, 1872-11-21
MONEY AND C0h1EAERCE.
MONETARY.

WEDNESDAY EVENING, No.. 20.
The stringency Of the local money market con-
tinues without any noticeable alleviation. lilo
demand for accommodation at the banks is large,
coming chiefly frcn tAe mercantile departments
OF trade. The grain dealere, however, are not
asking for much, thus showing that they are
operating moro on their own capital and fhat
there is not much speculation.
The deposits Of the banks Of Chicago are esti-
mated to be from u to Is per cent lower thap
they were at this time in 1871, while the leans
are an average OF SO per cert higher than they
we're then. The banks are therefore expanded
90 or 50 per cent more than they were a year
ago. At this time last year, however the
deposits Of the banks wero experiencing Al
abnormal increase from collections of
insurance. At the eame time the general
Etoppage Of business made falling off in the
1oans. But aside from this it is estimated that
the banks are now expanded 25 or 80 per cen:
more than at any time previous to- about Octo-
ber I.
New York exchange continues scarce end firm
ct from Soc to 75c per 81 900 premium.
GoBBLHa Up A RAILROAD
The recent default Of the Chicago {; South
western Railroad Company to pay the interest
o. the S. 5000,0 600 Of its bonds guaranteed by the
Chicago & Rock Island Railroad Company, ez-
cites a good deal Of comment in hnan-.
also in Germany, where tic bonds
are held and it is generally claimed that this ore
event has done more to shake the confidence Of
European capitalists in American securities gen.
orally than anything else that has transpired for
nearly year, not excepting even the Boston
fire. It is alleged that the apprehension which
this default occaEioned induced general datrust
of an or securities, and caused a decline in
prices that extended even to United States
bonds.
Coming 90 coon after the default OF the Rock
ford, Rock Island and St. Louis Company, who
n.e Just now compromising with their European
y agrssn o @ aa s9 aS 10ha ae ha aa
that tie interest on this reduced inaebt-
'edness shall be per cent, instead of
Z, the default Of the Southwestern might we'll
create ths impression, which it has, that the
20 prospects Of business, and, in short, swim
die generally But Western men, who are &C.
9ua!nted with the country trayersed by thu
Of Leavenwo7th and Atchison, and its extensive
railroad connections to New Mexico and Texas,
know better than to suppose that the South
western could not pay the interest on its bonds.
As near aa it. can be arrived a the aeiau.
a precoccersed arrangement on the
part OF the Rock Island Company
in order to deprcciate the val.e OF both ,he
s59e1 b1e th and Ro 6os Of The and
q henry discount, and 80 gobble up the road.
Tho Chicago & Southwestern Road, 270 miles
long, from Washington, Iowa, to Ieavenworth,
was built with the i've millions of bonds which
were guaranteed By the Rock Island Company
sold in Europe at 90c on the dollar,-and the !
proEeeds Of about one million dollars of sub
scriptions received from the various towns and
counties along it's line. The s'Atch;eon Branch"
so miles lorg, from Cameron to Atchigon, was |
built with tie proceeds OF one million Of bonds !
issIed BY the Chicago & Southwestern Com |!
r1n1 rsny nSi without 7y any guarantee from
the Atchinsoa Branch and second mortgage on |
the main line. The entire cost OF the road. |
therefore, was about 81. 600. 600, with partial |
equipment OF rolling stock. The present capital |
policy OF the Rock Island clique who now con-
troll the Southwestern (Nr. Tracy being Presi-
dent Of the Southwestern as well as the Rock |
1sand) it is their object to depress the value of
at cost Of s3 ,006 or s., ZOO, 600. The bonds
of the Southwestern Company were an agree
ReF pay goa hesa but honds the
only specified currency interest,
discrepancy that looks as tholsh the present de-
fault was premeditated. But aside from this, it
is alleged that the road has been Systematically
mismanaged, and that its earnings have been |
purposely diminished in order to give it the ap-
pearance OF being 8 bad piece OF property. An |
instance of this alleged miamanagement is cited |
in the refusal Of the managers Of tho road to &C.
cept the offer Of the Atchison, Topeka d Santa |
Fe Road-which is now finished to the crossing |
OF the Arkansas River-to take the cattle traffic |
OF the latter road, which is very large being in |
Texas, which, until until, recently, ys,, haye been
now come uia the Atchison, Topeka |
and Santa Fe to Atchison. Nj. Joy has eince
4aken the cattle traffic OF the A. T. d St. Fe road
and though he has to carry them 20 miles furth- |
er over the Burlington l. Missouri Railroad, has |
probably got I. profitable business out OF it.
1t is alleged that If the Southwestern had tax
ea this and other business that it has refused, it
would now be more than able to pay the gold a-
te-est on its bonds.
The interest On the $1,000, 900 Of bonds for
the Atchison branch OF the Southwestern falls
dne on December let. These bonds are not
guaranteed By the Rock Island Company at all,
and the Rock Island ring who now control the |
Southwestern road could, aud possibly WILL
make default on this interest also as another
step in their programme.
LOCAL STOCK AND EoSD MAISET.
Messrs. 1unt, Preston i; Kean quote as fol-
lows, this afternoon:
BaMag. ss!ging.
=. S. Is Of 81. l1dzz 1iGH
6-20s OF g. ex. int. 1l2H
6-10s Of I'll, x.int...............1l1Li int. 115E
5-o0s Of 'G5, e1. int .1l2K 1i23*
6-20s OF 65, jan and Jnly.-.--...l14A ll4E
5-2os Of '67 Jan. and July. --.--.-ll51z ll5H
6-1os OF G5, Jac, and July. ..1l41 us
1u-40s. ........-........... .107x 1G3
q. S. SIS {uew issue), e1- int. ..1O9I luylf
Northern Pacifc Gold 1905. ... 100 anl int,
Chicago City 7s........---....... 90 aud int.
Cook County f9..-...........--. a9 ard int. |
nsicois, County and Township los.a3935 49,.