New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-07-19
Atlantic cities where alone money is cheap, of cur

Atlantic cities where alone money is cheap OF cur
rency and give to lenders in place of four per cent
seven on call. and smart commission indirectly IN
addition Under the National Banking Law there Is
not permitted periodic expansions TO move the crops
such as were shown under the old State laws, where
no limit was known except the credit of the borrower,
and the prudence or rashness of the lender At this
time it is conceded by bankers that full crop of
all the staple articles is to be marketed upon an
amount of bank credits and currency wholly made
quato at the present scale of prices of commod-
ties for the purpose. Following natural laws, the
supply of currency and credits being unequal to the
calls upon them, rates Of interest should advance
and prices fall until the available capital can move
the crops. 1t should not be forgotten that while
the time for moving the crops approaches, the
Treasury is paying off the compound notes.
which hold such an important position IN
the reserve of legal tenders in bank thus making tho
banks, at a time when more currency and bank
credits are needed, less able to extend them to the
public. The Treasury is steadily contracting the
legal tender money, and from the customs revenue
internal taxes and the sale Of bonds will DC able to
perform its duties and work back TO specie payments
vigorously. The ability to pursue this course will
advance the buying power OF the now decreasing
volume of paper money, and people cannot be too
careful in making new engagements.
The following suggestions from The Bank Note Re
porter will be found of interest now and for quite
| long period to come:
wANTED-ELAsTICITY THE CURRENCY.
Since the has taken the entire control OF
the currency 1t seems 10 be necessity that some imam
cinl measure he adopted that VIII give elasticity 10 ~
for during portions Of the year much more cnrTency
is wanted than VI other seasons. IL II already pedcten
that in October and November the money markets VIII
he extremely tight from the fact that more money VIII
be wanted to move the produce than can be furnished
It evident that when the country calls for currency
In large amounts banks VIII call IN Their loans or
contract" The logical result Is mat the Dalk' arc
forced into contraction when money ~ WanUu hhu
they are at tunes induced, by their easy position To eE
na1d when money IL not needed IL is design TO work
up financial measure to obyiae II pGsSbl'I aLenIr
| our financial machinery. To be OF solid service
! our financial measure should operate a. check
/ on expansions, as wen rs q brake on contIactouS
aud nj the same time give the country an enlarged
| volume Of currency when business requires ~ ana
ward of any Revision in the price of Government
bonds n panic These we claim TO be the features OF
tcity will bc obvious due me probably boiole new
| Years. Our measure Is this: The Treasury 10 nave
| ready after being authorized by Congress, any re-
duircd amount of Grccnack Currency; and the Assistant
Trcasurers in New-York, Boston aud Philadelphia to oe
Interest taking Government bonds as collateral security
at Is per cent under their market value ihat y N.Y.
nevertheless u is great measure IL Is not desirable
that the Treasury become the loaner OF money except
emergencies We Therefore have PROPOSED MN T,,"
Of interest and a strong margin No one VIII borrow %"
these terms. except the money natkrt j. very i, hu
the loans will Dee paid on soon rs the market - sghly
easy; stn there will be times, think, when from
$5OJGoeO 10 SioOOoOOoO will be wanted This measure
viii clcckmate the gamblers in stocks who sometimes
hoard grecnhacks in order TO intensity ughi money
market Uuii recently tho currency has had power OF
cXnendnc and contracting Take orinstnnce. the Homes
dale Bank OF Pennyslvania which, with capital OF
100000 occasionally issued SSDOOO 0f currency, primer
pay on the drafts Of the Delaware and Hudson coal ana
! Canal Company. The New England banks were very
elastic in their currency movements often furnishing
millions for 80 CO. 30 days 10 The West, with when 10
move the crops None OF this elasticity IS available Tor
! the National system.
! The Chicago and Northwestern Road earned the
| second week in July:
sl92lel 1865 slgrs59 Increase. (Ss2
| In 1865 the road was shorter 10y 10 miles.
| correspondent says that
The advancing tide in the price % railway aud other
fancy to have been rudtly checked by az
IL Is rumOrcd a series of attachments served upon the
brokers OF Of the largest aud most sangne operators
for the rise Whether tins process OF Law covers prospect
i've ms well ~ realized profits not stated, but tanpe
ing with the great railway interest of ne country ~ ts
manner uuwarrautcd as ~ unusual ana qic DC
sfrucye OF that con hd.nce necessary 10 The stability
Of values and likely, continued, 10 seriously alarm
unsispcctiug capitalists, such rs MI NandelUlt ana
others.