The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-14

Toledo, s3ha 70; Chicago and Rock Island, sou
| q; Chicago, Burlington and Quincy, 5sH
a59I; Milwaukee and Prairie du Chen, 10 20.
The subject OF bank suspension of specie pay
ments is engaging very considerable attention in
financial circles. 1t is evident that if the govern
ment pays the troops and contractors in paper not
redeemable till after the war it will become unsafe
Tor the banks to continue to pay specie. The
emission OF irredecmable paper ia invariably fol-
lowed by boarding, and boarding is quite as sure
TO De fatal to banks as foreign drain. There
IS but one protection against the one as against the
other, namely, general suspension of specie pay
ments. The question arises when should such q
suspension take place? Should it be effected when
the banks are in the plcnitude of their strength,
and before the public have begun to take the
alarm at the increase of paper money or should it
be deferred till the issue of war paper has begun
to produce its effects, and people have weakened
the banks by Withdrawals of coiny If
the ultimate result be inevitable, there can
be no difficulty in deciding which of
] the two courses is the wiser. One point
must be borne in mind by the public. A temporary
suspension Of specie payments involves no neces-
sary danger injury. 1t may be injurious IT, is
the case in the rebel States it proves the occasion
| Of the issue of large amounts of irredeemabe
paper representing no real value, and compare
lively certain to prove ultimately worthless. And
it may prove injurious in dealings with foreign
States if the balance of trade turns against us.
But the experience of 1857 is there to prove that,
under sound management, banks may suspend and
business go on, d specie payments be resumed
after period without causing single disaster
even any real Inconvenience. II, for instance our
associated banks in view Of the uncertain ties of
the future and the probabilities large issues of
government paper, should decide to suspend with
their forty,two millions of coin in their vaults
and the whole country at least one hundred millions
richer than it ever was before, what evil
consequences would ensue? There is no reason to
suppose that specie would rise to premium, or
that there would be any difficulty in obtaining it
for legitimate purposes. Trade would go on as
usual; the government would issue it's paper, for
the due redemption of which the whole resources
of the country would be pledged; and by-and-by,
when peace was restored, or was rendered so GER
tain that further apprehensions Of boarding
were entertained, the banks would resume, as
they did after the suspension Of 1857, without con-
traction and without causing any emb 22msslnen
to the mercantile community. The suspension
the bank reserve from an obvious Danger and
neither the banks nor the public would be any the
worse II might cause an inlation for time; but
it is not absolutely necessary that this should be
followed by disasters, except to few rash specu,
iators. r
The decline of II per cent in Pacific Mail in the
course of less than three weeks from par divi-
dend on to Ss--has been of the most curious
features of our stock market. u has generally
been supposed that Pacific declined because its
ships were peculiarly exposed to danger in
the event of war with England. II turns out how
ever, that there was much better reason for the
decline. A company is understood TO have been
formed here time since for the reopenng of
the Nicaragua route under reliable auspices. With
in few days the steamer John Hart, Captain
Griffin, is said to have been despatched to Nicara-
qua to ply on the lake. and negotiations are now
pending with English company, which is to
place line Of first class steamers on the Pacific to
run between San Juan del Sur, San Francisco and
probably British Columbia. 1t is the expectation
OF the friends of the enterprise that the route
will be opened before the spring. In this event
the value Of Pacific Mail stock would become pure
y speculative, and it is easy to understand the
cent decline. AS usual, the parties behind tho
curtain have been taking care of themselves.
We understand that the last steamer from Ha-
vana brought over thirty Mexican gentlemen, each
provided with commission from the Mexican
government authorizing him to fit out privateer
to prey upon the commerce of Great Britain
France and Spain. However grossly the go
vernment Of Great Britain is violating the
spirit of its treaties with us by shelter
ing the pirate steamer Nashville, and denying
to the captain of the Harvey Birch the poor priv
lege of retaining the property stolen from him
by the pirate Pegram it is not probable that these
Mexican agents will find countenance here.
The business Of the Sub Treasury to-day was as
follows:-
Receipts. 1851 JIG %
FOR customs. OBSERVATION-DISCLOSURES. $4,000 90
On account Of loan. so ,473 90
Payments ncluding redeemed p notes) 292 9l5 AZ
The exchanges at the Bank Clearing House this
morning were SIS ,6s4 ,ss2 81, and the balances
81, 307, 446 IS.
The Brooklyn Fire Insurance Company has de-
clarcd its usual semannual dividend Of ten per
cent, payable January g. carrying the remainder of
the earnings for the six months three and three
quarters per cent to the surplus fund. The Proyi-
dence and Worcester Railroad has declared semi.
annual dividend of four per cent.
t. statements of the banks of the three princi-
pal cities of the Union for the last week compare
with the previous one, and the corresponding time
of 1860, as follows
Loans. Deposits Sperie. C;rc.,a,p
New York, Dec 1850 1858 a36lS 1877 a. 3ls 6l0 10
Boston, Dec o.. &C. l69 53 21;75S0O7 S45,2S 6slt6,6
Phla pha Dec. Q. 81 I6o5e2 % sslO5 726s9l2 2a7s9
Total 1851 236 COS ls4 1867 $50 $500 $50 II ss s45
Last Last 5 ssSss Is
In relation to money and exchange matters at
Chicago, the Chicago Tribune of Wednesday re-
| marks--
Tho money market Is quiet, and business generally Is
moving along without anything worthy OF special notc
from day to day. II any thing exchange is rather moro
adv ndGnt the Indiana branches have sold freely 10
customers and other bankers at u premium and we
bear that Of the other banks have sold lots al,
the hgnre. The ruling price, however, at most Of
the banks has been a. The general buying price is x:
hui sauna OF the hnnks Mera Unwilling 10 nav ahnpa