The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-10-21


Since January L.. S57 45O DAB Ala $3.50 3245 275
The Sub-Treasury balance ran down last evening
to s4,74l O60; 80 that the banks must have gained
some six millions in specie from this source alone,
exclusive of the receipts from the Mint and the
country. 1t is therefore safe to look tomorrow
for handsome increase in the average. Last
Monday the statement showed an average equal
to %I, l39 ,606, being an increase Of 81 1929 705
from the week previous. The reserve is again be-
coming SO large as to be unweldy, and several
of the bank managers are considerably exercised
lest SO large an accumulation of coin at this point
should generate more speculation than is deemed
quite safe in the present condition of the country.
1t is partly in order to provide employment
for their specie reserve and the amount of
credit for which it serves as a basis that the
bank managers have been engaged in discussing.
during the past week, the subject Of the third
200 900 loan, and the 500 900 900 loan author
lzed by Congress at the extra session. Nothing
shas been done determined with regard to
.either, and we rather imagine Mr.. Chase
will not be anxious to precipitate mat
tiers. Though it is, of course, untrue that
a party of foreign capitalists have offered
par for sloo,oOo,000 of 6N per cents. there
is no object in oOncealing the fact that there has
been some conversation and correspondence on the
subject. We believe that European capitalists
stand ready to take very large amounts of our
seven per cents at par, or at small premium.
brilliant victory would, of course, largely increase
the number Of those who would be willing to use
their money in this way. The only condition
which would be likely to be insisted upon by these
investors would be with regard to the payment of
the interest in some European city-a matter
which Congress has left to the discretion Of the
Secretary of the Treasury. With this resource in
reserve, Mr.. Chase will be enabled to negotiate
boldly with our banks, and the probability is that
he will not agree to any proposal for the disposal
of his seven per cents until Congress meets. Mr..
Cisco has called upon the banks for eight per cent
of the first $35 900 900, to be paid tomorrow. By
the time this is paid 80 per cent Of the $50 900 900
will have been paid in here, and we presume about
as much at Boston and phia-making
$45,000O00 in ALL If the calls Of the Sub Treasurer
upon the banks do not hereafter become more fire.
quent and heavier, Congress will meet before Mr..
Chase has made many serious inr Dads into his
second fifty millions.
Money is less active than it was at the beginning
of the week. owing to the check which Mr.. Seward 8
circular gave to the stock market. Still many of
the bankers lend all they have at per cent; the
leading houses Of the street are well supplied at
five by their friends First class mercantile paper
is scarce, and sells at 7per cent without diff
Guilty. Names which have beeu injured BY the
troubles of the past year are passed with difficulty
and at very high rates. The 7.30 notes constitute
powerful competition to mercantile paper; q large
proportion of the capitalists who have heretofore
used their means in buying notes now purchase
seven-thirtes, and look confidently for an advance
in their market value by-and-by. A prominent
Spectator is known to have staked large sum on
wager that they will sell at per cent premium
in less than six months.
Foreign exchange closed dull yesterday at
1917 a q for bankers bills on London, and
5.3lH 33s4 for francs. There was little OF
no demand, and the supply Of bankers bills
was very light. Mercantile bills are scarcel
than they were few days ago. Brokers OK
pect. however, a full supply this week, and q
decline in rates in consequence. The London pa.
pers have heard of the advance in exchange to
100, which was caused three weeks ago by the
transfer of Southern moneys to Europe, and exult
at the prospect Of change in the specie.move.
ment They will Nave ascettaned their error be-
fore this. The course Of exchange cannot vary 10
long as we continue to consume no foreg1 goods
while Europe requires al the grain she con get
from here to feed her people. At the present
rates of exchange there Is profit iMPorsaiiena
of gold, and we shall probably receive Some by
every steamer during the month of November.
The revival Of the drain, concurring in point sf
time with the trvabls caused by the failure Of the
European harvssss. will probably lead to serious
embarrassments abroad.
The following table shows the course Of the
took market during the past week and month";