, 1870-05-13
MONETARY AND COMMERCIAL


THuHspAr EVENING, May II
Tho Banking and Currency article adopted
By the State Convention few days ago makes
an end Of the Especial charter business y for
State banks. savings banks. etc. After tho
adoption Of the new constitution BY tile pco-
pie, the Legislature viii haTe no power 10
grant such SPECIAL charters. The Banking and
Currency article, however, lays down tho car
dinal points Tor general banking Law, tie de-
tails Of which may be filed up and adopted BY
the Legislature at any time. By the provisions
Of this article, banks organized under any Of
tic LAWS Of this State arc required 10 make
quarterly statements similar to those made
Ly the National BANKS. Provision is also
United States bonds as security for
their circulating notes IN the same ratio, and
il the same manner, rs now required Of the
National EankA- The whole law is iu fact
copied after the rrescnt National Bank Law,
which il thus acknowledged TO be 20 good in its
general features that tbs con. ention has wisely
determined that, il We ever again haye State
bank circulation, the banks that Issue it shall
be subject 10 tho same kind OF requirements Us
the present National Bsnks. Until specie pay
ments nIe resumed, and as long as thers is tho
present government ta1 on State bank circula-
ton, there ,s not likely to be any Increase OF
State Bank notes, but both of these obstacles
arc 1iEe}y to be removed sooner or latet, kni,
when they are, banking in this Slate, and
uEde1 State laws will DO on sound basis
The convention will probably adjouru to-day
CT Tomorrow, and the result OF its labors in
the articles to be adopted as amendments to
. tie constitution will be submitted TO the vote
Of the people the irst week in July. As q
body, tic convention has discussed I'll the
questions connected with tho business inter-
ests OF the citizens Of the State with unusual
subjects OF railroads, warehpusibg, taxes, mu-
nici2a1 and county Indebtedness, Banking, etc.,
etc, are the foundations for radical reforms
that are imperative necessities.
Mr. E0sles, the American Paris banker, who
Was before tho Wass and Means Committee to-
day. and who is cure that he can get twelve
hundred millions OF United State per cent
bonds taken at par without going outside ol
Paris, is understood to be the source from
which have emanated all Of tie frequent as-
sutances that Mr. Boutwell, has been receiving
during tie last year, Of the samo tenor. Il
consrmmate folly it Was to get np such >
scheme as the Funding bill, by which the
whole monetary system Of the country would
bo disturbed in tho attempt to coe1ce
the National Banks to take one-fourth
OF the twelve hundred millions II
thoHty in the acts Of 1860, for issuing per
bonds to be sold at pa, and applying tho pro
ceeds to tue payment OF tho present 6 per
cents. there can he no harm in giving authnrj
ty to do 80. II per cent bonds eau ba sold
ut Par iu gold, the SOS, on which tho tire-year
option las not yet rnaturcd, are worth moro
than par in gold.
There was something Of reaction in Tho
general upward movement Of prices to-day.
Stccks. bonds, gold, grain, and other spccu1a-
tive commodities, were lower to-day than yes
te1day. The reaction. however, is likely to be
temporary, as the time has not como yet for
any permanent reaction. There is too much
r,nue1. aeeEiuft Investment tn nf3p,it of 1oynr