The New York herald., 1868-08-17

"a glut Of bills drawn against shipments OF fve.
twenty bonds depressed the rates Of foreign ex-
change and the leading drawers were willing TO sell
their sixty days sterling at 10oH, while German
bankers bills were offered IN some instances at
1o9X At the close The market was unsettled, but
there was reduced supply OF bills Offering. The
effect OF this decline rates is TO check domestic
exports both Of produce and securities, and indi-
recly, therefore, 1t tends TO strengthen the gold
premKun by increasing the preponderance OF imports
over exNsrts.
Money was in abundant supply during the week at
four per cent fsr loans on call mixed coIaterals,
with exceptcnal transactions at one per cent both
above and below tfa rate, the principal dealers In
government securities AMI other first class houses
having no difficulty In borr6Tlng largely at three
and three aud o half per cent, while borrowers OF
small amounts on speculative railroad shares were
willing, in some instances to pay Eve. The city de-
nand for discounts continued very light, but there
were not few applications for such from Western
bankers and produce dealers, who, although IN no
immediate need OF money, wish TO make provision
for the future, when there may be difficulty in
obtaining the necessary accommodation. There
are no Indications however, that the supply OF
rency at this centre win he otherwise than abun-
dant during the remainder OF the year; but the rate
OF interest is nevertheless likely to be advanced to
six and seven per cent for loans TO the Stock Ex-
change for q tmo after the full effect OF the drain
westward has been fet At this period last year
and in 1866 monetary AFFAIRS were under tho innu-
ence Of the currency contraction which had been
persevered in by Mr.. noCullocn, regardless Of It's
prostrating effects upon the general trade aud pros
perity. Of the country; but contraction has
long been suspended, and ample provision
has been made for the redemption OF oil Tho
compound interest outstanding by the issue OF
exchange for the same The country has now had
time to- adjust itself to the volume OF paper money
in circulation, and the absence Of speculative
features In trade MS wet. fct OF its being con-
Quoted mainly within narrower limits than usual,
and on q cash basis precludes the idea that there
will be any large demand for money thIs autumn for
any other purpose than the movement OF the Western
crops, and these, fortunately. promiseto bs heavier
than they have been In any previous year 1881.
The degree.of monetary activity arising from this
source Will be OF q healthy character and win In
volve no monetary disturbance whatever either at
this centre or elsewhere; but speculators on the
Stock Exchange may endeavor to create artificial
activity for the purpose of alarming holders OF stocks
and SO depressing prices, and In view OF this poss
bIty all concerned should carefully study the none
tary situation and thus learn how to estimate the
efforts OF these couspirators and thereby render
them powerless for evfI, the apprehension being
always worse than the reality In such cases, panics
having been more frequently produced by fears OF
stringency than by It's actual experience. The
statement OF the associated banks OF this city for The
week ending yesterday renects the remitances made
to the West for some days past. That these were
chiefly in national bank notes, OF which the supply
is still large, evident from the fact that the de-
posits have decreased ss,l55,4o5, while the legal
tender notes have decreased only sl,l1e,oe1. The
limited demand for money Is shown in the decrease
OF $1947,10e In the loans. The specie has de-
creased $1.sso677, owing to the Withdrawals
for customs duties and export exceeding the SUD-
Treasury disbursements In payment OF interest on
the public debt and the redemption OF the principal
OF the bonds OF 1s4T-As. The circulation has in
creased S3a 1l3 The totals of the present and last