Year: 1868




There was no change in the condition OF the money
market last week, loans call having been m ade
20 rst class houses at three per cent although the
general rate for small and moderate amounts on
mixed cOllaterals was four The supply OF loanable
Funds was largely in excess Of the demand from the
Stock Exchange, and the mercantile demand was


Perry light, owing to the quiet state of trade and the
1act that business is conducted mainly on cash
basis Hence commercial paper is scarce and the
6est grade is in request at a per cent.


T There was never before such cheap and
abundant supply OF money, not only in Wall street,
put In all the large cities of the United States as
here is at present, and it is only paralleed by the
8ut OF capital in Europe, and especially in England
where the bank rate is and has been for long time
past two per cent. This pethoric condition
pr the money markets on both sides OF the
Atlantic is not likely TO be soon disturbed
With as the demand for currency to move the
Crops will probably raise the rate of interest to
seven per cent in October; but the ind cations are
concusively against what is called q tight money
market at any time this year. and there are three
reasons to sustain this view of the case. In the first
place the government is out of the market as bor-
rower OF money-a very important consideration in
estimating the future Of the money market in the
next instance currency contraction has been sus-
pended for some months past and will be for long
me to come, except so far the compound interest
notes concerned and In the third place the trade
0f the country has been reduced to legitimate dimen-
eions and the mercantile demand for money is likely
70 continue small whereas in former years since the
war began was very largely speculative and specu-
aators whether In trade or stocks, always Dor.
powers. There is wholesome distrust of commercial
specuations, and hence trade Is comparatively dull
but there must be large business doing without inter-
mission, from the necessities Of the case in country
where there thiryfve millions OF people to feed
clothe, instruct, amuse and otherwise provide for.
no suppose that trade is dull except in comparative
sense is therefore, The operating
upon supply and demand in the money market are
identical at home and abroad. People prefer to do
nothing after their suret of speculation rather than
run the risk Of doing wrong, and nence they
allow their money to remain idle in the banks
and elsewhere. This is rather healthy
sign than otherwise, when we refer it back to its
cause; but as action follows reaction, specula-
tiOn Will follow torpOr sooner later, and history
will repeat itself both in Europe and the United
States. Meanwhile it is interesting to note the COIN
Eidences presented by Lombard street and Wall street
at the present time Speculation has languished Of
1ate partly consequence Of the uncertainty attend
ling the legislation Of Congress relation to the
finances; but the signs that there will be
more financial tinkering at washington for some
time TO come, the Ways and Means Committee hav
1ng agreed to defer action the various bills relating
10 fiscal affairs referred to them until after this
sion. This determination is a good one in view Of
all the circumstances; for sit is better to bear the
evils that we have than fly to others that we know
not Of" and the Treasury is so well supplied with
funds as it is that .leave well enough alone" should
be our motto until something better than has yet
been suggested can be devised.


The statement of the associated banks OF this city
for the week ending Saturday is favorable to con-
tnueu monetary and low rates Of interest. The
deposits have increased $2,s17,s2O, although the
specie has decreased s1,37l $780, owing to the drain
10 Europe and the demand for customs duties in
the absence Of Treasury sales OF coin. The legal
tender notes increased ST. 2l and the loans
81 42s while the circulation shows the trining de-
crease of syo,3s9 The totals of the last two state
ments are as subjoned:-