New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-11-26

men to the conviction that there must be
some radical defect in our banking sys-
tenn, since, just at the time when accom-
~modations are most needed, and when
judicious expansion Of credits would
prove of II greatest benefit to the COM
mercial classes, and, hence, to the agri-
culturists and other producers, we find
loans called in and the line Of discounts
contracted. Why is this3 Obviously.
because the law has interviewed, in con-
structing the banking system, to check
the natural laws Of trade. A large
portion of the loanable capital Of
the country is invested in banking, and
during times of commercial distress, this
capital is locked up by the restriction
which prevents banks from charging more
than specified rate of interest. The
consequence is, that when money is in
great demand, the classes who control the
loanable capital Of the country are de-
barred from lending their money at the
rate which, under a freer system, they
could obtain, and the business of lending
falls into the hands of note-shavers and
street spectators, who, of course, reap
all the advantages OF the great demand
and small supply. 1t is absurd for the
law to say that money shall be worth only
eight per cent per 'annum, when every
body knows that it's value may fuctuate
from five per cent to twenty per cent. it
is equally absurd to suppose that the
legal restrictions thrown around the
hanks are protection to the money
borrower. On the contrary, they are
hurtful to all classes, inasmuch as while
they diminish the natural profits OF cap
ital, legitimately employed in banking.
they operate disastrously ON the borrower
by preventing him from obtaining money
just at the time when he most needs, ex-
cept by submitting to the enormous rates
which the outside operators are thus ena-
bled to exact. Until our business men
and our legislators learn the great truth
that free-trade in money is the best and
safest policy, We shall always be liable to
periods of aggravated commercial dis
tress.
The sensation of the street was Sugar
shed. This stock has had an active look
for some days, and yesterday it took
sudden rise, in consequence Of brisk in
quiry for it. At the opening it sold at
S27 so, and at the close 600 shares), at
$50. At the Board it was offered at S3l.
Barbarin gas stock improved. but did
not reach the point from which it receded
the day before. The bids on the street
were S175, and in one instance $50.
Five shares We're sold at $50, sellers
option sixty days.
We were informed that s207 had been
bid for Bank of America, without result.
Slaughterhouse was quiet. No sales re-
ported.
There was some demand for Lottery,
and the asking price improved few
points. The lowest offered for sale, that
came to our knowledge, was held at s8s.
None of the bids for the treasury gold,
offered for sale yesterday, were accepted.
The writer of this article having been
unable to attend the session Of the board
last night. could not procure the list Of
bids and offers. He can state, however,
that % shares Calcasieu, preferred, were
sold at S27; 10 ordinary at SIS so, and
$500 gold at\ l12; sl7 WAS bid for
Slaughterhouse.