The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-07-07

On last Monday the New York city banks showed
} specie average Of $50 1892 ,62e, being decrease
pf $2l6 ,3l9 from the week previous; loans ave-
Fage Of $l4s ,340,40 being an increase of
p sos ,6os; deposits average Of $l27, 1860, 700,
being an increase Of 81 ,l96 ,2s6. Tomorrow the
deposits will probably show no material change;
he loans will show an increase, in consequence of
he purchase of government securities by some Of
he banks who have had mercantile paper paid Of;
he specie will probably show an increase Of over
Two millions, in consequence Of the payment of
interest by the government on securities held by
he banks. It 10 understood that the actual
amount Of coin owned by the banks is about five
millions less than the amount they show in their
weekly returns, special deposits being counted %
part Of the reserve. They have, however, far more
gold than they want for the transaction Of their bus
ness. reserve Of twenty millions would be ample
sven without taking into consideration the fact
Mat they are working on paper basis. The prob
lem Of the policy Of the New York city banks, Ga
Of the banks Of Philadelphia and Boston, will not
10 solved until the war il over. If the government
b successful in maintaining the. integrity Of the
Union and the stability Of the nation, our banks
viii have done well by their investments in public
securities.
The new Treasury Note bin has passed the Sc.
mate, with the important amendment requiring the
Secretary to reserve s75 900 900 Of the new notes
10 meet calls for the repayment Of temporary de-
posts, and has gone back to the House, in which
the amendment has been referred to the Committee
|of Ways and Means. Yesterday a conference
committee was appointed, and the prospect is
that the bill will become law this week.
The Senate amendment seems rather frivolous
on the whole. The temporary deposits do not yet
amount to anything like $4,000, 900. If the OBJ
jsct of the Senate was to enable the Secretary to
pay OF all deposits at once, in case of need, the
limit of SIS 900 900 will prove idle if the deposits
should reach 800 900 900 more, as they may do.
Sound inanciers hold that Congress had much bet
TOR place the whole of the $50 900 absolute
" ct Mr.. Chase disposal and authorize him to raise
or lower the rate of interest temporary deposits
- the market may dictate. In point of fact there
u no likelihood Of any considerable amount of the
deposits being called in before the restoration Of
peace and meanwhile the want Of currency IL be-
ing every day more keenly felt. We are glad to
observe q change Of opinion in certain circles in
regard to Mr.. Chase's policy. Thus, the Erening
Post, which has hitherto been one Of the most
strenuous opponents of Mr. Chase's system, re-
marks on Saturday,
Let all purchases OF supplies be made payable either
N a cent stock par, In Treasury
bearing interest and convertible into such stock 1he
would be naturally distributed in trade which
qsires representative medium, and will kssp II current
TO the greatest extent Of s convenience. II
that be three hundred millions Of dollars, there will be
depreciation In such amount Of issue. Only
dundnt issue, beyond tho amount required BY trade,
could cause depreciation. But In proportion TO Its fan
below par the rate OF interest to BE- secured by con-
version into stock lmproves. II tho currency fall to
eighty six cents the dollar It will give interest Of
seven cent TO the capitalist, who Will buy up for
tti,n to buy would be still gfcatereight per cent. BY
this method the Treasury notes are nothing more than
vehicle for the organization Of the public debt whatre
In circulation 10 tho resdo not taken up for
investment. II % remains because The convenience
Of require IL aud completes reduction Can
anything be more simpler Thus government escapes the
discredit % issuing iredcemabls paper money, and by
the payment OF the interest its debt In gold II returns
to the status OF commercial sovency. 1t gets
rid or al the complicated machinery Of negotiation,
trusting Itself 20 the people and 10 the OF the
spen market. There s law Of commerce that will ore
to prevent redundancy OF the ISSUE viz-Ihe notes
put out tho basis OF roa already cstab
iishsd and not in Anticipation Of demand by capital
lists whose interest U Is to dsprsss the securities they
propose to buy Besides avoiding this speculative fsa-
cure IN Tho debt tho government avoids also the pres
sure Of large amount on the market ~ tho time
which reduces the price of bonds OF merchapdss
10 sduccd when offered In quantity beyond tho demand
fof immediate consumption The funding of the debt
goes on and akos place in the body Of cur
general economy without sbruptness and by imporccp-
tbls growth
The Eoeniag Post has thus at last discovered the
fundamental principle Of Mr.. Chase's policy, and
rallies to its support We need hardly remark
that the Secretary Of the Treasury is doing pre-.
cisely that which the Ioa recommends. We had
occasion, fortnight since, to explain the princi.
pies Of M. Chase's policy, and tho merits OF an
Issue Of irrcdeemable but convertible notes, in
much the same terms as we now find in the Post
Money advanced last week, IN consequence Of
dividend day, 10 six per cent per annum on call.
II closed yesterday at sac, with rather more
new loans at the former than the latter rate. II
will be down to "A very shortly. There is no
mercantile papcr-so 10 speak in market. Co
ssrnmsnt certificates OF in6e bedncss are selling at
10 A 100. Aa sann m tho diyidenda Are ali Maid