, 1870-08-16

to sestfe the t1ads h2lauce+ II Ia ap-
parent that this coali.;on Of things n
not eonsinne long Msheut , largs
moro, such as tue l..ht Eve, would take nearly
all the gold out Of the Now YORK banks, and
leave tho importing community dependant
npon The ~eekly eAles of tho Treasury for the
payment~of dut,es. II tbs war m Europa
likely to be the result.
The suspension OF specie payments in
Fr1nce may hive some co1ntefacaing effect
against an advance in the price OF cold here.
because the yAst hoard of specie Ia the N.ak
Of France is likely to % Withdrawn in loan
But it must be remembered that the PAPER
circulation Of tho Eauk Of France hss moi been
increased but Ia limited, during suspension 10
1,000, 000, 900 franrs by the set Of the Corps
Legislatit, whereas the circulation of TIC
bank, under ordinary circumstances, is only
regulated by the amount Of specie lu jta
vaults. and on tho 21et nit. the circulation xas
1,410, 000, 900 francs The suspension OF $40.
Gle payments, therefore-which was apthor-
lied only III osder to onablo the bauk to lend
its Bpecae to the State-meAns L contraction of
he circulation OF the Bank Of France aud as
the1n has been no authorization Of govern
ment paper TO circulate ~ money, bu. only iu-
tercat-be1ring Treasury notes, Of bonds. to
represent the increasing government loan.
there doea not seem reason for expecting Auy IA
cEease nthe volnme ufiegaltendezp paper money
over ,000, ,000,e00 f1anea. 8ome idea of The
anect, however, Of tb- dispersion OF the epe-
Gle in the Bank of France may be obtained
from the fact thtt ths near $3.50, ,00o, 600 in iss
vaults 10 equal to I'll the gold IN tho United
States Treasury and the Bank OF Engllud put
together.
have lost SIS, ,S61 uf deposits during the
lat four weeks Shows the effect that the drain
OF Hpecie TO Europe must aoon have on the
money market there, and consequently in
other cities ALSO When the deposits dccl,ne
the tank loans must necessarily be cut shprk
and tight money market be the result. The
New York hanks have A1waya counted their
specie dcrosits as part Of the1r legal reserve.
j a1id now that it IL rapidly being ,dTasn out oi
the country By the export ofgoid made noces.
s2ft tY the falling OF in exports Of dom sAtie
produce. it has the Ra1ne eject Il
though they lost just that amount OF legal,
they arc Obliged to cut down their loans Thi:
has not resulted in any pressure In tho none,
market rs yet, because business is extrcnel.
| dull IL al pazta Of the country. But .hs dsAs1
ot g,1d ~ It'll going On, And. II the raznt
1ae, the demand for currency from al part
| Of the country for the movement Of the nov
| crop is just beginning. In addition to th'
| loss Of their gc1l deposits, tho banks Of New
| York lnnat now experience, within tha ncI
| fen weeks, the loss Of the major portion OF tn
| hanks in the Western and Southern cltles. An
1t il ditficnlt 10 see how severe pinch TO
| money in September Is to be avoided.
business in the locs1 money ma1kc. to-da
waa moderate. There WEE mir demand 10
money, and, though tho oanss ato Able to X
cumnsodAie al regular customors, get ther
is general eapecsans! Of : closer market os
lore long.
The shipment OF currency to the countr
eca;irues to be ths principal fezture Of IL
ns. aes, and scne heavy hhspmsnts were mad
to-day 10 The wheAt-Srowing sections.
Currency WAS in fair supply here to.dhl
owing 10 considerable amounts having bee
received from New York on orders sent la
| week.
Exchange WAS drner to-day owing to Ii
belter supply OF currency, and sold Octxce
banks at 40 discount At tho counscr, haul
crs eall At lilo promiuu1, and buy at 5l.50 p,
!l.G00 on
The following quotations for gold in Ne
| York and securities in I4on1on to-day we're r
eeiycd by Barratt i 1Ia1chs