The New York herald., 1870-03-17
rHE MONEY MARKET.

rHE MONEY MARKET.
Tho money market was active az Ave TO SIX per
cent with u few exceptions at four per cent To
prime borrowers on government colaterals. wnere
the lenders were Wiling to give the iul market
price Of stocks pledged with them they obtained
seven per cent. The market for commercial paper
was steady as last quoted.
THE NATIONAL BANKS AND rHE FUNDING BILL
The CONSERVATION produced among the capitalists
who own tho national banks at TIE passage IN the
Senate OF the Funding bill, winch proposes 10 cur.
tall the immense profits these institutions derive
from banking upon the national credit Is evide aced
in the following private circular sent to each bank
throughout the country sounding the note OF alarm
and calling on all banks TO work upon Their local
representatives In the lower house OF Congress TO
defeat the bill there. The document Is foiows:-
NEW YORK, Marcn IA, isgo.
To THE NATIONAL BANEs:--
The undersigned members OF the Executive CON.
mittee OF the National Banking Association have
visited WASHINGTON for the purpose Of explaining 90
members OF Congress thai The eighth section of the
Funding bi reported 10 the senate Dy the Finance
Committee OF that body, would. II passed INTO law
Ierests OF national BANKS inasmucn as Il requires
them TO take one-thrd each oi TOUR four-anda-half
and five per cent bonds NJ par In gold anu deposit
them in the department TO secure their CIRCULATING
notes. in place OF fivetwenty and eighty lone bonds
issued TO The Union Pacific Railroad, al bearing six
per cent interest," ana IN place also OF tue en-lory
five per cent bonds within one year IRON the date or
the passage OF the act or forfeit their right 10
circulating notes. We endeayored to show members
that there could ne profit ON circulation 10 Induce
the banks to take the proposed bonds, bearing an
average rate OF four per cent interest ana
therefore large portion OF them, II not ALL would
be forced to either abandon their organizations
under the national law anu wind up or organize
under State authority, or as private banxs-
We are very desirous Of seeing the debt OF the
country funded lower rate OF interest thus
diminish the burden OF taxation upon the people,
and favorng, do, ali the provisions Of the bill
that are legmately designed 10 erect tnat OBJECT
insisted that the provisions Of tue eighth
have no rghttul connection with that measure.
We plead the injustice OF making any distinction
between banks and other owners OF bonds, anl We
maintained that they, ike Others should he left fre,
/ TO take the bonds or not. We especially protested
/ against the injustice OF compelling banks 70 sur
| render or dispose OF bonds which are not due,
| and the right to hold which, and to use for tne
purpose that they are now used, we think they
nave the piighted faith OF the government as con-
| sderatlon Tor their compliance with the terms or
| the National Banking law. Notwithstanding our
efforts to the contrary. the bill. with the obJectona
bic section, has passed the Senate. II now goes to
! the House OF Representatives, for concurrence
where shall make an effort ~ have the objection
able feature stricken out, and to that cad we need
the prompt and efficient assistance OF oil who
interested In this important question. We there
fore urge upon you the necessity oil earnestly appeal
ing to your local representatives IN Congress and all
other representatives, with whom you may be ac-
Quanted, to use their efforts to amend the oil
to free IL from the objections which we have stated
| and thus preserve to the people the best banking
system ever adopted IN TINS or any other cou ntry
| With the present enormous taxes imposed on bank-
L
| ernments 1t ls, In our opinion, mp0ssioe for >
large portion OF the banks 10 maintain their exist
ence and paw reasonable dividends to their stock
holders without benefit derived from circulation
| which they now enjoy and which the section Of the
| bill under consideration takes away entirely.
The following statement VIII show Lnat there VIII
be profit on circulation II oO aimed on foar aud
half per cent bonds paid for IN gold at sar In max
ing 1t that money to be paid Ior the bonds
l Will be worth seven per cent.
Ii gold is above par the result will be more unfa-
i vOrabe than appears IN the statement
i q n IA
OF circulation can be obtained on the par value of
| the bonds.
| BONDS AT Az FER CENT. GOLD AT PAR.
Bond for $1,000 DIR.
For interest on $1,000 for one year. az per
For interest on 500 OF reserve on circulation az
per cent... IA
For government tax on $500 OF circulation. =
| For interest on mutaJed currency on hand, ex-
| press charges and 0tner expenses connected
/ with circulation, say per cent. ...............
Interest on bond for 1000 one year. At ~ per
4 Interest on $500 OF circulation. one year. at per
cent .......................... ot
Total. $ioi
Profit on 81, 900 bond for one year.. 81
| With gold at IN per cent premium Tue bond
would cost 81, 1875 IN currency, and'the Interest
and other charges would be. be................. sl0s
the income from the same would be........... loo
"
L. b. JUDSON, Prest LIST Natl b., Syracu &C. N. Y
| y. q. CALHOUN, PIest, 4th NATL Bk., New YORK.
/ CHAS. B. HALL, Cashier Boston Natl Bk., Boston
| THOS. COLEMAN Prest.. 1st Nat. Bk.. Troy, N. Y.
/ Members OF the Executive Committed.
STOCKS IRREGULAR, BUT STRONG AT THE CLOSE
| The stock market at the opening was weak and
heavy, and underwent another decline In sympathy
with further break in Pacific Mail to 81. 1t seems
| that prominent German banking house sold some
$500 shares OF the stock for on uptown importing
nrm and as the street got tho 'ponto that large