The lowest and highest quotations for U. S. 6's of 1862, at Paris and Frankfort, in the weeks ending Thursday, have been as follows: The price of gold has been subject to wide fluctuations, in sympathy with the varying phases of legislation upon the reconstruction of the Southern States and the course of legislation upon the currency question. The demand for customs duties has been large, owing to the desire of importers to get their goods out of bond before the adoption of a higher tariff; and this cause has tended to put up the premium. The price opened at 135 and closed at 139%, having touched at the highest point 140§. The receipts from California and foreign ports during the month have been $1,850,109, and the exports $2,600,000, show. ing an excess of $749,891 in exports over receipts. The imports and exports of treasure at this port in February and since Janu ary 1, have been as shown in the following statement. MOVEMENT OF TREASURE IN FEBRUARY AND SINCE JANUARY 1. The following shows the amount of receipts and exports in February and since January 1, for the last seven years: The amount of specie and bullion drawn from unreported sources-private hoardings, Treasury sales, unmanifested receipts from California and foreign ports (including coin brought by immigrants), and receipts from the interior and overland from the gold regions-was in Janu y $5,133,944, and in February $6,424,630. or since January 1, $11,558,574, as shown by the subjoined formula: From which subtract amounts withdrawn from market, viz : Foreign Exchange has been unusually steady, the rate of sterling bankers' bills, 60 days, having ranged at 108@109. The following are the daily quota tions. The first series of figures represents the buying, and the last the selling prices at first-class broker's offices. COURSE OF FOREIGN EXCHANGE (60 DAYS)—FEBRUARY. London. cents for Days. 54 pence. 1... 2. 78% @79% 108% @108% 520 @517% 41%@41% 78% @79 108@108% 522@518% 41 @41% 108@108% 5184@517% 414@41% 3.. 4.. 5 6.. 7.. 8. 9. 10. 11. 12 13.. 14.. 15... 16. 17.. 18. 19. 20. 108@109 21. 108@109 22. 23.. 1084@109 24. 25 26. 27. 28 Feb.... Jan...... .............. 364@36% 72 @72% 36 @36% 72 @724 36 @36% 72 @7244 364@36% 72 @724 108%@108% 5184@517% 41%@414 108%@109 517@515 41%@41% 79 @79% 108%@109 522@515 40@41% 78%@79% 36 @36% 71%@72% 108% @109% 520 @513% 41% @41 78%@79% 36%@36% 72 @72% Act for Retiring Compound Notes-Debt Statement for March-Returns of the New York, Philadelphia, and Boston Banks. The old Saxon proverb which says that "over doing is undoing " has received many an illustration from the political and social changes of this country. When the Certificates of Indebtedness were paid off, toward the close of last year, our readers will remember that we expressed doubts as to the expediency of taking such popular and harmless government securities out of the hands of investors, and suggested that, in some future emergency, when the Treasury should be in need, the issue, as experience had fully proved, might be made available to the extent of 100 millions of dollars or more. Besides the old certificates, which amounted at one time to 280 millions of dollars, other short-time obligations of the Treasury were paid off, leaving, as it was supposed, nothing outstanding which during the present year could produce embarrassment. This, we admit was our understanding of the Treasury movements, and we presume the same conviction prevailed among the public generally. We confess, therefore, to have been not a little surprised when it was announced that authority to issue greenbacks or a new kind of certificates was necessary for liquidating 100 millions of compound notes falling due this year. A bill was introduced into Congress for this purpose, and after undergoing several changes became a law in the following form: Be it enacted, &c., That for the purpose of redeeming and retiring any compound interest notes outstanding, the Secretary of the Treasury is hereby authorized and directed to issue temporary loan certificates in the manner prescribed by section four of the act, entitled "An act to authorize the issue of United States notes and for the redemption or funding thereof, and for funding the floating debt of the United States," approved Feb. 25, 1862, bearing interest at a rate not exceeding three per centum per annum, principal and interest payable in lawful money on demand; and said certificate of temporary loan may constitute and be held by any national bank, holding or owning the same as a part of the reserve provided for in sections 31 and 32 of the act entitled "An act to provide a national currency secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof," approved June 3, 1864. Provided that not less than two fifths of the entirereserve of such bank shall consist of lawful money of the United States; and provided, further, that the amount of such temporary certificates at any time outstanding shall not exceed $50,000,000. The certificates here authorized differ from the old ones in two respects-first they are payable in greenbacks on demand, and secondly, they are permitted to be held by the banks as part of their reserve. These new certificates are in reality due-bills, or sight drafts on the Treasury, payable not in National Bank notes, as are other maturing securities, but in greenbacks exclusively. Being thus exchangeable into greenbacks on demand, the certificates can be available as reserve wherever there is a Treasury office close at hand provided with a sufficient stock of greenbacks to meet them. But in the smaller cities, where no Sub Treasury exists, what are the banks to do? They will be unable to hold this kind of reserve, for, in the event of a sudden run, they might be obliged to stop payment before they could convert certificates into greenbacks. The debt statement for March which appears in this number offers several interesting features. It will be seen that no less than 42 millions of long bonds have been disposed of-32 millions in exchange for compounds and seven-thirties, and 10 millions for money. Only a part of this cash has been disbursed, so that the currency balance has been augmented 7 millions. The coin balance has also accumulated 10 millions in consequence of customs receipts. Its amount is now $107,271,031. As the claims against this gold by holders of coin certifi cates amount to $18,376,180, the net balance of coin is $88,894,851. There is a very strong antipathy both in and out of Congress against allowing so large a sum of idle cash to remain locked up in the Treasury while the Government is paying so heavy a rate of interest as 8 per cent. on all the long bonds it issues. The interest at 8 per cent. on the sum we have now in the Treasury vaults would amount to 12 millions of dollars a year. If this sum could be reduced by one-half 6 millions a year would be saved. In view of the recent changes in the income tax, which may reduce its product from 60 to 40 millions, or perhaps less, the country cannot afford to lose so large an annual sum in interest. Especially in this accumulation of currency to be objected to when, as in the present case, it is obtained by selling gold-bearing bonds. What private individual in his ordinary business could afford to borrow money at high rates for the sole purpose of keeping it idle? We sometimes hear the excuse that the public credit is improved when we can show a full purse, and that a large balance in the Treasury helps the price of our bonds. There is no practical force in this reasoning. A working balance is all we want. If adequate for actual payments a small balance is better than a large one. What helps the public credit is not the idle balance but the incoming revenue. An overgrown temporary balance is a temporary reservoir which may become exhausted, but a revenue is a stream which flows perennially. There are many popular objections to the heavy Treasury balances which Mr. McCulloch has lately allowed himself to accumulate. But in the present state of the country it ought to be unnecessary to urge any other argument than this one of economy. Below we give the returns of the Banks of the three cities for the month of February. Date. NEW YORK CITY BANK RETURNS. Deposits. Legal Tend's. Ag. clear'ga 202,533,564 65,026,121 486,987,787 202,517,608 January 19. January 26 251,674,803 16,014,007 568.822,804 Februry 2... 251,264,355 16,332,98 32,995,347 200,511,596 65,944,541 512,407,258 Febra'ry16.. Febru'ry23... 196,072,292 64,642,940 455,833,829 33,006,141 198,420,347 63,153,895 443,574,086 |