The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-28
FINANCIAL AND COMMERCIAL.

uSCiNNinL HiNO NOMMEnOin6s
SUNDAY, Dec 81, 1883.
The advocates Of q contraction OF the national
currency would do well to study certain facts IN con-
nection with the monetary statements Of the banks
OF this city Tor the past few weeks 1t appears that
Sreenbacks have been going to the Soutn Tor some
time past at the rate of about $780, 900 day. This
snoney goes to stay. 1t goes TO pay for the cotton
crop and as the South is not In debt to the North
VIII not come back again. In 0lden times the
planters, in their luxury and extravaganza
Esed to live beyond their means, and fire.
Guenty bought goods and borrowed money
ia New York before the cotton was even put
in the ground The war has changed all this. Our
merchants do strictly cash business with the South
and the tendency among the S0utherners themselves
Is to do cash business with each other. The pre-
sent cotton crop Is therefore. unmortgaged. The
money win be used in great part TO expand cotton
culture and the otner industries Of the South. or
course portion OF 1t win come back some time
pence ia purchase OF machinery and manufactured
goods, but the great bulk Of 1t will remain where it
9las gone. The banks Will get the money bacx when
ghe cotton is Sold to Europe. The distribution OF
greenbacks over the South and West will relieve the
redundancy complained Of and bring their value
eventually, to par with gold. The cotton crop
yhs year ID estimated at 100000 bales. In 1860,
9ust before the reached almost 900 bales
Nhat Is to prevent the annual crop from being ex-
Panded TO this or sill greater quantitys Cotton Is
Pur gold. An exec sve cotton crop in the future
would make our paper money worth premium.
In view OF these facts and The approach of the pc
fiod for the usual quarterly statement the exhibit OF
rhe banks for tie week ending yesterday is not re-
garded as an uniayoraDle one. There is contrac-
lion In the Item u oans and decrease IN SPECIE
posts and legal tenders The amount above the sum
proportionate to tie reserve has been decreased
about two millions. The banks are poorer, it is true.
but the money winch they lack Is heathily invested
and active TIE tolals of the past two weeks are
compared as follows
Loans. .s2d2 IA $50 $2si $40 $40 Dec. $50
Epecie...... lo,o4,6s4 l7.94o,sd@ Dec 7o2,7ls
aegaitends so,So5,l53 4s,sos'iso Dec Dec. a,oss,a1s
The money market was extremely active in the
earlier portion Of the week. On Thursday there was
a relaxation to tho legal rate for interest call
aoans. At the close money worked little more
closely in mean between the extreme points OF the
preceding pornon In discounts, which are baromet
ric for certain phases or the money market, there
was little done account Of the high rates
for call loans and on account Of q loss Of
confidence produced by two large failures. One OF
these was Baltimore house, the other well known
New York dry goods joobing house, whose estab-
2ishment Is situated On broadway, near Worth street.
The liabilities OF tie latter are reported ct 000
The sharp decline IN the value Of manufactured
goods which succeeded the clsse Of the war IL
assigned as the cause Of both suspensions. The
course Of the money market for the ensuing week is
a subject OF much ern but as the banks will be
under the necessity oi contracting still further in
order to help their appearance in the quarterly
statement there IL little nope OF relaxation until
after the advent Of The new year. The question Of
the reissue 800 100000 OF greenbacks creates con-
tinued inquiry In the street. The following expana-
fion has received the semi-o1iclal authority Of
Sub-Treasurer Van Dyck:-"'The fifty dollar legal
tender note having been very perfectly counterfeited
the government some time since determined to
Withdraw all Of that denomination from circulation
and to replace them with new notes. 1t was also
decided to cali IN such other legal tenders
as bore the endorsement that they were ex-
changeable into hve-twenties these latter were
Issued during the early part Of the war; To effect
the exchange alluded to the United States Trea-
Burer, about month ago. sent circular to the diff
ferent Assistant Treasurers and to the government
hepositarles requesting them to forward such notes
TO washington and to receive therefor new ones.
This exchange has been going on for some time,
and the old notes have been accommodating In the
Treasury at " ashinston. The despatch OF Thursday,
stating that $2OoO0,00J had been burned. probably
alluded to this accumulation"
Gold showed weak signs during the interval before
Christmas, but became slightly nrmer In face OF
total shipment during the SIX days Of about 100000
The drain OF currency tends to make gold weaker.
The gross cleaIings on Saturday were $751; 900,
the gold balances $l,751.151 ana the currency bal
ances $274s,4lo. The carrying rate declined to
per cent rejecting the ease in money which set In
toward the close Of banking hours. 1t announced
from Washington tlat the January coupons will be
paid on Thursday next. the 3Oth inst, and the Sub
reasurer began to-day to give out checks therefor
dated January l. 1850. This will give the banks an
opportunity Of appearing well In the quarterly state
mcnt, as some twenty millions Of gold will be dis
srbuted in this city The fluctuations In the price Of
gold during the week were as follows
Highest LOWEST.
Monday. ........................135x 134x
tJuesuay 1904 1919
wednesday 100 lo4$
.Inursday..........-...... .........IooH lo4N
saturday .............. ............135 134Z
= The approach OF the time for the payment OF the
gold. coupons as wen as the investment demand
from corporations and capitalists deslrous Of chang
ang their funds 10 United States securities for the
purpose OF avoiding local taxation, rendered the
week an active one for government bonds. The I'm
al an Gotu ha foI.