, 1873-09-23
MONEY AND COMMERCE.
MONETARY.
MONDAY EVENING, Sept. "a.

MONDAY EVENING, Sept. "a.
Tho drift Of financial airairs to-tsny, bnth in
--ata city and III Now York, has beon watched
with tho mogt intonBn intorout by tho business
community. Everybody seemed TO feel that, II
vo could got through to-duy without nny new
nnl unfavorablo development III Now York, con-
lldoncc would DO rostoEcil and busiucas rccovor
ito normal condition iu II few tlayu.
| Tho public now untlcrstnud tint tho aspect Of
tho panio In Now York OH Saturday and today IL
entirely different from what 1t was OIL friday.
Tho failures OF Thursday and friday were tho
Legitimate results Of visionary schemes, wild
speculation, and fraud. But since Saturday
morning tho character Of tho panic Inns boou m
nuwarrauted loss Of confidence In so1lul banks.
Tho four In Now Yorls-and for tint mnttar oY-
orywhoro-on Saturday and to-day WIS not 80
rnlch that there wero any moro rotton banks
like Jay Cooke Il Co.'s, but TINT tho doposltors
pf sound banks would mako m insano rush
10 withdraw their deposits, and thus
pbllgo groat many, II not all,
Tho banks to suspend. Tho
unanimous conviction that this has been tho
character Of the panic for the last throo days,
shows how little ground thcre is for apprehon-
zion Of further loss to anybody
Fortunately tho day has passed without q
single unfavorable incident in Now York Or In
shiB city to excite alarm. There wore some In
savings banks to-day, but aB 1t Ia well UNDER
stood that there ia less reason among savings
aopositors than any other, class Of people,
Lhfa was anticipated and forestallel by
fhe Tbs. ahn yc.sgS t. Of roo hS s12 ~
dopositorB to giyo thirty days notice Of the
Withdrawal Of their money. This policy will Of
eectnally dofoat any run.
At tho commercial banks In this city every
thing was worry quiet to-day, though, Of course,
they could reasonably demand currency from
their New York correspondents, and nezt to
know whether their country bank customers
would net with reason, and not draw on their
understanding n,nong. bankers to-day horc
for currency wore light they would
fill them, but that il they were
heayy enough to indicate an unreasonable dis
a1aw currency for which they have no legitimate
a1sc they would not I'LL such orders In full, but
would send half, or a quarter, as tho case might
be. It must be understood that, in the present
scarcity, The soundeet bank IN the city, might
OF currency. OF course, no bank can get cur
renoy in the usual wny, by selling New
ok OK change, which has boon un-
salablo oyor sinco last Friday. The To-
Currency ought to fall of largely at once. In the
present condition Of business, both In Now York
and Chicago, 1t is folly for country shippers to
send grain to either place, until tho usual ma-
operation again. For tho prcscilt, nLipmonts Of
grain from tho country only aggravate the dif-
GcuIty.
Secretary Richardson deserves tho highest
commendation for tho drmness with which 1le
resisted the demands Of frightened people
eessdit eDi to tho New York banks. % If tho s Now YorE
banks aro sound they cau 90 through this panic
on their own credit and come out all right. II
they are not sound the Government would hnYe
no moral right to como to their rescue, even II
tho unconstitutiouality Of the act were loft out
OF tho question. It iB, OF courso, understood
that in tho present panic there is q temporary,
The only representative Of credit not affected by
sho panic. II it woro absolutely necessary that
thero should be temporary expansion Of
:ho currency to meet this domand, 1t would
Dotter be made by the expansion Of tho National
National Banks Of the United States have now
on deposit at Washington, bonds to tho par
value Of about S40C, 000,000. Tho market value
OF theso bonds is about 942o, ,000 000. Against
the banks ss14 ,ooo,ooo Of Calculating i'1 notes s.
900 of National Bauk capital locked
up in the Treasury at Washington. Tho
amount OF mutiated National Bank circulation
bills, III now at the rate of ubout 100000 por
ann,lm. To meet this demand for now bills,
tho Treasury Department always koopH on hand
large amount Of new bills for each OF the Na-
tioual Dnuks. Now, ii 1t were necessary TINT
Tho Treasury should do an illegal act to meet tho
do1naud for currency, it would better be in tho
form OF All advance issuo of thoir own notes To
all tho bankB, on security Of the bonds already