, 1870-03-23
MONETARY AND COMMERCIAL.

TCMpAY EVENING, March g

TrEsDAr EVENING. March -
In general, there il no journal in the country |
that discusses tho financial questions o! the
tho Sex York Financial Chronicle, but cTen
the most intelligent sometimes make mis-
takes. and in defending tue Funding bill, the
Chrnsiicir gives evidence that it is not an OK
centon to this rule. The Chronicle insista
that the requirement OF tho hill that tho Ma
tionai Eanks shall, within one year, withdraw
their 6 per cent bonds, now deposited ~ &C.
curity for circulation, and deposit I. AZ aud S
rer ceuts in their place, is no Reputation. It
eays: .. .....-..
interest Oh any paft Of the debt what-scr. except
with the free cnt.stnt of the hodes. The 57os now
held hI The banks, like al the Others, are % be
new bonds is optional with the hanks, and nut r..-
qu!red Of them In any case except where they wish
to continue this privilege Of Issuing currency.
They can return their currency Or they can retain
Il II they retain II Congress simply claims 1hA.
an additional ta1 shon'd n na,i fur the ptvile:e
& bonds sSs sses ss s Se stosie an hs IS s
curity. Neither Is any compact already made 10
fe al1ere1t. In each Of the banking acts hitherto
n se ~ Il !se
hanks have accepted their franchise under this
reservation, anil therefore cannot complain OF a
ever he fei1aiaased 1t any time The valuable
privilege Of issuing currency, on certain cond,-
tons, and SO long As the government chooses, Was
grant them the further privilege Of issuing cuFren-
cy hereafter, on different conditions, for another
.t!cnnte period. It fuldls all Its obligations "
them.
This reads smoothly enough, but let us soc
whether it will bold water. Tho Chronicle
says: The 5-220s are 10 be paid OF al par
in gold coin" What coin? Where ia it !?
There ia not enough IN the Treasury to pay OF
es sns sunred Cd ons naR in sa Soss IT,
the Chrmsiete would asguo &hAt there will
be the equivalent Of the gold coin il
the banks accep. the ~ pcr cent bonds At par
i'll gold, as required BY the Funding hill. but
the new bonds III cntire)y optional with the
banks, it would seem that the payment OF the
5-2OH at par in gold is contingent upon tho
, banks taking the new bombs n tho easle price
as the 5aor md what il that bur repu;s:::..ion;
in tact, Of ~ Per cent OF tho intercs, on the
bonds: The friends Of the Funding bill will,
probably, argue that the banks arc not confined
10 u1o alternatives Of gi7ing up their circuia-
tlon OF exchanging their G per cent bonds for
~ Fer ccntn ii case they wish to retain their
circulation, and may point to Section 10 Of tho
! Funding hill, which allows all National Danks
to deposit Grccnbac2s IN sums Of ouc hundred
! thousand dollars, and receivo therefor An
equivalent Of registered bonds of the United
: States, Of the kind and description provided
/ for by this Funding bill, IS security for M
!; ional Bank circulation. Well. suppose that
the greater portion Of tho National Banks
eoa rsle t t. would SeaS not to n,xs takS &, this
roin TO rag on At par the 5-:4Os, which the Ns-
| tional Banks would withdrawupon substituting
the ~ per cents as security for circulation.
! When would these 5-20's be paid in gold coin
At masuIity7 or Hould it be when Secretary
Boutwell, hid sold enough Of The ~ per cent
h0nds eS, in foreign markets :. rar in gold to
; In either case it would be Of no benefit
to the National banks thev could not afford to
wait and would be obliged 10 throw the 5-2os
they would withdraw from the Treasury upon
tfle market. That would break down thcir
Price. The sos instead Of being worth 81
cents in American gold. ss now, ~ccn!a decline
both here and in European markets, and As tue
bonts cannot decline without a corresponding
decline in Ereenbacks, there would be. in other
Wor1ls, large advance in the y,rice Of cold.
The reheme Of Secretary Boutwell, i m e.
ssemeis subtle one: his ''nmttiiate o'yfct is moi
Tut 10 tt7rrtiate the credit Of ne qorern-
meat ly putting dotrn The prict Of bo4,ls 30
Maf nth high frseF for gold he may continue
h'* satts Of gold aud I'tsTntt1%s Of 6ends, anil
II, hs the rassaEe Of the Funding bill. he can
huudre millions Of $40 londs upon tue mar
kct, his purpose will be accomplished, and We
tllall hear no more OF refuu,iing the debt At
~ per cent until these have been ali bought
up. As We have said several times before, The
pafsssc Of the Funding bill will produce con-
traction OF the cnrrcncy, because large num-
Der Of the National Banks viii sur
render their circulation snd abandon the
National Banking system. That part Of the
Funding bill which provides for .f,Ae banking.
and implies that there will be an incscas, cf
risk bis capital in a National Bank under the
supervision Of 4 Finance Minister who had
demonstrated that he would sacrifice their in
'e1ests and also the credit OF the government
to his hobsE for d sinking fund : hut this
contraction Of the currency, Is We have shown
rayment. because its object is to deprecia,e
TIE credit Of the government Mr. Eou,welis
nent ~ - heavy discount a possible he
"; would fulm the technieA Fraaing Of the prom
mag he considered thrifty policy but, as f.r as
national honor is concerned, there is little iif-
ference between Boutwell, aid Pendleton, II
t;onErees really desires TO provide an ample |
snErlz OF sound currency, and to provide ior !
let it hrst retire its dishonored paper in
the G1eenhacka. and, at the eame
time: male banking free to all. only requiring
the Nadona Ranks to deposit anv gold inter
est-oeaI1ng tords Of the United States, md |
take ~ rer cent Of circulation on the gold |
soon bring the currency to par with gold, and |
When that is accomplished the 5:30s will bc |
enough above Par in gold to make It to the Nd |
vantage q tho holders TO take efortv-yeaz bonds
6caHns - per cent interest, atpss in gold
one. while Nj. Doutwc1l's rlan in the Funding !
bill means national dishonor and coRmercil |
Gisaster. !
There are indications os moro activity in the
local money market The bad condition Of the |
la rtNsr rko.4 ka II
ing CT al kinds OF -Trssduec. and this, in turn,
makes collections difficult, and has Obliged the !
merchants to become borTowers- Ths carry |
Ing Of tho enormous stocks Of grain and other |
amount Of eapita1, andwiife money is compar-
atively easy yet. it Is not likely to remain 90 |
long under the present tendency OF things. |
In TIC present demoral'zed md unsettled con- |
dition Of the grain markets which is about "a |
h I'D d. as it can 6e; g. The farmer are not
left in for sale, Event il they did, they would (
hare but scantv proceeds left to spend Al |
present Prices Of wheat, Collections. there !
fore, arc likely to continue light, ou, rs East
cIn bilh l1ll due, whether the merchants here \
who owe them collect or hot. the demand from /
the mercantile part Of the community IS lkelr !
to lnc1e2ee-
Ihe supply Of currency here is moderate
aud tie movements between the city and coun.
Try continue light. though there Is less being
received than il being seut out.
Exchange Is firm Ai Soc per e. 600 premium
for ea1cs between banks. At The cor7nte1 |
bankers sell 1t l-l0 rreriun and tuy at 1-f0 I
iiecount
Sales At the Stock Doasd to-day we're:
s, 600 Amencan EOll seller rlo--....-.,.-...1 10 .1ls1.
The following bids And one.s were also
made:
sor.zsxrsT spetnmr
......... EL Astd [
Cn!tcd States e., 1851. 114
Cuttsd States e-aGs, 1sG1...... ltDk leax
rri:.-I States t-s1la lSssA .-.... lGs., 1Hl: |
United States S-soH, ISGa. ~. 1Usx . |
United SIS t-e0s, f. {ncw,..... 1e74 1os-: |
Enitcd States aos, lss,;....... l0sI, ios.:
United States 5-sls, 1stA -. fe-h 80.
Eu1teA St3teA lp-4uS. ldo -. l
EANk>.
f1fst National Bank. -. ....... l1s 80