FINANCES OF THE UNITED STATES. 



471 



Specie in the Northern banks, January, 1S62 . . . . 170.000,000 



" * States generally, &c 60,000,000 



" "circulation....: 85,000,000 



Total in Northern States $165,000,000 



Received from Califuruia in 



v ported from New York and 

 Boeton 65,000,000 40,117,154 



In the Northern States, January, 1 S63 $125,*s2,356 



In banks $60,000,000 



Instates, \c. 60,000,0004120,000,000 



In the course of the year, as the price of 

 specie advanced in New York city, the current 

 of the metals began to flow to the common 

 centre. The opening of trade to some extent 

 in the border States following the progress of 

 the armies, produced an additional demand for 

 gold for the purchase of northern productions, 

 which would be sold only for gold. The drain 

 thus occasioned was such that the brokers of 

 western cities raised the price there to some ex- 

 tent; but the great demand was in New York, 



where not only shipments became active, but 

 much was taken on speculation to avoid the in- 

 evitable rise that would result from the use of 

 paper. The current of silver also set toward 

 Canada in a swelling volume. The moment 

 that silver bore a small premium it ceased to 

 circulate, because every small shopkeeper who 

 received it would lay it aside, and convey it to 

 Wall street to realize of the brokers the pre- 

 mium they ottered. In like manner through- 

 out the West dealers, brokers, and bankers col- 

 lected and sent to New York the coin that fell 

 into their hands, and which they purchased at 

 a premium, to sell at an advance in New York. 

 The current flowed thither in a deepening 

 stream as the premium advanced, and the 

 banks showed a continually increasing quantity 

 on hand, notwithstanding the large weekly ex- 

 ports. The following table shows the move- 

 ment of specie : 



SPECIE MOVEMENT FOR 1S62 AT NEW YORK. 



The largest amount of specie received from 

 the interior in any one month was in July, 

 when the rate rose suddenly in New York to 

 20 per cent, for gold. The supply so drawn to 

 the city caused a decline, and the receipts in 

 August were small, increasing again in Sep- 

 tember, when gold recovered. When, how- 

 ever, the highest point was reached in October, 

 the receipts fell off, showing as well an exhaus- 

 tion of the floating specie, as a disposition on 

 the part of individual holders not to sell at any 

 price. With a price of 33 per cent, in Novem- 

 ber the receipts fell to a nominal amount as 

 compared with July, and the export drain fall- 

 ing upon the banks they lost nearly $4,000,000. 

 The California supplies are barely more than 

 three fourths those of last year. The metals 

 continued to be the currency in that State, and 

 instead of being quoted at a premium for Gov- 

 ernment notes, the latter are quoted at a dis- 

 count for coin. The above table shows that 

 there were collected into the New York banks 

 from circulation 39 millions of specie, mostly 

 sent abroad. In the previous year the reverse 

 was the case : 37 millions were imported and 

 sent into circulation. 



This year the fluctuations in the metals in- 

 duced numbers of small speculators to buy gold 

 when it fell, and on the occasion of a rise, they 

 swarmed the brokers' offices te resell. Gradu- 



ally, however, the amount of circulating specie 

 in the country seems to have been absorbed, 

 since the very high rates that ruled in October 

 ceased to bring forward enough to supply the 

 export demand. The supply from California 

 was nearly reduced by the great number of 

 shipments direct to England in consequence of 

 the increasing risks of navigation. Toward the 

 close of December the steamer Ariel, on her 

 passage out to Aspinwall, was captured by the 

 Confederate steamship Alabama. The troops 

 on board were paroled, and the ship ransomed 

 in order that she might proceed with her pas- 

 sengers. In consequence she did not, on her 

 return to New York, venture to bring her 

 freight of gold, amounting to $533.119, and the 

 United States gunboat Connecticut was sent 

 out to bring it home. Meantime, however, the 

 Ocean Queen arrived at New York, January 3d, 

 with $1,270,580, including, the Ariel's freight. 

 In consequence of this capture the insurance 

 companies raised the rate of insurance from 3 

 to 5 per cent. Thus giving fresh inducement 

 to turn the golden stream from New York to 

 England direct. 



The operations of the New York assay office, 

 under the changed condition of the specie 

 trade, were exceedingly small as compared 

 with the previous year. They were as fol- 

 lows: 



