The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-05-27


Since January l.. .sls7sa e7o 1860 2O5 a,sss,5es
The banks are probably gaining specie Last
Monday they showed average of $50, 537 $50, an
Increase of s7S6,435 from the previous statement.
Since then we heaye received several re mil tanees
from Europe and from California, amounting in
the aggregate to nearly 81 700 0oO but how much of
this has already gone into bank is a doubtful poiak
We have aavices of 81 500 900 in gold being on
the way from England, and fits estimated that some
five to six millions more viii follow without loss Of
time. For some weeks there was a profit on the
importation Of gold, and even now several houses
are importing with fair prospect Of making n,
loss The Sub-Treasury has lost million during
the week The baak loans last week were $l28,.
7,S06 curtailment Of So ia, 492 from the week
previous. This heavy falling off in the discount
line was for the most part Involuntary with the
banks. Good paper il becoming extremely scarce
and though the banks are as liberal az can be ex.
pected to their customers, they cannot manage to
fill up their lines. The negotiation of the new 60
vernment loan will afford them an opportunity Of
extending few millions. AT this date last year
the bank specie reserve amounted to 81, 1885, l93,
aud the loans to Sl2l 1913 $50.
The money market has not changed during tho
week. On call, on pledge of the right kind If Sc
curities, money is abundant, at 6 per cent per
ann,m. Very choice paper is readily negotiable at
about seven per cent. But it is hardly ossble to
borrow on the pledge of border slave State stocks.
and second class paper is passed with great diffi.
Guilty. Very few failures are publicly announced.
1t is obvious, however, that there is great deal Of
embarrassment in all business CIRCLES and that the
great bulk Of the jobbers must inevitably seek ex.
tensions.
Foreign exchange closed yesterday rather more
firmly than il was held week ago. Bankers ask
LOG for their sterling bills, and about 5.35 for
francs. There are good mercantile bills in market
at l05. At these rates profit can be figured on the
importation Of SPECIE if the rate Of insurance re-
mains as usual. war risk or other extra ex
pense, consumes all the profit, and establishes
loss on the operation.
The bids for the new government loan Of
S, 994 coo were opened at Washington yesterday.
According TO the telegrsphic dispatches received,
nearly the whole amount was bid for, as follows:
$76CS 900 in per cent stock at an average OF
IS $1,000, and $669,2j0 in G per cent Treasury
notes, with two years to run, at par. There must
However, be some error somewhere in the report.
On Friday morning dispatches from Boston stated
that deposits had been, would be made. at that
point for over 100000 and It was confidently
asserted that New England would take s. 900 ooo
According to the report before, it seems that
Boston has only asked for something ike sl05 900,
and all New England for about three quarters OF
a million. The discrepancy viii doubtless bs
cleared up tomorrow. In. the meantime MIR.
Chase gets over So 100000 Of money a. a rate
which under the circumstances, cannot be
considered exorbitant. We never had much
faith ourselves in the Treasury note pro-
jcct, though we were willing to interpose
no obstacle to the negotiation Of such securities,
fpeople were willing TO take them. But It stood
to reason that capitalists would rather lend their
money at seven than at six and therefore we never
believed that they would take six per cent Treasury
notes in large amounts when, by refusing to take
them, they were sure Of getting stock at a rate
which would yield them seven per cent. Expert.
ence will now have brought Mr. Chase to this view
We will add but two observations. II il pueriIe
to expect moneyed men to act In unbusinessfike
way from patriotic motives. Enlarged and press
ing enterprise will induce our banks and bankers
TO lend all proper aid to the government ia this
emergency. But they must not be expected to
evince their sense of patriotism by violating tho
laws of trade. In order to be Of real service to
the government they must conduct their nego.
tations as not to weaken themselves as they would
do II they lent money to the government at
lower rate than they can borrow money OF the
public. Mr.. Chase ought not to expect TO be able
to borrow money as cheaply now as he could have
done had the country been at peace, and he ought
not to consider the government III used ifthe banks
and bankers to whom he appeals for money decline
60 lend il except at rate and in way which wn
enable them to make fair profit on the operation.
In the second place, Mr. Chase will do well, whcu
he wants a fresh loan, to appeal to the people a.
well as to the bankers. In order TO do this, at
least thirty days should be allowed to eapse be-
tween the advertisement and the bidding. Every
postmaster throughout the country should De at
lowed to receive bids; and the securities onerea
should be Treasury notes, from s25 up to sSos-
Judiciously managed, a loan might be negetiaeo.
on these principles, Of s2s 900, 900 or sSoooooOos
and the country would be supplied WIN use
mi currency. or the ss,367,250 offered
70 Mr.. Chase, about si,5oo,ooo came frou
New England. Philadelphia, and elsewhere the