, 1873-10-23
MONEY And COM MERCE.
MONETARY.

week.
Now York exchange continues scarce, md
sold between banks today ut Zoo por $1,000
prolnium. Shippers bills drawn against grnin in
transit aro taken at K and also at II Of / por
cont discount Tho amount of thiy claus Of BILLS
Ia, however, very small, compared to what II
would DO under ordinary circumstances ut this |
sonson of Tho year. Ono obstacle to tho FREQ
movement Of grim Is, that shippers Of cargoos
cannot get tho usual advances from their New |
York conHignoca, because tho lnttor cannot got |
tho usual accommodations at tho Now York |
banks. The movcmont Of Western crops to
market ia therefore boing tlono mainly on West-
otn capital. The scarcity Of money In tho East
ern markets also Inns its offoct upon tho prices
OF products, az we'll as Of tho foreign exchange
ynudc against tho shipment Of tho products to
Europe.
Thoro Is very moderate but atoady flow Of
currency from this city to Now York, but tho
stock OF currency In Tho banks lore
is very large, and Bomo Of it
can very we'll bo Bparod. Tho main
causo Of tho great accumulation Of currency
hero is that tho bnnu Of this city arc still nctng
on the policy Of kooping their whole roservo
hore In greenbacks, instead Of keoping half of it
In New York o1chnnge,- e,-aa tho Nationals are por-
mittod to do by law, aud ~ has heretofore
boon their custom. The recent panic gave tho
Western banks such scare that, ovon after
Now York bankH rosumo currency payments, 1t
viii be long TING, perhaps year ear Or two. 6o.
will increase to anything like the proportions
thoy had attained just bofore tho
panic. Tho acculnulationB Of money catsod by
Tho increaao Of banding facilities, are, however,
seasons OF tho year. No amount of currency
tinkorng to make tho volume Of currency olas-
tic," will prevent this accumulation OF bank
credits, eyon If tho muoh.donouncod system =, OF
paying interest OH deposits woro entirely dis
continued. Theso Accommodations oncc lnado
there ia no question that Inducements Of ono
kind or anothor will 10 offered to
a" an pd tbs a temporarily spaasyeuon ''a 81 onss:y
prises and spccu!ationa TINT could not
command tho monoy undor any other condition
Of tho money marriott.
IT, tho fe5cgoing connection, we Print tni The foi
lowing Rbly-written communication from n
banker at Emu Clairo, Wis, in -
pErEssE or 1NTEnEsT on DEroa1Ts:
n the Editor of The CHICAGO 3rdbttne: ;,
tenn Of paying Interest on deposits subject to
call" sooms to luyo beon chosen as the goat over
which e confess NIL tho s,u+.il inlq1,tis;s t,tG;s
trunsgroesions In Ill their sins upon hiH heatt
they aro going 70 send him away by the band Of
ct man into the Wilderness. Tho ft man IN
this case may provo to be President Grant, who
PROPOSES 10 TGCUmW9nu u INV hub0luLo1y PEuulU@
fting tho practice, which ho, as wcll as ali thoso
whose views on tho subject find expression in
print, calls BY very hard narneH.
It must be agreeable to those who hayo
SsSn sssa1a tnssfa asi s as 1o'esss way to
assured that tho roal cause Of oil tho recent
t1ouble il d natural outgrowth Of competition in
+ banking business. and nothing for which
thay arc in any way responsible. Thoy will thore-
by Lo oheerod and encouraged to proceed.
II IL encouraging, also, for those who may have
takon desponding views Of human nature 10 OBJ
eervo the zeal and tho high moral tono with
turn to sound and legitimate banking principles
especially In this direction. There is some
thing quite touching III tho circulars Will
which taoy fayor county bsnksrs nowaaayg
% 20 something nat soy Ike us hhsns E. aso hn he S
IONS, given asthe results Of ofinterylewing, and re
Geoted in financial columns.
No doubt tho enthusiasm OF good rosolyo
which always comca to lien III times of aasersity
hoA much to do with this tee1ing-but the idol
will auggeat ifaolf whether the loaron Of selfish
particular uprising Of lilo spirit Of reform7
However, manner aud motives arc beside tht
question which beg permission to put, whlo
Is: Will 30 radical . reform rs is proposed Il
tho matter OF paying interest on deposits bt
productive Of good? viii it result, il
making. tho banks koep largor roaorvo, md 81
become eafor depositores, ,-better able to with
stand the shock oi paiep at the sa
business community2 III short will It maxi
them filter to fuldl al the functions which per
tain to banks?
moro pertinent way Of putting the question
will 1t endow bank-nlanagers with create
degree Of sagaoity, Judgment, and honesty
will 1t make them brave Without recklosanesa
s ssinacy; ] amensb,o to counsel, yet no
vacillating? AL this aud moro, will
do II re arc to :. take. literally Il,
somewhat oxtravagant talk on tho subject; yet
when thus put, no ono would probably AnBWc
Va ., must rcduco It, then, still further, M
AK; VIII the contemplated rotorm remove ~
Of the thas lead ,g mSn away f5op th
are so familiar with7 lias the mucl,-abunt
PRACTICE no element which dissuados from Mndl
expansion in some directions an much ID, II n
moro than, It encourages 1t in others
It ig tho object Of this article to assert
matter how indiHcrently tho assertion bo mail
tained-that these arc ut least open quoation
It III indeed much too extended subject
be satisfactorily discussed within tho limits
your space, or tho time and patience OF II
render Of o day paper.
talk on my subject is the logic OF facts. St
tlstcs have come to be regarded with go
deal Of respect, but, unfortunately, NOT We,
much statistical information bearing on this sl
1Gct 0aH linus Ilr peeu colltctou, hHA, hucA
there may bo, ia not accessible to tho writer.
It isa matter OF general knowledge, howoye
which OF tho lending banks Of the cou
try have tbs, largost number OF cou
try corrospoudcnts and. therefore, r
lntorest most largely, and il tho praet
is necessarily fraught with 10 much dnngor It
evident that wo shall 500 these banks botrnyi
Tho greateat weakness in timos,of ranlo.,
Tako, for example. the two banks which !
confesscdly tho largoat deposits Of this kind
New York and Chicago, respectively, The Az
oiascd Pzeas dispatch Of tho 18th, from
York, says: "Tho. proaont systom Of pooling ,
gotten up for tho boneht OF woak banks, co
oialy those paying 4 per cent on BALANCE
Bank In TINT eatsgory7 and yet that bank pro
blY pays moro interest III that way, both ah
lutely and relatively, than any bank 10 n
York, while all advices, public and private, ng
that tho Park Bank is sound, II any Of them 6
Il aay probably because at this diatanee Que
only make qualified statement Of this kind,
therefore write under correcton).
F31,u I,n~,1, nfnr ~ Ia ~ ~