New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-01-12

growing QUO Of their relations to the bushes public.
IL is not to lie disquised however, that tie avail
able Of The banks not great ut the
close Of 1861 as they We're rix mouths anttCfdent.
Thus in June, 1861 bs'aggregate OF loans and DIS
counts WAS slGS ATT, 81; of cireulalon SIS 67 ISL
of specie sal S4 O59i Of deposits SEC 3l5 0o2; Of
rtock4, s 2o2 75. The banks he'd seen the,r specie
ldeere,,e from 81 s2f07o In juno, 10 $ 0S9 ~ in
September; and $50, lO2U5, in December. They
had seen their loans and diecouns iDciease from
s!6S, 81 in jane TO $500 s49 VA september
ana $I9I O83 IN in DeceGber. 80 aso Their liab'i-
ties TO dep0eitors OIL deHnnd had increased iloih
lSl06, 092 III June TO slti o'0Viu, III H.ylVDGl'
and SIPS Us 94 in Decemberi ard for notes Ia err
calaton, from SIS, sly Isl, IN June, 10 SE,oi''N'
in Sep,ember, and SO, 553. O29 in December.
The cause Of this tucua,ion in resources sid ma
tilities arose from the eXgency III NIcu tHc Hnn
c.ai aiiIr5 OF the Government LAD alehJ oy ls":on
Of the vast expenditures incident TO The suppression
Of Tie existing Rebellion and The action OF the BANKS
conseduent thereupOn. Congress, at IN extra SEES
sion ia July, 1861, authorized loan ot$ 49, VJJVVO,
under various fOrIns OF securities. Measures "ei'
inne diaely taken to place TIE loan before ts eoan
try. But, IN The meantime, tho necessitlts Oh the
Government in clothing, arniiuS ana feedih9 troops
in providing munitions OF war, ana bniiuiup 4"
nayy-becarie lmpefous as 10 adihlt oi no oeHAy'
The gigantic proportions OF tire natlonai eApenul'
tnIcs on the ono hand and the dilatory and vach'-
Iipg action Of Congress proviiiug adequate feven'
ueJ to sustain the credit Of the Government on the
other had well nigh pafayzed the pubhc creo4t, AM
tho fate Of this nGtIcn seemed trembling ~ Ih2 oa.-
anco. In this eXigency the banks Z! Newton
Boston and Phhadelpbla, with iati lotishi "oIthJ
of the highest praise, placed large portion " thelr
meaus { the disposal Il the Government. Ihelr
action not only served to bridge over the ezis,iDg
ohaslu in the National Treasury but 1t also INSPIRED
confidence the part OF the public III Tue pecuhary
resources OF the government IN this nahhef
| 4l5O COD 0lO was negotiated with the bGnAs of the
,Itie, NAMED; OF which sum SIN5 OCU, GOO appor
toned to the associated blnks OF the City OF New-
York alone. 81 Tar the glciit,r part oi this sam
WA paid IL OId coin, and the balance In The currency
TIE SO 600 600 OF 3. 10 notes were taken at par.
The 50 J00, go of coupon bonds AID registered
stock coat tho banks j2,056, el u, ineinsing the
intsrest accrued from July 10 Nov. 40, loOi. VI
the first loan OF Sij,00OUOO the GoYernmenI Ieln'-
LuIted tie hanks, at VARIOUS tines between NE "a
of septeuiber 1861, aud tie 18Th u January, loO2,
to the extent Of sol i i03 from sales made TO out
sce par les. TIE whole amount OF the iJahs thus
taken was paid into tho treasury By the associated
banks between the 18th 0f Augnai, I0Ol ana the 80
OF tebrrary 1862? uGd yet none Of tie securities 20
| he irsued by the Government were received by Ihc
banks until tie litn OF January, lcc2 hen the bal
ance of IN. Joan VI August ~, uuSoid by TIE Coy
e.ument was turned Uyer 10 them Ia $40 notes.
| Congress. IL view OF existing dficutles, by The
act approved August 5, 1861, bad suspended the
" IudeI eadent Treasury law, " 60 lar Ia To allow
tie Secretary OF tic lrrAsury to defost any oil The
moneys obtained on any CT the loans nov Authorized
! uT law, To INC flttt VI VI ShAtfH
ates IN such solvent specie paying bauks az he may
select, ana the Said moneys 70 cepc,ited hay be
withdrawn from suen dey0slt Tor depotit VITA the
regular authorized deposiLaris, or for tie payment
OF public dues" The specie Reserve Of the banks
had diminished from sl ,S2l,079, in June, y s2J'
1919, III December; wDile no corresponding return
had Leeu made IA Government securities through
he sale OF winch those institutions might have
strepg hehed themselves meet their remaining en-
gagements 10 the Government. Ihus, VIVA al I'M
pcralIye demand TIC Que maud, aud with diuiIn-
ished resources ON The other, IL became d question
whether depletion should DO allowed IN proceed TO
Its utmost limit, whether tie connection between
lie banks aud tie treasury should be broken IN eea'
10 the former for ultimate use, lucl
II 81 colo ~ stlll remained ia their vaults.
IL under thsse circumstances that he banks in
New York resolved, On tho 2Sth OF December, 1861,
10 suspend specie pay nents; aGd the example was
followed by Tie banks throughout the country. "a
lew institutions baye Continued 10 redeem their
notes III coin
the suspension of specie payments by tie banks
and Government, has come " be regarded by many
as ala inds. ensable conconiiant to State of war;
especially where the contest 10 upon II scale de-
maudlrS vast expenditures. Such expenditures
necessarily Involve Tie creation Of large credits
aud these are thrown cut III such proiusion as 10
forbid their ready conversion into the measure OF
value recognized by all nations. In time OF peace.
the balances u trade, however large III amount are
readily adjusted by "a mutual interchange Of credits
and commodities.
Under tue rysiem Of secured circulation which
lpreyas IN this State joined 10 he individual liabil
ly OF stockholders, t1Ose nsit Itions enjoyed the
ppbhc confidence 10 tue fullest extent. Strong in
hls aspect, AID strong in peeuusry resources they
would lave been justly csiaTgeaOc Uith unwarrant
ablsg olashncss mad they failed to respond 70 tue
dtfsnds vi patriotism nj great crisis IN the afirs
OF the country. 10 their credit be It spoken they
act the cXiSencY with patio lem and lUerllty
that OK tied surprise at home ard abroad Had thew
he.Tt h..
those III authority; had tie burdens assumed been
ndugated by prompt ACTON sac pant Oi the GOV.
eEnment IN tho delivery OF its securities; had the
rsors OF the Sab Treasury System been m,igated by
ne use ol tic banks as aepo.i cries for loans to be
disoursod IN The usual manner through the use OF
checls, notes aud Tie usual cred.ts as the demands
oil tie Government might have required, there is
every reason Tor believing the banks would not have
6eeu driven to the exigency oil breaking faih with
Tie iVbiH IN respect 70 the redemption OF theis
notes IN specie. Even As it WAS, they scrupulousy
fulfilled their engagements with the Government,
and On nc 4th 81 February, 1862, made their final
plymen, on tho 350Oo,0UU Loan OF S%cyemoer IL,
isol, although the date Of such last rayment nut
@OOO,UlO OF the securities 20 be furnished had yet
been received. Nor was such payment made as lbs
been alleged on the floor OF Congress in the deprc-
ciated notes OF the banks but III cola and Govern
meat notes, many OF the latter being Of the class \
receivable for customs.
DANK-NoTE CIRCULATION
The Secretary OF the Treasury, III his recent re.
p0lt 10 Congress- states the increase OF corporate
notes during the year ending Nov. |, 1862, az
50 ,010,GOO. The circulation .! United States notes
OF Nov. |. 1861, was, in round numbers, $l5,0Jo-
900, whe On Nov. J. 1862, it was $40 0O9, 900,
showing an increase within the year Of sos, O00-
600. Ye. the Secretary expresses de,idci opinion
that, there be an actual excess OF circulation IL Il
not due 10 tho issues OF United States uotes but
rather to the Increase OF deposits in tho bankssuch
Increase during tue year heing stated AT $50 900 600