The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-02-18


Our banks continue to accumulate specie. Last
Monday they showed an average of s3t, 655 ,5i5--
an increase Of "a, sol 1856. Since then over mil
hon and a half has been received from California
and from Europe. AS however, the increase in
the bank reserve depends more upon the deliveries
from the Mint than upon the arrival Of specie from
sea, we can form but vague guess at the amount
of increase which will be shown in the state
Dent to be made tomorrow. The Sub Trea-
sury continues to lose money to the banks. Though
tho drafts from Washington are very light, the re-
eeipts from duties are still lighter; merchants
buying the six per cent Treasury notes ut 1 Il 5s
discount, and paying them in for duties.
From the fall in exchange and she ge-
neral condition of the country there seems
10 be every reason to expect further
large accumulation Of gold in the bank vaults.
simultaneously with this increase OF specie
strength the bank loans are falling off, mainly in
consequence of the liquidation that is going Oh in
business. No new paper is making, and large
proportion Of that which is in bank is paid of as
it natures. Last week the banks showed an ave-
rage discount line of 1920, 36S, 050-a decline Of
81 ,539,s14 from the previous week. further
reduction is expected tomorrow. II the banks
want to pay dividends they will have to discover,
before long, some new way OF earning interest on
their means.
We notice no change in the money market since
last week The feature of the market is the grow
ing scarcity Of such paper outside capitalists
are willing TO buy. Very few names go at seven
Der cent, and those few not met with readily.
At 9, 10 and II per cent, fair to good paper, not
representing claims in the Southern States. moves
rather slowly; other names range from l. to 36 per
cent The brokers are readily supplied III a q
2 per cent, according to the standing Of the bor-
rover his necessities and his collateral. There is
little doubt entertained, now, but We are going to
witness, throughout the summer, very easy
money market, and one which, if the pending po-
Etical difficulty be adjusted, will facilitate the re-
viyal of trade and the deyeopement of enterprise
"a very marked degree.
Foreign exchange, which closed on Saturday,
9th, at about lo5 for bankers bills, fell, for
Wednesdays steamer, to l04i4 "a, but rallied
afterwards and closed yesterday at about l9j.
The fall is ascribed to the want Of means among
She importers, which prevents their renting as
usual This is no doubt the case TO some extent
but it is notorious that, on the one hand our i'm
porters owe to Europe far less than usual at this
eeason, and, on the other, that our exports are
just double the average: hence, even if i'm
porters were not cramped for money, ex-
change would be certain TO rule low
We have sold 20 much to Europe, and
ere buying 20 little that, in any state Of financial
affairs, it is likely exchange would rule at
point which would permit importatons of gold
fom England Astonishment is expressed in GER
tain circles at the slight effect produced in Eng
land by the drain of gold to this country. Many
people here expected to hear of panic, and
ten per cent money market in London, at the very
least. These persons probably forget that Great
Britain is as great gold producing empire as the
United States. Last year Australia yielded some
thing like s42 600 OF bullion, and this has been
about the average for several years. Every
dollar Of this has gone to England. In ordi-
nary times, England requires all the gold she can
get in order to purchase silver for export to
China. But just now the Chinese indemnity will,
for time at least, turn the exchange in her favor,
and she afford to dispense with much gold.
Even independently Of this, there is reason why
q drain Of s20,o00Oo0 in specie from England to
the United States should prove fatal to British
trade, when the United States can afford to ship
$50, 600 per annum to England for several
years without feeling it.
The following table shows the course of the
stock market during the past week and MONTH