, 1872-12-10
MONEY AND COM MERGE.
MONETARY.
MONDAY EVENING, Dec. 9

MONDAY E1EEnEa, Dec. 9.
The tendency toward IN easier condition in
1he local money MARKET noted at the close Of last
week, is continued to-day. The deposits Of
majority Of the banks are Increasing, and IN
good many banks the aggregate OF discounts has
been reduced, showing that obligations are being
more promptly paid. This aueriation OF the
Htringepcy is to be attributed entirely to the
heavy movement Of hogs and cattle from here
Eastward. There is, however. good de1l Of
commercial paper offered in the open market
Tet at ~ per cent per month.
The demand for New York exchange is large,
End the price is firm at Goo to 75c per $1,000
premium for sales between banks.
BASKs RESPONSIBLE FOB coHs1dEEEs.
The decision Of the United States Circuit
Court OF Boston, On the 9Th, in the case Of the
Merchants National Bank Of Memphis rs the
National Bank Of Commerce OF Boston, makes
IN Important change in what has commonly
been considered the position Of G. bank to whom
bills Of lading are forwarded to secure the ac-
reptance Of drafts drawn on consigneeB Of mer-
rhandiee. The decision, in fact, makes the
bank responsible for the consignee to the ship
per and drawer, and if the ruling here an
aounced is sustained, must greatly complcate
tho business Of drawing against shipments.
The decision referred to vas gwen for the plain
tifs in the OF suit brought to recover dams
Ges for negligence on tho part Of the defendants
in giving up to the consignees the bills OF ladng
of = lot Of cotton upon acceptance by the con-
eignees Of 3 thirty days draft, drawn against the
shipment and attached to bills of lading and sent
On to the defendants bank for collection. The
plaintiffs contended that it WAS the duty OF the
Lal,k to keep the collateral suntn the draft was
paid, and that by reason of..gVing up the bills OF
fsi7i1lg the plaintiffs lose their security the con-
sisnees having failed before the expiration OF
tie thirty GGys after accepting it.
In discussing the effect of this decision, soma
bankers hold that the only object in forwarding
bills Of ladins to bank, instead Of direct to the
consEneo, IS to secure the acceptance Of the
draft, drawn against the shipment, and that
being done, they hold that the trust Of the
: hank has been fulfilled. Tho presumption is
that the draft is to be paid out Of the proceeds
CT the sale Of the goods, that in the case above
mentioned this was acknowledged in the fact
that the bill WAS drawn at thirty days sight,
which world give the time necessary to sell the
cotton, and that to enable the consignee to sell,
and with the proceeds meet his acceptance, the
delivery of the cotton neseessarily preceded the
payment Of the draft, and that this being g nes-
cesEary preliminary, the bank should not be held
responsible. The eonsignee was designated BY
should not be responsible for the solVency
of . factor in whose selection it had no voice.
These, We say, are the views that bankers have
generally entertained regarding banks respon-
sibiGty IN such cases, but the decision referred
to changes this, and makes the bank the real
consignee and commission merchant, and tie
nominal conEignee it's agent, for whose acts it
must be responsible.
The law provides for the holding Of goods in
escro1o, and this means Of protection against the
insolvency or dishonesty Of tie consignee is
resorted to in many cases, though it greatly
complexities the sale Of goods and payment Of
drafts drawn against them. The decision OF the
Court would seem to place any bank to whom
bills of lading may be forwarded in the position
OF bailee-
MONSTER BANK SCHEMES.
It secmg. that the ssGreat Consolidated Cen
tral Redemption United States National Bank"
which it was proposed to start in New York last
summer, By getting al the National Banks Of the
country to EubEcribo per cent of their capital
and making it their redeemlng agent and master,
llss come to the surface again with Mr. Freeman
Clarke as its fgure-hesd. The four or five per-
sons who net at the st. Nicholas Hotel, one day
last summer, and called themselves meeting Of
1he National Bankers Of the United States, ara
awaiting the action Of Congress in regard to
bill giving them power to start the bank, and
other banks power to subscribe to the capital
stock of the bank to an amount not exceeding
per cen. of the capital stock Of the bank so SUBJ
scribing, and to appoint such bank their releem-
4 counter scheme to this is TINT by III.
Wheeler, OF New York, which makes the mon
strous proposition to establish 3 Government in
etitution On the pl2n OF the Bank OF England,
divided into banking and an Issue department.
and both to bo managed by the Governor and
Managers Of the E,chequer Of tho United
states; capital 800, 100000, to be taken by the
National Banks, the central Office to be in New
York and branch Offices are to be established in
the fifteen largest cities Of the country. The
proprietors ere to choose the managers for all
ration M e shall be divided into two Department.
one for banking, and the other to consist Of
three Commissioners for each office, appointed
respectively by the President the Governor Of
The State, and the managers Of the Office
ing Z 70 Department, aEas A for which e gold coin coin
will be required as security, to one-tourth the
rcheme is SO extensive, and proposes such COM
pletc control Of the financial interests and Of
Tie Issue OF currency, that it Secretary Bout
well had not just said in his report that the
BANKERS and merchants Of the country wero to
ioe distrusted, and proposed to take these very
powers into his own hands, this proposed mon
tter bank project would look like burlesque on
freeman Clarkes scheme. The whole tenor Of
1lr. Goutweu's obseryations On banking and the
currency are aimed at just this kind OF centrali-
zation Of inancal power, and in conjunction
With these projects shows the probability Of 8
purpose 3;. and powerful oEgan1zatt;on dganaaat;o9
vii With tic 0 rapid consolidation Of railroada
into fewer and fewer hands, these proposals to
practically consolidate Ill the National Banks OF
the country show how rapidly we are marching
forward to tkRt system OF pnternal government
which assumes that no individual banker or mer-
chant knows what ho wants or how to take care
of his own interests, and that, as Mr. Boutwell,
claims, they shonld be distrusted.
Mr. C1arke'6 great bank scheme contains bait
for the National Banks, in the proposal to remit
che tax on deposits, as follows: There aEe now
nineteen points Of redemption where the re-
serves Of country banks are kept A bank in
Peoria, for instance, will keep depoeits and re.
serve in Chicago. The bank IN Chicago will
keep deposits and reserve in New York: Under
the present Law, the tax On deposits is 3a Of
per cent. The eame deposit, in the case above
mentioned, pays tax three times-once at Chlca-
go and again at New York. 11r. Clarke thinks the
New York bank should pay tho ta1, and pro-
poses that the protected redeeming agency, and
not the country banks, shall bear TINT burden Of
taxation. It is proposed to start tho bank US
Eoon as bill can 10 passed which Mr. Clarke
now has before the Banking and Currency Com
niittee which provides for the commencement OF
tie redemption of legal tenders, with 100000
600 in gold set aside for the purpose, the legal
tenders go redeemed to be iasuedas fastas recelT-