, 1870-02-01
MONETARY ANI COMMERCIAL,
MONETARY.

tempo111eA In regard 10 the Immediate 4sauaa,,.
ity Of money icreated In hond1 he1d bJ tho Secrt-
tar7 Of the Tre4sazy to redeem thu circulation Of
National Banks thA. have zone Into liquidation,
and, On the Assumption tnAs money tnna invested,
II lot u available n In some other forms Of ip-
vo.tmen,. TIC Chicago 1sm4s ngusea out hat one
OF tne bsoks of laiA c&tJ WHO'D has Aksuuea thu
redemption Of tho circulating oores OF tasee
other National BxakA has got til
fuLds locked op, 10 that they arc unavail.
able. That this Ia 4 ntstAko can be m41a sppa.
rent At orce~ The National Currency act prp.
vldes that At any lime after the expiration Of ono
Jtsr alter notice shau have been given BY NJ.
uorA BALI OF its Intention to 70 into liquidation,
"tAe sad asaotioson may pay o,sr 10 sAs Tstar1er
r. fht Un'trd Sfdfss The aatouas ef IL out+saHIi1
s4aifs, in !axfui nosat3 " a.s Enital Stas<s ant
sake up the tsds xhaeh such association ha4 on Dc.
poe'i iefh the Tearu.er for s security AZ IT. cir
enlasing sotta. Now, let - suppose that Ms
total Bank which had tlss,0o OF crroIauor
notcs outstanding, and for the security OF wnca
it has Slas,too OF bands, At their Par value, Dc.
posted with the Treasurer went Into liquid atioa
s,eat ago. Its nonda Deposited It taetr par ya1ue
Of sl:o,NQ, art If they are hs0s worth, asy Is per
cent premium in she market, aud represent
market yalut Of. SAY, s172 ooo tals annouat being
held Tor TIE tedtmpuon or tis5 900 Of circulating
Lo,es, being nalRtn Of 81, 900 uEer all poslhle
Fablides on the circulation. This $4,000 Is, IN
tacl. all the caplta1 thst the llqn!d2tnx bank has
Invested In either the boods or the circulation
Wien It pad oct the money suhscr.bed b. IL
stoekho!ders, for bouda, and depot1ted the
boLda with tho Treasurer, and took
cut c1culatnG notes in thoir staAd It received all
ol its capital back N the notes except tha $4,000
But even This g3i, ,0tG II In perfectly sysuebie
form, for II must be plain toat BY the payment Of
$lso,L0 tn Erteuhacls 70 the Treasurer rae oAak
couea lnntdrasely INTO potseaalon a S77, go
Marketable fsl1e In The bonds, aud eren II the
l,qtdatng bank did not have the 51s3 10 IN 1ree1-
acls, It could eallly get any moneYai Institution
to make tho t1anaIer By the paymens Of . anall
con'Inlt sion On the am0onts The tl4uIacuon would
be 10 sale that thtse IL reason Why the llqa:dlt
trg hank Eight not get any Naw York
bALk, for !tstarce, to complete the whole
At u, and bare the ts7,oao Of IL su7esfnens ra.
eattd sDd plseed to Ill credit lb al1 hours fspm
the tine It k1culd Determine to do 80. lssskad Of
ttIK an upasaiia ols aaef, Il Ia INDEED ohe CT Tho
no4t readily convertible lnFestments that could
be made Of the zane auoaps OF money. Not only
II II ih4 most available, but 1t y ssso tho
pI1nebfe, from The Itct that ~ long II IT. cfcu-
lastn L. Lot pleAelted To- redemption toe hsnk Is
10 reality draN,ng Interest At pc, CENT IN Road On
Nhi!e II hns In Ieaitss only 100 invest
ct. AID fts OILY 10 hold eroaRh more money IN
1eAd;tess to redeem such Of the Do:ea Is NAY
lie p,tseu'ed to the Ttetsurer tor redemption As
1Grg g 80 there ID 20 redemption IN specie, tntTe u
10 IcueeneLt TOT The general public 10 sort out
tie lcies Of 1aLkA that have gone tnto liQullA-
icp, aId ser d them 70 the Treasure. for reduQp-
ten. Tie pon!lc teov that all Saaoasl Baur
so@e* axe cred alike, by The bo1ds al The gay-
tgEment, atd that In reality, It u the government
TIM. redeems them. Therefore they never trouble
themselves 10 prescnt tho notes Of nqu!dAucg
taLk., ard the consequence II That they cane Ia
very slowly; and IN the cssa We have supposed.
the tls5,c0Q of National Bank notes might not
cene In for two yeAt1 II Is
evident that tucn N investment
or ,0Go Ia dc.l.as!e becAu.e II u both profitable
snd available, and It u not 1t AL s1rprtsinX takt
any Satfonsi Rank thst contemplated coouartns
1n eus.eeu ~ou!d b. tlad 70 buy from the hsns
khch had gcne into liquidation il tnEestment ID
the pr.sleos " esseuia.,ss. Il The bank making
frcn purt case had not BEEN able 10 get the le 3al
At onnt OF circulation In proportion 10 ita c4ptar
.rsde Ct tho s:oo GO limit. It could hare IL
fn tefA quos2 out Of the prtg1leRa Of crcuikt!oc
wh:ch It putchnged from the !quidAtirz bank U1
TIC whole, ve think that nine banks out OF ten. II
the couHtsy At lArEe, would jump At tbs ehAn-e o
aktng such puschxse OF any bank golas ato ilQ7.
dat,or and the Chicago 7mea IN lAktnE the oPpoaitt
view 0! the Use III tts comments IN connection viii
,he 1rcens bank statements nas evidently got III
| nranc!s1 Ideas considerably muddled. Tne onl.
| W,prR tn tie whole Case u tnAI NastonAl banl
| can have the opportunity 10 pat up $4,000 Ant
| dtaw interest from the government on Saso 900
! axttfe HEuag IN shA al:ses ont Of there helnl
| p1lcEca1ly 90 redemption for SAt!oual Bank notes
| II tie retirement Of zseenhAcks Mas In progress
arh lheYc NAs prospect Of these National Bsnk
hAvu 70 redeem II SPECIE the notes Of i'qutArri
bArks uould oorne IN promptly, and no such oppoE
tu1tty 70, beeding the people through the intesea
! Q. sse rartrM bonds would present ttsell.
| TIE lccal mcney market shoWs mora Agas
Ur.rstEcJ to-day ,han nj the cloAa Of last Neei
The tf7eated movement Of hogs has Increase
,hs demand for money f.co the packers, aud, =
dcpcslts Nere al1eady low, It taxes smaller Il
! EtMe ID tho demand for accommodations
make ,e1J decided eEecs upon the money ma,
ts,. Only 4 few OF the bankl, however, Ind an
d1f1cuny IN accommodating tneir customers Wit
what they need. The Increased demand, hein
uanlJ nom the psckesH, u felt the moss n ban1
which have the most customers IN that noo
batnem.
Orde1s from tho county for currency VEL
Nte1., asa1n Today. AID the ahipnenn ~ no
IN eIceas Ct tho 1eceipt1 -...
E1coargc eputtupes weak, aud Vas 1old betsee
bstfs to-a2y n tTom PR 70 = cents per $40
ts.court Al The connssr bAnka1' rates =,
nounaNJ from par 10 LILO premium selling, Il
7.io d EtoEtI buti1S.