The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-07-21

The banks showed last Monday specie average
Of 1872 096, l74 being increase Of &307 1855 from
the week previous; loans average Of $l45 1897 436,
being decrease of e646. 1852, and a. deposits ave.
rage of $l27 5Ss 1885, being increase of al 52l.
It Is understood that they will show tomorrow a
decrease of specie, though the actual amount in
bank yesterday was considerably in excess of that
which they held week ago. The bullion which
y being shipped to Europe does not come out Of
the banks, but from private hands Most, if not
oil, Of the banks decline to sell specie at any rate
Of premium, doeming their specie reserveto be
special fund entrusted 10 them for the benefit Of
their depositors, which they have no right to sell
for the benefit Of their stockholders. Hence, in
some degree, the high premium on gold. If the
hanks were willing to supply the demand the price
Of the precious metal would not be maintained.
1t Is because tho banks, which the chief holders
OF coin in this section, refuse to sell, that ndi-
vidual holders are enabled to obtain 10 per cent
premium. The immediate effect of this condition
Of affairs is bad, as it enhances the premium on
gold; but its ultimate effect must preve salutary
as IL guards the banks against any possible evil
results flowing from an excessive export of bull
lion. II is act probable that the bank reserve will
ductuate largely, however the premium on gold
may advance.
The activity in the money market, consequent
upon the payment of the July dividends, and the
uneasiness Caused by McClcllans ovement 10 tie
James rvefy mas partially subsidized, and money is
again offered to borrowers on call at per cent
per annum. First class mercantile paper sells at
) per cent; certificates of indebtedness at 90
90. No one who carefully studies the signs CT the
times can fail to discern indications OF continued
in tho W. 10 ~
demand for money among merchants. Business
is carried on upon cash basis, and long credits
IRE universally refused. IGoyerrn o,t is. so TO
| the control of tie money market by the steady
issue OF legal tender notes. The American lsnk
NotetCompany has already sent to Washifyto
proofs Of the issue'cf small notes, and models
for the same have likewise been forwarded by the
National Company. We presume that orders fer
tho printing Of tho notes will be received early
this week. Meanwhile The absorption Of demand
notes proceeds steadily at the Custom House, and
as fast as they are cancelled Mr.. Chase is
authorized to issue corresponding amounts OF
legal tender notes.
Exchange on Europe was active and excited all
last week Bankers bills on London closed yester-
day at about 1908. Isl, and gold at 10Y bid.
The course of tradc prcsages a startling change
in the gold aud exchange business at no distant
day Hitherto gold has Lccn the regulator of OK
change. Gold being the chief, almost the only
variable, product available for export ut
present, bankers have been unwilling to sell
their bills except at q price which permitted
them 70 cover with specie. Hence, a. geld adj
vsrced, under the combined effort OF an export
inquiry and pretty general tendency to hoard
exchange rose ina corresponding ratio. But The
obvious consequence OF q lise in exchange j. IN
increase Of exports. The moment that bills rose
to 40 and upward, every one turned Lis alton
tior to shipments Of produce. Everything that
cou.d be brought here and sold in Europe
was shipped at once, for the sake OF the
premium on bills. Hence there have not
only been unusually heavy shipments of
breadstufa and provisions, but tobacco, ruano
copper leather, and variety Of other articles rot
usually exported at this season. have been sent cut
so freely that IL IL now matter or no small dif!.
Guilty 10 find vessel disengaged. Tho result is
large Increase OF mercantile bills, which have
already caused som0 disturbance In the exchange
market and are destined to cause still more As
the season advances the indications are That our
exports will increase and our imports diminish
Under the new tariG our imports OF foreign mer-
chandisa will be redncod TO those articles OF
foreign growth and manufacture which cannot be
produced here. On The other hand, there Is every
prospect that tie foreign iarvests wil on ihe
whole lie scaNty; while tho harvest IN tie Western
states viii be unusually bountiful. III Russia The
| crors look very poorly, and in Great Britain
and the Baltic countries they ere expected to laIl
considerably short Of IN average. II follows that
ho dlmmd fer food from the United States viii