The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-11-25

that day. List Monday the banks of this city
showed an aggregate discount line of $l37 30S S5s-
BENG decrease of nearly fifteen millions in
month. To-morrowt will be safe to look for'an ave-
rage of $l65 100000 or Whereabouts in the discount
line, and OF nearly $40, 00O, 900 Of deposits These
figures reflect the large profit which our banks are
reaping by the patriotic policy which they adopted
in August last. AT the present time after deduct.
ing from the bsnk loan the aggregate amount Of
popular subscriptions to the 7.SO Treasury notes.
it appears that the banks Of the city Of New York
| are drawing and $40 per cent interest on
about SIT 100000 Of government loan; in other
words, that, independently of their mercantile bust
ness, they are earning seven per cent dividend
on their entire capital, and accommodating rea-
sonable surplus besides by their transactions with
government.
Money is easier than 1t was week age. Call
loans are still quoted at six per cent, and parties
who go in search of money cannot borrow at less
than six. Persons who have to 60 in search of bor
rowers, however, obligedto content themselves
with fraction less, and many of the old houses de.
cline to give over five for temporary loans. Paper
continues extremely scarce. The best names con
be passed at 51l a "a, and paper which month
ago was hard of sale at 8 passes readily at
6Ha7. Very high rates continue to be paid by
houses which have been engaged in the Southern
trade. It is.evident that, though many Southern
debtors may wish, for their own sakes, to pay
their debts as honestly as Northern men, the ext
gencies of the rebel despotsm will impoverish the
Southern people before they are thoroughly sub
dued hence little reliance can be placed on the
value of Southern debts and the wisest plan for all
parties is to write them off at once and trust no
one in the same region again.
Foreign exchange rose last week to 1857 x
Tor sterling, a few drawers holding at 100;
and to 5.2lZ a 23A for francs, few draw
ers holding at $40. The advance was ex
pected. The calculation of the foreign bankers
is that when navigation closes on the lakes and
canals the railroads will not be able to carry
enough produce to the seaboard to sup
ply the wants of the city in respect of ex-
change. On this theory several bankers and
brokers have been large buyers Of bills specula
ton, and some Of the heaviest foreign banking
houses have refused to sell at all except at large
advance in rates. Time alone can test the sound
ness Of the calculation. On the face of it, it seems
impossible that exchange can advance when our
exports for the year are largely in excess of oui
imports, and when we are exporting twice as much
as we are receiving from abroad. We shall see
more clearly how the case stands in the course OF
fortnight. 1t is asserted by many that the entire
capacity Of our railroads has never been tested,
and that if Europe requires breadstuffs
this winter they will be forthcoming On
another hand, there is fair prospect
that certain quantity of cotton will be seized by
the government and shipped abroad. On Hilton
Head Island alone there must be million or more
dollars worth, which the manufacturing world
needs, and which would help to pay the cost Of
the expedition to Port Royal. The shipment Of
this and OF such other cotton as may be seized by
our troops at other points would supply a certain
amount of exchange. One thing is certain: our
banks are fully alive to the necessity Of preventing
specie expectations, and have taken measures, in
connection with their last government negotiation,
to supply the importers with all the exchange they
will need during the winter months at rates which
will forbid the outflow of gold. During the current
month we have been accommodating foreign credit
which will be likewise available in such an
emergency.
The following table shows the course of the
stock market during the past week and month";