The New York herald., 1862-04-28
Ew YORK HERALD. MONDAY. APRIL 28 1852.

has been going on actively, especially among
The banks OF the interior. an increase OF
hve or ak or seven millions in baak de.
posts In single week u an event
which merchants and spectators would do well
to consider Our banks cannot suffer these de-
posts to be idle. They must employ them. and II
the ordinary legitimate business of the country
does not create demand 1t must be sought else
where Experience shows that an Increase of
bank deposits hss always been followed by . de-
yelopment Of speculation. either in merchandise or
IA stocks or in real estate. in all three together
A few weeks wiN now determine whether the
period through which we are now passing is to
prove an exception to the rule or not. The in
crease of bank deposits is especially satisfactory
in view of the steady increase Of the deposits at
the Sub-Treasury. Yesterday these deposits were
81 $50 500; the aggregate being $50. .130, 900. Of
which nearly. II not quite. SIS 900 900 be-
long to the banks Since the Sub Treasury
was first created into bank of de-
posit Mr.. Cisco has received from the
banks and from the public about $50, ,250, 900, Of
which something over two millions have been with.
drawn AT Ave per cent very large sum wiz be
left at tho ub-Treasnry, not only by the banks but
by the public. At four which is the best rate MIR.
Cisco is now prepared to allow on deposits from
individuals, no will get no money at all. We can
not but express the hope that Mr.. Chase will lose
time in reviewing the late inc0nsiderate action
of the Treasury Department in regard to this mat
ter II is unsound in principle to discriminate be-
tween banks and individuals. In practice it is alb
surd, as of course every one who has any money
to deposit would, under the present rule of discri
minatioR, make the deposit in the name of some
bank for the purpose Of getting the extra one per
cent interest. 1t is mpolitis, too, to seem to
jew the public. Government will be very lucky il
it can borrow fifty millions of the people at five
per cent. It will be the cheapest war loan on
record. To try to take advantage Of the reaxa-
tion in the money market to reduce the rate to
four, recalls painfully another financial operation
OF the Treasury Department when "a was peremp-
toriy declined for bonds which were readily sold
in our market few weeks afterward at 30.
The money market is very easy. Call loans
range from five to six. Money is offered to the
leading houses in the street at four per cent, and
several large banks are lending on cail after ten
tothirty aays. at six. The prevailing opinion is that
money would fall to three four per cent this sum
mer but for the standing offer of government to
pay five. 1t is evident that there Is moro money
aaoat than the ordinary business OF the country
consume. Mr. Chase is rapidly Issuing his
ninety million Of legal tender notes, aud the o1,in-
ion gains ground that he will be compelled in
the course OF the next thirty sixty days to seek
authority for further issue of at least one hun.
dred millions. To attempt to negotiate or per
cent bonds would cause depreciation OF the !
government securities now on the market which
would be avoided il further issue OF Treasury .
hotes brdged over the period shat nfust intervene
before the final suppression Of the rebellion. r.
Mr. Chase can postpone his appeals 10 the public
until every is satisfied Of the hopelcssncss Of
the rebellion, he win he able to cell five per cents
Of par and The existing Treasury notes can, if ne
cessary be called in funded. 1t is supposed
that these considerations will induce Congress to
authorize further issue of Treasury notes ia the
course Of the ensuing month.
Foreign exchange closed yesterday at ll2L n q
for sterling, and 5.021I Ga for francs--bankers'
bills in both instances. meNiai bills sell at
1ll1s IT,. Gold closed 1918 a.. The stcadi- !
ness OF the specie market continues to attract at
tention both at home and abroad. The law Of
political economy is clear that large issues OF pa
per money, especially il made legal tender by
law, must cause an appreciation of bullion. Fo-
reign observers predicted that gold would sell ut
10 per cent premium, this spring. Private banking
III tiis Citf were buyers VI Yofn NJ lVA
los, in the belief that the premium would soon
be much higher Yet for more than month it
has heen stationary at 1929 a. The cause Of
the phenomenon is the willingness of bold specula
tors TO cell gold on time at the market rates.
trusting 30 their interest account for profit on
the operation. single house, whose ope-
rations have been remarkably large is un-
derstood TO have sold much gold that
the interest sccount Yields $4,000 a month.
II il needless 10 ob-crve that the operations OF
spectators exercise but transient influence
on tue market. and that il the old law of political
economy IL 10 hold good in our time, the short in-
eerest in gold viii only render its ultimate rise the
more suddcn and startling. For the moment. how
ever, the bears completely control the bullion mar
ket. foveigu bankers who want 70 draw against I
goi Importers who are directed to remit specie.
me rchan nts and manufacturers who desire TO own
specie iu order 10 guard against a depreciation Of
,hc carrency. can all supply themselves ~ the
bruSers' hoard at the current rates Of tne day
The sellers being parties who do not own. asd do
not expect Ia own a single dollar in coin, but who
are. nevertheless. prepared to deliverit demand
How long this singular state Of things will last re-
mains 10 be seen
The following table shows the course of the stock
market for the present month";
xor.P. Apr. .. Apr12. Apr.le. Apr.26.