, 1869-06-02
MONETARY AND COMMERCIAL,
MONETARY.

TTEsrAF EVENING, JuuR !.
The telegEaphr dispatches Of day before yes
tcr1ay from Washington indicate that for some
time to come 1t VIII lie the settled policy Of the
Secretary OF the Treasury to cell two millions OF
gold per week. There arc, also, reasons for think
ing that there will be no corresponding Increase
IN the purchase OF bombs or OF anything else for
which 10 pay ont again the currency which L. thus
being drawn into the Treasury at q rate that must
Eoon mike the contraction telt In the money mar
kets- When the Secretary sells TWO millions Of
gold at premium OF say 49, he Ietres e. 80, 300
OF gEecnbacks anil when he buys million bonds
hcpays ont from e ooo to 81, $50 thus making
the contraction over 81 Cox, per week present
Even II he were TO buy two millions Of bonds pcr
week, the weekly contraction woulA still
Ire nearly hall million lollasH per week Money
Is very abundant just now n all the financial
centres, but it is evident that contraction Of the
currency cannot 80 on At the rate OF SIX nnt half
millions per month without soou producing scr-
sation. The first symptoms OF any such eject
would probably be 1elt in tl.e New York market,
where tho sCreratuaHance Of money drawn there
by the payment Of interest on deposits Of Interior
banks has been the means ol producing the
Present innatel condition OF railway stocss aud,
fhon'l the Secretary continue hts present policy,
decline in theee would he perhaps the 1r:t ind!-
cation that thu contraction wa3 beginning to tell
Cliltr the coudtlon Of business ordinarily ez-
per.tnced IN this market at this season Of the
year, we should probably not feel any unfavor-
able result from snch contraction, as
lie banl5 IN this city, aud also n the Northwest
GENERALLY, have usually morr money ln June and
Jnly than thes can find usc for. But the present
!s an unusual season In the laeness Of the spring
business The Increment OF grain from the coun.
try here, and from here eastward, IL nearly
month ant! a hall LATER than rsnat, and Cur bank
ets are now In the mlls! Of the movement OF cur
rency from New York here and from here 10 the
embarrassing districts, q process that Is usually
over ay the 1et OF June, hut which this year bids
fair TO last several weeks yet Taxing into con-
s.'lesatiou this demand fo1 currency in the coun-
try. in connection with the more potent causes,
rtz. the contraction Of the circulation caused By
tic collection OF the income tax, and, last
ard Eoost important the contraction produced
b5 The operations Of the Treasury and there seems
prospect Of feeling comparative strtngency
before long, and ut season when money Is usually
most abundant.
There was an increased activity in business at
the banks today. owing partly to the settlements
Of time contracts for grain for last month"; but
aside from this, there Is more demand loz loans,
mere currency wanted for the country, more
shipments OF grain, and more exchange making
against them than there was In any Of these
respects last week. The banks are vel! supplied
with funds get, and approved borrowers lnd no
difficulty III getting all 1hes apply for
ufheTs 1roln tue country for currency were
larger today Than yesterday, and some OF the
hanks arc still. rtrrtrinr currency from New York
Exchange WAS sn!d between hanks today Mt
IRON sl.0e 10 si.S' per fl,Wn OF. At the counter
rates rc:nn:n about ai before; bankers rates Tor
scc- to customers are nuMlnallv 1-lu premium
hut many Of the bank. arc selling at par. The
buying rates arr from sl.oh TO s1s or for Straight
sight hills on New YORK, autl !: or on B1,lra!o
Tnc Lonfon qnotatlon for bonds today was 81.
against s1se Yesterday; othcywtse there ena hnt
little chnngc to note since ycsterlav IN prices Of
bonds, gO1tl, or stocks.
DtilSrs quotations tot buyinr and selling gov
ernrncMt bonds local stocka gold and SILVER IN