The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-08-27

with that Of last Monday
wesk ending loans Specie Circulation % De1 .s sos
August Angus. 4
Decrease Decrease. N'''4'o. 2s45oe sl,1ia 1'''''--
AS was expected the above statement reflects
the recent governme mt negotiation. On the 10th
Of August the New York city banks credited the
government with s35 900 OOO and entered in their
loans $36 900 900 of $40 per cent Treasury notes.
which are to be delivered before the 10th of Sep
! TENDER. On account of the loan the banks paid
over in gold to the Sub-Treasurer $3,5OO,OOO on
that day and the day following 1t is these impor-
tant operations which have caused the changes we
see in the above statement. 1t will be noticed that
the full extent Of the loan and Of the deposit is not
! reflected above. The operation only counted five
instead Of six times in the averages and the running
| out Of mercantile paper, which continues on an
| extensive scale, may have caused decline
] of million or two in the discounts
and the deposits In like manner the sum actually
paid into the Sub-Treasury in gold was $3,5oo,000'
whereas the falling off in specie is only 500;
! but before the payment was made the average was
rising one, and since then coin has been received
| by the banks from California, the Mint and the
| Sub-Treasury. To the banks this increase of their
loans to the unprecedented figure of $l37 s
| an unexpected good fortune. 1t will enable them
to pay handsome dividends this year, and will save
| them from many losses which they would have
! made on their present assets had the government
| failed to obtain money to carry on the war. Nor
is there any doubt but the people will come in be-
rally to relieve the banks Of the new Treasury notes.
| Though. with the proverbia hardness Of govern
| ment operations, the new Treasury notes may not
be ready for fortnight yet, people are daily
thronging the office of the Sub Treasury to lend
| their money to government. Many depositors in
savings banks are withdrawing their means, in Or
der to invest them in these notes, which will
give their holders $40 and l0per cent more per
annum than savings banks allow and, in some quar-
ters we hear that the savings banks themselves
are offering their depostors seven per cent per an
mum to leave their funds where they are. 1t is
evident that the people need no argument to teach
| them the policy of buying Treasury notes at the
present CRISIS in spite of the reasonable attempts
Of the Journal Of Commerce and the Daily Ne,rs
to break down the public credit the public at large
perfectly satisfied that nothing in the country
is safer than the governments promise to pay, and
that no investment now ii the market offers to
buyers fair prospect of anything like an income
Of $40 per cent per annum.
The money market continues quiet: brokers are
borrowing on call at per cent, and the best
paper goes at s. There is quite an active inquiry
in the street for two year Treasury notes; for the
small notes 9s was paid this morning. The $40
notes not yet in circulation; and as there will
be no profit in dealing in them, the brokers will not
see much of them.
| Foreign exchange is quiet. Bankers ask 1917 o
" for their sterling and sell occasional bills at
! 1917; mercantile names range from 1867 l07H,
! according to quality. Francs are sold by the
bankers at 5.2711&s 1926 commercial bills are
offered at 5.25 and below.
Stocks are very dull; but the market this morn
| ing was firm The business in two year Treasury
notes was active, and the price "A better. The
! coupon skies of 1881 also improved r. State
stocks were irregular; Tennessees improved "a;
but North Carolinas declined l per cent below
the last printed quotation on Saturday, and Mis-
| sours n. The only railroad stocks which were
active this morning were New York Central, which
rose d, and Rock Island which rose "a per cent. The
| latter is improving an increase in the receipts
The other shares were extremely dull and irregular
in price. Toledo advanced a Erie and Hudson de-
clined as much the Michigan shares were steady.
and so was Pacific Mail. After the board rumor
reached the street that General Banks was falling
back on Baltimore, which checked business and
caused the market to give way trife. At the
second board everything was lower, and the ad'
vance of the morning was lost. There was a
marked disinclinntion to buy stocks on sellers
| option: no was willing. for instance, to buy
Central at 7211l seller sixty. At the close the
market was heavy, the following being the
last quotations:-Tennessee 6's, 4314 a 81;
Missouri 6's, AZ "a; Pacific Mail Steamship
Company, 7211a "a; New York Central Railroad,
73s. q; Eric, 24% q; Hudson River, 1924 a
SO; Harlem, 1919 a "a; do. preferred, 2411a %;
Reading. 1914 a a; Michigan Central, AZ a;
Michigan Southern and Northern Indiana, 10 a
IA; do. guaranteed, 20 Il; Panama, los a Il;
Illinois Central 6i1s "A; Galena and Chicago, IS
a; Cleveland and Toledo, 20 a a; Chicago and
Rock Island, 40T IL; Chicago, Burlington and
Quincy, GO a "a.
The following was the business Of the sub-Trea.
sury to-day
-Eor CUSTOMS ..,........'......... wv w
Treasury notes. rs 600 90
Payments. SlOlIO ~
Balance e'3% 500 W
None of the demand Treasury notes have yet
! made their appearance in Wall street. The Bank
Note Company are, however, striking them off ra-
pidy; they send to-day to Washington O,0o0-
fves, tens and twcnties making 81, 100000 in
less than week.
The Boston Daily .Adu9tiser of Saturday thus
notices money and business affairs in that city,
Tho business prospects are slowly improving and many
favorable indications presented favofing The future
Tho imports Of tho country continue very limited
Specie viii continue be received for our exports
| he eh ann Nv Of II