The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-06-30


The bank statement of last Monday showed a
specie average Of s31 047 945, being decrease of
sll4,lO3 from the week previous; loans average
of STAG, S39, 762, being increase Of $2,s25 4l2;
deposits average of sl26 6S4 422 being an increase
of 81 ,02l ,O47 Tomorrow, it is understood that
the banks will show considerable increase of
loans and deposits, and notwithstanding the heavy
exports of coin, great change in the specie ave-
rage. Our banks are converting their legal tender
notes as fast they get them, or as is preferred
at some institutions, depositing them at four per
cent. This accounts for the steady increase in
their discounts average. The steadiness of the
specie shows that the large sums sent
abroad do not come out of the bank vaults or that
the banks have resources which are not generally
known.
The most remarkable feature Of the week, in
financial point of view, has been the scarcity of
legal tender notes. Ten days ago they seemed to
be plentiful enough, and when the House passed the
new Treasury Note bill some banks and bankers
converted 81. zoe, 900 in a single day. 1t appears
that they swept the market Of convertible notes;
for until yesterday, when some notes
came in from the country, the conversions have
been remarkably light ever since. They
would have been very large indeed if Mr.
Cisco had been authorized to take bank notes, or
checks on banks. His deposits would probably have
averaged much over million day, had he not
been restricted to government notes, which are
almost out of this market at present. What rem
ders this circumstance the more remarkable is
the fact that Mr.. Chase has set aloat 500 900 900
OF these convertible notes-nearly one-half
the entire paper currency of the country
as estmated-before the rebellion. The whole
Of these ninety millions have been absorbed
in the interior. They are afoat in the West,
in the East, and in the places we have
repossessed at the South and SO much are they
needed and so actively employed that there is not,
in all probability, half million available, outside
Of the subrreasury, in this great financial centre
To persons who have allowed themselves to be
deceived by the clamor Of partisans Of the old
schools in finance, and who are contemplating
with anxiety and terror the forthcoming issue Of
another hundred millions Of legal tender notes, this
phenomenon must seem perfectly inexpcable.
Persons who are less embarrassed by preconceived
theories and ancient prejudices can readily explain
IL by referring TO two facts first, the fact
that the aggregate AMOUNT of specie and
bank currency driven out Of circu,.tion by
the war amounts, in all probability. to over
$3.50, 0O0, OO0-nearly three times as much as the
whole Of the new currency supplied by govern
ment; and secondly, that the has actually cre-
ated, for the time, more active commercial
movement in the interior, and a more lively srcu-
laton Of money, than existed in time Of peace. In
the West Mr.. Chase's legal tender notes are 80
universally and decidedly preferred 70 the bank
issues which have been the ordinary currency o.
that region that they are, in some places held at
a small premium already In passing upon Mr..
Stevens bill for further issue OF $3.50 900 900,
the Senate will do well 10 consider the possibility
Of this premium becoming established everywhere.
The new $50 600 ,00v-like the $50, 600 ZOO now
aaoat-will be convertible into $40 bonds, bear.
ing six per cent interest In the event Of the sup
preston Of the rebellion and the restoration Of
peace and prosperity, these bonds viii -,naonb,ed
" se at premium. The eonseqacr ce Is inc ytable
that the notes which are Interchangeable for them
win also rise 10 the same premium. The moment
they do. they will be withdrawn from circulaton.
This contingency would lead to two embarrassing
results. I'm the fret place, it would cause great
embarrassment In business from the want OF cur.
rency: and secondly II would cause TIE Withdrawn
from the Sub.Treasuries Of all the deposits at
-four and five rer cent. Whether the danger should
be guarded against by empowering the Secretary
of The Treasury, in the event Of run upon his
deposit lor the sake Of the premium upon legal
tender notes, to issue enough notes to redeem his
pcdge 70 IFS depositors or whether the new notes
should only be convertible after given period OF
time, are questions which deserve the careful at
tenton or the Senate.
Money was more active last week, az IA usualIv
the case al this season. As the close Of the fsca,
year approaches many sums Of money belonging