, 1872-10-25
MONETARY AND COMMERCIAL.
MONETARY.

becOrnc 6CuGWlat easier IN EoHle pElLs VI eA1o
surrounding country, particularly in the Limos
River valley and towards the central parts OF Inc
State where the farmers have sold good many
hogs and cattle. Some Of tho banks in those
sections that have been applicants for accommo-
dation at city banks here, seem to have got over
;ncir necessity for it and are increasing thelf
balances with their correspondent here. This IS
not vet the condition Of the country banks gen
orally. but as far Is it goes. is favorable to an
easier condition Of the money market here be-
fora long. Wo cannot learn that there is
any Improvement IN the collections of
CITY merchants from country customers, but
there eeems reason to expect that such will be
the caao within o week or so at most. At
present prices Of produce, hogs and cattle in
the country, it cannot be expected that trade
will be very dourishing or money very flush this
winter, and it seems probable that money will
be comparatively stringent the remainder OF the
year. But within the next few weeks pork
packeyg will begin to disburse large Sums in the
country, and the money will soon find its way
back into the hands Of the city merchants, to
tho relief of the money market here.
But, for the present, money con-
tinues stringent, and good commercial
paper sells at ~ to per cent
in the open market The pressure
f0r funds has caused C0nElQeIaDt9 aluUuuG5 u
local stocks OF banks city railways ETC., ETC., to
be thrown upon the market, and it is safe to say
that the average decline on these during the last
two weeks has been from to per cent. Many
Of them are stocks that are seldom offered for
eale at all.
Kew York exchange sold between banks to-day
I'll the way from 75c to 9125 per 81 900 discount:
AS explained yesterday, this is not the normal
price of exchange, but representa- the scarcity OF
funds Of any kind here at present. Host of the
banks cannot afford to wait the four days neces-
ssryt to send the exchange to New York and bring
currency back, and when any OF them tako 3
large amount Of New York bills they arc obliged
to realize on portion Of them at once.
NATIONAL VS.. STATE BAN1s.
We learn that parties who had co nemplated
the organization Of a new National Bank in this
city (tLe :Morcantile') have abandoned the idea,
and now propose to mako it State Bank. THE
monopoly Of National Bank circulation is under
stood to be one cause Of the change, though the
principal one ia believed to be the freedom from
Since the new Constitution Of this State cut off
the supply Of the old-fashioned indla-rubber
special charters, there has been considerable de-
1nnad for them in this city where the increase Of
banking business induces the organization of
more banks. Under authority Of . law passed
last winter by the Legislature for this changing
Of names and locations Of banks, good many
special charters for banks in other parts OF the
State are being bought, and new banks
With new names being organized in this city.
But there is at least o question as to whether
this whole proceeding is not Illegal. In article
II, section s. Of the New Constitution, under
the head of :sBanks," it is provided that ssNo
act of tho General Assembly, authorizing or
creating corporations or associations with bank
ing powers, whether of issue, deposit, or dis
count. amendments thereto, shall 60 into
submitted to vote Of the people ut the next
general election" The law passed last winter
was general amendment to all existing special
charters, and the question is: does it not re-
aoF+ +Ho.A 1nh haFc In
eidered in force2
While We do no. wish to throw obstacles in the
way of the organization Of either State or Ma
tional Banks IN this city, it must be admitted
that the National Bank system is the best and
safest OF the two for the people. It requires the
keeping Of a certain amount of reserve always
on hand, and deposit Of bonds with the. Treas-
1rer at Washington, which are more than secur-
i5y for The circulation issued against them, the
margin being Indirectly security to the depo-
itor, and requires from time to time sworn state
ments; showing the condition OF the banks.
None Of these things are required of State Banks;
own officers knows whether they have much or
little of their depositors' money on hand, or
where it il. On the other hand, the National
system is better for the bankers themselves, if
they propose to do business on sound and 1e-
gitimate basis, from the fact that it takes less
capital to give bank the same prestige as q
National Bank than IS State Bank and there
arc only few instances in this city in which
tual capital, and in the management Of institu-
lions doing commercial banking business un-
der State charters.
At present the monopoly Of National Bank cir
the organization of more National Banks. There
is no way to remedy this until Congress meets,
bnt then the repeal of all the laws for the
distribution Of circulation to any part
Of the country ought to be repealed, OF, better
still. all restriction On tic volume Of National
Bank circulation removed, provided the green- |
backs made fundable at the pleasure Of the |
holder into bonds at o low rate OF interest.
Under such provisions, the volume Of National |
Bank circulation would certainly increase, but |
the 7olurno of greenbacks would not diminish |
unless there Was plethora Of currency.
THE RUloR ABOUT CERTIFICATES. |
The scheme mentioned in our Washington |
dispatches this morning Of banks whether
State CT National. issuing certificates Of deposit
resembling bank notes in their appearance,
would be eimply IN evasion Of all existing laws
on bank circulation, and there is no possible
chance OF its being allowed to be put into prac-
tice.
COTTON PROSPECTS.
Yesterday we called attention to the fact that
the prosperous condition Of the cotton interest
in the South would probably make market for
larger quantities Of Western breadstuffs and
provisions. This assumption is borne out by
the October report Of the Agricultural Depart
nent upon the condition Of the cotton crop, in
which the statement is made TINT the crop,
whilst below an average, is yet 6 per cent better
in condition, and 13 per cent great in acreage
there we're. 7,7fl1, ,199 acres planted in cot
ION, yielding 2,974,35t bales. If this
Gears crop bears. ont the Department re-
port, the acreage is 1856 5o4, which, at the same
ratio as last year, will yield 3,3s5,293 bales
while. as the condition is reported to be per
cent better than last year, the increased yield
will bring: the aggregate up to 35Ss,5oo bales.
This years crop Is Being marketed ct IN earlier
period than usual. The receipts OF the current
cotton year are now much larger than those Of
last year, and arc even ahead Of 1870 at this
date. although the crop Of that year was 4,347,-
900 bales. Various causes produce this. The
season is threo weeks earlier than usual there
Is good weather for picking; great pressure e1-
lists to turn the crop into money on the part OF
nll the interests involved md there is good
demand for cotton.
THE NATIONAL BOARD OF TRADE,
which held an unusually brief session, and ad~