The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-16

loans average OF ,j6i, being decrease OF
$685. s3 from the previous week; specie average
of $3l 24s $50. being decrease Of elAs Ao2, and
deposits average Of sl25 sec 1861. being an in
crease Of sl32, 20s. 1t Ii understood that the
specie win probably show small increase to-
morrow, and that the loans and deposits may per-
haps likewise reach higher figure. though the
general movement 10 80 slight that it will not at
| tract any attention. The banks are using their
means in the purchase Of government stocks and
in loans on other securities. There is no business
paper to speak Of in Market and such paper as IL
made can be sold much better at the note brokers'
than at bank. The specie reserve remains pretty
stationary, and will not 6uctuate actively for
some time. After the lst proximo it will probably
Increase, in consequence Of the payment OF In
terest on the debts Of the United States and vari-
GUS leyal States. Meanwhile the receipts or gold
from various sources are probably fully equal
to the drain for export. The banks are under
stood to be heavy holders Of certificates of indebt
edness which answer the purpose of mercantile
paper, and afford them an opportunity of earning
interest on their capital. Their operations in GO
vernments have thus far proved SO successful
that they have more than balanced their losses
through the reputation Of Northern claims by
Southern debtors.
The money market exhibits no now features.
Money is offered to the established houses at per
cent per annuln, and is rcloaned by them to the
street operators and smaller houses at . per
cent per annum. Commercial paper sells at 4 8
per cent, and is in demand at these rates. Certih-
Gates Of indebtedness are wanted at 1905, and are
mostly held at 1005& "a. Green back demand
notes advanced on Friday to 1887, but sold yes
terday at 1851. There ia no present prospect
of any advance in the value Of money; on
the contrary, all tho indications lead to the
belief that the revival of trade with the
reconquered Southern States will be very slow, and
that merchants will move so cautiously for some
time to come that the demand for money for oom-
mercia purposes will be very light indeed. Abroad,
at the great financial centres at London, Paris and
Frankfort, money is very cheap indeed-ranging
from 2hs to per cent. There are many here who
look for q 2 per cent money market this summer.
1t is the interest of Mr.. Chase to keep money easy
in order to secure the conversion of his legal ten
der currency; and it may be taken for granted that
he will not neglect any measure which may con-
duce to this end.
The letter of the Secretary of the Treasury to
the Chairman of the Committee Of Ways and
Means, requesting Congress to authorize fresh
issue of $l5O,OOO,OoO of legal tender notes, has
been the signal for fresh burst Of speculation in
gold and exchange. The former rose yesterday to
1867, and there was some talk of higher quota
tons, but, so far as we could learn, without any
actual sales above the rate we have named. Bank
ers bills ON London closed for the packets yesterday
at 1l6A. After the sailing Of the steamers some
of the brokers tried to buy; but the leading drawers
were unwilling to sell except at a marked adj
vance, and the spectators in bills were thus en-
abled to report that lit, and even ll7l, had been
refused. All this furry in bills and gold is the
work of speculation ON the one hand, and unrea-
soning panic on the other. Tie tables of our
foreign trade, which we publish above, show that
the commerce of the fiscal year 1872 which ter
inmates on the 30th inst, will leave US largely
| creditors Of the foreign world; and as there is
every reason to believe that our exports of pro-
duce will increase while it s reasonable to expect
that Congress will effect such changes in the tariff
as shall secure diminution in imports, it is
| simply absurd 70 reckon the foreign exchanges
ruling against us. The premium on gold has
been forced to its present point by the opera
| tons of spectators, who have been acting
4 upon the supposed effect Of the new
| issue OF Treasury notes. 1t is utterly base
less. There Is no need of gold for the ordinary
operations Of commerce. We can send abroad all
that the foreign world can require of us without
diminishing TO any perceptble extent our domestic
reserve. We have yet on hand over twenty mil
| lions of the gold we took from Europe last year,
| and our California remttances continue. In all
probability the recent advance in specie will be
followed by decline as rapid as the advance The
| present premium affords merchants and bankers
who have been boarding gold an excellent oppor-
tunity to realize profits. Six to SIX and half per
4 cent is very handsome premium, and shrewd
operators will take advantage of it and sell without
! delay. The chances are that we shall see the pre-
| cious metal selling within thirty days at "a 8 per
| cent again. Country bankers who are wise will
lose no time in taking advantage Of the specula-
tive fever Of our Wall street operators, and in let
ting them have their gold. If they are wide awake
they can do better with their money, even should
gold rise one or two per cent higher; and if gold
should fall to l02 1903, as it will probably do,
they would have reason to regret that they had al
lowed the golden opportunity TO escape them.
Foreign bankers and dealers in foreign exchange
have evinced much concern at the proposal of
Secretary Chase to Issue $50 900 900 more Trea-
sury notes. They predct-and the prophecy il
re-echoed by all the disloyal citizens-that this
new issue must lead TO q general imitation Of
prices and an ultimate collapse. 1t is not with
any intention OF disparaging the foreign bankers
some Of whom are among the most enterprising
and useful Of our citixens-that we draw attention
TO the notorious fact that their prcsages with re.
gard to the course OF our public finances since the
war began have been uniformly and egregously
wrong. When Mr.. Chase first resolved to issue
paper and make IL . legal tender, these bankers
predicted the speedy collapse Of our financial sys.
tenn, and proclaimed that our finances would soon
be in the condition Of those Of Austria. 1t
was on the strength Of letters written in banking
houses in New York that European journalists SO
confidently warned their readers Of the impending
financial ruin Of the federal Union. Several
months have elapsed, and our fnances-which