The New York herald., 1862-08-11

rssoas o. Sis.rI
For the week =, ,ssssa ,sso 1901 Ess 1sos 90.
Previously reported sIG7Ss39 c,s24,7to s7,52ioc9
Since January 1. Ss2 SAT ,24s 6.32476o as,2a7 ois
Last Mondays bank statement showed specie
average Of $s4 ,022 AGO. being an increase over the
week previous of 1857 ,ssl; a deposits average of
1887 ,937, being increase of "a ,6s5 ,750 and
loans average Of $3.50 5l7 ,s44, being an increase
OF $749,55l Tomorrow Is statement will probably
show further increase in every department. The
deposits will probably exceed $l4l 600, 600, and
the specie $50, 900 O00 Money is flowing here from
all quarters for employment, and the bank deposits
consisting mainly os government currency, accu-
mulate much faster than they can be employed.
The specie is increasing, mainly through special
deposits The banks very unwisely, as we tlInk,
make no distinction in their reports between their
own reserve, which is the property Of their deposi
tors, and the bullion which is placed with them for
safe keeping, but over which they have no more
control than they have over the receipts at the
Snb-Treasury. Would il not be well for the Clear
ing House to let the public know precisely what
portion Of the specie fund reported ON each Nom
day as lin bank' really belongs to the bank de
positors 1t is upon the basis of this fund that we
shall some day be compelled to rebuild our shat
tered financial edifce. Surely it Is bad policy to
conceal its amount from the public. Concealment
in such cases. merely fosters uneasiness and checks
the revival Of confidence. $685.
Money grows easier daily. Yesterday large
sums Of money went begging in Wall street at
four per cent and loans were made to leading
houses at 3 and 3%. The rate of interest would
naturally fall to per cent call were il not for
the standing offer Of government to pay for
temporary deposits. Government certificates of
deposit one year 20 run, with interest at
six per cent, payable in gold, are selling at
a discount; mercantile paper, first class,
sells at 311 per cent, according to date. Events
continue to foreshadow the stoppage of the deposit
system the reduction Of the rate of interest al
lowed by the government on deposits. The better
plan would undoubtedly be to stop deposits alto
gether. They produce SO small an amount as 10
be unworthy of consideration as q financial re-
source. They are an ever-menacing danger to the
public credit, placing the government in the hands
OF the money lenders, who may at any time, by a
shrewd combination, contrived after some military
disaster, bring the Treasury to the verge of repu-
diation. Finally, they stand in the way Of an ad-
vance in government stocks So long as people
can lend money to government on call at per cent
there will be no wish to buy skies Of 1881 at par
What can be more anomalous in the present state
of the money market than to see 7.3O notes. con,
vertible into twenty year sixos, selling at lO3 *?
They should command ten per cent premium at
least. They are kept down in some degree by the
deposit system. A good deal of anxiety is felt in
financial circles on the subject of the changes in
the financial policy of the government which will
be rendered necessary by the new levy of troops.
The new army, which will consist as nearly as pos
sble Of 900 900 men, will cost about 500 600 900
month. Mr.. Chase has in hand, for the payment
of these troops, about $3.50, ,0OO, ,00O-namely,
100000 900 of legal tender notes. under the act Of
July; $40 100000 under the act Of February, and
say $40 000 600 under the act passed the last day
OF the session, authorizing the issue of stamps.
Over and above these Mr.. Chase has resources to
wit:-Certifcates Of Indebtedness, which are un-
limited in amount, but useless for the payment of
troops; deposits at the sub-treasuries on call.
limited to about $35 900 900; the receipts from
customs and from taxes. II needs but little ex-
perience to decide that these resources will ena-
Bile the government to pay its way till December
without running very seriously in debt to the army
and navy. II we should take Richmond, and de.
veop the national strength in the field to such
degree as to generate a universal belief in the
carly restoration of the national authority over
the revolted section of country; and IT, stimuli
tancously, the book of deposits were closed, and
capitalists were notified that the only way Of &C
quiring government securities was to buy them in
open market, United States skies would probably
rise to point which would induce active conver-
sions of currency. In this event it would not
become necessary to attempt any change in our
financial policy. But, should we not take Rich
mond within sixty days, IL would probably become
necessary TO call Congress together In October for
the purpose of authorizing new issue of legal
tender notes. That this would be painful neces-
sity no sound financicr will deny. But it is not
matter Of choice, but Of necessity. The army and
navy must be paid, and there is not time If il were
possible, to effect loans to an amount sufficient to
meet the public requirements. After the war is
ended the currency, however abundant il may be-
win be funded fast enough to prevent undue de-
probation. In the meantime it is the duty Of all
good citizens TO accept the situation, with all its
evils, and make the best of il. M
Exchange on London closed yesterday at l241IS
las for bankers bills and 1887 l2l for produce
bills. The supply of bills has increased considera-
bly, Of late, and the demand has fallen OF. Our
exports have swollen to extraordinary figures In
consequence Of the premium on bills Our i'm
ports have not yet begun to show the effect Of the
new tariff, as q large number Of cargocs which
were ordered in the belief either that they would
arrive before lst August, or that the new duties
would only be applicable to goods which were not
bona .jide ON shipboard ct that date are only now
arriving. In the course Of fortnight our i'm
port returns win exhibit different state Of facts.
Importers still cherish the hope that the new
tariff win admit Of certain kinds Of goods
being imported without loss; but II is generally
surmised that the list Of such goods will prove
small. The intention OF the new tariff was to ex-
clude the bulk of the foreign goods with which
this country has been inundated for che past twen
ty years, and to pay for which our specie has been
drawn from MS as fast as IL has been pro.