New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-09-27

same time, however, it was decided te
pay out as usual all deposits made here
after. AS the banks, however. can fur.
n!sh no guarantee that future suspen'
sion Of such payments will noe be neces'
sary &c a means OF ''self-prese,vation,
there IL likely to be small movement in
new deposits.
! This regulation Of doing business with
certified checks amounts to an issue OF
large oGes, which are not available 70
dealers doing small business which re.
CURES change in currency: neither are
/ certified checks Of much use 70 sellers Of
cotton and produces who are in need OF
cash for remittance purposes. The ineyi-
table result vii! be TO give greenbacks an
| enhanced price over bank checks. This
| has already been done in New York,
where currency commands q premium Of
two 70 three pc, cent over current bust
| ness paper prepared for circulation. Notes
! IN bank. acceptances. etc. can be paid
under the new arrangement without diff.
Guilty. but the ordinary retail transactions
will be necessarily restricted until enough
cash has bseo drawn from the banks under
the twenty-five dollar rule to furnish deal
ers with ready change. How long the
banks will be able to stand the drain we
are unable TO ssy: but it is reasonable to
suppose that as many twenty-five dollar
checks will be offered in a day as there
were hundred dollar checks when that de-
nomination was taken as the maximum.
loss Of Fifty thousand dollars a day may
therefore be expected for the next three OF
for days unless the banks refuse to pay
checks altogether. We fear this step
will be forced upon them. unless they
can stand the drain till the depreciation
in cotton and the difficulty of selling
sterling exchange shall cause cotton buy
ers TO enter this market with money IL
hand. In all likelihood the pressure can
not last longer than Ill. the tide Of currency
begins TO blow back 20 the city. This
depends upon shipments. which in turn
are subordinate to the ability Of planters
to prepare and forward their crops.
In this connection i, may be proper to
note habit which many persons have of
placing their currency in bank boxes and
placing them in bank vaults as special de-
posits. Probably there is more money
thus tied up in this city to-day than the
banks have in their cout.o,. Nothing is |
Paid forsthe safe-keeping ofinmense sums.
and the banks may become hopelessiy in
solvent for the want 6: Few thousands !
which they have IN their keeping, but
dare not touch. There IS little doub: that
a general refusal 20 receive these special |
deposits would soon have The efiec. TO in
crease the amount Of cash on call, as
many Of the money hoarders would prefer
risking their precious shekels or green
backs in bank to subiecting them
% the chance CT being carried
of by burglars. Blu. SO long as
'us polite bankers wi! take care Of
heir money for nothing. they will not
AXE any risk whatever. and would no:
endanger the safety Of copper cent to
ave whole city from bankruptcy. We
rope this question Will be brought before
meeting of bankers for discussion, and
commend to them the obvious action
which should be taken in the premises
OF self protection. at present those who
equire bank officers to &C: as their ware
withou: pay. and are unable to
rust their money on general deposit, may
raw their funds at any time. while the
legitimate customers are denied. Throw
ut these special depositors, messieurs
ankers. and see if you Will no, find your
elves in stronger position.