The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-09-02

Since January L.. SAT 2S7 OS9 IS 1888 493 315IO6o
The bank statement has become unusually in
teresting and important since the late govern
ment loan was negotiated. On Monday last the
New York city banks showed a specie average of
81. 7,iSl, being decrease Of 2.6l4 500 from
the week previous. During the week for which
this average had been made up the banks had paid
int the Sub-Trcasury s3,5OO,O0O on account of
tho government loan; the average, therefore, On
it's face. was declining one. On the other hand,
however, a California remittance, which arrived
On the previous Friday. only counted duo in the
averages, and the Sub reasury disbursed money
freely during the week, SO that. notwith-
standing the difference between the actual
payment made by the banks to thu Sub
Treasury, and tie average shown on Monday,
it is possible that they may have held nearly as
much gold on that day as their statement showed.
SAGE then they have paid over to the Sub-Trea-
surer second instalment of ten per cent on the
loan 80 500 ,000-and something like million has
been paid by the public for Treasury notes, the
bulk of which money must have been drawn out of
the banks. Against this--there having been no
receipts worth mentioning from abroad or from
California-there is nothing to set but the Sub
Treasury disbursements. 1t safe therefore, to look
for further considerable decline in the specie re-
serve tomorrow. This, course will give rise to no
uneasiness. The fact is, the removal of gold from
tho bank vaults, where it lies idle and unproduc-
tive. to the ordinary channels of circulation where
it is Of use. is q proper subject for general con-
graduation. 1t marks the gradual recovery o.
trade, and the revival of industry. 1t shows that
the stagnation which has proved so fatal to ali
classes is passing away. The effect is precisely
that which would have been produced by the sub
mission of the rebels and the peaceful recognition
of the authority of government throughout the
insurgent region. If peace were restored to-
morrow, and commerce and industry began to
revive, the first outward evidence of the change
would be seen in the rapid depletion of the bank
vaults and the circulation of gold in the old chan
nels of trade and enterprise. 1t is only when BIZ
siuess languishes that banks accumulate specie
The moment coin deserts the banks and begins to
circulate freely among individuals the inference is
inevitable that business is improving, confidence
gaining strength, and depression passing away.
The bank discounts last Monday stood at
Sl37 ,6G3 1888. the highest point they had ever
reached. On the Monday previous they had been
$2S SAG ,504 lower. In the meantime the banks
had discounted $35,0OO,00O Of government
obligations. Unless, therefore, the reduction
Of private obligations was unusually heavy
during the week which preceded Monday,
the 26th. it must be assumed that
the average was q rising one, and that the state
uent which will be published tomorrow will show
further increase Of loans ~ well deposits. It
il to be presumed that the current twelvemonth
will witness much holder bank expansion than
has ever been known here. Many experienced
bankers look for discount limo Of $500 900 900 for
our city banks. Sush an expansion, which would
DO just ground for alarm if it were based exclu-
sivcy mercantile obligations, becomes perfectly
safe and natural when the obligations discounted
those Of tho nation at large For il anything is
coed in the whole country; if houses, or real es-
tate, or bonds and mortgages, stocks, or rail
roads, State stocks. factories or shipping or
merchandise, or any kind Of property be of any
value, that value depends directly upon the main.
tenauce Of law, order, government and public
credit. If the government Of the United States
cannot pay its debts, no kind of property in this
country is worth owning. The inference is nevita.
BILE that an obligation whose value cannot be i'm.
paired without destroying all values whatever,
will prove solid in any event, in country possess
ing such eminent wealth and resources as the
United States.
The money market continues dull. There is NO
demand for money among the merchants, and the
payments on account Of the government loan are
effected so gradually as to cause no disturbance.
Call loans range from to per cent; the leading
houses borrow ~ much money as they want on
suitable collateral at per cent. First class
short acceptances are readily discounted at sa 6
per cent. Longer paper Of the highest grade is SO
scarce that it is difficult to give quotation.
Second class paper q Orswng less abundant rates
vary, ~ before, ffsn - ps cent pr annum 70
PER cent . nsAIA Buvsn Il paper show pre-
fersass fsr ~ notes Of new houses. whose charae
ter L. IA essd standing, over those Of old onas whs
hAYA lnnA n haAyy hpsinssa. III gidank. haH