60 day
paper at 81. Both at bank and at the discount
houses the complaint is not of the scarcity Of mo-
ney, but Of the scarcity Of paper. The fact is
there are too few borrowers in the market,
as yet, for any material advance in the
value OF money TO be permanently maintained.
There - too much money in the country, and too
little employment for it-too much capital, and too
few enterprises at work. year or two hence,
when there arc more new railroads and steamers
and other great money consuming works under
way, money may rise to the old standard; at pre-.
sent the prospect is that each advance Of half per
cent in the rate Of interest will bring more money
into the street, and thus that each trifng advance
will be succeeded by corresponding decline. The
money which is going to the West finds its way
back here TO pay for goods in the course Of very
few days.
The foreign exchange market opens without any
appearance OF an active demand. Bankers are
asking a shade more for their sight bills on London
which must now be quoted at ll0i i-the rate
for sixty day bills remaining the same, 20 wit
1927 ITO. Francs are selling at 5.l3l l4l for
90 day bills and j.lol for short sight The steamer
on Wednesday is the Persia, which, like the other
Cunard boats, charges more for carrying specie
than the saturday packets; it is therefore unlikely
tina, she will take out over $500 900 in gold.
The stock market opened dull this morning. as
Usual on Monday; at the close OF the board a
better demand sprang up. bat very little was done
n the sdvnce; in the afternoon the market was
lower snd closed weak Nearly oil the leading
| operators desire TO see decline. for the simple
reason that they have sold out their stocks and
want 70 buy again at lower figures. A fortnight
since few q the more influential members Of the
board attempted bear movement, and sold stocks
pretty freely. II is believed that they deemed
| IL prudent last week TO cover their
contracts at tihiag loss. At the present time
there is very little bear selling aud very little buy
! inc on time. Both parties seem content 70 await
the progress Of events; the bears in the hope that
some accident will give them a point to work upon,
in which event they ready to attack the market
With spirit The balls. in the belief that The large
raaic On lhe roads viii enable the companies %
lscare large dividends tlis winter and next sprinr
AZ . a; from this cause st3c IS wfl sGyancs. The
most s,.ys s,ocks to-tsy we're Toledo VII seA