Year: 1862




be pabaished tomorrow win probably sAow .
further movement in the same drcctioa. The 7.so
notes receatiy sold By the Treasury Depart
ment do not enter into the deposits; but tho
money paid for them is drawn from that column.
Hence steady drain on .he deposits. which.
added to the drain OF money Westward to move
the crops, places the banks in somewhat strait
ened position. Rumor states that the Legislature
OF the State will look into the condition Of the
banks this winter. with o view to determine
whether some action may not be necessary to re-
lieve them from their present embarrassments.
With few exceptions. our city banks. though
abundantiy solvent, are unable to pay their
dePositors in currency. Far the general pur-
poses OF trade but little curreccy is required. SO
long as confidence exists. But il the impression
becomes general that the banks are not in
condition to redeem their deposits, everybody
would want currency, and legislation would be alb
solutely necessary to protect the banks from the
consequences Of o panic and general run upon
them. II will probably be likewise suggested that
something should be done about the twenty-five to
twenty-five millions of gold held by the banks
when they suspended and generally understood to
be still in their vaults. This gold belonged to
the depositors in bank on the day of the ,suspen-
sion. II belongs to them still. At present prices
it is worth over thirty millions Of dollars. In the
event of the adoption Of . new financial policy by
Congress- it would fall ia value very materially.
Quite number of depositors in bank, who were so
before the suspension, believe in decline in gold,
and demand that their proportion of the specie re-
serve be sold at the present high premium. On
the other hand. the bank managers claim exclusive
control of their respective reserves, and their
policy appears to be to hold them in vault until
time arrives when specie payments can be re-
suined. This knotty problem will probably be
laid before the Legislature as soon as it meets.


Money closed yesterday at about six per cent
on call to borrowers on stock collateral. Paper of
the highest grade sells at 4 a per cent Govern
nest certificates Of Indebtedness one year to run,
sell at 97L "a. The money market is easier than
il was a week ago, though the transition from
strngency to ease is much slower than was ex-
pectcd. Notwithstanding the asseverations of
bankers and lenders, very general impression
prevails in Wall street that money is not going to
be as easy as it was, and that capital will CON-
mand a fair income throughout the winter. Inde-
pendentIy of the financial policy of government,
the advance Of our armies Southwark, and the ac-
tvity Of trade in the West, are likely to create a
pretty quick demand for money Wherever our
armies penetrate, cotton will be discovered. and
money will be needed to purchase and move it,
The pork trade will consume great deal Of
money. Money will 60 South for the pur-
chase Of land also. II. in addition to this
legitimate demand, the government becomes
borrower, we may safely expect an active
money market all winter. It must be borne
in mind that the recent advance in merchandise
and stocks has largely increased the demand for
money in this city. A cargo of goods worth
100000 year ago, and worth 100000 now.
requires just so much more money to carry it.
thousand shares of Michigan Central or Erie could
have been carried year ago with $40 900; it now
takes sec, 800 to carry 1000 Erie and $4,000 to
carry l 900 Michigan Central. This fact helps to
account for the firmness Of money.


Gold closed yesterday at 1881 u. and bank
ers' bills on London at l42 H. 1t is now pretty
clear that nothing but further issue of Treasury
paper will maintain the price Of gold. There is
no warrant, in the present condition of the
national currency, for a premium Of % per
cent. Six or seven per cent would fairly
represent the measure Of the public dstrust
of q paper currency. Gold rose to 1873.
partly in consequence Of the speculative ope.
rations of foreigners who, judging affairs here by
foreign precedents, and CHASING our war with the
old wars of weak nations without resources and
without any gold supply. took for granted that our
currency would deprec eciate as rapidly and as per.
manently as the currcnces Of Austria and Russia
deprecated in times gone by. rumor gained
credence last week to the effect that Q negotiation
was pending between the Treasury Department
and certain parties at Memphis for the delivery Of
million bales OF cotton at a fixed price There
is, Of course, no reason to believe that We shall
get, at any price, million bales from Memphis
or from any other single point But it il true that
the Treasury Department is actively engaged in
endeavoring to accelerate the movement Of South
ern cotton to MARKET and there is reason to be-
lievc that very large quantity will be re-
ceived at New York and elsewhere during the
comng winter. That there is very large amount
of cotton in the South we know, and 1t is likewise
known that the owners Of this cotton are impeed
by motives more powerful than passion or patriot
ism to sell it, A few hundred thousand bales OF
cotton would constitute, at present prices for
midable item in our export returns, and would af.
feet the price Of gold and exchange very rapidly.
Half million bales, at present prices, would be
worth as much as a whole crop was worth in old
times, and would pay for as many foreign goods.
Under the circumstances prudent importers will
be in no hurry to buy bills, and parties who have
purchased gold, as an insurance, will prsoably
make money by letting the street have for tee
present, and taking II back, if necessary hereaf.
ter, at lower figures.


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


Nov 1. Nor. s. Non. is. Nov % Nor. %
4 {. as regst,d.. .1O4H 103 103 104 1885.