The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-08-30
FINANCIAL AND COMMERCIAL

SUNDAY. August co. 1862.
The money market during the past week was
easter than during the preceding week. despite the
fact that we are nigh this season when the custc~
mary drain OF funds takes place to the West ana
South to move the and cotton crops. The banks
have lost but trnsag amount In legal tenders but
the amount sent In national currency Is not easily
ascertained except through an analysis OF the item
OF deposits. The fact 49, the city has been largely
Supplied with money during the summer, and capt
talists have manifested an indifference about en-
poying their funds other than call loans
Hence we md the rate or discount on
commercial paper ranging from nine per
cent upwards, while the street rate for
money has been only FIVE to six and seven Again
the crops are reported two weeks behind hand,
whiio the cotton receipt, have been small The de-
mand Will come with ali the force for the pre-
sent defcrment but 1t Remains to be seen whether
the city Will not be able to meet IT, aud yet leave an
abundance for our local wants. Wal street always
discounts the future. This tendency Is witnessed in
the engagements which are being made every day
for time loans on stocks and other collateras for
periods OF thirty and sixty days. There Is more
than usual for use Oh CALL OF course the supply Is
not what II was year ago. when the rate had
fallen to three aud four per cent, but
1t was large In comparison with the spring months.
without an increase OF the circulation by the gov
eminent or the sanction OF additional national
banks our city can never hope to return to the
abundant supply Of the years Immediately succeed
ing the war. The building Of the Pacific Railroad.
the growth OF new towns and enterprises IN the
West the revival and expenditure Of the cotton
growing interest In the South, and the thousand
and one other undertakings wherein capital has
sought investment with the return Of peace to the
country have disseminated the currency Wide ana
far over the whole land. Millions have thus gone
away which will never return. Such IL the situa-
ton In which the metropolis finds herself
OF the beginning Of the fall season Of 1869. The
character OF the activity that viii attend the money
market during the ensuing two or three months Is
therefore an interesting problem. AS to the amount
required for moving the crops the calculations
thereof should take into consideration the fact that
II the crops are more abundant this year the price
OF aud wheat is nearly nifty per cent less than
last year. The yield Of cotton Is expected to be
much larger, perhaps by half million OF bales, and
the price is higher owing to the failure of foreign
mars to obtain their supply OF the staple from other
sources than the United States and owing also the
increasing home consumption IN our manufactures.
Will the requirements OF this increase In the
amount and price of cotton Offset the decrease in
the value OF the Western cropsf Wall street is not
very apprehensive OF stringeDcy. Among stock
houses, with whom the demand is so constant, the
disposition il to make preparation for the Iall &C.
tiviy by time loans. II this movement become gen.
eral the period will pass without the spasms usual
at the season. There were during the week faint
currents IN the local market depending on the
changes I'm the quotations of stocks and under the
"bullisn' feeling OF Wednesday and Thurs
day the rate on call was six to seven
per cent with good many transactions
at the higher figure. The bank statement is not a
favorable One but still IL fair for the time OF year.
The shipments Of currency during the week were
light and the decrease IN legal tenders only little
over quarter Of q million of dollars. The leas,
faterng item is the decrease Of two and quarter
millions IN specie, accounted for by the customs
payments and by the transfer of gold California
account. The loans have been contracted one and
three-quar:er millions aud the deposits have fallen
or three and quarter millions. The following are
thu last two statements controsted.