The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-06-10

The decline in our foroi~' trade os evh;h;.o,
above, specially in an import Of less than one.
third the aveTaD",. at this season needs no CON.
ment.
It's hot easy to foresee how much specie tba
oahAs Will snow tomorrow. Avery large amount
over three millions-of gold has been received
from Europe since their last statement was made
but as this has gone to the Mint to be coined. it
Will not interfere with the average. On the other
hand, some gold has gone to the West and some to
Pennsylvania, partly for commercial and partly
for military purposes; and some more money has
been paid into the Sub Treasury account Of the
recent award. Last Mondays average, which
was declining one, was $50 800, lO2a decrease Of
81 1850 from the week previous. Bankers gene
rally seem to anticipate small increase to.mor-
row. At this time last year the bank reserve
amounted to $24535 ,457, and the Sub Treasury
held s6,606,s63. The loans are likely to show an
incr' ase to morrow, based on the hypothecaticn
oil the new federal and other stocks. Our banks
cannot find enough mercantile paper Of the right
Kind to employ their means; they are lending
freely on call on the pledge OF stocks, and expect
TO earn their dividends ia this way during the war.
But for the aid which they have given to stocks,
we should probably have witnessed ere this some
thing Ikea collapse on the Stock Exchange Last
week the loans stood at SllS, 300, Islam increase
of Sass SIS from the week previous al the cores
ponding date last year they stood at $l2l 1921.
Money is as abundant as ever at a G per cent
on call on the pledge of the right kind of stocks.
Mercantile paper of the highest grade is negotia-
bic at G o per cent for short, aud a for long
paper. But the names which will pass at these
rates are very few. Jobbers paper, which gives
the tone of the market, will hardly sell at any
price, The fate Of merchants lately engaged ia
the Southern trade has been sealed by the recent
act of the so-caled Congress at Montgomery,
which prohibits, under heavy penalties, remit.
tances to the North in payment of debts From
this decision there is no appeal except to arms
and there is every reason to fear that when this
war is ended the people of the South will not have
the power, if they had ever so much the will, to
pay their debts. On the other hand, collections
in the West are blocked by the currency crisis.
Western merchants write that they are willing to
pay their debts in Western currency which at
Chicago is at a discount of from 10 to 80 per cent
and is steadily falling. This amounts to practi
cal stay of all collections. 1t seems but too evil
dent that this summer must witness the suspen-
sion of the bulk of our jobbers and of those who
are engaged with them in trade. How the assets
of the banks will stand after these failures is u
problem which is engaging much attention.
Foreign exchange rose in the early part of last
week to l0e "a for bankers bills but fell OH for
the Saturday steamer, and closed dull. We quote
bankers sterling at 1883 u, and francs 5 35 "a
40. Good produce billswhich are scarce are
taken by the bankers at about l0J The exchange
market is governed chiefly at present by the ALSO
Lutte inability OF importers to remit. But for this
the blockade of Southern ports and the cessation
OF shipments of cotton and tobacco would obvi-
ously have caused bills to rise above the specie
shipping point by this time. At this season of the
year We generally ship good deal Of spccie-ss
much per week as we have shipped during tue
whoie OF the present year. As the autumn ap
proaches, IL seems probable that the exchange
market VIII begin to work more naturally, and
iaat We shall return 70 Europe most Of the specie
she has sen; Al Ibis season, in ordinary years.