The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-01-28


Since January l.. q ,ses ,Sn 4s2ss2 x,sss
Specie continues to arrive from California and
from Europe, and our bank reserve swells accord
iDgly. Last Monday the average shown-which
was rising one-was $29,596 1888. Since then
some two millions have been received from Eu-
rope and from San Francisco, exclusive of the
million which arrived at Boston yesterday for New
York in the Cunard steamer. Against this, how
ever must be set the loss to the Sub-Treasury,
which institution has taken great deal of money
from the banks since last week-the balance yes
terdsy standing at 29S, against 81 l66 242 at
the close of last week, and u, 1852 4S5 at the cor
responding date last year. The ub-Treasury
gain is due, Of course to the payment for the new
Treasury notes. 1t can hardly be expected that
the money win remain locked up for many days;
the bulk Of it will probably find its way back into
the banks before the end of February. The last
loans average Of the banks was $l26 ,O34 800
decrease of 50 900 1896 from the previous state
ment; at the corresponding date last year the
loans amounted to 1928 ,s45,9 1881, and the specie
SIS, 1888 ,4s4. Most Of the banks are quietly pur-
suing q policy Of curtailment-u undoubtedly the
wisest under the circumstances. The panic is
over, and money abounds in the street; houses
which have means can now take care OF them
selves.
Last week witnessed rather more inquiry for
money on call, owing to the award Of the new
Treasury notes, and we quote the market closing
at s. ~, with an active demand. The discount
brokers complain Of scarcity u desirable paper.
Business is still 80 dull that the amount Of paper
made is considerably less than the average for this
season. We quote exceptional paper at per
cent; first class names generally, 10; fair to
good Names IL Is o Is; names not generally
known, oil rates from Is upward. There is no
present prospect Of an advance in the value of
money in this market; on the contrary, it seems to
be generally expected that a. the spring advances
we shall witness lower rates than those now
ruling. Much, however in regard to this matter
will depend on the settlement Of our political diff
culties on the course of our foreign trade &c. 1t
will be noticed that money IS about per cent
cheaper here at present than in London and Paris.
If this state of things continues we shall probably
witness the withdrawal of some capital from this
country for use in Europe.
Foreign exchange advanced last week from LOG
to l07 for bills on London. The advance must not
be regarded however, as an indication of an in
creased inquiry for bills among our importers.
There has been no such increase. But since the
secession Of the cotton States our bankers have
been reluctant to purchase bills at the cotton
ports, and the supply Of bills has thus run short
No ships sailing from Charleston and Mobile can
now obtain federal clearances and bills drawn
against cotton shipped in craft unprovided with
such clesrances would Of course be subject to
picion. The same difficulty does not exist at Sa-
vannah, where the United States Collector con.
tinues to oficate as heretofore; but the uncertain
ty attaching to all movements in revolutionary
times, and the possibility that the Savannah Col
lector may follow the example of his confreres at
Charleston and Mobile at any moment, have in
duced most of our bankers to cease purchasing
bills there also. We shall not know how matters
stand at New Orleans for q day or two. In all
probability an effort will be made to preserve the
statu quo-so far as shipments and clearances are
concerned-until the new confederacy is duly
formed and recognized At this season of the year
the exports from New Orleans amount to between
three and four millions q week. If the
politicians stop this enormous movement
suddenly, terrible riots can hardly fail to
eAsue. At the present price for bankers bills, it
does not pay to import gold from London to New
York. The drain from Europe may therefore be
probably continue to receive remittsnces for .
fortnight or so, during which period five or six
millions more specie will probably be drawn from
the Banks of France and England; but it is not
likely that the unnatural movement which we have
witnessed this season--viz. the import of gold by
Q gold producing country from a country which
does not produce goodwill be carried any further.
The United States will have drawn from Europe,
since the first fall in the foreign exchanges some
thing like eighteen to twenty millions Of dollars in
gold-the largest sum ever sent to this country
from Europe. We have yet to see what the full
effect Of the drain may be upon the financial COM
munities of England and France. II it should
cause no graver trouble than an advance in the
rate of interest and some stringsncy in the money
market, it will be safe to conclude that our neigh
bors over the water are much stronger than was
commonly supposed, and that it will be unsafe
hereafter to assume that panic in London 10 sure
to follow panic here.
The following table win show the course Of the