The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-07-01


The banks will show handsome increase of
specie tomorrow. The Mint has delivered up
wards of So 600 600 in coin, and the SubTreasury,
in which institution the balance stood yesterday
at Sc 094 1885, against IS 004 656 OF at the close of
the week previous, has lost about as much to
the banks. 1t is supposed that the specie ave.
rage to be shown tomorrow will not We less
than SAL ,5O0,O 600, against 500, 4S0,ls9 last Mon
day. while the actual amount in bank at pre-
sent is nearly s43 000, 900. At the correspond
ing date last year the average shown was
S23, $50 ,921. Specie continues to arrive by each
steamer from Europe, and at the present
rates of exchange it is still profitable to buy
bills and send them out to London, proceeds
to be returned in coin. We may therefore look
for continued supply of specie from Europe for
some time to come; though, as the season ad-
vances, the nonshipment Of cotton and the de-
cline in the foreign breadstuffs market must cause
an advance in the rate of exchange, unless our
imports should almost cease altogether. The
bank loans continue to decline. Last Monday the
average stated was Sll3, 1867 ,640-a decrease of
81 1927, l8l from the week previous. There is little
or no good paper making and the banks are realiz-
ing as much as they can of the paper
they have. The only employment they can find
at present for their means is on the
Stock Exchange. BY and by, when Congress au-
thOrizes the new loans, they will afford ample en-
ployment for bank capital, and, if our banks are
conducted with skill and prudence, will enable
them to declare fair dividends. But, in the mean
time, bank stock is poor property.
Money continues very abundant on call. 1t is
offered everywhere at per cent and in some in
stances large sums are lent at 4. Short first class
acceptonces go at a 7per cent, and long paper,
with names of undoubted merit, at a 8 per
cent. No quotations of second class paper
can be given. Parties who are willing to
buy it exact very high rates of interest
indeed. Some time since difference of opinion
existed in financial circles with regard to the
future of the money market, some authorities
expecting an advance in the price of money,
while others looked for continuance Of low rates.
at the present time the latter is the predominant
party. People generally seem to have made up
their minds that so long as the war lasts money
must remain easy, because there will be no en-
ployment for it in the usual commercial chan
nels. They do not believe that war loans can
enhance the value of money. If $4,000, coo
were taken out of our banks every Mon
day morning and expended for war pur-
the banks by Saturday night, and would be ready
to be advanced again on the following Monday.
This theory, however, rests on the assumption
that shall import less than we export, and that
the foreign exchanges shall continue to rule in
our favor. The moment the foreign exchanges
turn against us, gold will flow abroad, and when
that occurs money panic is certain to occur
Foreign exchange is steady but dull. Rates are,
for bankers bills, 1861 log for sterling and 5.35
3711 for francs. There is no demand from the
trade for bills. The only buyers are the bankers
themselves, or spectators, who buy in order to
draw the gold from the other side. There are few
good produce bills in market, which sell at 1867.
Bankers are careful in buying mercantile bills,
especially in the present condition of the foreign
breadstuffs market. The latest steamers from
England brought back some bills, and if the harvest
prospects on that side of the water continue to
improve, it must be expected that they will be
followed by others.
Congress meets on Thursday next. After the
general questions relating to the prosecution Of the
war-on which it is ID be presumed there will
be no difference of opinion-the most important
subject of debate will be the financial policy of
TIE government. There has been q great dea
said in Washington dispatches with regard to the
policy which Mr.. Chase will pursue. We presume
that Mr.. Chase has not confded his purposes to
any one outside of the Cabinet and that the appa-
rently authoritative statements which have ap-
peared are merely ingenious speculations 1t is
known to be the opinion of Wall street that the
government should borrow all or nearly all the
money it needs by the issue and sale, in the usual
way, of a seven per cent stock, redeemable in
twenty or thirty years. The banks and bankers of
New York could afford to take large amounts
Of such stock from time to time, and
retail it to their customers here and in
Europe and though no such stock could, under