Year: 1862

sixty to ninety days, United States SKIES viii sell
| at par or a premium, and there will be an active
demand for them abroad. The steady accumula-
ton of coin in the bank vaults is the chief cause of
the dulness in the specie market. Spectators are
afraid to buy while the banks hold, in terrOrem
over their heads, thirty millions of gold which cost
par. 1t has been suggested by some
bank officers that the banks ought to
resume specie payment. This is merely idle
talk meaning trick upon the public. One hun
dred and fifty millions of rredeemabe paper are
about to be set aioat by government, and, being
legal tender, to be made the chief currency of the
country. The bulk OF this money will 90 into bank
as deposits. For our city banks to undertake to
say that they will do that which the makers of this
paper expressly decline to do-namely, redeem it
in coin-is to promise that which they cannot per-
form, and to generate an active speculation in
gold. So long as any kind of paper is legal ten
der, some of our leading banks can resume specie
payments. The bankers who talk of resumng in
tend to trick their customers by promising to pay
coin, and really meeting demands upon them
in legal tender notes. Matters are very well as
they are, for the present, and there is no use in
attempting fresh changes. By and by, if the Union
cause continues to prosper, Congress can repeal





our banks will be enabled to resume without diff.
Guilty. In the event of the suppression of the re.
bellien, the public will gladly float $50 900 900 of
government paper at par, without any legal ten
der clause and the banks viii then be at liberty to
pursue any course which they may deem expedi-
ent We notice that the country banks are in
creasng their circulation very rapidly. The volume
of country money aHoat is considerably greater
than usual, and, judging from the conversation and
the letters Of country bankers, it has not yet
reached it's limit.


The money market closed yesterday with an
abundant supply on call at six per cent and an ac
tive demand for first class paper. The range OF
first class names is, of course, much narrower than
it was couple of years ago, and many names
which were formerly cassed as fair to good are
now difficult of sale. None of the government cer-
tifcates of indebtedness have yet come into the
market they are expected early this week,
and when they first appear they will probably
operate as absorbents of money, and may, for a
few days, have the effect of causing some little
activity in the market. As, however, they
will take the place of money in bank
and at the bankers, and in the country
especially will serve as currency, the
ultimate effect of their emission, like that of the
legal ttuuer HOCes, uust DC TeuueE utOHcy mOTe
abundant and increase the expansion of credit.
The present rate of interest in Europe is consider
ably lower than it is here. In London call loans
are offered on consols at l%S per cent per annum;
and in the event of continued successes by the |
Union armies it may be taken for granted that |
considerable amounts will come here for tempo |
rary employment, Notwithstanding the continued |
efforts of the secessonist organs in England to |
decry the financial condition of this country After
the passage of the Tax bill, and few more Union
successes, it will be apparent even to the most
preudiced foreigner that the finances of the Union
rest on basis Of greater solidty than those Of
any of the monarchical governments of Europe.
Foreign exchange closed yesterday at 1llH
liz for bankers sterling, and sos $40 for francs
Sales were effected yesterday morning of first class
bankers bills at llls though the asking price at
the leading houses continues to be H. Both the
supply Of and the demand for bills are lighter than
usual Gold continues to fuctuate between ~
and ~, the bulk of the sales last week being at
~. At the present price of gold there is small
profit on its expectation to cover bills drawn at
the market rate of exchange, and consequently
there was considerable shipment last week.
Very little money has been realized by the bankers
and spectators who purchased gold when the
banks suspended the loss of interest has, in many
cases, absorbed all the premium obtained sales.
further upward movement in the precious metal
may, perhaps, however, be expected STILL


The following table shows the course of the
stock market for the past week and month";


~ r. lc.r AZ.