The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-09-10
Decrease. 81, 1928 244 3,2lO,ss3 6,344,94
9ol -

In some particulars 1t is better than was looked
for by many. The amount of gold PAID by the
banks into the Sub. Treasury between August 81
and September was s5600,OOO exclusive OF
amounts drawn out of bank in specie by individual
depositors for subscriptions to the national
loan, which may probably be set down
at 900 more. We thus perceive that
during the week for which the above statement
was made the banks lost to the SubTreasury not
less than $1,000 900, considerably more than twice
the net loss shown above II follows that at least
half the gold taken out Of the banks and paid into
the Sub-Treasury during last week returned before
the end of the week to the bank vaults The inie
renee is obvious that the money will continue to
return to bank very nearly fast as it is advanced
by the banks to the government and that our
banks will be able to carry the government through
this war; with loans of $50 GOO 900 at intervals OF
CO 80 days, without impairing their specie
strength for any length of time. The truth of this
statement is still more clearly shown by retro
spective glance at the operations of the
banks during the past thirty days. Three weeks
ago the banks held $4,000 GOO in coin, and the
Sub-TreHsury august 1O si,3sO,oOO; total, s54,-
$50 900. Now the banks hold .il 500 ,oOO and the
Sub-Troasury Gncluding balances to credit of dis
bursting orcers) about sl3 900 900; total s5i,s00,
been boarded or dispersed, as aarmists predicted
it would be. Again, since August 10 our banks
have lent the government sl2 600 GOO, and the
people have subscribed 81 900 C0O about COO, 900
of which came out of our bank vaults. The total
loss Of specie suffered by the banks during
the past twenty days appears to have
been SIS, 600; but the above average
only shows loss during this period of
$4,000 00 1t follows that the dfference-say
$500, 000-has flowed back into bank, having
been disbursed at the -Sub-Treasury here in pay
ment OF Treasury drafts. These facts justify the
belief that when the new system is thoroughly or
gained, the payments by the banks to the Sub
Treasury and the disbursements of the Sub Trea-
sury in favor of the banks will so nearly balance
each other that month in and month ont the specie
reserve of the one and the balance Of the other
will remain the same.
The decline in the bank loans exhibited above
reflects the payments by the Sub-Treasurer to the
banks in liquidation of popular subscriptions to the
national loan. As fast the banks part with their
Treasury notes their discount line decreases The
same cause accounts for the heavy decrease of de-
posts. PeoTle converting their idle bank
balances into Treasury notes, thus at one
stroke diminishing the liabilities and
ducng the burthen of the banks. AS popu-
bank deposits and discounts will Decline until q
point is reached at which spectators will begin to
buy Treasury notes and borrow on them on call,
for the sake of the difference between $40 per
cent and the market rate of interest on call
loans.
The money market continues dull and unchanged.
There is perhaps rather more inquiry for money
among the discount brokers, but good paper is
so scarce that rates have yet varied very
little.
Foreign exchange is frner. The amount of
mercantile bills offered for this packet proves
lighter than anticipated and leading bankers
have advanced their rates to los for bills
London Bills on Paris sell at 532N 80.
Stocks are better again, especially the Western
shares, Which continue to be purchased by strong
parties, whether for investment or speculation is
not known. 1t seems probable that the idea OF the
bull operators is that the creation of several hun
drcd millions of new currency, and the dsburse-
ment by government of one million dollars per day,
must create general expansion, just the distri-
button of the limited States deposits among the
State banks did under General Jackson and as the
discovery of California gold did in lS50-'55; and
that such expansion will be soonest felt in the
stock market, to which the outside public will
rush in the hope of making money on the first
symptoms of a general advance in stocks At
the boards to-day Galcna rose q, Rock Island L,
Toledo a. Illinois Central a, Burlington u; while
the shares of the roads near by-Central, Erie and
-sympathized to the extent of q q each.
Government stocks were moderately active, with
out change of quotations, except in the case of two
year Treasury notes, which were a higher. State
stocks dull and generally lower. It's rumored
that the United States District Attorney is about to
IaaI in, f,a
seeded States at the Brokers' Board 1t is obvi-
GUS that Missouris and Tennessees would be ex.
cepte' from the effect Of any such measure. Over
onehalf the people of Missouri loyal, and it is
believed that Eastern Tennessee, which would be
severely injured by any steps taken to dscredit the
State bonds, is almost wholly So The policy of
the government will be to strengthen, not to
weaken, the bonds of the State government of
Missouri, and to encourage, not to discourage,
the loyal men Of Tennessee. AS to the bonds Of
louisiana Georgia and other cotton States, which
are occasionally dealt in here, there is reason
why the trade in them should not be stopped, if
government has any reason to believe they are
being sent here from the South for sale. The mar
ket closed steady, the following being the last
quotations:-United States 6's 1881, registered SO
691I; United States 6's, 1881 coupon, 80 9014;
United States SIS, 1874, 79M s0 Indiana SIS,
ia 7714; Virginia 6s, 81 a 5411l Tennessee 6's,
d Az; North Carolina G's G21l So; Missouri
6's, 43% a 1874; Pacific Mail, 7s% a 70; New York
Central, 1871 1915 Erie, 25s4 &c; do. prefer
red, AK As; Hudson River 1871 1897; Har.
lem, 1879 a IL; do. preferred, 25% a &c;
Reading, SO 3614; Michigan Central. AZ A;
Michigan Southern and Northern Indiana, IA a
Az; do guaranteed 3O1a a 3l1a; Panama, llO2s
1l2; Illinois Central, G711s 6s; Galena and Chica
go, 69A a 69s; Cleveland and Toledo 30Hs 3O5s
Chicago and Rock Island, 4l% a Az; Chicago
Burlington and Quincy, 62% a 6314; Delaware
Lackawana and Western, 674 6s1s; Milwaukee
and Prairie du Chen, l7H Is; Illinois Central
bonds rs, 9211a 9314
We have received number of interesting
documents relating to the new loan; among
others, Mr.. Chase's circular to his sub
thn