The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1861-04-25
Tlts @ailv nnrna1.
gVAASNsALE. IND
THURSDAY MoRNING................... APRIL Is
Kentucky Money.

KENTUCKY money
Rumors have been rife for some time that |
Kentucky money was likely to depreciate,
owing to the vast amount of it in circula-
ton and its unconvertibility, growing out
of the inaccessibility of many of the points
of issue and state of public sentiment in
other points which made a return of notes |
of questionable expediency. No doubts |
have existed as to the solvency Of Kentucky |
banks, but the fact that they were not for
the most part as easily and cheaply con-
vertible as Indiana and Ohio bank notes.
has had a tendency to drive home the issues
of the latter banks, leaving the Kentucky
notes to take their place, and to form to
great extent the circulating medium in
those States as well as almost the entire
circulation in Kentucky, in which Indiana
and Ohio paper have never been received as
bankable, except partially at few Of her
banks along the Ohio river. The conse-
quence of the disappearance Of Indiana and
Ohio money, both being cheaply, conve-
niently and safely convertible into coin,
and the occupation of the field by a less
available currency, has had the effect of
largely advancing the rate of exchange,
aud adding to the burdens of the business
community.
The banks of Ohio and Indiana, though
thus driven from the field of circulation to
which they were fairly entitled,-the
home field,-have forborne to initiate Ken
lucky in her exclusive policy of receiving
no notes as bankable except those issued in
their own State. 1t would seem, however,
that the time has come when they can no
longer continue a policy so injurious to
their own interest, and so prejudicial really
to their customers, since the effect is to re-
strict their discounts by depriving them of a
paying circulation, and leading to q rate of
exchange much higher than if fair circu-
lation could be maintained. The banks are
thus deprived of profits and their custom
ers Of free discounts and cheap exchange
The time therefore, it would seem, has
come when they must, in self defense, and
that they may in the end benefit their Gus
toners, adopt the Kentucky policy-at
least so far as not to receive any notes oil
less convertible value than their own. This
will enable them, after q time, to furnish
larger accommodations and Immediately tC
furnish cheaper exchange.
We herewith give portion of the fnau
cial article in yesterdays Cincinnati Com
mercial. 1t will more clearly explain some
of the points which we have referred to,
and the causes which have led to the virtu-
al depreciation of Kentucky money. It i:
understood that the banks In Ohio and
Indiana have generally struck it from their
bankable list. The Branch Bank in this
Venience may be experienced by our b,s;-
ness community, we feel assured that tba
result will be favorable to their into..a.1
as well as favorable to the interests of the
Bank VIC
h4chsnge was drawn to-day at the ra+eo
gwen yesterday, and the market if an1, 80
Inherent is little more comfortable ,bo',l-f'
uealers do not incline to sell any mora e.
~ tomorrow the sales of EXCHANGE Ill
DC Lnaue al rates that will discriminate
"5taL gc Hhenlucky money, in favor of The |
hotes or the other banks that are on on - -
list viz: Ohio, Indiana, lBanI ~ par par
State), New York, New England RanL oe I
pittsburgh, and banks of PhiIadeInbia
rms IS rendered necessary from the fact
thaI tue issues of the Banks of KentncLy
nave iateIy been crowded upon our bankers
rom the interior of Ohio and TndioDo
where they have been thrown ont. and he,
-"s' LOT the time, generally unconyertible
excepting in Louisville at the rate If eyo
Gnahge prevailing there, it has driven honoa
Indlana and Ohio money and remained "a ,
"iiI no tne sole circulating medium.
by TINS course OF things the rate of Ev-
I,;St1 nas LOT several days been kept at a
Pagi.P 0lHt virtually at the expense of the
banks OF Ohio and Indiana. One ~ 80
bankers was informed by teleoranb y f. 1T
Louisville, to-day, that the rate Of Evcbon. y
1neTe IS . per cent, and that it win he ka9t II
~ CINCINNATI quotations. This, of coursa n
"ouiu give Exchange dealers no unaroin e., in
converting Kentucky money AT tbefero;"t
ma since the opportunities for ratn-,Ef oli., u
lirect to the banks of issue in the i.,as ~ tn
! u! 'ne 0tate are at present meagre. there Il
o'hihg 70 DO but to submit to I,aniVvi,io
ateS Tor the bulk of it. With this state 80 fro
llh G the rate of Exchange on New YorE5 nm
= onio ana Indiana funds, will. to-mo-I !.
pL per cent premium, at the
Dank OF the Ohio Valley" for all b. tea
s. and IN any amount The other AZ pri
s- VIII charge one per cent. premium for an,
7T T,i ork Exchange. payable in the notes s ~
,Ia ~ 1Sla anu ONO and 81 per cent, pay
nc IN kentucky money. This conrSa
eueu necessary, to correct the dificrl.I {
lending the handling of Keptuel,v nro,a.! cou
t 1t IS adopted with great reIuctanco ~ pee
ere Is no lack of confidence az ~ ~, iUa oil
Vency OF Kentucky banks. IF tbe
nagers OF these banks would ARRANGE - 'ar
'e up their issues at Louisville, CoTing1
!, or TINS point, at reasonable and inst .
E, there would be no hesitation in con. stor
Jung It on full level with our other mar The
QUOTATIONS.
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