Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1861-05-29
From the Cincinnati Price Current I'D inst.
and Commercial Summary


The most prominent and disturbing feature Of
the money market during the week, has been the
rejection of the Kentucky currency by our bank
ers and placing IL at discount Of 4a5 per cent.
Although the amount in circulation Of the money
is now small, yet the throwing Of II out caused
some confusion and disappointment, and il Is
still taken in trade 70 some extent. As exchange
can be bought with il at Louisville at 2d2ls
prem, it is really but per cent. below the Ohio
and Indiana paper, but there is feeling Of un-
certainty attached 70 il, owing TO the law passed
by the Legislature authorizing the suspension of
specie payment. IL is supposed that the Gem
mercial, Southern and Ashland Banks will sus-
pend also, the Peoples Bank but the impres-
sion is that the Northern and Farmers Banks will
not The fact that the Kentucky banks have
withstood the panics and pressure Of the past,
gives the people great confidence in it, and they
cannot make up their minds 20 the conclusion
that il can prove bad the circulation of the
banks must now be greatly reduced, leaving them
in a safe position The indications are that the
rate ofdiscount will be reduced the coming week,
say to 3 per cent.
In another part OF our paper viii be found a
statement of the Ohio banks, made TO the State
Auditor on the LIST inst, from which it viii be
perceived that their condition is good. The In
diana State Bank is reported in sound condition,
and its paper, with that of the Ohio banks, now
constitutes our par currency, with that OF the
Eastern banks.
The demand for money from those offering ac-
ceptable paper continues quite light, and such pa
per is in demand at l09I2 per cent; but paper
not coming up to this grade is not sslable. The
demand for exchange has been moderate only.
but the market has been somewhat unsettled; the
selling rate ranging from to premium; the
closing rates being 1S@I premium. Bankers
have bought gold reluctantly, not paying over y
premium for it. the demand having fallen of,
though it is being retailed at Lao for par funds :
with light demand. Our quotation for ex
change refer to checks on the East, except Balti-
more, as there is nothing, of course doing in
Southern, nor has not been for some time.
The paper of the Missouri, Illinois and Wis
consin banks has further deprecated during the
week Missouri is IL discount. and the few that
are dlled solvent of the other States 80 discount.
whilst the Others range from 80 to 60, and some
are not worth anything. Exchange run up ESQ
80 per cent. premium in Chicago, and not to be
had at even these extraordinary rates. The prob
ability is that this system of stock banking, il
is now followed, viii be wiped out of existence
There has been great excitement at Chicago
throughout the week, growing out of this curren-
cy question, and the merchants there seem deter
mined to do something, but have not, we be
liege, as vet settled upon any definite mode of ac-
ton to relieve themselves of the difficulties sad
died upon them by the banking system Of that
and the adjoining States.
The following are the quotations for uncurrent