, 1870-03-26
MONETARY AND co NMERCIiL,
FRIDAY EVENING, March Il

Merchants and trH,1en who fancy th,y hare
no personal interest in tho Funding bill. and
that it Is simply contest on tie part of the
hanks 10 retain their profits. should enilsaro.
TO imagine what would h. the effect upoa
their trade Of a contraction Of two Luodrs5
millions Of currency during the nc1t twelve
n,onths-for it ia ltoSo:iie. ur1La.,ia ti,;s
would 1.e tie resul. Of Tie passase Of tao iii.
The National Banks in the States west AND
south Of Pennsylvania now have about
eao,Wo'vo ~; Of circulating uctes. To every
mako National Banking not only less profitable
than private banking, but would force an i'm
mediate loss upon them of al the difference,
between per cent bond and a: rcr cent
i,oa;1sss Sosa; i they :. Shoald @ rcna!n in the
under these c eopliiions. Ga.,' thsS TonId anaI
abandon the National Banking s5stem, Of
At least give UP their circulation. Hers Womb
be contraction of S75000. ODO to begin with.
b'lt Ibis il not all. pe..nsylvania, New Jersey,
Ian i sS circulation LIE htIe o a II ssg6eSate @ Sstion
scarcely doubt that half of tlis would be
withdrawn, because the bankA issuing il arc
located in sections whcro they Get moro IN
terest on their money BY loaning It At tho cur
rent rates than by banking on ~ per cent
Ion. bentis, On Which they would set OILY 50 per
cent ot circulation. We may safely estimate
Esnk circulation would be at :esst sia5, ,0tN,-
Coo or sls0, ,0Oa, coo iu twelve months. New
England IN the only ecction of the country
where national banking woull bo continued
because that u the only section where capital
much as though tic eighth section Of The
und.ng Gin was got up especially for tho
benefit OF New England capitalists 10 that
they might absorb and control thn
Sh;'lS Sasa3nm saa,,,, banking syatem on, terms
Il may bc argued th&t, II New England capital
can furnish the National Bank circulation md
make profit in doing 80 on ~ per cont laonda.
the National Gank circulation Of that section
would increase Ii much, il not more, than that
OF the West would be contracted, and that,
consequently, we should have as much, il not
more, Nadona1 Hank circulation than we have
now IN this connection it must be rrmem-
bcted that In accordance with Section 10 Of the
FUNDING bill, banks applying for circulation on
the new basis of * per cent bonds, are re-
CURED to deposit grceubacks which arc funded
Into the new u per cent bonds to be rrtaiuel
aa security for circulation, and that As fas, az
circulation would he issued Oh these bonds, au
equal amount Of greenb,cks il to b4 can
celled and destroyed. II = bank WAS organ
ixed on the new baais, it would deposit. sav.
S50O, 900 IN g1eenbAcks with the Secretary Of
the Treasury, wtn would isauc $50o, 900 Of ~
per, cent bonds to the credit Of thaa
bAnk - .i md or M The these bonds would
and At the same time destroy s40o, ,0oJ Of ths
CTccuhackh. 1hn result would be that Tor this
s4e0.y00 National BANK notes issued there
would lI Si0O.UOO greenbscEs cancelled, and
slu,ooo more Locked up By tho bank As d ps1
nEoccss Of changing the proportions of M
honA bank potes and greenhacks is the right
Psocess of Eesting back to specie resumption
but tliie FunGing lilE provides for contraction
or SlSo eo. .on.as ve have shown ahove-.se~
fore hcEluninG the process Of changing the
proportions OF the two kinds Of currency,
This would be contraction that would come
sha1p and sudden, and from the shock Of which
the trade of the country eould not rally without
disaster The only proper way Of iuaoguraGns
this change in the proportions Of National
TANK notes and greenbacls is to Rrst make
banking Jr*, permitting banks to deposit any
gold Observation-Disclosures Of the United States
and to receive % per cent of circulation on tho
Eold value Of the b-onda in tle Market aud
At the same time to begin the withdrawal of
ereenf.acks in \ certain ratio to tho incraaaa Of
National Bank notes. These terms would
make hankR iuere8se both East md West The
increase of their circulation would keep UP the
volume Of currency to all that could be used,
and 1T The same time their circulAtion-by the
withdrawal OF EFecnbAcke--would be approach
lag par with specie. When. by this process,
gTrcnbach had been reduced 10 volume OF
about S150. D00. co., thcr would be 1t psr with
par in gold that the ds.t could be refunded ut
or per cent without any tuch juggIe-y Is
Ia contemplated in the present Funding bill.
1t is now pretty well understood that the
scheme of tie 81 st. 1'au1 ring" Of DIRECTORS iu
the Northwestern, lsallEosd Company. to cllss-
tors COMPOSING the ring could keep themselves
~ office I'VE Year,, and could kick out all that
Trey could not control. and TINS givetlle ..r1nr
the power to make the Northwestern sort Of
feeder to the Milwaukee It st. Paul. has en-
eaandeu,ed. and all the money the said !" ring :"
expended in getting their infamous clse.idia-
ton bill through the Wisconsin Legislature has
Sone whete the wood5Ile twineth." The
evidence OF the Intentions OF tho - ring has
excited 80 much opposition thst there il res4on
10 expect dls1nemberrnent Of the Northwest
ern RAILROAD Company rathct than any fa1the.
Concentration Of power IN tho hands Of its "St.
Eau! clique Of Directors It il intim,ted that
Nr. 1Iacs. who carries the Directory OF the
Rock Island Railroad III his breeehes pocket,
heals clique which IL ManTuvrng by put-
ehaae of stock for controlling interest in the
Northwestern, and which vonld favor the dir
mfmbafment Md the subsequent consoGda-
ton Of sonle Of the Northwestern lines with
the Rock Island Aeanwhlle the Pcnnaylyania
Central, the moet powerful, because the most
hATmanoualy managed OF the five greatest
railway corporations Of this continent, is r,ov-
t1'e for the control Of the Rock Island Rail-
=" ~ - NVkII4Sl Ne N9uIfElluI Will kuG
Union Pacific There contendine interests
will make great fluctuations in the prices Of
Northwestern and Eock Island stocks during
the next month or 20.
The local money market continues very
quiet, and the inc1ease Of deposits is making
money quite plenty. One or the principal
eauses Of the increase of deposits nov ie. thst
men who have money are afraid to venture
INTO tpeculAtions or commercias .utern1ises OF
any KIDD, u the present unsettled aspect Of
finances. There IL still an active detu1nd for
loane from grain and roEk operators, but AZ
pleyment Of funds to any amount, their wants
are yerr freely met.
Exchange wso fr1n At L0c pcr 81 90 prenni-
I'M. Tor Gales between banks. At the counter,
oankcre seu y lilo premium, and buv At paz.
saies It the Stock Board todsy we're:
fa,NN T. $. 5-9os of 1861, 1897,
ssAeo T. 8 .-aus OF 1854 .Idst
3 aha1es Kepulllkc lns Co....., 50,
10 shArea State fEA ........,,,.-... 80
Iha following tads and oilers wesu alao
made.