The New York herald., 1862-10-13

TIcViousy
Since January L.. 81 $40 100 ,sls 200
EXPORTS OF SrEc1E.
For the week ..... $16,679 2,26061s
Previously reported .42,s7o1so 0,4o4,s25 44,e4sOO
Since January 500 6,4oA s25 46 ,515
The banks last Monday showed specie average
Of $sS,325 ,5s7, being an increase Of s733035 from
the previous statement loans average of 1885,.
057,l being an increase of 81 896 067 deposits
average of $157 ,944,77l, being an increase of
81 ,692 ,9l9. The deposits and specie have con.
tinued to increase; but the banks, under the lead
of some private bankers and q few Wall street
spectators, have made vigorous effort to curtail
their loans. Why they should have become parties
to manouvre the only practical effect of which
can be to drive their depositors into Wall street
as lenders to the brokers' it IS not easy to discover
The private bankers who convulsed Wall street,
checked speculation. and ruined the petty opera.
tors in stocks by calling in their loans Thursday
and Friday, and refusing 10 lend without margin
of 20 a rs per cent, were probably either short
Of stocks when they took the step or intended to
buy stocks at low rates after they had fallen. But
the great banks of this city are not generally sup
posed to be interested in stock movements, and
their participation in the scheme is not readily en-
planned. Bank directors will probably look into
it, and stockholders, if they find their dividends
withheld. may have some inquiry to make on the
subject 1t is little remarkable in this connection
that, while the bank deposits have swelled to an
unprecedented figure, and the banks ought to be
earning unusually large dividends bank stocks
have not shared in the recent general advance in
public securities.
The money market remained fairly active last
week at q per cent on call loans till Thursday
and Friday, when monetary panic was produced
by a simultaneous and evidently concerted
calling in of stock loans, and a refusal on the
part of leading banks and bankers TO relend, ex-
cept at higher rates and with margins of 20 Is
per cent. Stock SPECTATORS as q general rule,
have been accustomed to borrow OIL ten per cent
margins. When lenders exacted twenty to twenty
fivc most Of the small operators were Immediately
slaughtered. Money was, in q word, to use an
idiom of the Stock Exchange, "cornered." The
consequence was that yesterday a large number
OF bank depOsitors drew their means out of bank,
took it into Wall street for employment, and lent
it at 5 per cent. The idea of stringent money
market at present is simply preposterous. The
bank deposits are larger by far than they ever
were. There is no demand for money among mer-
chants; business is almost uniformly conducted on
the cash principle. Government is not coming
into the market with loans neither are any of the
States nor any railways or other corporations
which in ordinary times are consumers Of capital.
In a word, the supply of money is far larger
than usual, and there is no demand at all
for it, except from the Stock Exchange, which cor
1ives, in active speculative times, to employ about
seven to ten millions Of dollars. Under these cir
cumstances persons who have idle balances ut
bank should avail themselves of the opportunity
presented by the eccentric action of few bankers
and bank presidents, and should make their means
yield income by lending it in Wall street. In all
probability the street will be able tomorrow to
use great deal Of money at . per cent, as
brokers who have been inconvenicnced by the
bankers corner will naturally seek money else
where in future. A proper understanding between
merchants and brokers would lead to the employ
ment by the latter Of great deal Of idle capital
belonging to the former on mutually advantageous
terms, and would emancipatc the street from the
control Of half dozen houses. which, by CON-
or stimulate an imitation.
Exchange closed yesterday az the remarkable
price Of l42 for bankers sterling and s.971. a. 400
loT ITdIts. iHcSt Iutcs were Udstu upon safes OI
gold at l2s9. a l29. With gold lat this figure
there is very little profit in selling bills even at
l42 and covering with specie shipments. That
the advance Of the week in gold and bills
has been excessive is generally admitted. Much
Of the advance is the result of speculation
which seems to have drifted out Of stocks into
exchange. But it has long been fdresecn that
both bills and gold must rise; and ,hough now IL
would seem natural to expect reaction Of 3 a5
per cent in both, no one can tell to what figures
they may not rise during the winter. Large i'm.
portations are universally expected. Our expor.
tations of gold and food limited and will bare
ly supply the amount n bills required TO pay our
foreign debts. Many importers, fcresecing n
further advance. are buying bills deliverable in
December, at las. Some of the bankers are cx-
porting and preparing 10 export stocks. If the
recent advance in leading securities is met by