, 1870-03-16
MONETARY AND COMMERCIAL,

TUESDAY EvN1Ko. Mar

I
tain all the coin received for customs {exceps tne
Amount requifed for interest On the bonds) Ia the
! TreA2u1y, and suthortzes the borrowing or buy.
| III OF enough morc gold to announce specie pRy.
Et11s On the gIeenhacks on January I, 1871 4
would also require the National BAul1 to spbatf.
tute cotn for legal tenden II their Is per cent "a.
serves At the rate Of per cent per month, ct tae
Whole aEonnt Of Indebtedness, for circulation
and deponr, which the rese1res are intended 10
secure. In order 70 see how tht1 Last requtEa-
inert Wou1d affect the gold market and the cw-
rency, let us see how much god the
nauls Wculd be obliged to buy; oyur
and aoore tae gold interest on sneir 6onds :
VI lanuafy 2, .oe aggregate circulation Of tna
National Banks Of tho Qttted States vas $a9a,-
s7A'ss, Aod shef aggregate depost1 Were 4S1.-
s'8,H7-nakipg 3s5o.ns,s3. One par cent Or
this amount would BE- r. 5u7,17s which would -
the monthly aula that the Ns11o3al Banks vuu14
have to aunstttute for legal tendezs and Witch 1t
the ED OF year would auouot 70 slo1 .osd os4 q
about one.ha1 Of the to.al AMOUNT Of thar 10
sel7es. The only resource Of the National BaukB
foT eutu Except by purchasing It In tha ma1fe) u
tho tntezcft On 1heir bonds denoatted as security
for circulation and depont8. Theae bouds
amounted on JanuarJ . to 3357, ,sa3 ys0, and e7an
II We aedume that she burds a.e all s per cens1,
the coin interess would smauns to oaly 81, ,a1s SIS
per auuum; 90 that, during sae uiEe months he-
fora the government would resume. according
to MI. Summers prog1anme, and, tnc1e-
fore, before the nauk1 could turn any Of their
legnl lenders into coin By thai Eeans they wuulf
be Obliged 10 buy $50, ,oso,c0o Of Rold. beLdes ihe
coin interest On their bonds. 1. may be Argued
beca0se tho National BantH.-accordtuR to toetr
January 1epo1s,-held ~, 81, ss3 OF Hpece. that
the purchase OF the rsat, TO make Seo, ,G8s, zoe,
would ros be 80 oneroa1 requirement., bat Il
muar be remembered that " this SIS a45 ss1 nine
tentns Of the whole is In two or tnree
Eastern c'ues. VIZ IN New York bsns1,
SsAsss,1l: IN Boston bants, 3aes0,77;
and IN Philadelphia oanks, &l,s11, ,Tp5, wAl1a
the National Banks IN all other cities aud tn
the country genera11y have scsrcely sny, snd
would be Obliged to buy. Tais would bo splau-
did thing foz the New York city bank1, which noe
only have more specie than would be required BY
Mr.. 5ulnnera bill within the nine months, hut also
have more tnan they know Whist to DO With Il sna
other National Banks OF the co1ntJ attempted
10 comply with tht3 requirement OF Mr. SumnxA
bill, 1t would, In INJECTION with the scarcity pT
cash gold In the market, caused By the boarding
OF the government, aeEd the price Of gold up to
such e1t1avagaot ngures that the banka would he
obliged TO fat, aud this they would do because
they could not all go into liquidation n oEce, nm
any OF them Bhort Of year, t1ere would be 10
eacape. Il Nj. Suunet3 hill 1 correctly reported
By Telegraph, It II dic1cu1t 10 understand Why LIZ
announcement shoulo have had any effect on tho
price Of gold yesterday, as little thought wouI&
convince any oce that no such Dill would pasEp
and that, even Il 1t did pass. 1t would be 1nprae-
ttcable. Rut it is still more dlncult to undax-
stand why bill proposing TO nats cs1h go1d
In great aemaId, stouId put do1n the pr1oo of
gold as It id yesterday In Wall street. It cz3
only be explained On the suppoait,ou that ta6
owners Of gold are thoroughly dsmoral'zsd about
the price, and Interpret everything as todIcaunzs
further decline, and, a1al1y, that Wall at1eee
jumps at conclusions On 1Qanrta1 subjects with II
lille reasoning and common teuse rs Congress-.
1t Is cuE!ous 70 note what devious Ways are pre-
posed IN Congress for the accomplishment Of ends
tb4t could be attained much e4Aler by Ample
nessures, II CoEgrcaa VIII anshonze the selling
OF the surplus government go.d, AID the funding
Of Eteenbacks Into PEI cent bands, and viii ene1
make banking nee 10 all, allowing banks IL
deposit any Of the gold tnterest-
bearing bonds OF the United statfs s1&
sale 20 per cent Of circulation on the gut raus af
such bouds IN the market, the currency queeion
would settle ITSELF ererT part Of the country
would have Just az much currency IS Il could use
with profit: ard thesvhole Of it would progress
scward par In gold, hecause tha banks would
gradually change shel IesettNto Specie ss gree0-
oaeks vera RETIRED.
tbs deprea.ion OF busirers IN Chicago, tn ccu-
Iequeree of the decline and Jet unsettled co0d!-
Ion Of the price Of gold, IS only En1ar 70 shzs u
rom The aaEe cauEe. The SeH To1k Krpresa
zJa- -'--~--- ---~-------s--
.The tE.ds q ths ety Z f: tso4 betak s.t
sqd eets r. 1et 20
a.a seqa.x
eslue In sold. sud havo sols haIre- Tbs leading
Veg to tho de1s1saFe 81 bayes. fsosn De Nv
In tha same connection the EoRtou ComMeYciak
,szzettn says Of usda In Boston:
- Nsny Of tho buyers have eous home. .ud an xrs
ID aSoe tei haa aaered T essT ass III sa
sod fuesustiors- aud Is IoT In 7erT dall eonAt-
The 1augs OF the prlce OF gold Tor the pazs tu
Rys Affords some grounds for talnkt1g That m
Eerage ot about Ill may bs sustained for sone
me yet; but public confidence has been 20
laken IN the continuance Of anI very considers
e premium on gold that the rev1Tal of tIade.
rem on that bas!s for gold, will be aloW- Tne
spe11enee Of the past two moths had been pro-
ssing the business puDuc generally for = resump-
on Of specie basts Of prices, nud. until 1t
:ached. the general condition OF trado Ia likely
j be unsa.lAfactoEJ.
In the local market, money confines mod&-
!ely easy. Both the depnaita ard sne losus Of d.
INKS are high. The increase Of depoatrs Il mainly
ON the ne1canule departments Of trade, nd
10 Increase Of loans Is chiefly to the grain 2ad-
revision deaIeEg. Buli1eaz wa1 unususty Light
; dny, the immediate cause beltE the heayJ snos-
orm, but ABIDE frpm srcn immediate causes
,ere IL waos Of confidence in the future thasiA
Favorable to trade
Exchange wa n,ln At from &c to 5O3 per 81 0e0
,em1um for baIcs between bants to-taJ. Al tbo
,uater bankers teu At ITO premium and buy It
10 discount.
Sales al tie Sock Board t:-dsy were:
,0to American gold. buyer r10..-.-.-.-.----.1114