Evansville daily journal. (Evansville, Ind.) 1863-1866, 1866-04-18
s5 Communicated
Exchange. q

Editors j Journal: rs FsFnag aaF,sesss9
A writer in yesterday JOURNAL
states the following remarkable histo-
rieal fact 9 1t is we'll known by all
those who necessarily buy exchange,
thatswhen. there were but few engaged
In selling, the price ruled from ] to |
per cent. No one will care to deny
this; but the assumption that present
lower rates are the result of greater
competition from an increased number
of banks, will hardly deceive those
who necessarily buy exchange. " 1t
will occur at once to every one with
average intelligence that when ex
change was at from to per cent,
eur eurrency was different being
State bank notes-and could not be
used at par everywhere as are the
u. S. Treasury notes and National
Bank notes, the present currency of
the country Tt is true that rates
might by cutting under competition.
had it existed, have been at
times reduced. [ apprehend, how.
ever, that when we had to ship gold to
raw our balances; that lower rates
than were then charged for Exchange
would have proved "a too unwise
policy for even the most progressive
bankers. Now that we have cur
rency that is at par east and west, the
price of ExchangeI is naturally lower,
and under ordinary circumstances
cannot exceed the cost of shipping
currency. When the supply is abund-
ant a less rate can offen be afforded =
the law of supply and demand, in
connection with the uses fer money
at home, governing the value. 1t is
presumed that the writer of your
money articles understands this sub
ject; hence the charge that he would,
if he could, put Exchange at a much
hsqher figure, does not amount to
much. Doubtless, now that Exchange.
is scarce, be would consider the cost
of expressing currency as not too
much to charge for It, And, as a
matter of business, q lower rate, under
the circumstances. cannot be justified
The fact that our Banks sell at less
rate does not invalidate the principle,
nor does it prove, as your correspond
ent implies, that merchants will find
their advantage in. doing their bust
ness with institutions which favor
them at the sacrifice of wise policy
Every intelligent business man knows
that banking, like other business,
must be SO conducted as to pay or
prove a failure. Hence there will be
4 strong presumption with all4cust3m-
ers who are not mere Exchange buy
ers, that a Bank which sells Exchange
at loss or under its value, will ex-
pect them to compensate such loss in
other ways As a rule, one good
Bank,:an afford to be as liberal as
another. but no Bank can violate
sound rules of business for any con
siderable time. and make itself useful
and successful. After all, it must do
It's business on paying basis, and in
the end those who have been misledl
by its promises of special favor will
find that they must submit to the same
!. inevitable laws of gain to which they
were before subjected AasN 48A
While Irregularities in business of
all kinds are unavoidable under the
driving competition of the times, there
is much to be deprecated in the exz
tent of these irregularities In most
cases of the violation Of good rules,
discomfort is created with customers,
ofiIyto reeoil, In The end, Hpons those
who produce it. As far as practica-
BILE, it should be the object of all hav-
ing common interests, to allay, and
not to aggravate, existing evils. Let
those in competition, yhatever their
business, adopt liberal and fair terms
with customers. and act with consist
ency and steadiness, and all will do
quite as soell, without that rancor which
often manifests itself in our commu
nifty. CANDoR