New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1866-07-18

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MOUHTHc EFuE1
PAYMENT OF TEMPORARY OR CALL LoANs.-T
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PAYMENT OF TEMPORARY OR GALL lIoAES,-Ihe
New York Tribune remarks
1t is stated that at an early day the treasury in
tends to pay of its temporary loans. This move
ment in addition to the liquidation of the
year certificates will put at the command of Dor
rOWers a large amount of money, and give still
greater ease to the market but people should not
forget that this temporary superabundanCe is the
rock upon which good many to be ship.
wrecked. AS soon as these two classes of short
currency debt are out OF the way, there is no
reason why the department cannot at once go
step further and offer to holders of compound
notes collaborating bond of tempting length at G
per cent, and get them out of the way also. As
the treasury pays its call loans Temporary
deposits} the public at large borrowing on cali,
indeed, borrowing ia any form will pay more for
money. Without additional legislation Mr..
McCulIoch is still able to steadily
proceed in converting currency debt into long
bonds and so reduce the legal tender basis, upon
which the national banks are now dangerously
expanded. Congress already realizes the loss to
all sound enterprises in suffering these banks to
use S2SO,OOO,OOO OF irredeemable paper, and will,
no doubt, before its adjournment, in some degree
force them not only to reduce their circulation
but to redeem the remainder at the three cities.
A reduction of legal tenders of four millions per
month, with contraction of national bank crcu-
latiOn, and the usual increased employment for
money to move the crops now fast maturing, will
give to lenders an advantage they will not be slow
to use. The treasury is not performing its duty
in the way of reducing the currency and funding
the debt; but it is not wholly idle by any means
Each month shows less of short and more of
long debt, and less of legal tender in circulation;
and at no remote day, reluctant as Mr.. McCulloch
is to act boldly upon the conservative policy of
his Fort Wayne speech and mis- annual report, he
will find himself in position, when his accumu
lation of income alone will allow him to hoard
not cancel-for that is not necessary-enough
legal tenders to force contraction as thorough in
its effect loss of coin produced when gold and
not legal tenders was the basis of banking and
other credits. The financial balloon of rredeem-
able paper brought into use by the rebellion has
become inflated to the last degree Of safety, and
must be brought to land by an enforced contrac.
ton to prevent an explosion, which will carry the
whole machine and its passengers down in one
mass of ruin like that of 1887.
New YORK MARKEr-The World Of the latest
date athand says:
1t is understood that the treasury department is
delivering quite large amounts of new 52O's which
have been paid for by the surrender of compound
notes and 7-30's Instead of making these ex.
changes secretly, the treasury should open the ex
change of short currency debt for long gold bear.
ing bonds at price to all holders, The payment
of ouey year certificates will in few days set free
from the treasury large amount of currency
which, judging from the present popularity Of
gold,bearing bonds, will find its way into them.
After Congress adlOurns it is probable that the
treasury department will take steps to get
its temporary loans out of the way and manage
its affairs so as to kill off speculation
in gold, stocks or commodities, and return the
gamblers to some industrial pursuit. In a few
weeks LleTe Will De large u6luauu IOr currency
to move the crops, which will be supplied from
the Atlantic cities, at the expense of those who
are now specializing upon cheap money. The
movements of the treasury the retirement of cur
renGy by State banks, and the demand for money
to move the crops will at an early day create al
active demand for capital, at full rates, ia New
York-a fact which parties making engagement
for the future will do well to remember.
The Chicago Times of Saturday says:
The local money market continues to wor
toward increased stringency. The tendency 0
the produce market during the past week ha
served to encourage an active speculative move
ment IN most leading articles, and of course led t
an active demand for money. This demand til
banks were not in condition to meet fully, sine
the supply of currency was extremely light, an
atter dlsGountng freely for one two days tn
heaviest institutions were compelled to chang
their pohcy and exercise considerable discriminl
ton in making advances.
The following is from the latest New Yor
News:
We give the following extracts as straws in til
wind to show that drain has set in since the fir
of the month that may be expected ere lone |
deplete this market of money to such an extent 4
to make it active and check the advance. and ne
haps depress the general list of negotiable secnr
ties. superabuudance of money at this Mace
an unhealthy state of things. 1t should be at wor
all over the country and especially in the need
South,
The Chicago Tribune, of Monday, says:
The money market during the week has rule
quite stringent, and bankers have generally bee
under the necessity of restraining borrower
Owing to the heavy receipts of corn and gres
activity in the shipment of produce generally
there has been greater demand for money bot