Year: 1863

SUNDAY, Oct. Is, 1853.


The money market was active hast week, and
Che standard rate for call loans advanced from six
20 seven per cent. This was ne not so much TO
any increase of speculation or inquiry for money
as TO the real and apparent accumulation of mo.
ncy in the United States Sub-Treasury. Last
evening the balance in that institution to the cre
dit Of government was s35 ,065 ,56O-of which sum
slo, 900 was gosd and the balance, say
ei,265,56o, was legal tender notes. OF the
amount of legal tender notes held by the Sub
Treasurer at this point at least three-fourths have
been placed to the credit OF disbursng officers,
and ere only awaiting the appearance Of their
ch s. to be distributed. or the gold on hand some
so,0o0,e0 will be paid out on the lst proximo in
the shape of interest on the fve-twenty bonds. It
Is not the intention of the Treasury Department,
even if it We're iii its power which it is MOTTO ac
cuGulate money in Sub-Treasury vaults to the detr
.ment Of commerce and the money market. But
tae present large surplus, ana the consequent &C.
tive inquiry for money which was witnessed last
week, demonstrate cogently the necessity for q
change in the financial system of the United States
government The thyty.Gve or thirty. six millions
now lying in the SubIrcasury, partly in gold and
partly in legal tender notes, are as absolutely lost
to the world and 10 commerce as if they were
boarded in some old woman's stocking. Such
stase of things is anomalous obsolete and absurd.
This money ought to be lodged where it could be
OF use end in constant circulation. A bank ought
20 be established in which these enormous govern
mcnt deposits could be lodged with safety, and at
the same tine used from day to day by the COM
mcrcal and financial community Some years
ago, when the United States adopted the principle
OF exclusive specie payments and exclusive specie
receipts, there was some excuse for its financial
concerns being regulated by an Institution based
on the old stocking principle. They were. at best,
very petty concerns in those days But no such
excuse can be pleaded now Specie payments are
things Of the past. The United States government
Is the leading borrower of the day, and its daily
expenditures are counted by millions. The fnan-
cal Affairs of this enormous concern should be
conducted sound commercial principles, and
the money received by it should not be withdrawn
from trade, as if it were shipped to China or
Japan. but should remain available for the pur-
poses Of commerce till the very hour it is wanted |
for the payment of public debts. 1t is the policy
of the Department and of the assistant treasurers
Of the United States to attain this result by paying
ou. money as fast as it is received. But expert |
cnce SHOWS tLaL llhS emu CANNOT De accomplished I
with the certainty which should be secured in such
case. Disbursing officers are frequently tardy in
presenting their drafts Millions already apprc-
priated lie idle and useless in the sub-treasuries.
The sub-trcasurers cannot use them. They may
be needed by commerce; but they cannot be got
at. The consequence is increased activity in mo-
ncy and diminished subscriptions to fve-twenty
bonds The remedy is the establishment of great
49, L.. 4L-- -
which the currency deposited for ive.twenty
bonds could be lodged, and which would
enjoy the power, now denied to the sub.
treasures, of using its deposits in aid
of commerce. We take for granted that before
New Year the necessity for such an institution
will have made itself so apparent that it will have
been established. When it is set agoing money
will rule at average rate of4 a 8 per cent in
this market, and the consumption Of United STATES
bonds will only be limited by the capacity Of the
government engravers to supply them.


Gold fuctuatcd actively last week. At one time
Il sold low l39, and at another time it was as
high rs 14s. Yesterday it closed at l471%. Elk.
change followed specie in its fluctuations. For
the mail yesterday most of the business done
At 1907 l6l; but at the close leading bankers
were not very anxious to draw even at 1921 163.
The inquiry fer bills and specie for ship
mcnt is light. Last week some 81 ,2s2,673
went cut. For duties there is a steady de-
mand for gold, which is met with difficulty,
owins to the gradual diminution of the supply in
market. But ms, on lst proximo, the government
will dsbursc some six millions in payment of the
November interest on the $40 bonds, the supply
Of specie for duties will become adequate to the
demand within very few days Among the leading
gold operators the belief in lower prices for gold
is generally prevalcnt--so prevalent, indeed that
they all short of the article--and their wants
for delivery sustain the market. Yesterday it
was quito dficrt TO borrow gold, and at one time
as much cs onc-fourth of one per cent was paid
for the of gold I'LL tomorrow. As a general
rulc, however, the foreign houses are pretty well
supplied and are quite willing to lend gold on in
terest.


The following table will show the prices Of stocks
at the close Of the past five weeks:--