, 1862-01-03

Ehe Suspension OF Specie Payments.
From the New York Timcs, Tuesday.]
The public interest in the Bank return is
much diminished by the general suspension Of
sreeie payments announced in this morntng's
paper: While the average 2 Ct sPes1e de On On the
tual amount In bank on the opening OF busi- |
ness this morning is understood to be $3, ,S19,- |
OO0, or about six millions below the average. |
The policy Of suspension agreed upon on Sat !
u1day night is concuTed In By the outside t
public to-day, with the greatest unaniuity. !?
Tie previous Indifference to the mere empty
honor Of the specie basis, in the face Of the
large prospective wants Of The Government :
and the favorable condition Of the actual bal :
ance oftrade Eith Europe, rendered the change
much easier than the nervousness Of some Of
our Bank officers might have presupposed.
The transition is made not without the mo-
mentary unsettlng Of the market value Of the
gold and the rates Of foreign exchange, but
without the slightest apprehension that the
difference will be seriously felt or substan-
tions for gold over current funds to-day is
ya1ious1y quoted from 100} to 10114 per cent.
and Exchange On London ii2@11355 per cent;
but the positive settlements in either case are
80 few as to render these figures next to nom
inal. The bullion brokers arc unwilling to
n11nc 4 price 1T which they would purchase
American gold coin, and the banking houses
engaged IN Foreign Exchange did but very
little business at Or within tie quotation just
named for bills on London. A rumor obtained
early in the day that few Of the banks were
not in accord with the general suspension.
than Fictitious attempt to gain little extra
credit, at ssay small cost. As VIC understand
the dodge, 1t is simply q recognition Of the
right Of individual deposito1s to draw for their
balances, as they stood at the close Of business
on Saturday, in gold, if they desire it. No
fusing, to-day, to conduct their engagements
with depositors in current funds, that is by
receiving certified checks or the circulating
notes Of other city banks in account, to be re-
paid in kind Nor arc we advised that any Of
The large hanks refuse gold On checks drawn
where the necessities or convenience of the
dcpositor requires gold instead Of current
funds. This Test has not get been applied in
4 sufficient number Of instances to authorize
us to speak positively as to the rule to be OBJ
served, but sufficient has transpired to know
that the difference is not likely to amount TO =
rate sufficient to make the rate worth discus
sing before the public.
The Government is understood to have rir-
tually suspended specie payments with the
banks; the latter holding an aggregate bal
ancc Of s21, ,000, 900 to the credit Of the Trea-
euly, Of wh;ch they propose to psy in q suffi-
Gent sum tomorrow to enable the Assistant
Treasurer in New York to pay the January
interest Oh the Public Debt in gold, if de-
manded. The Circulating Notes of the United
States we're employed to-day in current pay
mcnts On the checks Of the various disbursing
officers of the Government. The opcration
was conducted with mutual good will and
with every sign Of entire confidence In the
credit Of these Circulating Notes. The re-
suit is that the specie balance Is almost the
same at the close of the day as on Saturday
| night. Some few of the banks have manifest
cd less liberality than the public in reference
to the currency Of United States Notes. The
Bank Of America, on whose books there is an
| undfaWn balance Of about 1920, 900 to the
credit Of the Treasury, sent down Notary
this afternoon to demand $4,000 in gold, on
I checks and drafts drawn upon the Sub -Treasu-
| ~. Tie demand was not pcrscyered in, and
no protest was entered, for the sufficient re'a.
| sun that the scandal Of tile transaction would
| have more than counterbalanced the miserable
| pit;ance growing out Of the difference be.
| tween $4,000 in gold, and 900 United
| States notes, which the bank is at liberty to SET
off against n corresponding sum to the credit
Of thc Government on its own books. An
other Instance is mentioned Of the refusa!
OF tue American Exchange Bank, on whost
books the Treasury OF the United States
| stands creditor to the amount Of about
| 81 ,525, ,0c0, to receive the Circulating Notes q
| the United States as current funds. The
| President Of this non-dividend paying concerI
has recently issued one or more pamphlets
aE,a:nEt the credit of the Government, claim
| ing III his last manifesto, Indemnity for til,
past and secnrity for the future" before grant
ing further counteuance from his Bank and its
| asEoclates in the Clearinghouse i'll the ncgo
tiation Of the Public Loans. This course 0
| conduct carries its OVID comment The pr1sc
tical inference is that if the Bank in question
will pay In gold its own solemn undertaking
to tic Government, the latter Would probabl;
be al,lc to rgdeen in gold all the United State
| Notes that the Bank is likely to receive Of
deposit III the course ofits ordinary busines
for some time to come. Aside from the fore
going cases, we hear Of no faetious opposition
to our National currency, which, from its COT
ycrtiblity into the :. 80 per cent. Treasury Bond
t Of the Government, or into a6 per cent
| Funded Stock, ought to be esteemed Us s
least equivalent to the unsecured deposits no
| resting under a general suspension Of speej
payments in our City Banks.
The january interest on the public debt {
| the United States will assurcd1y be paid
gold, if demanded. So also will be any othe
obligations on the public debt due to the Asst
t ciat.d Banks or other parties, on the 3lst D,
ce1nber, provided the banks make good the
promise to protect these payments in tt
equivalent Of gold. The Manhattan Compan,
as the agents of the State Of New York, wi
also, it is understood, pay the January tnte
est, and such Of the principal Of the Stal
The State Of New York has yet to make tt
, | first default in the payment Of gold on It's m
turing obligations. As fur back as 1887, 4 pr
MUM Of Is per cent. Was paid for specie |
| redeem State debt then falling due "on
| after 1857 at the option Of the State,
Tie suspension Of the banks, announced til
! morning, was received on the Stock Exchan,
lis Il relief to the anxiety which had been Il
: in regard to the course of the money markt
The event WIS previously deemed as incvit
i. ble-as question Of a few days or weeks.
occurrence before the banks have exhaust
P their stock of bullion by Sc, ,000, 900, and t
J. belief that the public are measurably ind
II fcrent to The mere credit Of maintaining u p:
1icular basis while the prospective wants oft
Government are SO enormous, caused an il
= mediate average advance Of t1oo per cent
) prices The excitement was quite marked
J. both sessions Of the Board. and large, sal
- were made at each, partly in realization
'c profits, and partly from the calculation tt
l, the extreme advance might not be sustaint
,e |