, 1873-01-18
MONEY AND COMMERCE.
MONETARY.

FRIDAY EVENING, Jan. II.
Tho local money market Ia for tho present af-
Footed by special local cauHos Tint provont tho
progress towards eano which 1t wnn expected
would bo folt in all the principal money narkcts
OF the country by this timo. Tho first aiid moBt
Important special cause Ia tho deficiency Of ship
ping faollittos, which proyonts tho movement Of
hogs, cattlo, and producta from horo to the Eaat,
and 80 holps to keep money tight. Thore has
also been something of an uusottlemont Of con-
ftiouco with tho ontiro class Of savings doposi-
tors, and, while thoro ars no positiyo domonHtra-
1ions yet, tho banks holding Tint Kind Of do
posits doom 1t prudent to bo prepared for
emergencies. and havo boon pretty generally
7ortltying themselves with reatly money by call
ing IN loans. Tho fact TINT the banks aro pro-
pared will probably bo tho means OF restoring
confidence. Aeitlo from these circumstances, all
tho other Indications OF tho money market aro
favorable to progress toward oaso. Banks that
hnVe largo country correspondence report tho
deposits of country banks increasing, md tho
distribution Of money in tho country In pay
ment for hogn and cattle Ia having an effect to
facilitate merchants coli cctions.
currency Is still in sctivo demand, and soycral
banks havo orderod ronittanuos from Now York.
E1changc WAS sold between banks today at
soc to 75c por 81, 900 discount.
TIE SENATE FINANCE DILL Fon nEauMpT1oN or
SPECIE PAYMENTS.
Tho bill reported in Congress- yesterday by
Senator Sherman, from the Finance Committee
Of the Senate, embraces moro popular features
than any thnt has boon introduced either In tho
present or tie lant Congress. There are, how
evor, two features in 1t that will not moet tho
indoraomout Of prudent ilnancicrs, viz. tho In
crease OF tile aggregate amount of tho outBtand-
'ng debt OF tho Unitod Statcs and the power Of
sho Secretary Of the TroaHr1y to iucrengo or do
crease tho amount Of United States notes Mt his
option. Tho prominent and important points in
tho bill may DO nulnm nrizod as follows:
l. After Jan. l, 1874, tho Secretary Of tho
Treasury is required to redeem greenbaoks (up-
on presentation in any amount over 81 ,000) in
gold; or, nt llis option, han tho alternative Of
funding them into n now s por cont gold-intorest
ten-year bond,--aniar to tho 10-40a,-which
sbnll be exempt from nll taxation.
=, 2 Tho Secretary may ralBaue, at his option,
tho grccnbacks recaivcd for these bonds Tor 1t
the greonbackB have boon cancelled, may hayo
cancolled). Tho reissue of grconbaclts is not
made contingent upon tho return Of tho bonds
for which tho Crecnbao}lo woro exchanged 1t is
therefore apparent that tho provision admts the
g. Tho act requiring, Redistribution OF tho
e25,0o0,oco OF National Bank circulation to DO
repealed, and nil limits to tho h,nount OF M
tiopal Bank circulation to bo removed.
a. All National Banks (oxcopt sgold-noto
banks y that redeem thoir circulation In either
gold or lega-tendcc notes, to DO absolycd from
holding any specified percentage ct reserve ,
against cithor circulation or deposts
Tho first Of the foregoing propositions is c,nt-
nontly juat mud proper. Tho Goycrnn1ont
should reaoon, it's notes either in gold or Should
pay interest On it's debts.
Ihe second proposition would givo tho Score.
sary creator diGcrotional powor than any ono
public officer Is entitled to. lie would hayo tic
power to fund and cancel $50 ,0oo. 900 or s1oO.
0n0,0o0 Of greonbaoks, and then print and ro-
Issue the wflole Of them again without recalling
tho bonds issued in their n}ead.
Tho third proposition abrogatos thu nroeont
monopoly of banking PRIVILEGES. aud makes
banking free, as it should be-,
rho abolition al ali ronu;ronan+a for bo,,,
reeerves involves such mornento1,s conscnnoncna
that It must bo regarded with anprebengio1l.
frhn sornGneaa NJ the Not;o,ni naEfitrn ~, ~
is undoubtedly duo In some measure To the RI.
,nnn&a aro n1,1;ohoJ nr5 ~. t.xI.s
ueuIa Slo anoiaieu anu tno DAnks allowed to
expand WITHOUT Amit thoro will certainly ba O
greater proportion Of bank failures thnn hnrntn,