, 1873-02-07
HONEY AND COMTAERCE,
MONEI!ARY


THURSDAY EVENING, Feb. 6.
There is scarcely any change in the condition
Of the local money market. With some Of th
banks, deposits have increased q little, and will
others they have decreased. In the open marke
there appears to be more money offered for lean,
on collaternls, but business paper cannot be dis
posed Of better than Iz per cent per month
Currency is very scarce get, and the demand
from the country is still very active, go that tat
banks arc steadily bringing currency from Now
York. Exchange is still depressed by the demand
for currency, and WAS sold between banks, TO-
dar, at 75c per 81 900 discount.
Pending the operations Of the Syndicate, the
prices Of tha new S per cent bonds already out-
standing will be watched narrowly by all IN
veEtors. few days ago the market price was
equal to 1Doh in gold, but to-day, owing to the
rise in gold, the net gold value Of the new So at
113l5 in currency, and with gold at 113s4, is
only $685. while the price Of the 1sG2s, ar11413
IL currency, is equal to SO in currency, and,
deductlng tx per cent accrued interest since
Nov. i, leaves 10000 rs the net gold price of the
bonds. =.
ECnEAsE OF BANK CIRCULATION
The failure OF the Sherman pecie-Resump-
ton +" bill WAS the well-merited fate Of q scheme
which, notwithstanding that it contained somo
good points, was On the whole scheme to de-
reire the public into the authorization Of another
issue Of S per cent bonds. It should not be
assumed however, t}lnt thcro Will he no 1mpor-
taut financial legislation during this session of
Congress. 4 necessity exists that something
etould be done the present seRsion IN regard to
tEe 525, ,0o0, 900 redistribution OF National Bank
currency. The Comptroller very properly lnslsts
that the present Law for theredistributlon OF the
so5 600 900 is 30 nearly impracticablo that any
attempt to inforce it would create great disturb
So hnF JtrH
therefore, that the law will be repealed. But, as
tie object Of this lay vas to give the West ad-
lit1onal banking privileges, the simple repeal
without additional legislation, to give Western
capital its legitimate md equitable share Of
National Bank circulation would be . palpable
Injustice to the Nost. It is now pretty well un-
derstood that the Banking and Currency Com
raittee Of the House will urge the pas,
saga Of a bin to inc1esae the National
Bank one circulation at g.. the rate .et o.
for the repeal Of the 25,000, ,000 redistribution
clause In fact, the one is the necessary COM
plemant Of the other, and as there seems hardly
any way for Congress to escape the repeal Of the
one it will obligo the passage Of the other.
MORTGAGE LOANS IN THE WEST.
4 bill Is before the Legislature Of New York
for the exemption OF bonds and mortgages from
ta1ation. II is urged with good reason thAt the
tax on bonds and mortgages is only
and chattels The remission Of the tax
would, OF course, make necessity foz some ap-~
parent iucrease in the direct tax On real estate
and chattels, but it would be only apparent and
not real; as the tax on bonds and mortsages
estate and personal property. L New York
paper argues that the remission of the tax
would encourage the Investment OF capital In
mortgages and thus have tendency to reduce
the 1ate Of interest. the New York Financial
Chronicle, arguing in behalf Of the remission Of
the measure, says that. capital has been driven
out OF that State By the tax, but, in support Of
Its argement, gives calrency to the following ;
exaggerated statement: =,
Fifty millions OF dollars Of capital from this centro
are said to taye been lent motfge and otherwise
1t 10 to l. per cent in Chicago during The laEt year
Much Of this money would have been lent hero II 1t
vested That it has been driven away is due in part
no doubt to other causes, and especially to the usry
lars but still is largely driven away by hE System
Of t11auon-
The foregoing is an erroneous statement in
ali the particulars that relate to Chicago. In
the first place, the total amount OF capital from
MI the Eastern STATES now loaned on real estate
in Chicago scarcely exceeds fifty millions. OF
Connecticut Mutual Insurance Company, and at
least two-thirdB OF the whole is from New
England States. The activity Of gambling
speculations in Wall street, gives New Workers.
the financial a1rairs Of tho country. The fact is,
that the money on which New York spcculates il
largely drawn from the West. Gambling rail-
road officials draw the receipts Of Western rail
roads into New York treasures, and New York
life and fire insurance companies drnw from
s500000 to 5000, 900 per annum from the State
of Illinois alone, without lending dollar Of it
here. In fact, Now York city is tho
financial lcech that sucks the blood Of the West,
and is never satisfied. The statement OF the
Chronicle Is also erroneous il regard to the rates
Of interest paid On real estate loans here. In
stead Of 10 and II per cent, So to are the rates
for all loans over $4,000, many Of the smaller
amounts are at these rates, and per cent is
just about the average rate on all real estate |
loans now outstanding in Chicago. In |
regard to the New York life insurance
companies, the law of that State forbids them to
loan On property outside Of the State Of Now
York, but the people Of Illinois, who pay $780, |
900 per annn1n for life insurance alone, should i
understand that el1 they pay to New York life /
insurance companies is absorbed in looms in New |
York alone; not q do1lar~of it ever comes back |
here. And if the New York life insurance COM i
panies expect to maintain their popularity in tho /
Vest. they should advocate the repeal Of the |
r1ohibitory law
LOCAL STOCK AND BOND MARKET.
Messrs. Lunt, Preston g. kean quote as follows T
tlis afternoon:
Duy1ng. Setting:
ens :os =! =! - - 11xA