The New York herald., 1864-07-15
FINANCIAL AND COMMERCIAL.
THURSDAY, July ll--eP. N.

Secretary considering what authority ne has ief
making the State bsnks dePos'tares OF government
funds TO exen OF their loars TO the Treasury ~
the act Of Congress OF August 5, 1851, section
Of which we quoted yesterday, be 10 EN-
powered 10 deposit any Of tie moneys OF.
sasned any OF ths loans then autsorzed oy law 10
the ored, OF ,be Treasury Of United States IN such
solvent specie paying Select 81 far as
loans before passage OF this act are
cerped the only question that arises is that growing out
OF the Of specie pay ynents-namey, whether
the law is applicable TO legal tender paying banks;
and ioasmuch legal tender held both by lhs
and the courts 10 be the equivalent of specie
the payment Of all ordinary Obligations whore
payment not expressly stipulated in advance
OF opiuiou that Mr. Fessonden should not connre
himself strictly to the letter OF the law, but place that
liberal interpreted which is necessary, at the
present critical uncture TO the interests OF the govern
ment With regard however, TO acts authorizing loans
passed subsequent 20 this 1t is evident that tho sec
ton OF the referred 10 is construed literally II VIII
apply but IN view the necessities OF the Treasury
and the urgent perfect harmony and co o. era
ticn between all the banks aud the government. IN
order to enable to develop its full fua cal
strength Mr.. Fessenden will be justified in consulting
the public are without allowing himself to be ettered
by legislation, the absence OF It, on point to which
precedepts from the very condition OF affairs
longer applicable. The emergency is such that must
be dealt with by strong hands, aud the Secretary
shrinks from the task responsibility OF harmoalGg
those conflicting elements which exist between the two
denominations Of banks, and OF uniting with them the
commercial strength Of the country IL viii be- at the
the best interests of the people and the sacrifice
or his OWE reputation a fnsucier
Having conceded eqial r-:vese to the State and
naticnai banks placed Itself in accord with the
noneyed interests OF the uaon the government shond
follow example OF all European governments 10 sim
ordinary borrower. Hitherto, while the banks have
been expanding tho sphere OF their circulation and opera
tons the government has been paying out large
Gums greenbacs and legal tenders generally aud
two prime causes OF imitation have been actively
at work, without anything to control the tide OF
circulation and make II converge round
common centre. Now, in Great Britain the Bank OF
England constitutes this centre and the ebb and flow Of
money regulated by its rate OF interest. Ii the drain
specie heavy upon the bank in consequence Of
importons other predsiosug causes, advance
this acts immediate check IL, and the
wealth or the Kingdom flows into lis eoers without
corresponding depletion the OF discounts. There
why the banks OF this city should not form
this centre and control the circulation eectuay as
Bank Of England does IL And the Law OF this State
does not permit a higher rate OF interest than
per cent, tho policy which should be pursued to
strengthen the banks that OF steady of
the part o. the banks would be apparent in mn
influx currency from all sections or the country, which
find its way into the banks and facilitate the action
or the latter in supplying the necessities OF tho favored
borrower-government As soon the banks ADVISED
their OF this intended pokcy the latter would
In SELF defence call for from the country
jobbers wholesale dealers, who, IN ttes tsrr, you'd
call upon the retailers, and these ssaa sea sssil
customers. and large sEaocao o. aS--x-lrr
,whieh nov scattered among
for national purposes, would Cow the rrsas
ciA centres. With the curaiimcns Of csca-zas 10,
would abatement Of such hdrtrui sPceIA,on IS
which recently raised the price OF The
ries OF life excessively and thereby every man would
have his daily bread and butter cheapned to him; be
sides which the volume or currency necessary for com
every day expenses would be proportiouacly dImn
shed and the surplus thus created would be 20 much
added to the resources OF the banks.
eauwhi tbese acting agents between the Treasury
and the people for the sale Of its six cent interest IN
gold bearing bonds, could dispose about million Of
dollars per day. which with the three quarters OF
million per day derivable internal and the
addition temporary deposits, certificates Of Indebted
Treasury notes maturing In three years at the
command Of the Secretary, would leave him in little
need OF resorting to the issue OF legal tenders.
unless TO a limited extent, 10 paymsn, Of the troops
There is little doubt that If seven thirty Treasury
notes mot legal tender) were to be put ito mar
ket and made convertible into six per cent gold bearing
bonds maturity, there world be strong demand f.
them but this nduccment 10 subscribe rapidly 10 new
would hardly be advisable unless tho requirements
the government Of very urgent character u s
upon OF its bouds direct through the banks 10 the
people that the government mainly rely for sup
port
reaction took place In the stock market today and
buoyant toue was manifested throughout the entire
list Whether this is to continue or not il IS very dill
cult predict but is quite certain that whenever the
financial Affairs OF the country assume . settled con
dition the share market viii regain It's former healthy
aspect and tho spirit OF speculation, which has been
dormant for some time past. wrl again be revived.
Stocks have nearly not quite touched bottom,
which fact the bears themselves are forced 70 admit
Compared with the highest cash sales at the frat
board yesterday, New York Central advanced "
Per cent Erie Railway Y, Hudson River Z, which
u . gain OF fourteen per cent since Monday after
noon; Reading 4, Milwaukee and Prairie du Chen 2,
Michigan Central 1x, hichign Southern g. Illinois Gen.
trai TX Cleveland and Ptsburg 1, Cleveland and Toledo
I, Chicago and Rock Island az, Pi,tsburs and Fort
wayne AZ Chicago and Northwestern IN, Cumberland
Goal lk, and Quicksilver Miuingl.
There was DO mproyeme In government securities
aud IL not likely that they will be strengthened until
some settled policy the part Of the Secretary OF the
Treasury made public The coupons OF 1881 sold 70 day
a loz,s and the eve twenty coupons at lol The one
year certificates brought s3h. Asaie was maos tne
sixes OF 1867 al liz.
Gold nuctuased to-day and after opening 1t 2ss sold
down 70 263x and subsequently, rallied to 27o with sales
OF small parcels, mostly time. The demand for cash
gold limited, and the price was one per cent
under time sales.
Tns following the report Of the Assistant Treasurer
Rscspts from customs. s.................. s127 900
Total reoeipu ........ llso,Ila
paymepta pta............... ............... 534, IS3
BAlanco ..........s.. Z4tooi, wv
The oondoa q tbe banks Of the three principal cities
q the Uoon 10 exhibited In the following table, which
gives the aggregates Of their Las, weekly ststements:
Lsaus. Specie. CfrrniaTo, Deest,s.
YORK July .elsa eg91l 2ios4al7 tosS o7 1M7z5s.!