, 1870-05-07
MONETARY AND COMMERCIAL,


lie present premium On ereenbacks oFeJ
: National BanI notes, in Now York, should giTe
. our Congressional tinnncie1s hint as to what
would he the immediate result OF increasing
National Bank notes, even il there WAS no cor
responding retirement Of greenbacks. The
concentration of currency in the cities at
! present, has increased the deposits OF ali city
banks, and made necessity for correspond
ing inc5ease in their 1esal.tendes revenues.
But at the same necessity has also been ex-
pe1ienced by the banks that have made this
increase of deposits with their correspondents
IN New York, the currency that has been ao-
cumulated By the general Increase Of deposits
has % consisted Of larger proportion Of Nation.
the banks Of New York are now Offering to
loan National Bank notes FREQ of interest for a
week il the borrowers will pay the loan in
grecnbacks. In other words, they are offering
| 3 premium on g1eenbacks over bank notes,
equal to the interest of the money for week,
Ihis is small premium, it is true, but it Is
premium, and, though the present situation IS
not entirely new, having been experienced be-
fore, IN seasons Of p1ethora, it goes 70 shoF
increase in the present volume Of National
tank notes IN circulation, even eco, ,000, 900.
VT should at once have bankers sorting Tia
currency received in deposits and sending the
National Baik notes to the redeeming agencies
L, now, without any increase Of National
Hsnk notes, or any decrease Of greeubacks. |
the mere concentration Of money IN tho cities I
can create premium on greenbackp, it is units !
certain tLat any change IN the proportions Of
Gfeen61cks and National Bank notes would |
estabhsh the custom, at once, of actual re-
de7nFfions in -greenbacks; and, as the pro-
portion Of National Bank notes becana |
larger, compared to the amount Of the rrecn-
backs, the latter would gradually appreciate
1o"ard par IN gold. This would be tbs tenden-
g, even If the proportions OF the two curre1l-
eies were changed By III increase of National
tank notes without any decrease OF c1een-
backs. But when gTeeubacks lad once adyan-
ced to par and actual rcdemptions in gold
ha mese made y the Treasury, they would always
system, because they would be the means by
which foreign drain Of specie unirEt ,
cause e suspension Of specie payments again. {
!, here would be no safety then in any resump- t
thc gradual, b1t complete retirement Of tie '
srecnbacks- It is somewhat doubtful if Com II
,ress will take any definite action il, tie fund
ng and currency questions during the present. r
esslon. But the- settlement Of both these f
over which boil, Ilouseg oil a,
congress and their several committees lave :;
ang!ed for four or five months, could be set s.
led eafely md completely by authorizing the i j,
ecfetarF to Issue, say s, ,000, ,000 600 OF or re
IA Per ,o3d Ssnt as,nd bonds a which should be q
-2o,s, and upon which banking should be tree 2,
all providing, also, for BONG retirement 80
greenbacks Concurrent with the issue Of do
e" National Bank circulation. This would J.:
Of only provide means Of refunding tie 16
ebt at lower rate OF interest, but it Eo,1Id TT
ting the currency gradually to par With gold. 90i
d eventually put banking On specie basis' If,
The prominent feature in local uatters to- 8sl
y WAS the speculation in wheat, which ran
Q pl1ce up abont &c per bushel. It is not be;
ices here, which has been favored Ly tha II,
anoance of money, has had Soma ef- va1
Il upon the foreign market aud COD
helped 70 make the advance 49,
the 1atcst advance hero has thus been les
de, to come extent, upon the reelected effect san
*nst It had advanced before. Aside from bu.
$, the principal reason assigned for an ad- sell
ice ,sc - ne ~ l1se s q our great staple is the
. cu1Aectto4 We ma tne following letter to stu
editor OF the Ala California from mem ut 7
OF Minnesota milling firm who is now in r
iiornla, 4 aud has been giving particular at oct
tion to crop prospects there: for
nr,o oaas; ;AckAaESTo, - April =, 1s7a tho
all the Railways OF this State noting crnn nros n1
me only crops giving earnest OF full field 81
lnose WHICH are On summer -f11oHcd l5rda / %o:s
lr1,e part sewn ts too sna1l to 10sture. annsher
@ eonsidssatIe pat 1s doubtful, lnasmuch as statt
knool oiade Is out On abort stand Of graiu cost
/ / ~ Ga ~ u snle tnde1 OF Eh0H ear OF asEs
r. soi lag 1,1t as mature well moisture l. have
1rcntng. The nssnit n1 M e moment euch
your State mar have bali he n1n,net " ship
:, and possibly not OYER one-fonrth' Tns Hare /
crops ere tn the vicinity Of Dixon. TIE 4ftans
snl o. lst In this State, covered the State OF t;y
ssq1a fa1ia an dn5ng The same period, aud ID 1865
. On lands conscrc9 nnor Ma.1 ~ fans er
Yield, while on the lands tshrb 80 " ' FTP be
wheat lands proper, too hratv nroW1S ~ adya1
:, and poor Yield. The inference e tast bv omit
~ y! p.oaeted drought the lands we're re- e1pel
IT. rest and atmospheric OF til
hat ~ 60 - Icy aas3ces Itom Mln1esota !'has
ddence WORTHY of mite eb,na MI ~. be cutoas l1unni
extend orer our two Stofes aesn a. .hs .. the q
d. -" 'A~ 0'7 ment
e local money market is easF. and hus;z !. enabl
Is quiet, with considerable less actyitv in Ii,
y than yesterday. There ia lirl,t more- lice n
Of currency to the country. and none in |. VII
Jther direction. Exchange Continued toI- throu
= firm, with sales between banka at from, 2Gc u,
so cents per 81 900 premium 1t he !. New
Eer, bankers sell at Lilo premium. and Inv which
:. Buffalo bills are taken at on. day
es At the Stock Board to-day we're: The
American rrdd hnver % ,,x New