The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-16


The banks will probably show marked de-
crease in loans, specie and deposits tomorrow.
The mercantile discount line continues to run
down; hence, though the Sub-Trcasury has not
reimbursed the banks anything for the past week,
the loans, and correspondingly the deposits, must
show falling Off For some reason or other,
only known to the officials Of the Treasury Depart
ment at Washington, the books have been closed
for some days for popular subscriptions to tho
national loan. Hence the banks are not being
relieved of any portion Of their subscriptions.
This is one Of the mysteries of the day which the
public cannot presume to fathom. general
notion prevails to the effect that it is desirable
THAT the public should not only be permitted,
but should, by every possible means, be induced,
to lend money to government at the present
crisis. For more than week persons seek
ing to lend. money to government have been
informed that they could not do 50, as the
books were closed There are doubtless good
reasons for this singular decision, and we
forbear further comment. The banks have paid
into the Sub Treasury over four millions of dollars
during the week, and it is expected that they will
show falling of in specie Of over million.
Last Monday the specie average was $42, 3l8,6l0
and the loans average $780, 1858. Ifthere has
been any boarding or creating of special deposits
by foreign houses the falling Oft in specie will be
greater than is expected. We hardly look for any
thing Of the kind as yet, however. The policy Of
the Treasury Department has not been sufficiently
defined to lead to public action. Our leading
houses will doubtless await report, or at least an
expression OF opinion, from the Committee of Ways
and Means, before they take measures to protect
themselves against the consequences Of general
suspension Of specie payments. However obyiou'
the future may be, its event is awaited with calm
ness and deberation on all sides.
Money is abundant. Call loans are quoted per
cent in the street but money can be borrowed at
lower rates on good collateral. First class paper
is rarely outside of bank. Among the brokers
it is current at s. 6. Names which have been
passed with difficulty at very high rates of interest
are now negotiable at a 8 per cent. Jobbers pa
per- based on Southern indebtedness, has derived
an increase of value from the recommendations in
the Message and documents, referring to the col.
lection of debts due by Southern debtors to North.
ern creditors. 1t is clear enough that the South.
ern merchants who have fancied that they were go
ing to enrich themselves at the cost of their North
ern correspondents are going to be brought to
sharp reckoning, sooner or later. The case Of
Bowen, Holmes Co., at Alexandria, will eventu.
ally prove precedent which will probably acquire
some notoriety hereafter. - pw
Foreign exchange closed yesterday AZ ioak a
Ito for bankers bills on London There Is 10 de
mand for bills from the importing trade: bat. at
the same time, the supply of mercantile exchange
is small, and bankers are Of course unwilling to
draw, except at rates at which they are sure of
being able to cover. It is very desirable that
specie shipment should be made during the present
week. shipment Of quarter of million in
gold would probably cause sharp reaction in the
exchange market, and would demonstrate the I'M
reasonableness of the alarm which has been caused
by the recent advance in bills. Nothing is more
certain than that the state of our foreign trade
does not justify specie shipments at the present
time. The balance of trade is in our favor, and
VIC are importing weekly less than we export.
At the same time it is well that this bugbea
Of specie shipments should be sqnarely grappled
with and fairly tested We have in this
country great deal more gold than we need, and
should be none the worse of if we parted with ten
or twenty millions to Europe. We cannot ship so
much as this or anything like it, because we do not
owe anything to the other side; but, as there has
been 80 much bear talk about specie drain it il
to be hoped that it will begin, and its effects NAV
be actually tested. At the same time, Congress,
must not lose sight of the necessity of keeping
down our imports to the lowest possible figure.
All reasonable free traders are agreed upon the
necessity OF abandoning the theory of free trade
during the war, aud of excluding from our mar.
kets all foreign manufactures which can be dis
pensrh with. large increase in the artiel on
silk goods, ribbons, laces, jewelry, fine vines &C.