, 1873-07-15
MONEY AND COMMERCE
MONETARY.


MONETARY.
MONDAY EVENING, July "a.
IN tho local money market buHlnoas continues
extremely dull, and tho supply OF money UNUSUAL.
~ largo. An tho banks would DO g1ad 10 snoroase
thoir loans, and many of thom would take 1css
tbau the usual 10 nor cont for 90 day lonnB on
,ollaoras. Call loans could bs had ut 8, and
oven 7, pcr cont. There is, NJ uBunl, good
doal of roal ostnte papor III Tho market for snlo
at IL to IL por cont per nnnun,. Mich Of 1t is
amply secured and tho unln objection to 1t is
Tint 1t llsb from six month"; to year to run
periods which do not inoet tho views Of any par
tioular class OF capitalists.
Now York exchange continues firm At par to
25o per 81, 900 promu1n
RESTORATION OF usuRY LAWS.
Tho restoration Of tho Connecticut Usnry law
is IN evidence that the rulo still holds good, that
those who mako laws to regulate anancec ara in
tho main ignorant Of tho Fundamental princfploa
that encourage traao and stimulate entorpriHo.'
Tho denial Of tho right to evory man to MAKO
any contract to pny money for anything that may
seom advantageous to lliH own personal anairo.
who1hor it bo rent for housa or Htoro, or rcnt
for ths uBo Of monoy, Is simply prohibition OF
enterprise and trade In tho State whore usnry
law is enforced except at such times as trade and
ontorprino langniBh everywhere else, and there
ia 80 little use for money that the general rate OF
intorcBt dcclincs to tho lirlit prescribed by tho
Ususy law.
Tho people Of Connecticut claimed that, Binco
tho 1opoal OF thoir Usury Law laat yoar, tho nyor
ago ratio Of intorost In The State Lad advanced
about por cent, aud therefore tho farming
community clamorod to have the old law restored
For fear tho capitalists should make too much
monoy. It Is probable that tho prolonged strin-
goncy which was experienced all ovor THO United
States from October Of last yoar to April OF this
year may have Ind something to do with tho
highsr ratio of interest In Connecticut, but it is
also probable that II tho old Usury law of Con
nocticut haa boon in forco during The last year
in that State, more Of hor local capital would
have boon drawn away to other states by tho
higher rates of money In tho freq markets, and
though tho rate of interoat In Connecticut might
have boon kept down to tho legal
limit OF 7 per cont, there would have boon leaH
capital to loan at per cont than thoro actually
was ut Y per cont. Tho consequence would have
been thai traao and al sorts Of enterprises wonld
have laug1llAhod, whereas they were reasonably
large class of people understand how this gon-
eral bcno1t to oil sorts Of induatriea resulting
from FREQ trade In money moro ahan overbalnnoos
nny increase jn the rate Of interest caused by
tho incroneod demand for money to do business
ihat never would bo done it 1t were mol for tho
Increased Hnpply of money drawn there by tile
higher ratcB Of interest. As fur US VIC in the
West nre concerned, wo should bo glad to ace all
tho Eastern States onact nnd enforee UHury 1nws
like tint OF Connecticut, but We should at
tho same tmo be glad to SEQ tho uHl1ry lava Of
illinois, Iowa, and Wisconsin entirely abolished.
The result would bo tllat tho great bulk of tho
loanablo capital ofkthoao States would be driven
10 tho Wess for Investment, and thus nll our OH
terprises be stimulated and tho values Of our
real cstate aud Of our town aud city bonds be
enhanced.
FINANCIAL ITEMs.
An Enstorn papor describes "a fol1owa tho po-
culiar style of doing buAinosB among private
bankers and brohors in the New York stock and
bond markets., aud the great oxtont to which
" Well up to tho close OF banking hours they
check upon tho banks whore they keep their nc
counts MS their nocossitios may require, and.
quito unlike tho banka this wny, tho banks OF
tADle depositors to woll-nigh unlimited oxtent
in advance of actual deposits, relying, upon tho
i'epositors to coTor III! these certicntionB before
close Of business, AS tho hour Of approachos
tho borrowers cipher out their cash Moods, grab
up bundle Of aocurltiea-stocks or bonds or
something Of tho Bort-and go for = loan. In
negotiating thoao loans Of minute money, no
noteB for tho aamo aro pasBoa between the lond-
ers and borrowers. aa the busy operators VIC arc
arc speaking Of consider such voNchcra entirely
unnecessary, and taking too much time for thoir
preparation"
Tho New York Times recently noticed the in.
torosting fact that two important land-grnnt
mortgages, createa some twonty years ago. have
bcen promptly paid off, as far aa the bonds have
boen presented for redemption, out of the cash
proceeds Of tho lal.da originally mortgagod. Tho
illinois Central mortgage was for $l7,000,000.
due in 1876. OF this largo sum 31A, 900 900
bonds havo been redeemed aud cancelcd,
and every effort made to induce the presenta
tion Of tho resnAining 83,ooo,ooo for the
prepayment Of which ample cash pro-
s;u3t,ue, f,,nda a. the nnmnanv. Tha ,anI orsnt