The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-04-08


For the week. 81 343,059 3,sa7 5s7 CPS, 70s
Previously reported. 7,2s4ssi s's7i,s7s 1,457,4so
Since January l.. IS ,5774so 7sio,5e5 2,ose 1888
1t is not probable that the banks will show
much change in their specie average tomorrow
They have received a good deal of coin from the
Mint, and the receipts from England and Cali
fornia, part of which have gone into bank, have
amounted to about 81, $3.50, OOO But on the other
hand they have lost s., 100000 to the Sub-Trea-
sury in payment for the recent award of the new
government loan, part of which was paid in on
Thursday and will count twice against the average.
The statement published on Monday last showed
specie average equal to Sal 40s 30S-an increase of
81 ,928, 262 from the week previous; at this time
last year the banks showed specie average of
s23 ,420 ,759 and the Sub-Treasury held as nearly
as possible the amount of coin that it does at
present. The future movement OF the sps cie
serve continues matter Of great uncertainty. A
week ago the condition of the exchange market
appeared to justify the belief that our receipts Of
specie from Europe had ceased, and that we might
perhaps begin to export coin to Europe in the
course of few weeks. This expectation has
been set at rest, for the present, by the recent
decline in exchange. A very small further de-
cline would leave margin for profit on further
importations of gold from Europe, especially
the Bank Of England has reduced its rate of in
terest to seven per cent. The banks expect to be
relieved of some of their surplus coin by the
negotiation of SIS 900 900 of the United States Urea
sury notes But the necessities of the govern
ment are such that the Sub-TreaAry cannot pos
sby accumulate money, and the coin will soon
come back to lie idle in the bank vaults. 1t is
expected that the discount line will show an increase
tomorrow in consequence of the recent negotia-
ton Of the government loan. This may prove the
case; but the liquidation that is going on in bust
ness must be reducing the volume Of paper in
bank very largely. Last Monday the banks show
ed an average of sl20, 1853 l65, an increase of
1902, 40 from the previous week At this date
last year the city bank loans averaged 1923 1888 223
No change has taken place in the money market
since last week money is 80 abundant that the
payment Of nearly SO 900 600 on account of the
new loan has never been noticed. Matters are
rapidly reaching point in the money market at
which capitalists will find it impossible to employ
their Trade is unusually dull and merchants
evnce less disposition than ever TO operate in mer-
chandise. Real estate il discredited by the ap-
prehensi )ns which are entertained with regard to
the Morrill, tariff and the disgraceful corruptions
of our city government. There il very little
speculation in stocks. Under the circumstances,
If no speculation should spring up, there is
TO believe that banks and capitalists will find it
difficult to earn income this summer We quote
at present call loans 4a5 per cent; first class
short paper the same rates; the highest grades Of
long paper a Z; other grades and upwards.
Many names which were unsaleable at any price q
few weeks ago now pass without difficulty at
about per cent.
The foreign exchange market broke down again
at the closing Of the mail for yesterdays steamer.
There was positively no demand at all for bills,
and parties who had to sell were compelled to
submit to large reduction. The leading bankers
continued to ask 1881 for sterling, and 5.22I
a 23'4 for francs: but bankers bills sold, at
the close Of the market, as low "a 1917 for bills
on London, and even lower than 5.25 for francs.
The total absence Of demand was never 80 con-
spcuous. With sterling bills selling here at lO7,
and the rate of interest in England at per cent,
specie might perhaps be imported without loss.
II Il hoped, however, that the market will i'm
prove this week.
The leading event Of ast week was the bidding
for the loan. The Secretary asked for 5000
600, and offered t33, gi4 ,000-the average rate
Of the bids being L-about ~ per cent better
than the rate at which the last ss,O0O,oo0 we're
awarded in February last. Contrary 10 general
expectation and to the wishes Of his best friends
here, Mr.. Chase decided to reject all bids under
81: so that, Notwithstanding the large amount OF.
fered, he only accepted 1907 900 II j. under
stood thai the balance of 100000 viii be OBJ
tanned by the negotiation Of G per cent Treasury
notes, having two years TO run. Such notes could
be disposed Of in our market at a fractional pre-.
MUM, II public competition were invited; Il il to
be hoped that Mr.. Chase will not commit the
fatal mistake Of negotiating them pr' ately.
If, instead ofselling Treasury notes the Secretary
preferred to call for new bids for sj00e,000 Of
the SKIES Of 1881, be could easily dispose of them
at and above "a nrnvided TINT ma collision took