The New York herald., 1862-11-24

Since January H.. s.4 ss7 ,sss s4oS ,e25 5so5s,ssl
The bank statement which was published last
Monday showed a specie average of S39, 348,947,
being an increase of 1854, ,l79 from the previous
statement; loans average Of SITS ,6S3, being
an increase Of 81 ,0s6 ,l6s; and deposits average
of $l64 ,066 GOA, being decrease OF $l,S93,05S.
The statement to be made public tomorrow win
reflect the recent loan to government, and WIN
consequently exhibit sumo striking changes from
the last. The deposits and specie will probably
likewise show considerable reduction, in conse-
quence of the withdrawal of money for use in the
West, and of the shipment of treasure to Europe.
The gradual withdrawal of deposits from thia
financial centre--which has been in progress for
some three weeks--is very suggestive feature a
the financial situation.
The thirteen millions Of 7.30 notes awarded ON
the 18th have not yet been paid for. The face
illustrates the condition of financial affairs more
clearly than any verbal description could do.
After these securities were. awarded the takers
drew their checks on their banks for the amounts
awarded to them. These checks were presented
at bank and certified: they scere not paid d~d
could not be-; for the banks mad net currency to
pay them with. Mr.. Cisco. to whom the presi-
dents Of the backs in question applied for relief,
inquired If he could get city currency in default Of
government currency; but the banks had neither
the one nor the other They could only pay in
out Of town money-the notcs Of banks in Jersey
or the interior Of this State--currency in Q word,
which not only was not legal tender, but wa.
such as no merchant would have received -
money in the ordinary course of business. ana
which the Sub-Treasurer would never have been
justified in receiving and placing to the credit Of
the United States Under the circumstances Mr..
Cisco pursued the course which judicious creditors
usually pursue towards delinquent but honest ana
well meaning debtors. He held over the checks>
AZ fast as the banks receive legal tender currea-
cy they pay it in on account Of their checks. Some
Of them have already paid in enough to relieve
themselves fsom position Of disgrace. Othess
are still debtors 70 the government, but win pss>
badly acqut the obligation this week. Had the
Sub Treasurcr insisted on the payment Of the
checks he held, several OF leading banks wossd
have been compelled TO close their doors and 60
into liquidation. In plain words, they coufo
not meet their liabilities. They had NO
thing to redeem their deposits but the current
issues Of banks which are comparatively unknewn
here, and whose notes have never been regarded ~
money 10 our market. The event proves not only
the scarcity Of legal tender currency, but likewise
the insecure position of our banks. They cs9not
pay their deposits in specie or in legal tender
money. or even in their own currency. A largo
numher Of depositors are now anxious to use their
money at the West and Southwest in the purchase
and movement Of produce The banks can only
give them cnedits--rot specie or currency. Il il
evident that this state Of things cannot last, and
that the public interest will require the adoption
Of some new policy by the banks which shall Sc
cure to depostors greater degree Of safety than
they now enjoy.
The money market was active last week chiefly
in consequence Of the payment Of the awards a
7.30 Treasury notes. Legal tender notes in large
amounts are so scarce that they command an
eighth Of one per cent premiam. Yesterday after
noon there was rather more money onercd on loan,
and six was nearer the standard rate than seven.
Large amounts Of money are going TO the West
and Southwest for the movement OF the crops o.
test, corn, pork, cotton and tobacco. In Tho
west--n Missouri Illinois, Kentucky and Tcnnes-
see United States currency is the only money
which is popular; buyers Of produce take IL along
in preference to any other kind Of money.
Large amounts Of legal tender currency are being
boarded by farmers and merchants in the West.
and until they become poor and are forced to dis
gorge their boards 1t must be expected that they
will absorb and retain all the currency they re-
ceiye, to the obvious dctriment Of the ordinary
centres Of financial business. Upwards Of one
hundred millions of legal tender currency must be
boarded AZ the present moment in Illinois, Missou-
ri, kentucky, Tennessee and Iowa. Business pa
per Is very 10 this city; first class Names on
short paper, pass readily enough at ~ q 8 per
cent, and ordinary good names at6a7. Govern.