, 1870-01-11
MONETARY AND COMMERCIAL.
MONETARY.

Warrington dispatches or Inst evening lHumate
that OF e Of the frst duancial measures 70 come
before Copgress will probably be Secretary Bout
wells proposal 70 fund ts5 900 900 OF the present
per .ent certificates into bords and Ruthortz. The
Issue OF q corresponding amount at National Bank
cIrfeEcy to Few Eatfoual Banks In the West aud
Sou1b. On general principles, any change In the
present proportions between National Bank notes
and efcenbacts, 60 as 10 diminish the volnne OF
the latter md trcrease the volume Of the former,
move In the rtghs direction, because it ohliges
The bank 10 take specle redemption into
consideration. which they never will do
20 long az there Ia 60 large
volume OF greeubacts with which 70 make noun-
1pa1 redenptiors Of their own n0.eA The 5 per
cents are, for al the purposes Of the bauks, the
same ~ leeal-teuders, and nearly the whos Of tao
$i5 oe0 now In e1s1euce, are held By the banks
as part OF theIr legal-sender reaeEvea. retro.
nent Of these, therefore, II practically decrease
IN the volume Of 9reenhacfe, because a CORE
spending amount Of greenbacks would b drawn
into the vaults Of the banks In their place to be
held Rs legal reserve 1t ls common Impression
that the authorization Of the lsJuo Of Al tddl.
t1onal amount Of now National Bank notes, COZ
responding to tho AMOUNT OF Rteenbacke or 8 per
cents thus Withdrawn, would keep the{ctrculnuou
up to Its present volume: bus those who have shiA
Impression overlook the fact. that, II the National
Bank uo:es are increased rs, 6oo. 600 over their
pltNtAs NOluUE. ID ptE CeuL legal reserve OF
gteelbacls must be led nKalnat them, and that,
tn addition TO the taa ont, 600 OF grcenbacka that
would be drawn IN from general circulation to
tate the place Of the 49, 900 per cents taat
were funded, there Would also be s., ~ 900 ali.
ttoEal g1eeIbacks Withdrawn, to be held a. re.
serve sgalntt the S3a, ,0o0. 600 new National Bank
notes, and a r1uch more 10 be held az tbs IS per
cent legal reserve required by law for de-
poalts In the new National Banks, 30 that
thcle would probably be o practical con.
traction OF the teal present circulation Of
somewhere near t2o.ooo.ooo. This contract.
Ing eject wonld continue to increase as
long al the process Of increasing National Bank
notes and Withdrawing greenbacks IN the haue
Proportion Was continued, and when, In the course
tfst ch process, the National Bank Issues had IN.
creAsed to $50 600 0oo instead Of $500 G09 As
COW, and gteclbscts and 3 per centa were IT.
dncsd TO total volume o saJ, $3.50 600 900 instead
0! 500, COO IS nov, there would only be enough
OF the atter IN existence to furnish legal reserve
sgaiEkt tie National Bank notes, and against the
deposits In tie National Banks. The consequence
would be that though we should have the sane
amcuLt Of paper money IN existence
as lrow, We sbcusd ONLY have $3.50, ,ooo, 900
OF II In actual circnlst!en instead or having 1esry
Sc0o coo OF II In actual circulation. IS at pres.
ent, and the effect would be conunctIou Of the
total circulation Of about elo0 oo1. This would
be lhe practical result az long as there is any legal
limit 10 the total volume Of National Bank clrc1-
lauen.
On the evening Of Saturday, January 8, the as.
eoclatcd banks Of New Tork city held ta3 654, $50
In SPECIE an increase OF f. 9ee Since tae pre-
cediug Saturday, the total amount beng so1e-
where near 5lo.ooo.ooo more than the oanks Of
that city held On the average before the suspen-
6Ion Of specie payments. This shoEs tha. tue
gold d:seurscd BY the government for January in.
tcreat has only changed places from the National
Treasury into the hands Of the people. What 10
due to foreign holders ls being, - great extent
reinveEted in bonds; and altogether 1t gems one
Of the nost unfavorable times TO get up specu-
latinn In gold. Aalde from this, we think
1t Will be acknowledged that thete Is
really any Clique tnat are now operating
to atTance the price Of gold. as cur Ne1 Tork
telegrnEa Intimate, they must have adopted
new style Of tactics in carving out their iuten-
ton No clique has ever before ye1Iured to tell
tie pnbhc exactly how they proposed to lido the
thing, In tact, III past experience OF Wall street.
has shown that they have at nrst eudeavored to
nystify the public a. much as possible. II
Wall street clique haB Arrived at pitch OF csl.
dor where they Will tell the :public exactly what
they iutetd 10 do, It would seem that there was
ho pc ict millennium OF financial honesty.
In the local money market there are some fndl-
cations Of an easier feeling, though II ID due maiu-
y to the falling o1 In the demand for accomuo.
daticnt, rather than 10 any considerahl increase
n loauab1e funds. The merchants hare had q
little better Eucceaa IN collecting, and 60 hare been
Able To pay Eastern creditora without 60 much
help from their bankers. The tendency OF the
grain and produce markets Is inst in that uncer.
nln condition II Which very few feel disposed u
borrow money for speculation, so that though |
he banks aye still low III iunds, they feel Ro un.
comfortable pressure, In the open market, how.
.Ter. high rates still prevail
The movements Of currency, rs between this |
.ity and the country, are tdst ABOUT equal Bat |
here Is stll considerable currency being shipped |
20 New YORK bY barkers who have conirscta with |
he express companies yet unnle,.
E1chatge Ia nru, at from SOC to COG per $1,000 |
premium between bauke- At this counter pankera |
cl at lilo premium, and buy AZ 110 d1sconnt.
Any important change in the relations of the I
,anks OF tue city, 10 It's buliness community, Is
EatteE OF public inte1est. In this light The folio e.
pg circular, issued BY the Prealdeut Of tae Mauu.
actuseIs' National Bank to the stockho:ders,
Towing the change in the bus,Iess OF the baur
lur,rg the past Jear, will be OF interest 10 bust
less neu generally:
Enclosed hand you B.atenents or the condition |
II Ills bank, JAnnary is, 1e6o, the dale at wnca
liz. Ira Nolnea a6kumed lis manaReueuL nnu |
december 81, the cloAe OF the last year:
srArEAkkT, JANCARr 18, lS62.
1