, 1872-11-28
money And COMMERCE.


Money continues stringent us ever. Bankers
generally ere looking forward to some improve:
ment in affairs when the money begins to come
back that is being paid out for hogs and cattle,
but the effect of this can scarcely be experienced
7,efore the middle Of next month For the
present, there does not seem to be much money
in the country the country banks are about as
hard up as they ever get to be, and in many
instances, are wanting to borrow of their city
correspondents.
People still ask what is the cause Of the
present stringency. In brief and comprehen-
eive terms it mny be stated again, as ne have
stated it several times before, first, low prices
for grain and other products; second, a cessation
IN the influx Of foreign capital to build railroads
in the West; third, exorbitant freights for carry
ing Western products to the Atlantic seaboard.
This latter is, Of course, one Of the causes Of
low prices for products, an aggravation Of the
evil, though not the whole cause.
New York exchAnge continues scarce and hrm
at Soc per 81 900 premium for sales between
banks.
ON TIE SUBJECT OF CURRENCY IRRITATION
re wrote some days ago that it vas a. common
error among business men to imagine that an
increase Of currency Was an increase Of capital,
and said that "To have currency at all, We
must first hayp marketable wealth, floating,
enc1angeable capital to turn into currency" To
this proposition, 3 weIl-known banker and
Observation-Disclosures takes exception in one Of
the daily papers as follo~s:
This sjuzt what huye in the shape Of corn, wheat
pork, beef, wool aud other products in great abuu-
70 ezchange ee TIE We must have
plenty it is q1lckened-
Now. the currency-infation-b banker has just
got the cart before the horse. It is the move
1lent of these products that makes currency, in
the form Of checks and bills Of exchange, which
are the paper representatives. Of bank credit,
,,1a 70 r171n- mt mar the tnfa1
volume Of currency than the bank notes OF
greenbacks in circulation. # it be claimed that
It requires first certain amount Of more per-
1nansnt currency to SGT this process Of currency
nos y dollar Of paper money (greenbacks or
Bank cotca) in circulation, the demand OF con-
s,,u1ers i,r tue crops would cause bankers to
turn part Of their capital into the universal
currency. specie, and send it into the country
to set tie crops il motion. But the currency
infation-banker isarguing Tor an arbitrary anu
forced increase of the volume OF CURRENCY, 20
g that it shall be dis.roportionate TO Ine leelIl-
into whose hands it Genes shall hasten to go55
rid Of it, knowing thatit is su2eIaounaans, ano
that this superabund1nce is depreclating IT'S
yalue-for this is the laal explanation OF the
nominal rise in prices produced by an oEef1has.e
of paper money. Proceeding to argue on thls US
basis Tor an increased ls5ue Of greenoaeAs' no
in early times in this regto1 George Smith moved ed
cTgai, Is his credit any more potent such pur-
pose th:., the credit of the Goyunnaent?
Now, Lere the currency-sn1tat1pn-b -banker m
sATeztanty discloses the unsoundness OF ha7
500. q; Ids 1oeas George Smiths banklng opera
1;n Luns ~ the ora,veEt were successful because
nssrstand tg Pgblie did not At that tine tny
eminently what ars u PM wi1lcsttine' 1les or
dangerous lniat,on fo. a Of ere an nsas51ag
no banker can deny. George Smith lew there
was no legitimate demand for lis currency,
therefore lie had to foroa i i-.1o circulation BY
sending it to hs asG4+'s raa1Ir n Iu p at dis
Tor S nrgge!s ges d n'osz t5s s1zptr
,edn Of it ,na as f. fsst bapa n PoFsRe 2oF fsst
that Smith, who was thus obliged to be specu-
3ator in I'll sorts OF products, should fal and ns
notes become worthless; The Government Tal ut
use for, and could not speculate in wheat, pork
beef, wool. and other products. Ihe Govern
nent is not Epecula tor that it Ehoutd strain lts
credit up to The point where people VII ustruss
to hand for fear Of !. Their. thsls aep5e, 45a
exchange of prcdncta.' Neither is the Govern
ment q banler,, tia: it may lend it's credit to
euecu|ators 10 do this. In regard to the present
Eol1lue OF paper money in circulation, we re-
peat, TINT the profit which the National Banks
make on their circulation is bonus offered by
the Government to pirate eapitaAsts Isl to put as
Jency as it is possible to keep a1oat without
further Depreciation. This bonus is 8 stimulus
that keeps the channels Of circulation crowded
with paper money now.
The error OF the currency imitation banker is,
that be mistakes an expansion Of credit for an
increase Of capital.
NOTICE TO IOWA B4SKs.
State Auditor Russell, OF Iowa, has given to
the various banking institutions IN the State the
following notice
STATE OF iowa, AUDITORS oEr1cE}
DEs MONIES, Noy. 19, 1872. 5
Under tie provisions Of Article 2, of Chapter
B5. of the Revision of 1860, each association OF
ganized under the general incorporation laws =
transacting o banking business, either in
the way Of buying or selling es-
change, receiving deposits, discounting notes,
ETC., Is required to make I'LL, clear, and
accurate statement of the condition Of such as
sociation on the first Monday in January: April,
July, and October in each year; said statement
70 Be verified by the oath Of the President or
~ +17o Directors. Subdivision 10 Of Section 1886
of The la y referred to requires the prescribed
Statement ia be forthwith transmitted to the
And;tor Of State, to be fled BY him in bis office.
7 an advised that there are q considerable
,--n1,ar of savings banks, and other banking III
rf;tntions. organized under our general lncorpo-
ration law, Which, hnye no doubt, are required
by law to make and file the statement prescribed.
Il will be seen By reference 10 me tan , ;is
sn11irar1ents u shall be regarded as forfeiture
Of III tle rights and privileges OF such assoe'a ?? =
tons and subjects the officers whose e. asly ns u - ~
make and publish the statements To l''e VI ILL.,
Tbe undersigned seems to have no power to
enforca . compliance with its provisions. y IS
deemed advisable, however, to call the attentlpn
of the officers of banking corporations to inc
nroyisions Of the law, us find that none :, 81
reSra n3I;ca A'~'0 JOHN RUSSELL.
Auditor OF State.
REAL ESTATE.