The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-08-18

'~r-%'ON ~-tS"-yoS' '0s1oAToo so,sost0fs
Since January l.. .s54 saeal0 sooIe 454 5000 sa4
EXPORTS or SPECIE tH4
1860 1891 1862
Previously reported saslasas us us
Since January L. ss5 o3O.5ao es25 AGO So 1887 40
Last Mondays bank statement showed specie
| average Of s34,s il,O69, being An increase of
s6ss,579 from the previous statement; deposits
average Of $l3o,544,ss0, being an increase
of $2,49l, 743, and loans average Of $751;
ls0,203, being an increase Of $67235s. The
circulation alone showed small reduction,
which was doubtless due 70 accidental
causes. In the present condition Of trade through.
out the country, money must accumulate at New
York, and the bank deposits must continue to in
crease. II commerce revived then deposits would
be rapidly withdrawn, and money would again cir.
culate through the usual channels At present
the government is the only active employer Of
money throughout the country, and, 40 It
does not avail itself Of the agency Of the
banks, capital naturally flows to the great
centres where it is sure of employment ct
some rate of interest. This stagnation Of trade
of which the increased bank deposits in the large
cities are the outward indication was not expected
six months ago by the commercial community. II
was tsheii iol BEs&Htcu tuat INC capture OF NOW
Orleans and Memphis, and the occupation of points
on the Atlantic coast, would lead to some revival
Of our internal trade. The event has disappointed
these hopes. In the West the impunity with which
guerias ravage the border States has for the time
quenched all hopes Of a successful revival Of COM
mercc. Peace and order are the first conditions
essential to the prosecution Of commerce. There can
be no business in the Mississippi Valley to create
demand for money until the guerillas are put
down. There is profit Of 80 40 cents pound
on cotton bought in the interior of Mississippi,
Alabama, Georgia or Louisiana and shipped
North for sale. Bot even this profit win tempt
but few persons and small amounts of
money into the business so long as brigands
roam the country with mpunity, burning cotton,
and depriving the wretched people OF the border
States Of the only means they hays to procure the
necessaries of life. In course Of time selfnterest
and the mperious dictates Of selfpreservation win
compel the people Of the Mississippi Valley to en-
terminate the highwaymen who call themselves
'gucrias. But long period of time may elapse
before they are reused to the paramount necessity
Of selfdefence. Meanwhile money must flow
hter from all sections Of the country to earn what
interest Wall street can afford to allow. saess
Money fell last week to an average of about 81
per cent on call. In the street per cent is still
the regular rate for call loans. But the well es-
tablished houses refuse to allow more than
3, and they generally find the supply at this rate
fuy equal 10 their wants. The Sub-Tressury
received some ~ 600 600 deposit last week. on
call after ten days, ct per cent. Mercantile
paper Of the highest grade 10 quoted at 4 a per
cent. Certificates OF government indebtedness
sold during the week at 90 3 u, closing at Sss<.
Datlable demand notes rose to 1917, closing at
l07i1, yesterday. Tho situation ia such that the
course OF the market is no problem Money must
fall in alua steadily until it Il checked by the
offers Of government. II Mr.. Cisco were to close
the deposits and refuse TO receive any more money
at per cent the rate Of Interest would fall imme-
diatcly 10 3, aud would probabi, reach 2 per cent
withia month or two. IL is quite Impossible FOR
the Stock Exchange to employ all the money which
Il now tcnaercd 70 il for employment. Five or
six millions of dollars serve to carry an enormous
amount Of stocks and. notwithstanding the natu
raj efforts of the banks to foster speculation in
stocks, for the purpose. of employing their idle
funds, there il no reason to believe that the
brokers viii require ans thing Ike the sums which
the banks vent 70 lend. e-s IT.
The foreign exchange market, though MOI &C.
tive, was irregular iest week. bIIS opened on
Monday 1T about l25 for bankers signatures, rose
10 1891 on Thursday, and closed yesterday at
1867 n 1877. Gold sold down to ll21& on Monday,
rose TO ZIG on THURSDAY. and cl5sod yesterday at
about il5. Every one has been puzzled by
the recent advance in gold and exchange No
sound commercial reason can be assigned for the
phenomenon. The balance OF trade Is in our
favor: no more American stocks are coming here
for sale from Europe; boarding has ceased; pro-
ducton Is active: confidence Ii being steadily re-
stored. Under these circumstances geld ought
to sell At lower ratio than II commanded
when the public we're alarmed, stocks were
being imported for sale and merchants were
boarding coin For fear Of depreciation Of the cur
rency One theory accounts for the advance In
Mold ON the ground that merchants are afraid OF
further issues Of paper money We alluded TO this
subject on Wednesday last. There is al present
no reason TO believe that Congress win be called
together before The usual time. by judicious use
Of his resources Mr. Chase can pay his way till
then. even assuming that the army will amount in
October 70 million Of men. Until December or
January next, then, there can be new issues OF
paper money. Whether further issues will then
be authorized must depend on the success OF our
| armies In the field. II the rebels suffer an over.
| whelmng defeat, as il hopefully expected, gov.
eminent securities will rise to price which will
acuva active conversions of currency and obyi,I IA