The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-11-05

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AspccseS Of. ttise NEUTRALITY-SUSPICIOUS.
Grntn Bank. .,4..a ...t,,II,,,,y -,
i Notwithstanding the suspension Of work
commercial failures rof houses of extensive
connections, the financial condition, al
viewed by the New York papers, presents a
more encouraging aspect than recent events
indicated. The stagnation in the circula-
ting medium, growing. out Of a general want
Of confidence, as all know, Is now the chief
difficulty, andthe New York papers Of Mon
day particularly comment on this phase of
the situation. The Times says: TIL
The money In circulation was too little to
hold up stocks, pay for the enormous crops
Of grain and cotton, and move them to the
seaboard. The panic then began on account
Of the stringency in money, which was not
artificial, but brought about in the ordinary
course OF events. Confidence has been
shaken now by the numerous failures and
the clutter concerning the instability Of the
moneyed institutions. A restoration of pub
lie confidence in the safety of the banks and
an ample supply of money will bring about
speedy recovery. AS panic began on ac-
count Of monetary stringency 80 It will end
by relaxation in the rates of interest and
proofs furnished that this will be perms-
nent. We have the money now. There
is more in circulation by fifty mil
lions Of dollars than six weeks ago.
The banks have drawn largely on
their legal reserve. The Government has
paid out the surplus of S15, 000, 900 in pur-
cbases of bonds, and has also drawn largely
upon the 100000 reserve. Millions of
gold have been sent over from the Bank of
England, which are now in active use here.
The country needed more money, and 1t has
been obtained. The truth is that before
long currency will be glut, and four per
cent. be considered high rate Of interest.
Every mandatory that closes and every
rsn-forge that shuts down, instead of adding
to the general stringency in money, tends to
make it more easy. Money is dearest when
there is the greatest call for it to use in bust
ness requirements. 1t is cheap when it seeks
investment instead of being sought for.
The New York Herald says: .,...
The only trouble seems to be about The
currency-about the means whcreHith to
transact business. Yet there has been no
actual contraction-that Is, the Government
has not withdrawn any of the circulating
medium. On the contrary, it has rather en-
larged 1t by an extra issue of greenbacks and
through increasing the fractional currency
by the new silver coinage and issue. The
increase of gold through importation within
a few weeks to the amount of about ten
millions has also augmented our resources
for trade. There Is, then, more currency
than before the crisis, and when everything
was going on swimmingly. The question
is, therefore, will this currency be afoat
again as the crisis passes away? Let the
banks unlock their Golfers and the people
empty their stockings, and all will be well.
The Tribune says: ST. ...- Z
:. Allauthorities agree that currency is want.
ing. That alone is the panacea needed Tor
all our ills, according TO the unanimous vote
Of all the consulting physicians. The diff.
Guilty lay in putting currency upon the mar
ket. The people have plenty OF it, and
doubtless would willingly pay 1t out for
Government bonds, but people won't sci
the bonds. They are rs good as greenbacks
to them, and better, for they draw interest
The New York Times has the following
Steps have been taken for The formation
at this centre of banking in the United
States of banking institution to be de.
voted entirely to the grain interests OF the
interior The movement is in the hands o.
private bankers Of this city having estab
Iished business connections. The capital
as proposed, Is to be 100000, and Is to
| represent the interests of large number Of
| national banks in the grain-producing sec
tions of the country. 1t l., if possible, tc
| be organized under the national banking
act, and is to be designated the National
Grain and Stock Bank. It il intended to
! serve the best interests of producers by the
| establishment IF in,nedipta ral,tinns and fix
| avoidance of middle-men-especially the
class of spectators who operate at the
urgcr centres of the West. If it should
accomplish the designs of ita erlginators il
will confer very great benefit upon the
farming classes by afordng to them larger
returns on their production, and will be {
practical realization OF the object which tht
| Oranges have had in view.