, 1860-02-28
:Tt1ta1tcial ann eron1n1eretal.
MONETARY.

NoSpAr Eyrxmo Feb. =.
The supply of exchange il becoming scns'bly |
less and in the street to-day it WIS firm ut the
ruling rates ut the banke, viz: per cent. pre- |
MUM for currency. The banks are oscrbur- |
thcncd with currency which they find no oppor-
tuuity to use safely and prodtably. Discounts
therefore for strictly business paper arc very
readily obtained. No other finds the least ia
vor, and holders may as well save themselves
the trouble Of presenting it, rs bankers prefer
to let their funds lie idle rather than to trust it
in any thing else than the safest possible pape,s
They arc certain thai in thirty or forty days
more they will 1ud abundant employment for
all tue capital they can command.
Gold a@e4.
Street brokerage scarcely deserves quota
ton the. transactions are SO few. Rates are
nominal ut 1!@l3 per month.
WESTERN Banning.
The sentiments in the following article from
the y. !. Courier and Enquirer, hare often been
reiterated ia. these colums. They are SO true
and important Tint they will bear repetition:
The unsatisfactory condition Of the currency
in the West has often been the subject Of re-
mark. in these coluu,nR andwe hare pointed out
how depressing its influence is and las been OH
the financial and commercial interests Of that
section. Tic creation Of Banks. for the sole pur-
pose OF issuing bills to be circulated us money,
a. hss become mania with Western men aud in
Illinois and Wisconsin it is notorious, that Banks
are established without uuy capitu! whatever,
BY parties who have just credit enough to in
duce New York houses to purchase bonds for
them and await their payment until tue cur
reney has been put in circulation. The modns
Rs tc fill Tf.c IL.
banking gives notice TO the Auditor or Comptro,-
Ter Of the State, that he intends establishing a
Bank at certain place, aud receives frou, hin
an order to get plates engraved lie comes on
to New York, aud depositing lis order with
90 eng1asef' :S contracts for the printing Of the
printed, ara forwarded by the engrayer to the
Auditor The Banker now calls upon Stock
house here, and informs the firm that he wants
xS5,ooo Missouri NoDds, and that they are to be
forwarded by the New York house to the Audi
Tor, accompanied by au order from the officers
ol The new bank for the bills. The stocks are
regularly entered on the books Of the Auditor,
as the property Of the bauk when they really
have no ownership in them; the bills are
countersigned aud registered, and delivered to
the New York house. or its agent, who pur-
chases exchange for them as fast asrracticab'c,
and thus reimburses his principal. The charge
for this sort Of business is usually from one 10
tWo per cent commission, with interest until
tue money is received back and ail disbnrsc.
!nents paid As there il little or no risk in Tie
business, it is very profitable one for the New
iork house, and Western men have no difficulty
IN makang their arrangements for those kind ii
servlcesi but such proceedings illustrate forci-
NY Tue defects of tue system, mud show conclu-
elTety that the nominal capital of the banks NAV
oe nothing more thnn nominal capital. 1t il
generally the custom 10 huvc IN Office at tic
place designated as the place Of business Of the
n ria TH 1-hr$
pensesot the bank By doing an exchange busi.
We published list Of seventeen hanks in
WISCONSIN, few days ago, the owners Of which.
WIN lofty appreciation Of the aclual effect OF
;cnsy AZ sys!tm dIsaa.n accsdng to popular preu
after h-sing given 10 this airy fabric Of their
1aocJ name, they deem it entirely super1uous
TO accord to it local habitation.' Such
abuses oI u system must eventually result in its
overthrow. The use ofpapec money is as sub
stitute for the precious metals. and the tbeory
Is that erery paper doilar is the representative
o. 3 gold Que, and human furethought las 50
elaborated the science Of Banking that it is not
necessary that for every puper dollar issued
gold one should be returned, because the circu-
laton Of currency is subject to known laws
which will prevent it ever atl coming back for
redemption at once. l, ought to be redecmu-
o'e. however, IN specie to be u perfect
representative Of it, aud how much the cur.
rsacy the West falIs short Of that state
oi perfection may be estimated from the prize
of gold in Chicago which is often and usually two
ner cent. premium over the paper money. The
West IS therefore conducting It's business with
= Degraded currency, and dollar does not
sneun dollar but ninety. eight cents. The on1y
reason why the people submit to such state cf
tlnnEs is TO be found in the fact, notwithstautl.
az us 1nconVertibil'tE on demand, the deposits
Of stocks render the currency secure. This is
! great point, but it is not everything and the
element OF 1lexibllity in paper currency is lust
AS necessary Us security.
The violation Of ail rules uf sound Banking
thus to be found in tue West is sure indica.
t,on oi 8 rotten financial system. and it is rap
idly eating its way into tie very life of Western
prosperity.
1t hns been reserved. however, for the people
~ Missouri to apply to the subject of
Il lance m argument agAintt the necessity
OF specie payments which the older writer's
and y mob at Chsllicothe has more eflcctu
ally prevented the depletion Of the specie
Of its Bank than all the laws Of finance
which have been invented since the DAYS
o. Adam Smith. The people Of town
rising en- masse aud. driving out of it the hardy
adse'turer WHO would dare to present to the
bank its blls for payment il the very sub1imi,y
Q! banking sc'cncc, and logically followed ou,
on al! the relatons Of life, It would save q yast
amount Of trouble. The Bank Of England NAV
regulate the Exchanges by raising or dcpress.
1ng Its rate Of interest, although some sound
lnanc'ai!sta doubt that; but there can be no
doubt whatever that the Dunk Of the Stute Of
Missouri ut Chillicothe may maintain The integ-
Thy Of It's specie reserve by appealing to tie
citizens, WHO will see that no unusual drufts
WI be presented. ..Scriously, the Banks Of
missouri must learn common honesty, and must
40 as they contract with the public to do before
CITY IN search of nffdifinnn1 canifn1