, 1869-11-30
MONETARY AND C0MMERCIAI'
MONDAY EVENING. Nov. -,

MONDAY Evm1Ha, Nov. n.
In Section - Of the National Currency acs v
the following e1ause providing tor the secu,tsy of
National Bank notes: I
"WnensTeE The ma.kst or caaa value q xnY
6onas deposited M.sh tos Treasurer q n uni!ed
amount Of tho etr1tatson Issaed for the eane sha
CoMpt1olter Of the Currency h reTeby suthottxed
1st.on IN sthe5 United Bfsta6 bond1 II cash valve
or In moEey, from the ASSOCIATION receiving said
balls, ~ loag Al snch depFncsAtion coat1nne4.~ =
The ma1res q eaah ralae Of noods IN sots ln-
s.anee, neaos thes pttca IN currency, and The cur
feucy p1tca Of bonta Il, N Kreat meAs1re governed
BY the FI1ce OF gold tho price OF bouds rising md
falrg with the pr1ce Of gold t4st a viii pe seen,
Ia the laEge decline Ia tho prices Of bonds today
In accordance with the large decline n gold unos,
tae middle Of Lat week, when the new 6s9s stood
At ill., With gold at 126, instead OF 1rs ~ today
With gold nj lea II gold should atvanoe again 10
1s6s the currency prices Of bonds would also I'd
vance IN proportion. Notwithstanding these duo
tnat,oIs Ia the currency quotations Tor bonds the
foreign market price In gold may remain un-
charged, aS 1t hnf done through these nuctuatlons
OF tie nsi txo week. It will be seen from these
facts that the currency may deprcctate without
2nectlug the real value OF tie bopds. but that tue
boEds cannot deprcc.ate without affecting the
value Of the currency, which Ii bastd upon them.
In either case, however, the currency price OF the
NJAAh VIA 4l&kGloA4J u4&AC4t - A1G EA4lEuCy
da7,ecA;es-or, In other xordl, As gold sdyancea
1t Il piain, then thaI the "mArSet OF csah value
mentioned In the law, being tho market ps1ce tn
currency, that no such contingency as that pro
Sided for In The law could arise, because II bonts
should depreclate, cu1Eency would depreohtc
noze, and any decline In the gold yAtne Of bonds
would be eoncrHenx with m advance o& ehei1
market pr1ce In currency. But u lne law
required that tho gold value Of these bo2dr,
{nry zxA Anf thAr nhx-1 ltn<e
ard, the case Hoold b entirely changed, and the
honds 10 depos.led would b surncient security
for National Bank notea igmed On specle taHs,
even though the banks might not ind 1t 1eeesMIy
70 deposit my more bond1 IN pfopoEtlon to teett
circulation than they Do now. Tho present maS-
ket vslne Of the new dEe-tweu8tes Il 81 cantA tn
gold, exclusive Of accrued interest," aad It Is net
Likely that they Wei deplcctate below That bit
Tathes that they Will advance nearer to par, 10
that were this change made In the National Cur-
rency act, requiring that whenever tho n2rttt
value, In gold, ot tie bo1ts depolited 10 Recute
circulation ~as below tho amount Of the otrcul1.
tion isaned for the same, they should CO.
post "nete bones, or money" they would
not to be required 10 depoat any mora sacuuty
unltks the bonds fell below their present price.
In case bonds did full below 9oc, the banks won,d
have the option OF deposltlng moro bonds, ts
money: IN osher words. they might lneresse the1
.e.N a.. ~ ~ uss9 u',sa ~ eHeat ~tc1aeoiauoa. oocn
esr, ~. .snre- srnoo ,nr".,en ;.n s 49, ~ -,
1,n,ts - Sst,onst 1,nt rir,r,.eo1 - -.
,,1,, ~. n,4,,..,. 80 1900 -. - ~ ,na
-. 1,,.h, ~ s,.r. ~ s..,. 80. ,t,e ue'. !.
~ 49, 81 -. .-.s noss .eAots u
49, ,s ~ :,a,,'.,s 49, 70 seut .sset'e
ganized ni once In the Southern States On that
bssts.
eo'o % asy 'oueaeo l9l~ the lowest quotation
slhee stp'. 81, 1864 Will thus be seen that II Is
gradually cetttog back 10 lower leyea, making 1t
possible fer the speeulatng "neaf r. interest In
Ner iorS TO occasionally deprtss It to 10 ser aud
lover points, IN each ondeavor, uutil they may be
some tne aole 10 even depsesa It to par. Should
taas eseE nappeo II would not, hoTtEet. produce
specie feadmpoon, because the "belfs could
not nod II at par any moro than the I" bulls ~
could hold II At 100 on the a4th OF last September,
By tie gradual change to loael avesnKe price for
Gold each year, We do approach Epece resumptiop.
the cause this year beng the abundant crpns.
which baye 1nade 1nrpe rvno,4a nr n,oo,c+. 80
.hart a, ~ .r,n,, ~ s,.1a ~. =. Ss @ 49,
~ .,o,,,na ~ -. 80 -! -. sa'
,rsss ~ ..e..,,a.,,p ss.s "a. osea p1p-
tsS a.,,r.i .ssssnss ~ sas,,. - oo's A"eA9n'ins
~ 1,ra ~ 49,, ,uons1 r,s~,at w ot..,a s,ase.
chnnrr Mone. con,,nne. ssrr..n, ~ p1ss ~ w.