, 1872-11-03
M0NEYAND C0MME ERCE.
MONETARY.


SATURDAY EVENING" NOV z.
It is doubtful if any act of any Administrator
In connection with finances since the close OF the
WAT has made SO profound an Impression on the
public as the proof, in the figures OF the pubic
debt statement this morning, that Secretary
Boutwell, had boldly transcended nus legal au-
thority and reissued S., GOO OF the retired
legal tender notes Of the United States. 1t is
true this is not the first time he has exceeded his
authority in this respect, but it is the first time
he has done it so boldly and to such al extent.
The public had supposed that if there was any
thing in regard to the public debt that WAS
settled, it was that the volume Of greenbacks out
standing should not exceed the 1856, 600, goo. at
which point Congress suspended further con-
traction. But, on Jan. !, 1872, Mr. Boutwell, had
increased the amount outstanding to $357, ,5o2,-
SOL. On the first Of July, when there was
plethora Of money and no shadow OF excuse Tor
such imitation, the amount outstanding VAS still
1851, ,5s8, ,296, but On Sept. l, when money had
begun to get stringent, he had reduced it to
1856 Qs6, 49, In the first week Of October near
II the whole of the present 81, 500, 900 unlawful
issue Of greenbacks we're put out again IN q loan
to few favorite bankers in New York City.
All this was done without the pub
ing anY warning. But now came the crisis:
Mr. Boutwell, found he could not get
his 81, 500, 600 in again before the November
debt statement was due, and stralght"ay as
sistant Secretary Richardson was set to work to
educate the people up to the understanding that
the $4,000, 600 retired by M1. MoCulloch was
treserve fund.- to be used at the option, OF the
Secretary Of the Treasury. But this un-
warranted assumption did not seem to go
down With the public. It WAS denounced by the
press generally. and Mr. Boutwell, next resorted
to the dodge Of getting meetings Of merchants
in tie various cities to ask for the reissue OF
the whole $4,000, 600 Of the so-called - reserve
fund" There is now not Q reasonable doubt
that the whole scheme Of getting up the impress
sion that there was popular demand 1or
more ereenbacks originated with the Adn1inis-
eration. Mr.. Jay Cooke, who is paying per cent
commission to agents to sell the Northern fac1-
&c bonds. probably wants an increase OF green
backs. and this accounts for the movement
being started in Philadelphia. The whole
scheme however, WAS too transparent, and re-
suited in dead failure. It has, however, made
trolled by speculators and demagogues who
would sacrifice any principle for the advancement
of their personal fortunes.
The local money market showed tendency
toward relaxation during the most Of the week,
up again. The demand for loans Was greater,
while the ability Of the banks to lend
hiss been increased but little. Currency is still
coming in from the country pretty 1reely, pus
at once and remit eastward, so the movement
canses no considerable accumulation Of loanable
funds here. Some of the banks are reducing
their discount lines now, preparatory to extend '
pofk-packers. This helps to make money
3 little more stringent than it would be other
wise.
1sera made between banks to-day at from Is to
Soc per 81, 600 premium.