, 1872-12-19
MONEY AND COMMERCE.
MONETARY.

WEDNESDAY Ev&1So, Dec. 49,
In the local market money continues rather
nt1ingcnt yet but on the whole there is an ap-
pearance Of improvement. Merchants are col
1ectins with moderate SUCCESS In the country =
though not SO well as they had hoped to do BY
this time,-and deposits are increasing little.
There is still good deal OF fair paper in the
open market at ~ per cent per month, but not
hear so much as q few weeks ago.
The supply OF New York exchange is large,
and the demand for it has fallen of little. On
tho other hand, the demand for currency to 20
Unto the country has helped to force sales and to
aepress the price Of exchange, which was sold
between banks to-day at 25c per 81, 900 dis
count.
nASK EXAMINATIONS.
Bank Examiner Sphinx rises to explain about
The Scandinavian Bank failure, and attempts to
prove that because 9100, 600 Of United States
bonds were deposited with the United States
Treasurer before the certificate was issued to
ths bank, one-hah OF its capital OF s225, 600
dcrstand that National Bank can easily be
etarted with no capital paid in except the mar
gin between the market price OF its bonds and
the amount Of its circulating notes. For in
stance, "a" who wants to start 8 National
Bank, with 100000 capital, puts up s25,o0o
with some accommodating friend, "B," to buy
$1,000 worth OF bonds. GA" buys the bonds,
forwards them to Washington, upon which
$4,000 Of circulating notes for the new bank
are returned from the United States Treasury
to 'sB." and thus pays his loan. "a" takes all
The 100000 stock Of the new bank. The stock
Is apparently all paid in, notwithstanding that
only u OF it has been honestly paid in. It is for
tho ferreting out of just erch frauds that the
Office Of Bank Examiner Was created. Their de-
lection is not difficult to any expert rho will
examine examine the BE- bills s receivable S,a, Of any
t4o law tic fullest visitorial power;
he is not restricted by law to any number Of
examinations, and has authority to examine any
Of the ohieers or agents Of the bank, under oath,
description of the condition of the bank to the
Comptroller. With such powers, there is no ex
cnse for Bank Examiner not discovering the
i1egitirnate condition Of 3 National Bank
1lR. F4Rw2LLs CURRENCY BILL.
The most prominent feature of AIr. Farwe1l's
~Currency BILL introduced in the House On
Monday, is that it authorizes the issue Of per
GENT United States bonds, which the National
Tanks may Keep IN Place Of o5aaan S Of their
synopsis of the bill volunteers the information
that % Chicago bankers approve the BILL" As no
E1ch bill has ever been submitted to the bankers
Of Chicago for their approval or disapproyal,
there seems to be no warrant for saying it has
their Endorsement. l1r. Farwels bill seems to
have been got up on the general policy Of cater
12g for the influence OF the National Banks, and
Its per-cent-interest- feature seems
to have been made on the supposltion that all
the National Bankers would be glad 10 have half
tasir reserve in 3 per cent securltiess We be-
EArewde=t bankers would say that if they wera
to keep reserve at al, they would prefer, Tor
u,oney Of the United States. Mr.. FarWelrs pro-
posed per cents would not be legal tenders,
Rnd, even il they were convertible into legal
tenders On presentation at any sub-Ireasury,
OF run on bank, as it would take time to con-
F=tt them. In caee Of 8 run, depositors would
Of course be willing to take s per cents instead
ef money; but wien d banks resources had been
rents, that fact would be q warning to depositors
HAT the bank was on its last legs. Under such
circumstances, no bank could put on the bold
front. that has saved many one from closing its
cent bonds could not stand run half so well as
one with its reserve in legal tenders.
RESISTING GOVERNMENT OBLIGATIONS.
Secretary Boutwell, argues, IN behalf Of his Oc-
fober issue Of greenbacks, that because Con-
Rress once authorized the issue Of $400, 1000 900
Of ereenbacks, nothing short OF an act Of Con-
gress can permanently reduce the volume, but
asRumes that the Secretary OF the Treasury has
power to increase or diminish it at his pleasure,
between the limits OF 1856, ,00O, 900 minimum and
s. 4cU, ,000, 900 maximum fixed By various acts.
Now, as there has never been any provision by
Congress for the reduction OF the bonded debt,
except the Sinking Fund act, which requires
per cent Of the debt to be cancelled each year,
Mr. Doutwell's argument assumes that his $780,
100000 OF reduction Of the bonded debt since
1859 is only temporary, and that he IS at liberty
t. put out again, at bis pleasure, ell
II the Sinking Fund act. II his argument in
regard to the reissue Of cancelled greenbacks
Ee admitted, his next assumption will be that
b has authority to reissue S10o, 0og or SO OF
tie cancelled Per cent bonds. Mr. Boutwell,
v.;ich be is not expressly forbidden to do. 70
ouch mans assumptions OF power there would
le no end.
TIE NORTHWESTERN RAILROADS.
In another part Of this lssue We make e1-
tended reference to the Chicago l. Northwestern
GALWAY, now comprising under one control
1900 miles Of line. The gross earnings Of the
Company for the last fiscal year we're over
$4,000, 900. The line between Chicago and
Milwaulee, Of only eighty-6ve miles, earned
rolid figures presented in the sketch, especially
taose that must follow our new connection with
Tie iron regions, open new future for tae line
end for Chicago.
pIErY As COLLATERAL.
Gail Hamilton makes good point against the
Eanctimonious skinfints OF Boston who placard-
cd their unburned houses with " God protected
rs" etc. She says When mature business
Iaen-men who hold other peoples property in
trust, bank directors and proprietors- publicly
I!gcard the Divine favor as reason OF their e1-
E1nption from disaster, it is time for stockhold-
s-s to look into the books"
LOCAL STOCK AND BOND MARKEET.
s1essra. Limit, Preston d Kean quote aa fol-
lows this afternoon:
Bu@ng. Selling
E-20s Of '6a, e5. Observation-Disclosures. ing l12H
s-2os Of s4 e1. 1.int.~-............. 17s2: 31ss