The national Republican. [volume] (Washington City [D.C.]) 1866-1870, 1868-03-31
THE sTRINGENCY OF THE MONEY
MARKET.

For some time past there has been q pretty Sc
we're stringency in the money market, but the
indications In New York, and other financial
centres, are that there is to be at least gradual
Improvement In this regard. Such are the laws
of trade that II Is not possible BY any combina-
ton OF money lenders, or pressure of circum-
stances, to protraet a stringency In the money
market beyond limited period. The borrowers
OF money have been sorely pressed, and their
entertainments have been such As TO lead them
to look in almost all directions for relief; and,
accordingly, they have appealed to the Govern
mcnt for aid
The Secretary OF the Treasury received, sew
eral days since, formal appeal from the banks
OF new FORK city, and he was induced to acoede
to their wishes so far as to agree to issue to
them ten millions OF new currency, in the form
OF three per cent clearinghouse certificates, au-
thorized by Congress some time last year, but
he demanded that the banks should ask this
issue as favor, and they were to pay for them
At full rates, in the unfunded debt held by them.
The banks took this proposition into considera-
ton, last Wednesday, and after celebrating In
conference, rejected 1t by a decisive vote.
We doubt both the wisdom and policy Of the
banks In their action upon this matter. The
proposition OF the Secretary was made in good
faith, and with sincere desire to promote the
public interest by furnishing relief in cheap
enins the price Of money. The course Of the
hanks must disappoint many men engaged In
business, especially that class who are, though
really sound, possessing ample property, but ne
eessitated to borrow for their immediate wants
In business. The probabilities are that many Of
these very banks, II called on to pay their de-
positors, would IND themselves hard pressed,
and would very soon show their weakness
lhey must be careful, therefore, that they do
not press the business community aud their Gus
toners too hard, lest a time OF weakness and ex.
posure come to them, and they be found, in the
hour when the dcpositors draw upon them In
the vocatiye. As temporary cxpedient they
had better accept what will enable them to in
nate their issues to limited extent, and thus
Afford the business community some relief We
are believers in the national bank system, but
there is no good thing that Is not liable to abuse
and 1t Is possible for the managers Of these in.
situations to carry the stringency in the money
market to such an extent that It will react upon
themselves Aggregated capital Is potential,
but there are limits even to its power, and when
1t can, without essential injury to itself, give
aid to the business OF the country, It 10 clearly
the duty OF these bank managers to do it.
we are not In favor OF a very wide or extended
imitation of the currency, nor OF loans merely to
stimulate spcculation; nor on the other hand
do we believe In that contraction which pro-
duces panic. There is medium policy which
should be pursued. As there may be too much
imitation so there may be too much contraction,
and whether we have suffered In the past BY an
inordinate imitation which has mislod many or
not, as some contend, one thing Is clear that We
are now, and have been at least for months past
suffering by contraction. 1t was eviden nifty Mr..
McCulloch's desire to give relief, and as the
matter now appears to US we think the New
York banks did wrong in rejecting his PROPOSE.
ton.
wethink we see many indications of a reviv Ing
business, and we are arm In the conviction that
the natural working of the laws OF trade will
and Encouragement Of finances. y The signs Of a
reviving and prosperous business are brighten
ing every day, and there is a hopeful spirit In
the business community which pressges improve