The New York herald., 1862-12-12
FINANCIAL AND COMMERCIAL.
TuURspAY, Dec. Il-6 p. N.


TuURsDAY, Dec. ll-6 p. N.
Much anxiety prevails in bank circles, owing
b the drain Of currency which is going on.
Last week the banks showed q decline Of
1--WE and q half millions IN deposits, and the
indications are that me aext statement will
show q further heavy reduction. The event
b Of course perfectly natural at this season.
Money is flowing soIthward and westward for
ne purchase ann movement of cotton, food,
tObacso ana other produce. In ordinary times
iAs movement goes On, and the banks are
drained OF their specie until a point is reached
vt ~aoh it s deemed unsafe to submit to
farther depletion, and the banks then check the
drain by contracting and calling in their loans.
This year many of our bank managers OBJECT
% pursue this legitimate course, and want
congress to come to their aid with further
ssppy of legal tender money. II need hard
~ be observed that it would be sheer mad
ness to do anything of the kind. The banks
lave taken advantage of the government issne OF
legal tender money to indulge in an anexampled
Expansion Their circulation has increased from
el30, ,0e0 900 to $l67 900 000 and the loans and
discounts have increased in a still greater ratio.
These Of the city banks alone have swelled from
)i20 zoe 600 to $4,000, ,O00 One single bank,
wish capital of 81 900 000 has actually $l2 ,000,
POO of loans at the present time. The period has
aow arrived, it seems, at which this enormous in
lation must receive check, or entire COM
saercia system will be utterly wrecked. To inter-
ere with the regular operation of the laws Of
nance by issuing more paper money would
nerely accelerate and aggravate the subsequent
wash Let the banks call in their loans, including
khnao "a tha Tint I'd Ctafau Rv will
lrawing their deposits at and per cent they
ban get $50 900 600 more currency, which was au-
hsrized at last session, and cannot be issued ex-
bept in payment of these deposits. Let the loans
, the public be likewise called in, and let every
bank fortify itself against the future. Let them
Nh government stocks and draw currency from
Ae buyers. Bank presidents may rest perfectly
assured that the situation in which they stand is
hst enviable. There is hardly bank in the city
\ New York which might not be broken in day
~ ran upon it for currency. Bank after bank
- gone on expanding wildly, lending on.gold and
4scks and merchandise, and assisting the imitation
u prices with its whole strength; and, now when
ettfing day approaches, and depositors call for
heir money to buy cotton, to pack pork or to
Aove grain at the West, these bank officers hurry
~ 70 Washington to say to the Committee of Ways
nd Means "We must have more paper money or
He shall break" If that committee does its duty
the country II will tell the banks that they have
so1ght upon themselves the evils of which they
bsmplain, and that the whole country cannot be
uined to relieve them. II was not Mr.. Chase who
aused the bank loans in this. city to swell from
i2o 600 900 to $170, 900 900; nor WAS it govern
nent that induced the owners Of Northern banks
expand. their circulation from $3.50, 900 900 to
f67. 600 900. The banks have no claim up IN GO
ernment for relief. It is in their power, by pur-
Ming the usual policy Of contraction un-
ieldmg contTaction-to draw to New York al the
uTeHcy that is needed. Let them do so If they
= not desire to have their doors closed by autho-
ity, and their affairs wound up by receiver, un-
er the orders of the Bank Department.
Money is rather more active to-day; but good
borrowers are supplied at 6a7 per cent. We
ave received long communication complaining
y the practice, which is pursued by many railway
smpaniss, of lending out dividend moneys on call
mtii they are required for the payment of the
ividend. The practice is undoubtedly wrong
ae, unless extraordinary care is taken in lending
uch moneys. A panic may. at any time. in the
rssent condition of tho stock market, cause
ecline Of ten or twenty per cent If the directors
sns out the moneys in the treasurer's hands on
ueh r,srgins that such Q decline would involve
heir lCgs, they have unquestionaby committed
breach Of faith for which the courts would hold
hem personally liable.
Geld was rather tame to-day. It sold at 1927,
Y, n, and finally closed at 1929. Exchange is
quoted at l45H LAG. Parties who have been
boarding exchange an insurance express their
Willingness 70 place their means in gold bonds, if
he plan suggested in this mornings HERALD were
sithfully carried out. The scheme appears gene.
ally to be regarded with favor.
The stock market was very inactive to-day, and
prices were lower. At the morning board Central
aeclined Il, Hudson a, Michigan Central a
southern old u, Galena 4, Rock Island n, and
Toledo a. Governments were steady. In bonds
here was no change of Importance. Between the
boards tho market was inactive. At the second
board there was no particular change, except in
Michigan Central, which was X per cent better
rhs market was steader. though inactive. The
following were the closing quotations.
S e. reg 's1. o9x q cox Hudson River. 76xa 76L
rs scou, ,'sl l04T 104x Harlem. 21k a 21n
B ss,oou,'74. % a s2S Harlem pref. SIX sig
fry I 80 n. 1e3k a 104 Reading...... 75k 76n
Us es i y Ger. e7 ok Michigan Cen. olx slI
Us demand n 126x 1261 Mich Ia. 39K 39K
tennessee 6's. 54h "a SAN Nj SAN guar s3x q S3X
Virginia 6's... 90 6Ox Panama. ......16e leo
Carolina 6s 6eka 70 Illinois Central 70 a 7qis
Missouri o's. Sax SO Clev Pitts. 43x 43E
Americn gold 132 1872 Gaena 4 Chic. 81 u 81sI
ncfnc Mail. .l22k o 123 Clev Toledo. o9I, q 6eX
Y Central 1851 . 104 Chic Isd. SIX 8lZ
eris preferred. Sx . az ="