The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-09-21
FINANCIAL AND COMMERCIAL,

~@~~~~~~~~>~~~~>~~~~~
FRIDAY Sept 20-6 P. M.
The money market is very dull again. There is
no demand for money either from the brokers or
from the merchants; the rate for call loaHss falling
everywhere to s per cent. Prime paper, with
sixty days or thereabouts to run, sells at 9 per
cent but most people who have money to invest
in this way put it into Treasury notes.
Foreign exchange is steady, but there Is very
little doing. The bankers are not yet prepared 10
put down thoir rates; they are asking los TOT
sterling and 5.25 5.2711 for francs and are buy
ing at 1857 a 1857 for sterling and $50 for francs.
The recent advance in breadstuffs is said to
have prevented the execution OF heavy
orders for wheat and -four for French ac-
count and thus a large amount of exchange
is withheld from the market; while, on the other
hand, the recent Improvement in business is en-
abng many importers to remit something to the
other side These Influences like the furry created
by the remittance of Southern moneys to Europe,
are of course temporary, and must soon cease to
operate. The course of exchange depends upon
the relative proportion borne to each other by i'm
ports and exports. When our imports increase,
exchange rises; when they decline it falls. This
year our imports fall short of those of the same
period ofast year by eighty millions of dollars and
our exports exceed those of the period of last
year by s27, 900, 900. During the month of August
our imports at this port fell short of our exports
by one million dollars. Under these circumstances
40 Importance can be attached to temporary
spasms in the foreign exchange market, as it is
obvious that on broad general grounds the ex-
change must rule in our favor. Within the past
twelvemonth wo have received from California
and from Europe over eighty millions of dollars
in gold, and instead of losing usual three to four
millions month by export, have retained the
whole. We are therefore in condition to stand
the heaviest drain ever known, for fully year,
without reducing our stock of specie as low as it
was a year ago, when it was VIGOROUSLY abundant.
But, as we said, the condition of our export and
our import trade forbid Che possibility of specie
shipments at present or for a long time to come
The stock market was moderately active to-day;
prices were irregular. Government securities were
in demand at an advance of "a per cent for the new
skies and "a for the per cent Treasury notes.
For the latter there was quite an active inquiry,
both in the street and at the board. State stocks
generally steady, except Missouris, which de-
clned q. Among the speculative shares New
York Central fell a, Galena u, Toledo Il, Rock
Island 4 and Pacific Mail per cent Other de-
scriptions were steady. After the board the mar
ket stfened up, and better prices were obtained,
which lasted till the close of business The mar.
kct at the close was steady and the following
were the last quotations:--Un States 6's, re-
gistered, 1881, 90S "a; do. 6's, 1881, coupon,
9OH q; do. SIS, 1874, sou ss; Indiana SIS, II
10; Virginia e's, 5lN 50; Tennessee 6's, 42A 43;
North Carolina 6's 81 q CO; Missouri 6's, 43S a I;
Pacific Mail, s3H Il; New York Central, 1874
"A; Erie, 26 "A; do. preferred. As a AZ; Hud-
son River, 33% u; Harlem. l0N a "a; do. pre-
ferred, rs "a; Reading, IS a q; Michigan Gen.
trail, AZ "a; Michigan Southern and Northern
Indiana 1879 IA; do. guaranteed, 3O1s 81; Pana-
ma 1927 ll0:NIl Central, 651I a6G; Galena
and Chicago, Cs2s &; Cleveland andToledo 29A
80; Chicago and Rock Isandr72s4 5, Chicago,
Burlington and Quincy, 6l1s a CT; Delaware, Lack
awana and Western, 81 a6s; Milwaukee and Prairie
du- Chen, l754 1917 Illinois Central bonds, rs,
90 90.
The Sub-Treasury continues to receive q large
"um daily from popular subscriptions to the ma
tional loan, though, as was to be expected the
opening Of agencies throughout the country de-
prives it of a great portion of its business. Mr..
Morris Ketchum opens his agency tomorrow, and
will doubtless do a lasge assiEess The sub-Trea-
gury paid over to the banks to-day 1000 on
account Of popular subscriptions to the loan. The
following was the business of the Sub Treasury to-
day.
--oustoms 5000 90
treasury notes. ..................... $4,000 90
Payments ......... OBSERVATION-DISCLOSURES. eIb509 ~
oaance.. o.
A "Bank Officer of this city has addressed
printed letter to Mr. Chase against the further is
sue of demand notes. The arguments he uses are
that such issues infallibly lead to expansion and
speculation; that they uncomfortable and may
come back upon the Treasury for redemption when
It is least convenient to redeem them; and that
they interfere with the loan system which is now
working SO satisfactorily. All this may contain
some modicum of truth and yet amount to nothing.
AS the case stands, the loyal people of the North
have been using in their daily business about $780,
000, 900 of bank notes of various kinds. OF these
about $50 900 ,OOo-being the issue ofwcstern banks
secured by Southern State stocks, and of Southern
banks-have gone out of existence. OF the
remainder more than Observation-Disclosures enjoy
only local circulation, are at q discount a hun.
dred miles from the point where they are issued
are not uniformly worth their face, and are every
day the cause Of heavy losses through the misman
agement or roguery of bank managers, the care
,essness Of bank auditors and the address of coun
terfeiters. The question now is whether it would
not be wise and safe to replace all this heteroge
neous paper currency by government notes, re
'deemable on demand at the various Sub-Treasurie
and repositories and at par everywhere And thu
further question is whether 1t would not DO wis,
and economical to the government to, Dor
row part of the money required for tn,
war by issuing demand notes bearing no int
rest. How the people feel on the subject is seel
in the eagerness with which the demand notes ar,
absorbed wherever they appear. Nor is it yer,
likely-the "Bank Officer" to the contrary not
withstanding reverse in the field woul,
bring these notes in for redemption in any larg
amounts. Wall street bankers and specuator
operate on Bull run panics, in order to make prof
of one or two per cent but the people atarge know
If so improbable an event occurred as secon,
defeat of our armies, that the purpose of the ma
ton would only be the more resolute in conse
quence, and its resources only the more freely en-
listed in the struggle. "A Bank Officer" 1t strike
ia not In 20 fho o<rsx p