, 1873-11-01
MONEY AND COM MERGE,
MONETARY.

FRIDAY EYFNIS0, Oct. IL.
It would be usnleBe to attempt to smooth oyor
tho fact that tho failure Of 1Ioyt, srraguo Il Co.,
Of New York, and tho concurrent rumors In ro-
gard to other woll known merchants thore, have
crcatod focling Of depression horc and I'M
doubtcdy also ovorywl,ore olso III tie United
etatcs. Tho failure Of largo merchants In tho
East docs not imply tho probability Of dircc,
loss to other buslnesa mon or balikers In tho
West, because, Us rulo, Western merchants arc
debtors to those in tho East. Tho East Is never
dobtor to tho West, except when our produce is
forwarded very froo1y aud the proceeds
OF the salo arc turned over to the Enstern banks,
who often thus become tho debtors OF Western
bankH to very 1argo extont. Tho roccut bank
and currency panic however, wipod out nll in-
debtodncsB Of tho Eastern banks to thoso in the
West. Tho run for currency Obliged all tho
Western banks to draw thoIr bnlancea out of tho
Eastern banks. Tho West is at proBont largely
debtor to tho East, while there aro almost no
dobtH duo from the East to tho WeBt. Thoro Is,
consequently, loss danger of direct loss to par-
tics In tho Wcst, from important failures In tho
East, than thesewould DO II thoro had not already
been a bank panic. But on the other hand, 1t Ia
we'll known that many important mercantile
houses In the Wost arc sustained by large firms
III tho East, In fact, somo Of the most promi-
nont mercantile houses In Western cities saro
practically branches Of Eastern houses, and the
failure OF any ono Of dozon mercantile houses
In New York would inevitably oblige many Vest
orn houses to wind up because It would deprive
them Of their accustomed facilities for getting
goods on credit.
Nevertheless, the groat feature that suHtained
tho West, and particularly Chicago, through tho
recent currency panic, was that tho West deals
in food products, aud thar, whatover happens,
these will soil at Bomo price. and so bring money
to the West. Aa far as the West ia concerned
tho unfayorable feature Of tho present CONNER
cal crisis Is that tho depression Of the manufac-
turing interests deprivcs tho largest consumers
Of our food products Of the mems to buy, and
thus indirectly the efroct OF Eastern mercantile
failures would DO to ioprcss tho prices Of West-
err products
There Ia little to bc said about financial mat
ters In this market bccause there is 10 little do
ing. Deposits aeen neither to inoroaBe or de-
crease. The banks arc disoounting very little,
and some Of them arc combining their loans al
most entirely TO " demand" On collaterals. Tho
poyk-packers are in Home instances making ar
1.apgements now for money they expect to want
two or three weeka hence, nnd as rule Thea
find but little difficulty In getting all they want
,,,i to be e.. very y large s hog'crop IN the be
tcipatea that tho paokors Of this city will require
less accommodation from tho banks this fall
than Usual, for several roaaons: First, the
packers made q large amount Of money last vim
tor aud have kept 1t. The paekora Of this city
are, in tho aggregate, at least 81, 000 900 richer
than they were at this ti1no lust year. Second
the price OF hogs will be low this year compared
to last, aud It will take less money to handle tho
crop.
There seoma to DO pretty fair supply Of
money offered in the open market, but tho rateg
arc stiG as ever at ~ to per cent per month
for the beHt commercial paper, or even Oh collat-
erals
Tho most unfavorablo fehture in Western e.
uances is that, with tho country full Of grain,
cattle, and hogs, there is 10 little OF them going
forward to tho East. aud that in default Of e1-
change made against shipments Of these. the
banks arc steadily shipping currency to New
York to make exchange.
New York exchange sold between banks to-
day at 50o per 81 900 premium. Grain bills are
taken ATS to 4 Of por cont discount.
THE DECLINE IN 8ToCKs
since year ago has bocn enormous. The prices
OF tho siz cen loading speculative stocks ut
half-past o'clock to-day as compared with the
r]aafi,n nriraa nf 1nt o1 1870 nra ms fo1lr,ru