The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-07-30

With the prospect before US of Presidential cleo
tion involving dangers Of no common magnitude,
al d with an import trade Of enormous amount just
commencing it is very bad policy of the banks to
stand in such position that they will be compelled
to contract suddenly and violently just at the time
the merchants stand most in need of money.
The money market was pretty active all last
week, but still money was plentiful enough at 5 a
6per cent. We quote, at the close of the week,
call loans easy at on ordinary securities or first
class mercantile paper; on State or federal stocks,
A s; short, first class, double name paper or ac
ceptances, per cent; the highest grade Of double
name months paper, per cent; fair to good
names, 8; names less generally known 8 a 10
a IL. There has been lately good deal Of paper
offering, partly in consequence of the general re-
vval of trade, and partly owing to the action of a
few of the conservative banks, which are wisely de-
clining to increase their discounts a. the present
time. II seems TO be generally expected that we
shall have this fall tighter money market than we
have had since 1857; people are recovering
courage, and are preparing to use money more
boldly than they have done these three
years past besides which the heavy import
and export trade which is commencing will
impart an additional value TO money We see no
reason however, to expect that money will ad
vance to the exorbitant prices which used to rule
in 1867. The country is rich; very few money
consuming enterprises are under way; people
generally are trading within safe limits; specula
ton has not got under Roadway yet, and borrowers
are scarce.
Foreign exchange was steady all last week The
rates at the close of the week WERE for bankers
; lie I Cos lav, l. arl co~
short sight for francs, 5.l0i for short sight, and
5.l3l for 60 day bills. There are but few produce
bills in market; drawers are covering their GO
day exchange with each others sight bills and with
specie. The low rate at which foreign bills have
ruled this year is almost unprecedented. Never,
perhaps, since our foreign trade became active,
was the profit Of the foreign banker less than
it has been this year. Most of the
bankers and brokers interested regard
the circumstance as accidental, and look for an
advance next 1t is possible that these cal
culatons may be erroneous The exporting capa.
city of this country is largely increasing, and the
consumption of foreign goods is not increasing in
proportion. On the contrary, Notwithstanding the
blighting effect of protection duties, our manufac-
turers competing successfully with foreigners,
and many wares which were formerly imported
from Europe are now made at home. The tendency
of largely increased production, and-not dimin-
shed, but moderately increased consumption, is to
equaze the exchanges between this country and
Europe. 1t is hardly necessary to state that the
moment we export more than we import the ex-
change must rule in our favor. For two or three
years the ingenious persons who make up the
trade and navigation tables at Washington have
proved that the balance of trade has been
in our favor. The course Of exchange, which for
nine out of the twelve months has been against u.s.
has furnished ncontrovertible proof of the contra
ry. As soon as we really export more than we i'm
port the exchange will rule in our favor. We are
inclined to think that the course of the market this
year, viewed in connection with the large export
of cotton, gold provisions and manufactures, justi-
es the belief that this contingency is not as far
distant as some imagine.
The course Of the stock market during the past