The New York herald., 1872-12-26
FINANCIAL and COMMERCIAL,
Tho Agitation for Repeal q ths usury LAvs-
Tho Flow Of Eastsrn Capital Into Western
Invsstmsnts-Ths Question sf Free Isak-
ing-Govarnment Bonds and the Per.
mansnes Of Their Security Stock
Quotations Now and Year Ago. pic
WALL STREET.

WALL STREET,
WEDNESDAY, Dec. rs, 1S72. j.
The agitation for the repeal Of the Usury law
has assumed an extent and importance which
leave little doubt that it win induce legislative
action this Winter at Albany. II the question is
settled for this State 1t win lead to repeal or the
national
UsURY LAWS r~t~Y
by Congress, especially as the recent decision Of
the Court Of Appeals has set at naught the privi-
leges OF the national banks in the matter Of usury
and has made them citizens of the State as regards
their obedience to the law the subject Of usury.
Many OF the States have already abolished the
usury laws, and with positive benent to their
domestic interests. Very few people imagine how
great an amount Of capital Is going in . steady
stream from the East to the West In pursuit OF the
HIGHER RATES INTEREST .-.va
paid in the latter region, where the security OF
investments Is appreciating every day with the
wider settlement and growing civilization or the
country. Ten per cent and even twelve per cent
mortgages on real estate In Western cities like
Chicago, st. Louis, St. Paul. Milwaukee, are getting
to be popular investment with Eastern capitalists
Were the Usury laws abolished ana the interest
rate allowed to find Its level in the East We should
have the advantage OF all this capital diverted from
us TO other and more profitable fields Of enterprise
and investment. This question is naturally supple
mented or accompanied by fresh agitation for
SYSTEM OF FREE BANKING, tgsE
for which the situation Of the finances offers I'M
usual facilities. It is an axiom that the banking
business regulates itself and that cannot become
any more redundant than that water viii now up
hill. Our great civil war has created q basis
for an admirable system OF free-banking
In the bonds OF the national govern.
ment, which, being q primary obligation
upon every dollar Of the national wealth. must be
tho louS ftn1n NJ uaIn hat
Lands, houses. farms, merchandise. al are virtu.
ally mortgaged for the payment Of these obliga-
tions. From day to day and month to month the
sentiment is ..a-
GROWING IN THE COMMUNITY
that these obligations can never be repudiated,
aud that they will be as permanent under any form
Of government as have been the obligations Of the
chameleon government Of France. The political
party that would dare to propose their reputation
would be as ingloriously defeated az were the
Louisville Bourbons ar the election In November
last. Should it ever be our misfortune to have
coup detat at Washington and q new form Of gov
ernment the incoming authorities would have to
base their financial operations on an immediate
recognition Of the present national debt or their
treasury would 60 as empty as q beggarman'e
pocket. system OF free banking would intro.
duce currency wherever 1t is needed and prevent
the great efiiux and renux OF money which we wit
ness every year in the movement between
THE MONEY CENTRE
OF New York and the agricultural and industrial
regions Of the country. With our bonds as the en-
forced basis OF this currency and banking system,
we should keep at home the interest they pay and
save so much Of the outward drain Of coin. The
encouragement Of industry by enlarged employ.
ment Of 1t would cause competition between capi-
talists and cheaper the production Of domestic
merchandise. When once we have lowered the
cost of our produce and manufactures ten per
cent the gold premium will be soon 0bliteratsd.
As we stand at present we are nearly the dearest
country to buy in and the most profitable to sell
to. Hence from year to year the trade balance IL
against MS and gold shipments are required TO
settle the account.
DIVIDENDS AND COUPONS.
The following additional announcements are
made in our advertising columns
The Atlantic Savings Bank, Of Chatham square
and New Bowery, will pay on and after January %
an interest dividend to its depositors at the rate Of
six per cent per annum.
The semi-annual interest maturing January !,
1872, on the first mortgage bonds OF the Canada
Southern Railway Company will be paid on and
after the I'd OF January at the Union Trust Com.
pany OF New York, 70 Broadway.
THE CITY BANK STOCKS.
TIE following we're the latest bids for the city bank
stocks:-New York, 1873; Manhattan, l6ak; Mer.
chants, ia; Mechanics. 1873; America. las;
City, $50; Phenix, 1917; State Of New York, los;
ocean, IL; American Exchange, ITO; Bank Of
North America, 1o7; Nassau, loi5s; Continental,
80; Commonwealth, So; Importers and Traders,
1913; Manufacturers and Merchants, 100; New YORK
National Exchange, Fourth National, llsK;
Ninth National, los; Tenth National, 90; Gold Ex-
change, 1lSh; German-American. 1oa
STOCKS YEAR AGO.
The following cable shows the prices Of the lead
ing stocks the last day Of the year 1874 % con-
| pared with those made on Tuesday
Dec. 81, 1871. Dec. ~, lS5a
u~. M ~