, 1872-11-12
MONEYAND,C0MMERCE,
MONETARY, I

MONE AR1.
MONDAY EVENING, Nov. II.
In the first impulse Of excitement, this morn
Ing, many Of our business community wero ap-
p.eLenEiye that financial panic and disaster must
speedily follow, as 8 consequence Of the Boston
fire. But by II o'clock: when people had got to-
ge1her and compared views, great change Of
opinion was noticeable, more sensible views and
a quiet feeling prevailing.
The apprehension that the Chicago loan mar
ket will be deprived Of one OF its chief sourceso Of
Eapp1y, and that, consequently, the money
stringency will ba greatly increased, does not
seem to be based on Eound reasoning. A large
proportion OF the Boston business men will not
be able to begin business at once
2a the e. same ,,,i hsaie e.. rs before ard
collecting their insurance and outstanding bills.
The experience of tie Chicago fire vas that this
process caused great accumulation Of funds in
The ban5s INK, during the frat eight months, The
came WILL doubtless be true of Boston, only to q
much smaller extent than it was here, because
the stoppage of business will rot be SO general
there Els it WIS here. II the total destruction
OF property was rs Sloo ooo, ooo it vas probably in
worth sixty cents on the dollar, it Will put over
0,000, ,00O Of cash into the hands Of Boston
merchants and capitalists within ninety days.
,,;1s, Scarcely a1y Y Of this yin be wanted for
spring.. and but little Of that received for in
surance on stocks Of goods will be reinyested in
new goods Tor some months. In the meantime
It will lie IN bank. 1t is true, there has been an
immense loss of property that must eventually
be felt somewhere, but the fac. that the cum Of
$4,000, GOO or $5000o, 600 Of capital has been put
in motion, and goes into the hands of parties
Who will not make any permanent Investment of
It for the present, will have tendency to make
the market Tor commercial loans, at least. easy
in Boston this winter
It isl not probable that the Boston real estate
owners Will reori'd the burnt district this winter
aud they will not want to borrow money
on mortgages before next summer. When that
time comes, We shall probably find that the sup
ply Of capital from New England, for loans On
Chicago real es.ate. will be slightly diminished,
bat probably not to anything Lille the extent ap-
pretended IN some quarters in this city.
The destruction OF SO large an amount of man
ufactured articles will diminish the supply, ad-
vance the prices, and stimulate the production
ct ali tue kinds Of manufactured goods destroyed.
This again viii have tendency to keep money
il rapid circulation, and will be benefit to fac
tory operatives and the laborins classes,
and will have the same effect it did
h3Te i'' to h Increase a savings deposits, which
It is of course possible that some Of the s1s: Bos
ton banks may fail, but not at all probable, as
tue banks Of that city did business more largely
ca their own capital than any other banks in the
United Sites, and could, therefore, stand
Banks Of Roston, by their statements made to
the Clearing House Oct. %, showed the follow
ing aggregates: Capital, $500, 900; deposits.
s53,szz66 ooo; loans, s113 500; circulation
$a,i79.l00.
The most se7ions aspect of the Boston fire to
Chicago business men is the effect it will have
on On the nj insurance az interest All business
upon margins, depending on the guarantee
OF the insurance companies against the loss Of
the principal bank that Buys bill Of ex-
change drawn against . cargo Of grain i'll transit.
or advances to merchant IS per cent Of the
money to buy lumber, or coal, or iron, or pork,
o. anything else. depends On the INSURANCE as
indemnity against the loss of the principal. AS
long, therefore, as there is doubt about the |
6olyency Of the insurance companies, the banks !
and the merchants are - ell at sea as to wheth-
er they are protected or not. 1t is fair to esti-
afe h tug. the aggrega:e aa mi capital
ance risk to be carried will be diminished
very little in proportion to the
Whole, and until there'is an increase of insur-
ance capital. and sitting out OF all the crippled
furapce will be much less than before. Scme Of
them, though really bankrupt, will, like the
Andes, ct Cincinnati, put o bold face on mat
teIs, DECLARE they are al right and will go ahead
creased harvest OF bueiness, at high rates, wil
psy their losses; and reitEtate their capitals.
The Boston companies; anda good many Of the
o. 1sher s New England companies will undoubtedly
Mercantile, Imperial. Royal. LIVERPOOL end
London & Giebe; Queen Commercial Union
London Assurance, ana the Lancashire will, it is
900 900 and 81, ,oOo, 600 These losses Vii prob.
ably be paid in full, though it is to be feared |
that the severe Losses experienced in the United
states, during the last eighteen months, by the
cease writing risks here, and thus deprive us Of
some OF the most reliable insurance TIE have
ever had.
:. The Phoenix, Of Brooklyn. reports it's loss in
S5oo,o0o. The PhladeIphia companies viii suf-
Ter severely. As rule, but few Western
companies will be hurt.
TEE BAsE or ENGLAND RATE.
As Tar aa finances generally are concerned the |
sudden advance On Saturday of per cent in the
rate OF interest BY the Bank Of England is
matter OF as grave import as the Boston fire.
Ever since the beginning OF October the bank
has been apprehenslye of q drain Of specie to
Germany, and beginning with interest at 3l3
per cent on October ], the bank advanced it u
OF per cent at several successive times until
last week it stood at 6 per cent. During the
ed in New York that the rate would be reduced
20 5}5, but On Saturday it was unexpectedly
advanced to the extraordinary figure
Of Per cent. So great an advance as per cent
Aas Aefef been IQaue py tne BanK OIL EngIand
except in cases Of emergency. The last report
Of the bank showed that for the week up to nov.
3, there had been decrease of !el35, 900 in the
bullion reserve, but even this would not seem to
warrant the advance to per cent. and there
seems to be something in the situation Of the
London money market not fully explained yet
by the dispatches Thefailure Of Bomles Broth
ers d Co., American Bankers, OF Paris anl Lon
don, will probably be found to be merely an in
cident to some new financial tendency Of events
that will produce other failures
TIE DECLINE IN sTocGs.
Below, is comparison Of the prices of Gov
tvnment bonds and some Of the leading srecu1a-
tvs railway stocks in New York On Saturday
evening, Nov. 9, and at o'clock p. N. to-day,
Nov, Ii. 1t will be seen that tho average de-
cline Of Government bonds was less than i per
cent, while on railway ssocks it was an average
OF per cent:
Saturday Esening, Non. II,