The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-19
FINANCIAL AND COMMERCIAL
WEDNESDAY, Dec. 1876

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WEDNESDAY, Dec. 1876 P. NJ.
Mr.. Chase arrived in town this morning, and the
banks have been in session all day and in confer
enee with him. 1t il always matter Of extreme
difficulty to ascertain the proceedings of bank
meetings, the bankers seeming to consider the
press their natural enemy, except when they wish
70 use the newspapers. We believe, however,
that resolution was passed agreeing to take hall
She amount due the banks by the Secretary for re-
Endorsements in Treasury notes, and that some
other matters Of detail were debated. The general
subject of the future policy of the banks with the
government was laid over till tomorrow, when the
banks meet again at ten A. M.
We have reason to believe that Mr.. Chase's plan
of finance has not been thoroughly apprehended
by the people or by the banks. 1t has been gene
rally supposed that it involved the withdrawal
from circulation of the paper currency now afoat'
This, as we understand it, is not intended. Mr..
Chase simply proposes to add to the present uot,ne
Of paper currency as much more as the ,odr may
cost, the ne,o paper to be issued 5y the banks on
the deposit Of United States si1es. Such an issue
would rest upon the double security Of the banks
themselves and the credit of the United States
government, and would thus possess a solidity
greater than could be obtained by any other method
1t is true that such an issue of paper--to the
amounts required for the prosecution of the war
would cause an imitation of very formidable char
acter. But an imitation, from causes which we
have mentioned more than once is inevitable under
any system of finance; the money required for the
war cannot be borrowed by the usual methods
fast enough for the requirements of the Trea
sury. The only point which it is possible to Sc
cure, in view of q reaction, is to see that the
new currency which must be issued for the pur-
poses of the war shall be as sound possible and
this maximum of security Mr.. Chase considers will
be attained by combining the security of the banks
themselves with that of the general government
1t will at once occur to the reader that the diff
Guilty in this system will prove to be the redemp-
ton of the notes. II the associated BANKS, for in
stance, should by some process obtain hundred
millions of dollars, purchase United States six per
cents with them, and issue 100000, 600 Of bank
notes thereupon, how could these notes be re-
deemed in coin under system of specie payments?
In the event of a refusal by the banks to co-ope-
rate in the adoption Of this system, have reason
to believe that Mr. Chase will rely for the present
upon his demand notes, OF these he has $4,000 600
still on hand; and. in case of necessity Congress
will undoubtedly authorize further issue. These
will continue, as heretofore, to be redeemable in
coin on presentation at the Treasures so long
a. there is any coin left to redeem them.
The resolutions passed at the bank meeting yes
terday, though excellent in spirit and generally
judicioas, failed to improve matters to-day. Pub
lie confidence seemed even weaker than yester-
day; foreign exchange rose "a per cent, and large
amounts could not be obtained even at the adj
vance. The money market, which has been gradu-
n1lv csn fo~ nc
den turn the other way, and call loans could not
be obtained at seven per cent. 1t seems that the
banks have called in all their loans, and refuse
loan on call until the present imbroglio is brought
to close. The news from England had, of course
something to do with the increased distrust. But
It is due to truth to say that many of the bankers
themselves make no secret Of their dissatisfaction
at the passage of the resolutions printed in this
mornings HERALD, and recall, with modification
che passage of very similar resolutions inst before
the suspension in 1857.
Stocks fell off heavily this morning, partly on
the foreign news, and partly on the bank resolu
tions, watch were regarded as foreshadowing
possible conflict between the banks and the foreign
bankers on the one hand, and between the govern
ment and the banks on the other. At one time
aperfect stampede prevailed. New York Central
trial, 4; Pacific Mail 21s; Read, g 2; guaranteed,
l. Panama, 3L; Illinois Central, 2; Toledo,
~; Rock Island, 2; Quincy, 21$ Governments
were lower, without large transactions. State
stocks were pretty steady. After the board it
transpred that Mr.. Chase had expressed the
opinion that the trouble with Great Britain
was susceptible = a pacific solution, and
that his negotiations with the banks were
Of this the market improved, and raj
lied "A per cent at the afternoon
board, Stocks closed steady, the following being
che last quotations limited States SIS, registered,
1884, 81 IS; do. 6's, coupon, 1881, 80 do SIS
1874, 70 so; Indiana SIS, n 70; Virginia 6's 46
4s; Tennessee SIS, 40 a 1917; North Carolina es,
sc So; Missouri 6's, s511 SO; Pacific Mail Steam
ship Company, 1874 70; New York Central Rail-
road, 1871 1914; Erie Railway, 2a11a 23ss4; do.
preferred, 431I A; Hudson River Railroad, 331Ls
"a; Harlem Railroad, 1917 1917; do. preferred,
rs 25A; Reading Railroad, 81 3l1a; Michigan
Central Railroad, Al 4l1a; Michigan Southern and
Northern Indiana Railroad, 1871 lGs4; do. guar
anteed, 361I 81; Panama Railroad, 1857 1867;
Illinois Central Railroad, 66M 561ls; Gaena and
Chicago Railroad, ex div, 50 62111; Cleveland
and Toledo Railroad, 20 a 1871; Chicago and Rock
lsmnd Railroad, 44A 441aa; Chicago, Burlington
and Quincy Railroad, 1917 5oL1s; Delaware, Lacka
wana and Western Railroad, rs; Milwaukee and
Prairie du Chen Railroad, II III; Illinois Cen
trail bonds rs, IS Sc.
The business of the Sub Treasury was as follows
today
Receipts 1923 636 II
Payments including redeemed 6per notes s95 $40 81
baahce.. 49i2,6o3 DO
The government has called for another install
ment of ten per cent SO 500 900, from the banks
on the last loan Funded stock).
The exchanges at the Bank Clearing House this
morning were s2l ,366,470 "a, and the balances
81 ,661 ,79l 10.
The directors of the Minnesota Mining Company