The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-09-23

EXPORTS OF PRODUCE AND MERCHANDISE.
For mo week 81 is9e 1850 S,s ass assi s9s
Prev. reported. 45,9oe,562 6a 63O,375 SS73os29
Since January L. si7 ,54l GOT G4,7Si ,7as eo7l9 1856
EFFORTS SrTcrn
I, the week. s22I27,,sa 4: 900 None.
siaco Januaryl. 52S7s9ss sssei,e52 1881 ,7ls
The banks last Monday showed specie average
of 500 4l2, being a decrease of 1857 SIS from
the week previous. At the corresponding date
last year, when they were deemed quite strong,
. they held slS,9sS ,G03 in coin. Daring the week
they have paid into the Treasury 81 900 900,
about sS 100000 of which was in coin and the pub.
he nave paid into the same institution about
SZ0OoO00, which, of course, came ont of the bank
vaults. Yet so heavy have been the disbursements
oil the Sub-Treasury that we are reliably informed
that the banks held yesterday morning more gold
than they had on the morning OF Saturday, l4th
Events are, in fact, verifying the prediction that
We made when the loan was first nego-
tated: the gold flows back to bank as fast
a. it is drawn from bank for the pur.
poses of the government. So long as
the government has 10 pay million a day TO
troops, sailors contractors, commissaries, builders
gold in the Treasury and the coin, once paid out
by government, can go nowhere but into bank We
said last week that our banks had probably seen
the lowest average they would exhibit for the
present. The statement of tomorrow will pro-
badly confirm this assertion, though we hardly
look for any increase yet. Sufficient time has
hOw elapsed to test The soundncss of the policy
pursued by the banks in August last When thew
Il IL al . e,,l., r.. a. nnn
loan, with the privilege (Which, in this case,
amounted to a covenanD of subscribing for
500 900 more in October and December. it
was asserted by rebel symrathizers in our midst
that they were hurrying forward to their ruin,
md that they would suspend specie pay.
ments in less than sixty days. These
critics ignored the patriotism and the shrewd-
ness OF the people at large. They did not foresee
that before the expiration Of the first term of sixty
days the people would take Off the hands of the
banks the bulk of their first subscription, leaving
them free to subscribe to the second without dan
ger to their assets or their specie. They did not
seiect either that the policy of the banks in sub
scrlbng to the government loap impaired such
eold,ty to the financial attitude of the government
and such confidence to the masses of the people.
that it proved to be the first step towards the re-
coyery Of business and thus gave real value to as
tets which, had the government failed to obtain
money, would have proved comparatively worth
less We can now venture to estimate that il will
cost something like $500, 900 900 to suppress this
rebellion. OF this amount $3.50, OO0, 900 will be
taken by the banks of New York, Boston and
Philadelphia by 18th December, and will be
fully paid up by 18th February. According
10 the best estimates, Europe will take S75 900 900
or 100000 900, though Europeans may possibly
prefer twenty years stock, bearing seven per
cent interest, to our $40 per cent three years
Treasury notes. The balance of the money re.
Eured can be raised easily and cheaply by the
issue OF demand notes bearing no interest. We
1avc shown heretofore that the business of the
Northern States now requires paper currency of
900 900, nineteen-twentets Of which is so in.
trnscally unsound that it is only current at par in
The particular locality in which it is issued. An
3s'ne of hundred millions of government paper.
Seteemabe in coin on presentation at the various
sub-treasuries and repositories Of the United States
Ct the leading cities of the North would drive the
bulk OF this unsound bank paper out OF circulation
aud would render to the commercial public an
enormous benefit Merchants and traders would
ho longer pay tax of from "a to per cent on
their business to bankers and exchange dealers.
Government notes would be at par everywhere
End very little financial dexterity would procure
eheir instantaneous redemption in coin on presenta-
Sion. without the necessity of kaeping large
amounts of gold in the sub-treasurics. Every one
knows that the banks of the North could not re.
deem their circulation in coin if it were suddenly
presented for redemption; yet no one hestates to
aake bank notes at their face, simply because peo.
pile generally are satisfied that they are safely Sc
cured by deposits Of stocks and bonds and mort.
cages. How much safer than any stock or
bond and mortgage is the solemn promise to
pay of the United States, which may be
said to be secured by tacit mort.
gage upon the whole resources of the
whole assets of the country. If, then, il n
safe to assume that the war will be ended mex
Spring, at cost of s3OO0OOo Co, and that the
whole of this sum can be raised by the Issue of
el50.00O 900 of $40 per cent Treasury notes
xalready negotiated), by the distribution of
boo, 900 of demand notes, and by the sale in
Europe of some $500OO,0OO of seven per cent
bonds, having twenty years to run, it will follow
rs matter OF course, that in the course of the
coming winter these new Treasury notes will rise
% premium, and that the banks will make more
money by having taken them at par than thew
OOPratlOn.
phis, we admit is the prospect which we look for.
I'VE have reason to believe that its likelihood ia
admitted by some of the shrewdest financial ad.
Nisers of the administration.
it is urged by certain economists of the last GEN.
Fury school that the present policy of the Treasu
ty Department, and especially the issue of demand
potes, is calculated to create general expansion
end an era Of wild speculation. This cannot be
a,s.
currency OF country involves gradual apprecia-
Zion OF all commodities interchangeable for money
end the progress of the appreciation nfallibly
beads to speculation. But what then? General
expansions are not in themselves events to be
dreaded They develope enterprise, encourage
frade, foster industry advance the general ma
teial interests of country. They are only hurt
yul per Sc when they are based upon an unsound
Foundation, as on irredeemable paper, such az
hss issued by the famous law in France: or on