New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1859-12-10
cREscssr osr1cE, No. 70 Camp street,

The general Money market was quiet to-day. |
The calls for discounts at the several banks were |
fully up to the income, and as much az required.
The banks in general have as much offered in the
way Of paper and exchange as they desire. There |
is no redundancy of money with the banks The |
daily statements confirm this assertion They are
in good working condition they have been paying |
out coin over the counter daily for sixty days with
out any return. The receipts of silver, coin and
bullion do not add to the basis from the fact that
silver, both bullion and coin, forms an integral part
OF commodity or commercial transactions. Ac- |
cordng to statutes, silver coin is not money only to
the amount Of five dollars or a half eagle: there
lore, our banks cannot discount on vault full of
silver stuff On the street outside of banks there
is good supply Of the dross, owners and holders
Of which are prepared To give it in exchange for
choice, good and fair commercial securities or
paper at the rate of 500 get. for four to six
months date, and even twelve months, though
there are some grades which cannot be placed
lower than o. 10@l2 Get. This is sufficient range
to meet the views OF most buyers Of paper, vet
there are daily transactions in solvent paper,
which, unfortunately perhaps for the holders, has
not the prestige of fame to push it onward, which
termed call loans there are very few transactions
of that class on the market.
The Exchange market to-day was freely sup
pied. Some buyers were holding off for lower
rates. The banks were buying sight on New York
of good and fair make, at and discount, and
selling over the counter at discount, which was
the uniform rate. Outside double Al sight was to
be had at J get. discount. The range of bank
checks and good sight was from to discount
lower than these figures was not submitted to to-
day for good signatures. In time bills there were
several takers or buyers of double AL and stand
ard names 60 days sight at u and Il discount, and
commercial drafts ranging from II to Ii, and q
get. discount, and some lesser grades at "a dis.
The market was well supplied for all grades of
inland bills. In sterling the offerings were large
counting up, in the aggregate by hundreds of
| thousands of dollars when reduced to CURRENCY
resulting in large sales of clear Al bills at lOs2 to
l0S9, reducing quotations to 1854 and 1OS5 with an
| occasional transaction at l0Ss. Document bills
were sold to some extent at los, extreme rates
ruling from 1913 to 1919 and los. There are some
jockey bills both on New York and London offer
| ing, which are passed off now and then. New York
jockey bills are scrutnzed very closely, and more
particular enquiries made since the late bou-
versment in New York: yet, New York, for many
operators in the staple, continues to be very
| good post. In francs, there were sales on Havre
payable in Paris at 5.2ll and on Paris direct at
$40, extreme rates ranging from 5.26I and 525 I'd
| 500 and 5.1Sa.
In Stocks we note the sales of Is shares Bank OF
Louisiana at 1872 los shares Crescent City Bank at
lO4 1; Is shares of the same at 1881. Some few
1 shares of Canal Bank were sold at 1876.
The movements in uncurrent money have been
very limited during the week. No packages Of
fresh signed and late issues of distant banks have
been otfered-that is, the packages offered have
been light. We learn that the Legislature of Ten
nessee is tinkering away on the banks and cur
rency. The Legislative reports before are very
obscure: in fact, all the positive information be.
fore is that of the old chartered banks (tle
Planters Bank) has applied for extension pi
charter. As usual, the applicants do not toe the
mark, inasmuch one-fourth or % get in coin
is deemed sufficient for specie basis where nc
security is required for the circulation. This is moi
ample. If the Legislature of Tennessee desire pre-
cedents for security and safety, to command conf
dence and faith they must engraft in their intend
ed banking law the principles of the banking sys
tenn of Louisiana, as enacted in the year 1872
Is
tenn so far as security is concerned. Saying that
all has been said, when its principles are placed in
juxtapostion with the old chartered system, under
which mode one-third of cash liabilities is required
to be represented, or rather held in vault in coin
only, and the other two-thirds in paper or assets
maturing within ninety days. There has been a
great deal of talk first and last about free banks
and free banking. We go for old fogyism in this
respect-the coin basis. We have now in Louisiana
two distinct systems of banking. Of course, the
banking statute of 1912, with its amendments, we
consider the ne plus ultra of banking. The general
banking law of 1853 seems to be based on the
question of security for the circulation or issues
emitted.
The general banking law of Louisiana, as well as
most laws of similar nature in other States, re-
auire that the issues circulation emitted shall be
secured by deposits of State Stecks City Bonds
and United States Government Bonds. Some States
allow county, village and local railroad stocks md
bonds to be received as security, which may be re-
garded as sacred, perhaps just as interest and
position of finances may chance to dictate. We
will take another position view, and for the sake
of argument, contend that this system of banking
is not sound under general principles. Suppose
there were no State Stocks or States were inhbit
ed from issuing bonds bills of credit, and there
were no Government or United States Stocks what
then, or on what basis are the issues to be secured
1t must not be overlooked that there are two or
three States in our Union that have no Stocks
that within the last twenty-five years the United
States Government was free of debt, and did not
have dollar of stock out. We should like to be
informed when State is out of debt and no Gov
eminent Stocks to be had, on what ground basis
the so-called free banking system is to be placed
| or conducted. This leads to the conclusion that,
as a general measure and liberal principle, with
consistency, that the banking system, founded on
paid up capital in coin only, and controlled by the
one-third basis and twothrds sound and good bills
receivable, will conform more to practical, judci-
GUS and sound banking than all the new-fauged
suggestions and free banking laws which have been
passed or acted upon by the different legislators
which have debated the banking system for years.
Therefore connected so closely, commercially
and financially with the State of Tennessee it is
hoped that its Legislature will duly consider and
ponder before giving full license to brood of ire
sponsible banks, under a general banking law,
That in their proceedings they will restrict the
minimum of bank capitals to 100000, for any
amount less than this sum would lead to litters o.
banks in every part of the State. Furthermore
make it incumbent on every bank which issues {