The New York herald., 1862-03-24

Since January L.. 50 ,2ls e35 1921 $50 s,Ss5 s2l
The banks showed last Monday specie average
OF ,I73 $50, being increase of 1886 406 from
the previous week, and loan, average of $780,
622,77C, being decrease of 50 432 372 from the
week previous. Tomorrow they will probably
show specie average OF about thrty-two millions,
and loan, average considerably less than that Of
Monday last. II is understood that the banks have
increased their mercantile discounts during the
week. But they have sold so many of their six
per cents that the aggregate Of their discounts is
lower than it was. Some OF the banks are perhaps
in position which compes them to dispose Of
their government securities in order to acconImo-
date their regular customers. Those which not
thus situated will realize a handsome profit by
holding their bonds for higher prices. The skies
Of 1881 are the only United States bonds in exist
ence bearing six per cent interest, and having
twenty years to run. The six per cents author
lied by the act Of the present year are redeema-
BILE at the pleasure of government after five
years. and will therefore be unsaleable in Europe,
and not at all a tempting investment here. People
whe have money to invest permanently will natu-
rally select the bonds Of 1851 in preference to all
others, and if no reverse occurs to the national
cause nothing can prevent their reaching
par this summer except an excessive supply by
needy banks. The public will be more ready to
buy at par than at "a, and foreigners, as expert
ence proves, are always more ready to buy stocks
above than below par. II our banks were well
advised they would withdraw their bonds from the
market and dispose Of their seven-thirty notes.
The result Of this would be a steady appreciation
of the skies, which would enable them by-and-by
to realize handsome profit to reward them for the
sagacity and patriotism which characterized their
action in the dark days of the national cause. The
specie reserve OF the banks Is on the increase
still. II may fairly be questioned whether further
accumuations Of coin by our banks can be con-
ducive to the public good. Under the Sub-Trea-
sury act the banks are practically relieved from
the penalties consequent upon their suspension Of
specie payments, and cannot be compelled to pay
any check in coin. Their reserve is unavailable
for purposes of commerce. Whether its steady
increase will not lead directly TO an advance in the
premium on gold, by creating o scarcity of the
precious metal and furthering the purposes of
spectators, is q question which admits of very
little debate.
The money market was fairly active last week,
chiefly in consequence of the appearance of 60
vernment certificates of indebtedness, redeemable
at the pleasure Of government within year, and
are sought for by capitalists and bankers at SO
II. We presume that there will be 800 ,O0e, 600
of them, more or less, aAoat within short period
of time, and that they will serve as a currency
throughout the West, and will answer the purpose
of bank notes or gold. Business paper is more
abundant than IL was; first class names are dis.
counted at the note brokers at per cent, and the
banks are increasing their line to their customers.
for na1
ioans--the rate fuctuating from day to day.
Abroad money is very abundant and very cheap.
In London money is drug at TX 2 per cent per
annum. Under ordinary circumstances the ennis
sion Of large amounts Of paper currency by 60
vernment ought TO render money plentiful and
chsspef here; but the probability 10 that the issue
ofthe new Treasury notes will be followed by
70 much speculation and such q develop.
nent Of enterprise and commerce that the
demand for money will increase even
raster than the supply. The first Of
the new Treasury notes are expected TO 70
forward to Washington about the LIST proximo.
Some delay has been caused by the order Of the
department requiring the signatures TO be engraved
but when the printing once begins the work will
proceed rapidly. The bank note companies expect
70 have delivered the whole amount authorized by
Congress before the lst Of June.
Foreign exchange closed yesterday at about liz
for bankers bills on London, and sos o $40 for
fanca At these rates the demand is slack; but, as
nmcsntile bills are very scarce, the bankers are
noa wiling 10 disw ct concession. Gold Huctuat-
"a an iat week between l0lZ lo1I. There
has bsan good deal Of speculation in the precious
uHaal tks recent decline having attracted new
tuSp. While The hssvy amount Of interest on sales
tenpn .ssllsv 70 orr 0eir options. n our i'm.
paFlA saidje kept down within moderate figures
there Uuid be no ground sur anticipating an Cd