The New York herald., 1862-07-14

1850. 1851 1864.
srs:.y sss 70: reported ss s,ass
Sine. J.nu.ry1 s2s ,4o2 eal7,o2s 81 .oaS ass
On Monday last the banks showed specie ave-
rage Of $3l 6l9 being an increase Of 1867 1898
from the week previous; loans average of $l4s,-
GAS, ,7l8, being An increase Of $29, ,3l7 and depo
sits average Of $l27 A96 534, being . decrease Of
$376,lz. Notwithstanding the heavy shipments
Of specie we understand that the banks will show
no decrease of coin tomorrow the bulk Of the
bullion which has gone abroad having been drawn
from private hands. Some banks are said to have
sold part Of their gold at the recent advance.
Others, again, hold that now, II ever. is the
time for the banks to hold fast to their
gold; to disregard fluctuations in the price,
and simply to regard their reserve as the only
means by which they can ever again escape
from . position Of disgrace and resume specie
payments. As, however, there is nothing in the
condition Of our foreign trade which justifes the
present price Of gold, it is presumed that the
banks which have sold specie did 30 in the conf
dent belief that they would be able to bny it
back again shortly on advantageous terms. A
small increase in loans and deposits is expected
tomorrow. The banks are increasing their dis.
counts by purchases Of government securities.
The course of gold and exchange was very
eccentric last week. After opening on Monday
with gold at 10 and exchange at l2lH. on Thurs
day gold sold at H. and bills on London at l3O;
and yesterday afternoon first class bills done
at 1857 and gold at 114A lis. The advance in
gold-which is the regulator Of bills-from 107 to
III was due to the effect produced on the public
mind by the accounts of the strategic movement
c.n, To~
accounts, reaching the public ear through devious
channels, and under circumstances which revealed
desire on the part of the War Department to
conceal the truth from the public, produced most
disastrous effect upon public confidence. People
began to fear that the task undertaken by the 60
vernment would not be performed, and that an
alarming depreciation of the currency was at
hand. Hence merchants in every branch made
haste to "hedge" against future contingencies by
purchases of gold and importers who owed money
to the other side hurried to their bankers and
purchased exchange for remittance at any price,
We had, in fact, panic in currency. Circum-
stances aided it: not only were we not exporting
produce in large amounts, but, in addition to our
usual importations, we were taking from Europe
large amounts Of American securities, bought in
happier times, and now sent home in consequence
of prevailing belief abroad that we were
on the eve of national bankruptcy. Thus the
demand for bills was increased while the supply
was diminished. A few thousand bales Of cotton
arriving here from the South would have kept gold
and exchange down. An authoritative statement
that no more stocks were coming here from
Europe for sale would have checked the rise. But
in the absence of any such statement, and of any
receipts of cotton worth speaking Of, the distrust
created by the battles before Richmond produced
its natural effect. The opponents Of the govern
ment and the secret sympathizers with the rebel
lion-of whom not few are engaged in the bus-
ness Of drawing or selling exchange on Europe
have taken advantage Of the pending panic to de-
nounce Mr.. Chase's policy, and to renew the
clamor which they made when that policy was
first naugurated. 1t is difficult to see, however,
| what policy would haye protected the public
credit against injury when unfavorable news came
to hand. If Mr.. Chase, for instance, had beer
relying for means to carry on the war upon loans
negotiated on terms dictated by foreign bankers il
New York, the battles before Richmond would
have caused an enormous depreciation in govern
ment stocks, and would have enabled the bankers
to extort sales Of these stocks at % 80 40 pei
| cent discount. It is evidently better, both in 8
4
me2s to pay little more for supplies ant
| to keep its stocks at q premium than Il
buy ID supplies at the cost OF production, and a
the same time to see New York skies selling a
60 a.. The premium on COLA and silver-whicl
| has withdrawn them from circulation--is to be re
gretteS. But it is neither unexpected nor il
| remedishle. Commerce rests, at present, on
basis or paper money, which is to say public con
Acc;a z
ordinary times, than any metal whatsoever, it car
not but prove, in war time, fuctuatng founda
ton for a currency, and one which cannot hcl
giving way when the news is uniavorable. Blu
while the accidents Of the hour will naturally ffor
time to time shake the basis Of our new currency
and cause the old standard-gold-to advance
premium, this very advance will yield comper
sating advantages, and will suggest its ow
remedy. Every dollar Of specie now exporte
yields handsome profit to the country. Gold
our third greatest staple product. An advance
Is per cent in the value Of gold is equivalent to
advance Of Is per cent in wheat, corn, pork I
cotton. Until foreign goods rise in IN equal rati
which they have not done thus far, the premirr
on gold comes out of the pockets Of foreigner
And, on the other hand the advance in gold lea,
necessarily to an active development Of our expo
trade. Every one who has any produce or merchal
disc to scI is now sending II abroad, for the sake
the high premium I'm bills. Not only are We shI
ping brcaAstuffs and provisions in unusual quantite
but leather, tobacco, copper, products OF the se
&C., &C., &C., are going out to Europe at q re-
entirely unprecedented. Meanwhile the advant
in exchange is simultaneously putting stop I
all needless imports. Thus, in the course Of vel
short time, the exchanges must be largely in o'
favor, tho utter groundlessness of premium 9
gold must become manifest, and, If boarding hel
continues TO keep IL shove par, We must receive
new supply Of bullion from Europe.
II is clearly desirable to keep silver in circu
tion if possible. The United States have not bes
hitherto producers Of silver, and though it
stated on sufficient authority that the wsahs
mines are yielding very large amounts Of the m'
/ fol eapa;doxahla ahinmepta have yet four