The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-08-19

| has been during the panic and distress and COM
mercial disorder Of the past few months. No one
seems afraid 10 trust the banks. Every one has
confidence in their sOlvency. This fact alone sets
at rest the bugbear theories which are set forth in
the rebel organs in this city. The loans last Mon
day amounted to 500, 1856, 942-a decrease Of
$l,735, l69 from the week previous. further de-
cline is expected tomorrow in consequence of the
liquidation which is going on in business. 1t ia
possible however, that the purchases Of Treasury
notes may offset the decline from this cause The
details of the recent negotiation between the GO
vernment and the banks are being settled, and we
presume that early next week the new Treasury
notes will begin to figure in our bank discounts
and deposits. As the war progresses we
may expect to see large increase in
our bank loans. Indeed, independently of national
considerations, it is for the interest of the banks
that their loans should increase, and that largely
When their average specie reserve was 500 900 900
they considered it perfectly safe to lend sl2O O0O.
200 to merchants, and the discount average fire.
quenty approached $3.50 900 O00 At this rate, with
aspccle average of $50 900 0O0 the loans ought to
be $500 900, 900 in order that the banks may earn
proper dividends. In expanding, moreover, on
basis OF government credit the banks are far more
secure than they were when their discounts con.
sisted wholly of mercantile paper.
The money market continues quite dull. There
is very little paper offering, and buyers last week,
seemed willing to await the result of the national
negotiation before parting with their means. From
all that we can learn at present, everybody seems
satisfied with the soundness of the principles on
which the banks have acted, and there will be a
brisk demand for the 7 $40 Treasury notes.
Money cannot be loaned on call at over per
cent, and those who have large sums are often
obliged to be satisfied with 8 and A.
In the Stock Exchange nothing which offers
the same security as the new Treasury
notes affords the same income to the holder. The
prospect is, therefore, that the large class of per-
sons who usually employ their means in the
purchase Of mercantile paper and railway stocks
and bonds will now begin to buy Treasury notes,
and it is quite likely that before the 18th of October
the whole $50 900 taken by the banks will be
IN the hands Of the public. We are informed that
the $40 notes will be ready to be issued this
week, and will be followed very speedily by the
demand notes for So and $40. No more per cent
notes viii be issued by the department and no
notes except those on demand for any less sum
than $50. rumor reached this city yesterday to
the effect that the Massachusetts banks would only
take $4,000 600 of Treasury notes, instead Of the
sl5,O00,O00 allotted to them in the scheme of
distribution adopted at the bank meeting. On
receipt of the news our banks at once agreed to
take the extra $1,000, 600, making their subscrip.
ton $350o00o0 A despatch from Boston, how
ever, contradicts the fist story and asserts that
the country banks of Massachusetts will take
S. 100000 of the notes, and the banks of Boston
$40, 600, 900.
Exchange closed rather more firmly for the
steamer yesterday, the bankers asking lO714 70
for their sterling bills, and 5.3324 IS for their
francs. There is very little business doing, how
ever, and the market cannot be said to be in O
healthy state. There is no demand for bills from
the trade, and the supply from the exporters is
quite limited. At present rates there IS no profit
on importations Of gold from Europe, and thus
spectators are not tempted to operate in bills, and
bankers are careful not to buy more than they can
SELL 1t was hoped week ago that bills would de-
cline TO point which would enable bankers TO
buy for the sake of importing coin. But the first
decline of per cent or so in rates did not increase
the demand, and the leading houses reverted to the
old figures. The steady decline in our importa-
tons, combined with the constant demand for
American breadstuffs abroad, enables the United
States 10 dispense with cotton shipments and yet TO
keep exchange in their favor.
The following table shows the course of the stock
m rxat 1uruo tho cf xrnak a,d Month.