, 1870-05-31
MONETARY AND COMMERCIAL,

MONDAY EVENING, May 9

MONDAY EVENING, May 30.
The Banking and Currency Committees bill
for An increasc OF 995, 900 900 Of National
Bank circulation, and withdrawal Of s4o, ,O00,-
600 Of greeDbacks and Si5, ,000, 900 Of i per
cents, comes up for discussion i'll the House
on day after tomorrow. This bill is an at
tempt to adapt the Senate Currency bill passed
come months ago, to AIR. Boutwe1l's scheme
Banks, and also to the Loughridgo resolution
for $50, ,000. .00O of imitation, and is understood
to be mainly the work of Mr. Garfield, the
Chairman of the committee, who has sue
cceded in combining eome of the most
Objectionable features OF all the above men,
toned schemes. The plan starts in the right
direction, VIZ; to change the proportions OF
National Dank potea and greenbacks by With
drawal of the latter and an increase OF tho
former. II banking were made free on this
hasis, the result would be that all the National
Banks would soon be on specie bazis. and
would increase as fast as the business Of the
country could demand them. But this cu1-
rency bill stops short OF such d
point, and, BY setting limit to
tho amount Of National Bank circulation,
retains its present character OF monopoly
for the national banking system, and makes It
10 the interest Of the banks to prevent re-
Turn to specie basis as long as possible. II
retains tho most Objectionable feature Of Mr..
Routwe1le scheme in compelling The present
National Banks to exchange tho government
bonds they now own for otlers bearing &
lower ratc OF Interest. This il not only bad
faith toward the banks, as creditors Of tho
government, but is q violation Of the spirit Of
Section Of the National Currency act Final
y, one OF the prominent features Of this bill
is the Redistribution OF the National Bank cir
culation,-a notion which everybody but Con-
greeemen have come to understand is nearly
ca noneensical as it would be to talk about re-
distributing the greenbacks
The passage Of the Northern Pacific land
grant makes possibility Of large amount Of
the consequent possibility Of large increase
OF sterling exchange from that source is viewed
III come quarters as nreason for expecting thAt
there will be no advance in thu price Of gold.
It muat be remembered, however, that in the
markets where it is expected to negotiate such
scc.uitee, capital has recently had . consider
able scare in regard to American railway Sc
curities, ind ite effects, which have
teeu increased by the character Of
General Fremont's operations with his Mem
phis, FL Paso Pacific Road, are not likely to
wear OF 60 quickly European capitalists ara
meantime the e1roris Of gold arc increasing.
For the fret twenty weeks Of tLe year the ex-
ports from the port OF New York averaged
s47o,000, for the week ending May n,
$1,000 and for the week ending May %,
$2,cl6, 900. The export Of gold at this latter
the control Of speculatora before 1t would be-
come d settled fact that any considers
bic increase of exchange would be
made against railway securities, OF at least be-
fore it became available. In this connection
the Treasury programme Of gold sales and
Fond purchases for June will be looked for
with muc}, interest. It is intimated that the
bond purchases will be largely increased, but
go1a Gales only slightly.
The Cleveland leader intimates that the
BALTIMORE L Ohio Railrohd Company-which
finds itself working at a disadvantage in the
competition with the New York Central and
Pennsylvania Central for the through business
from the West est-contemplatcs the construction
Of new AIRLINE road from Pittsburgh to Chi
Pittsburgh l. Fort Wayne.
The week opens with atolerablyactive mon
ey market, though the most Of tho banks arc
yet we1lsupplied with Ioanable funde, and some
OF them are talingsall the frst-class paper that
il offered by outsiders "a well IL regular GUS
tomera. The season is now SO far ndvanced
that the country demand for currency is not
Within couple Of weeks tho currency that
has been going out 30 liberalfy will be coming
back, and the markets will soon be gluttea
with idle money again.
The shipments Of currency, Us Indicative Of
the receipts of grain . week hence, are now g
matter Of interest There is still a fair amount
going out, though shipments to-day were prob
ably not so large az the average OF Last week,
and we're pretty generally dispersed to all sec-
Exchange was toterably firm ut par for sales
between banks. The change in the exchange
market from the condition Of last week is duo
to better supply Of currency here, and also
to scarcity Of produce bills. At the counter
hankezs sell at 1-10 premium and buy at Ito