Year: 1862

them during the early part Of last week have now,
we believe, been reconcfed. The suspension is
general; but at the same time no bank refuses to
supply its dealers with coin for the payment OF
duties OF. any other necessary purpose. The dis
sentient banks likewise agreed yesterday to re-
ceive United States Treasury notes on deposit as
money, stipulating, however, that checks drawn
against them should be paid in Treasury notes.
This refinement will not last long. II every bank
dealer is hereafter to have two kinds Of accounts


one in bank notes and another in Treasury notes
the abors of cashiers and tellers will be measure
bly, increased. In the course of few days it will
burst upon the mind of the managers Of our banks
that if United States Treasury notes are not worthy
of being considered as valuable as New York bank
notes. the capital of our banks, which is nearly
altogether invested in government securities, can
not be worth much. The banks are not in posi-
ton to cast slurs upon government credit, and the
less nonsense we hear hereafter about calling de-
posits Of Treasury notes Especial deposits" the
better it will be for their interest We published
yesterday report and resolutions which are said
| to have been passed at the meeting on Saturday
before last, and which, for some reason or other



SINCE The point Of these documents is an appeal
to Congress to make provision for the funding OF
the paper about to be issued by government This
is excellent and we trust the committee will press
the subject on the attention Of Mr.. Thaddeus Ste
I vens and his colleagues Il would have been bet
ter, perhaps, if the representations Of the banks
had not taken the form of a threat. They must
perceive that they are helpless in the matter and
that, whatever Congress does, they cannot help
receiving Treasury notes on deposit. Their expe-
rience during the past six months ought to have
convinced them that neither Mr.. Chase nor Con-
gress is dependent upon their favors for means to
carry on the war.


Money has been rather close during the week,
mainly in consequence Of the calling in Of loans
by some Of our leading banks. notion prevails
among some of our leading bank managers that
this is good time to shut off mercantile and other
customers with view to strengthen the banks To
be consistent, the banks which favor this theory
must 60 into liquidation at once. Every one knows
that the banks have invested nearly all their CAPT
tai in government securities. If, in consequence
of this anomalous position, they now deliberately
refuse to perform their proper duties tor the mer-
camille community, they will obviously relinquish
all claim to the title of mercantile institutions and
the mercantile community win at once proceed to
institute new banks, under Mr. Chases scheme, to
take their place. What would become Of the
commercial assets of the existing banks in this
event we forbear to inquire Some Of the more
arsghted Of our bank presidents argue that the loan
certificate system ought to be carried out to its
full extent at the present crisis, and that the
banks should use their government securities as
q banking basis, and accommodate their dealers
to that extent. This would certainly seem the
safer course to pursue in view of the mercantile
paper now held by the banks. If government
promises TO pay are worthless, nothing is Of any
value. And il the banks shut down on the public,
they will some day find themselves burthened not
only with large amount of government securities
which they cannot sell, but likewise with ON im-
meDse quantity Of commercial paper which will be
valucless. The notion which seems TO be enter
tanned by some Of our bank managers, of fighting
the situation can only lead to loss and ruin. The
part OF wisdom 10 to recognise the crisis, and ac-
commodate oneself to it. A1 ~ ~


Foreign exchange closed yesterday firm at ll3%
a ia for bankers bills on London, and sos for
bankers bills ON Paris. At these rates, calling
gold a a2per cent premium, there is still profit
left on its expectation. 1t is evident that there is
an active speculative movement in the foreign ex
change market, and it is possible that unless some
untoward event occurs. exchange and gold may
both rise to considerably higher points. Brokers
and bankers confidently predict lis, and even 100,
for bills on London, and o per cent premium
for gold. There is no reason why these predictions
should be realized, unless il be the opera.ions of
spectators. If, however, the belief spreads that
gold and exchange are going TO advance, every
will want to buy, and it is impossible 10 say
what points may not be touched in the excitement.
Our foreign trade for tho year 1851 must have left
creditors of the world at large and in ordinary
circumstances exchange ought TO rule below par.
The anomalous position OF our finances and the ope
rations OF spectators may, however for time re
verse the natural tendency Of the market, and lead
to the advance which is SO confidently expected.
We only say that such an advance will not rest
any substantial basis, and will not accord with
the fundamental principles Of political economy;
however marked it may be, and however relia-
BILE 1t may seem, II must sooner later. lead to
collapse in exchange which will probably prove
fatal to large holders.


The following table shows the course OF the stock
market during the past week and month";