The New York herald., 1862-04-21


The banks last Monday showed specie average
of $34 594 $685. being increase of $3.50, ,2s6 from
the week previous; and loans average of &l22,-
6s3 $50, being decrease Of 81 793 ,904 from the
previous week. 1t seems probable that in that
statement the limit OF contraction of loans and in
crease of coin was marked-at least for the pre-
sent. Tomorrow it is expected that the banks
will show very small increase Of coin indeed
perhaps none at all-and that the loans, for the
first time since the last government negotiation,
will show an increase. This was fairly to be ex-
pected. Though it is not known how much 60
vernment notes and bonds are held by the banks
the Clearing House Associah ZION being close body,
and affordng no Information whatever TO the pub
lc-it is obvious that they must have on hand so
large amount Of public securities as to render
$l25 5000 very low figure indeed for their ag.
gregate DISCOUNTS 1t s understood that last week
the amount of mercantile paper turned into money
at bank was very considerable and it is likewise
understood that no considerable sales OF govern
ment securities were made on account of the
banks. Sound policy would long since have die.
tatcd withdrawal from the market Of all public
securities held by the banks in every case
in which such course was practicable. Ex-
perience proves that foreigners are far more
willing to buy United States securities when they
are at premium than when they are at a discount.
II our banks could have carried them, the skies
Of 1884, which are q unique security, and Of which
only s6s 900 900 are in existence, would now have
been worth par, and even now, If the banks assist
each other and check too copious q supply, they
will advance TO par, at which point an active for
eign demand may fairly be anticipated. The short
sales of spectators cannot exercise any permanent
effect upon the market il the banks exercise com
mon sense in protecting their own interest. Bears
who sell governments short may depress the mar
ket the day they effect their sales but when their
contracts mature they become bulls, by the neces.
sity Of the case, and assist the rise at least az
powerfully as they previously helped the fall II
needs nothing but common prudence for the banks
to realize handsome profit from their operations
with government during the past year.
The money market was easy all last week. and
closed with an abundant supply Of money Offering
on call at a per cent. First class paper sells
at for short. and a z for long dates. Certi.
fcatcs of Indebtedness (of which the Treasury De.
partment is redeeming 20 per cent from frs,
hands, are wanted at o7ss. Treasury notes bear.
ing $40 interest are worth par; per cent notes
are worth 1907. Legal tender notes, which arc
being paid cut by government TO soldiers, con.
tractors and holders Of indebtedness certificates,
are finding their way into our market, but are no,
abundant enough TO be generally circulated. Not.
wthstanding the imitation which is in progress, not
only through the agency of the government. but
likewise through the banks, which are availing
themselves of the present opportunity to increase
their circulation, there is still no redundance of
currency here as yet. Money has fallen from to
per cent, and would fall still lower'but for the
willingness Of the Sub-Treasurer to receive on de-
post any amount Of money at five per cent Interest,"
but this IL due rather TO general anticipation Of
the future than TO any actual experience Of n
Iethora. In fact, the imitation has not yet begun