The New York herald., 1868-04-27


circular to the national banks on the subject Of
their reserves which is not uncaled for. The banks
In New York. Boston, Philadelphia, Chicago, st.
Louis, Detroit, Milwaukee, New Orleans, Cincinnati,
Cleveland, Pittsburg, Baltimore, Leavenworth, San
Francisco, Washington and Albany are required to
keep a reserve of twenty-five per cent against their
liabilities in deposits and circulation, while the ma
ttonal banks elsewhere are required to keep q re-
serve Of fifteen per cent; and In each case twofts
of the reserve be in plain legal tender notes and
specie actually in hand, while the remainder may be
In three per cent certlncates ana CON-
pound interest notes. For all practical pur-
poses, however, specie and compound in
terest notes useless as part Of the reserve for
there is probably not a bank In this city that would
not 90 into liquidation In preference to paying out
specie and compound notes at par and Congress
should direct Its attention to this feature OF the case
The importance OF maintaining good effective re-
serve by the banks obvious and the Comptroller
ne Currency will do well to publish periodical
statement Of the banks which are delinquent In COM
plying with all the provisions Of the law In this re-
spcct An abstract Of the returns Of all the national
banks for the quarter ending on the lst inst. has
Glready been given to the public, and In
the aggregate the reserves exceed the legal
requirements, but 1t would be interesting to
learn what institutions among their number
have been found wanting According to the returns
for the quarter ending October 1885, ftynve banks
were deficient In their reserves although the average
reserve OF all the banks about twenty-four per
cent Of the liabilities. This seemed ample enough
considering that out OF the seventeen cities haye
named only hfteen per cent Is required. The Comp
troer OF the Currency should see TO Il that all the
banks are examined into at regular intervals, pro-
vded by law, and that all the provisions OF the Ma
tional Currency act are enforced.
The foreign exchange market was strong during
the early part Of the week. and the leading drawers
advanced their rate for sterling at sixty days to 11o
but on Friday 1t experienced a sudden weakening,
and prime bills were sold at 1l0. The advance ap-
pears to have been mainly due to speculative
causes, the foreign bankers having bought
up the floating supply OF bills in anticipation Of an
enlarged demand growing In part out OF the dis
bursenent Of the May interest on the public debt
s estimated that at least half the amount OF inter.
est drawn by parties residing abroad will be REIN
vested In bonds, the remainder being remitted In
cash. The supply Of cotton bills is limited. The re.
ceipts OF the staple at all the ports during the week
were little under 10000 bales, making an aggregate
since the lst of september 1851, OF 2o44 400 bales
against 1643 800 bales for the corresponding period
in 1861 The exports from all the ports during the
week aggregated A. 400 bales making 427 900 since
the 1st OF September against las 900 In the CORE.
spending period last year. The stocks al all the ports
at present are much smaller than they were at the
same date in 1857 7-nameg, 2oo,7oo bales, against
446, 100 The stocks abroad are also much less At
Liverpool on the 11th inst there were only
sSc,55o bales OF cotton OF all countries,
against 7l234o at the same time last year.
There were $4,000 bales OF American anoat
In addition, against 100000 last year, and 2oa 100
bales Of Indian, against as5ooo bales year ago. At
the close bankers bills on England at sixty days
were quoted at 1o9S 10; at three days. 110k;
commercial bills 100 loeS. On Berlin-Bankers,
nx O 70; commercial, 71k 1X. On Bremen
Bankers, 7ok so; commercial 7ek q 79h. On
Yrankfort-Bankers, 4oX; commercial. 4oX. On
Amsterdam Bankers, Al commercial 4oX o a.