The New York herald., 1862-09-29

the banks ind II impossible to employ their means
as fast as they accumulate, Notwithstanding theil
willingness to lend on stocks at the lowest rates
| Bank stocks at present identified with govern
ment securities. and consequently not avorites
| with spectators or investors.
| The money market has been rather more active
than it was week ago, in consequence of the in
| creased volume OF speculation in stocks. Some
lenders to stock dealers have been enabled to get
| five per cent for their money. But still the cur
rent rate for loans is four per cent. Certificates of
| public Indebtedness are current at 99s5 "a, which
price, as they sound security, with interest at
six per cent, payable in gold, renders them desi.
rable investment among conservative capitalists.
Mercantile paper is very scarce indeed, and sells at
"A a per cent, according to length. Tie future
| course Of the money market seems to admit Of no
| debate. So long as the war lasts, and Mr.. Chase
| continues to issue paper, money must be ex-
| tremcy abundant at the great financial ceutres.
But for the deposit system which is in operation
at the SubTreasury, the price of money would
already have fallen to per cent. Even with that
system in existence, it is probable that loans on
stocks, payable on demand. will rule fraction
lower than the Sub Treasury rate Trade, active
and prosperous as it is, is absorbing very little
seek employment for their funds among the specn-
ators and government contractors.
Specie advanced last week to l214 at the close
yesterday, and exchange on London to 1873. The
advance was mainly due to the operations of specu-
lators bidding against each other, and anticipating
currency panic. signal for renewal Of specu-
lation in gold was given by the sub-Treasurer's
announcement that he would allow per cent on
deposits OF coin after they had remained thirty
days il his hands; but the controlling influence lad
been at work before. large number of petty
merchants and brokers busily engaged in
speculating in gold, on the notion that il will ad-
vance TO $50 more. They will probably lose all
the little profits they have thus far made in the
business. No man can say to what premium gold
may not rise during the present war. During the
Napoconic wars gold rose in England to li2, and
at Richmond now il is selling 220. Bnt we have
in the loyal States great deal more gold than
they had in England in lsl2-l3; we arc producing
the precious metal at the rate Of 5000, 600 a
month, and there is absolutely no legitimate de-
| mand for it, except for duties, after the demand
notes shall have been absorbed; and for export
| to Europe in payment of q balance of trade which
| does not now rule against US. Gold may advance
to l25; but before it does it is Just likely to de-
| cline. Duties, which constitute at present the
| manstay of the advance in coin, can still be
| paid in demand notes, which are four per cent
| below gold.
| The price of demand notes has risen to 1l7L.
| OF these demand notes, which are receivable for
| duties, there are at present about s25 900 600
| outstanding. 1t is fair to presume that at least
half-,aany say more than half-of these are out
of the market, being in the hands of importers,
who are keeping them for their own use. and OF
| parties in the country who do not care to sell
| them. The balance, some twelve and a
| half million of dollars, is all that is
available to supply the demand for duties
| which, at the present time, absorbs about
| a million and half week, or six millions month,
at this port alone and is correspondingly active at
| Boston, Philadelphia and Baltimore. Under these
circumstances, it is likely that gold will begin to
| be paid into the Custom House for duties much
| sooner than has been anticipated at the Treasury
| Department Mr.. Chase, wishing to be on the
| safe side, estimated that the last of the demand
| notes would be paid into the Custom House about
/ February next. In fact, we doubt whether there
Der. If gold continues to advance, importers will
all provide themselves with demand notes at once,
| and, what they buy being withdrawn from market,
| the few remaining notes will at once sell within a
/ fraction of gold II gold sells at 125 in October,
demand notes will probably command l2411l.
The following table shows the course of the
| stock market for the past week and month";
/ On c-