Year: 1862




The ba nks last Monday showed specie average
of $2s, ,l96 $685. being an increase of $717 OSS from
the previous statement, and an increase of fully
five millions from the date of the suspension of
specie payments. 1t is understood that they will
show decrease tomorrow, in consequence of the
recent heavy export of coin We have been i'm
porting more than we could pay for in produce,
and, as matter of course, we have got to make
up the deficiency in bullion. If the relative def
cheney continues, and gold continues to be main
tanned at a premium by the spectators on the
Stock Exchange, our banks will presently find
themselves in position of marked inconvenience.
The crisis Of 1857 was mainly caused by over i'm
portations of foreign goods, which led to heavier
expectations of coin than the resources Of the
country could afford. We are now on the brink of
similar embarrassment. We are importing more
than we can pay for without shipping coin; and,
though we have much more gold in the country
than had in 1857 yet still in consequence of the
forced suspension of the banks large part of this
gold is not available for purposes Of commerce, and
hence the relative supply is scarcely greater than
it was five years ago. With their usual sagacty,
large number of the city banks are aiding the
spectators in bullion to their utmost. Though it is
obvious that any depreciation of the currency is
bad sign, not only for the public and the govern
ment, but in an especial degree for the banks,
which have invested nearly the whole Of their capi
tai in government securities, large number Of our
principal banks are doing lively business in lend
ing money on gold, and so enabling the spectators
to put it up to an illogical premium. 1t is trite re-
mark to observe that city banks are generally
administered in the interest Of any one but their
stockholders. But even the many absurdties OF
the past career of the associated banks fade into
insgnifcance by the side Of the monstrous folly Of
subserving speculation which tends to dscredt
government securities, to deprecatc the currency
Of the country, and to promote the expectation Of
bullion. It is, however, idle to descant upon such
universally acknowledged facts a. the imbecty
of the controlling minds at the Clearing House.
The individuals whom accident and i'll fortune have
placed in positions of influence in banking circles
are incapable of resisting the bait of six per cent
on call on loans Of money on bullion: and the only
hope is that Congress will 60 to the root of the evil
and will lay such duty on importations of foreign
goods as will keep our imports down to the level
OF our exports of food.


Money is extremely abundant. On call the
brokers can generally obtain loans on approved
collateral at per cents many loans, however,





at 5 5% per cent. The best names, at longer
dates, are negotiable at G al 8. and names less
generally known at and upwards. As the Sub
Treasurer receives all the money that is offered at
per cent call after ten days notice, il is not
likely that money will fall below five in open mar.
ket. The commerce of the country is in stag.
nant condition that it requires very little money;
the supply under ordinary circumstances, would
prove considerably in excess of the demand. But
so long as government is willing to pay five per
cent for all that is offered. it cannot be expected
that the public will be enabled TO borrow on much
more advantageous terms. Abroad money con-
tinues very cheap. The owners Of fifty millions
Of dollars in England are getting only 1L1a a 2 per
cent for their money, while, If they were less igno.
rant and less prejudced on the subject of our
financial affairs, they could readily get five here.


Foreign exchange closed yesterday at lis az for
sterling and 4.9O 921s for francs first class bank
ers bills in both instances. Gold is worth l0i1,
l04H, with slack inquiry. Comparing the price
of gold with that Of foreign bills, we note no profit
on expectations of coin to Europe. Shippers will
probably lose money on every shipment. At the
same time, there are large number Of persons In
Europe who are so slenderly acquainted with the
state Of affairs in this country that they insist upon
having their remittances made in coin, and
there are others who have had coin here for some
time, only awaiting an advance in exchange to 60
forward. II our expectations continue 10 fall be.
low our imports, "a they are doing at present. the
supply Of bills must fall short Of the demand, and
the difference will have to be made up in coin. But
before this law Of trade operate naturally the
present speculation in gold must culminate, and
specie must fall, or exchange must rise. The pro-
liabilities that the former solution Of the diff.
Guilty will occur. Country banks and other hold.
srs Of coin will miss their opportunity II they fail