, 1873-10-08
MONEY AND COMMERC
MONETARY.


The anpcota of financial afInirs III t]lia market
aro certainly improving. Tho bnula are getting |
baok to n settled r1nn OF buslnoss though IN
some rospeote 1t Ia different from tho oldroutino
Of practice boforo tho panic. Tile main points
OF slifforouco botwocn now md t!lon aro, that |
they are disooslntng loss III proportion to tho |
increase Of tIsoir deposits In tho Inst woek tint
they nro gradually diminishing tito amount Of |
tEoir outstanding tonuB, mud tllat they nil soom
dieposcd not 10 alow my accumulation Of pal-
auceg to their credit III Now York.
Tho contraction Of loans Inns, as mentioned III
DIR article Of yesterday already boon worry largo.
But II Is subject matter for congratu'ation that,
according to tho testimony of tho banks, tho
mercantile class Of borrowers nre paying mp
promptly, and that fowor removals aro asked for
than wan anticipated oron by tho banks. Tho
fact IL tint merchants in all regular lines Of bua-
iaess in Chicago (o3copt tho grain tralo) do bllH-
incsH moro largely on their own capital than in
most othor cities, and aro therefore lottor ablo
to pay up. Tho grain trade Is only kind OF
brokerage bt1sfnoss. Tho readiLy marketable
character Of grain as compared with dry goods
is tho foature TINT n1akos loss capital necessary
on tho pnrt of tho grau-tloaser. Ills
commodity Is moro like cash itsolf, and
carries its owl, security with it, 30 TINT tho ordi-
nary fucllitics afforded by banks arc loss ncceB-
sary to tho graiu trade than any othor depart
n,ept Of our commerce. In fact tho GRIM trato
could bo carried on without tho banks. Tho
latter arc after nil only collecting agents for tho
grain elippers, OF co,rno tho banks grcntly
facilitate tho movement OF tho grain, but 1t
would 20 forward auyhow-though ut n Blowor
rato-nyon il tho batks nado no advances Oh
cargoea.
Tho manufacturing Interest is the ono that s
now suffering tho most not only In this vicinity
but in nil parts Of tho Unitol States.
During tho Inst fow yoars manufacturers havo
rot in tho habit of relying on tho
banks for aid in carrying on their business, to
creator oxtont than any othor department. OF
commerce or industry. They not only soil their
goods OH longer time than tho merchants but
they require large advances to buy raw matorials
and to pay their hants while tho materials aro
being worked up. The grain trado has already
Ing business will feel Its effects for some time
yot 1t Ia for this reason that the diaorganiza-
tion Of business is worse IN p1lladolphia, GIN
cinnati, aud st. Louis than 1t is in Now York
or Chicago, BusinosB here is simply dull,
large part Of it has stopped: Tho
financial machinery Of tho manufacturing
interest is more complicated and IT, tahSa @ tt,e
point, however, III tho revival Of business
in any Of sl,oHo departments Of trado il, that
there has boon no loss Of property. There ia
Just as much property now AZ there vas . month
ago. when everything Looked so tlourRhing, nnl
tlcro is no roason why the suporstructuro of
credit built OIL this property should not bo ns
large three months honco as it was ono month
The hauks In tLis city ware taking bankora
sight exchange on New York to-day at from pa1
to one-half OF por cont discount Some bAnks
other cuHtonlcrs at par, as long as thoJ
eau acll about as much as, they
are Obliged to tako but other banks, that &c,
moro from their customers than they can sol
to pay for turning it into currency III New York
Tho net result Of thia policy s TINT tho banlse
here do not accumulate any balance in tho Ne"
York banks. All the oxchange, over aud aboS!
what their customers require to pay New lorl
debts through tho New York banks, il tuInet
into currency and brought West. It is possible
that The decrease III the shipmcnts OF grain ma
soon bo 40 largo as to make II premium for Nov
York exchange TINT will overcome the dHcouu
On New York certified checks. In this case
.u1rency would hlow back to New York IN
eventually find its way into tho Now YORK. na'lkE
tn short, the West las tue Now York debts t
pay, and must either sond the grain or tho clli
rcncy.
New York adviccs to-day make special met
lion Of tho active W export moSemont 10 OF grail gral1
condition of.our foreign trado, this indicates til
probability of incroasod shipments Of speci
from Europe to this country. Uuder these Gil
cumBLauCEt Luo uALulAA tH!lt4dllCp u tAo P4tto
gold would be to decline during tho rost OF th
tall, but tho Treasury policy Of putting q
more groenbaoks to my tho oxponaoa q u,
Government (33,000,0 900 Of the sii,000, or
reserve having already boon iasued) hl
tho roverso eaect, and ia for. til
present sustaining tho premium on gold oyt
eseenbacks. The situation may he briefly state
as follows: Tie European demand for OF
abundant crops is making the country 10 ric
that, notwithstanding tho panic has obliged IL
Government to increase its outstanding doDts
$4,000, 000 the value Of it's notes is increasing
LOCAL RATES FOR noSDs.
Messrs. Preston, Kean II Co. quota aB follow
this afternoon:
Euyiua. .ScllfnH.
.. cs Of 81 -...,l13a@ila1l ll53 GLE
U. s, 5-20s Of 20. .106!ta lh7ts l0S7s