, 1873-10-22
MONEY AND C0MlHERCE.

TUESDAY EVENING. Oct. 81.

eral days. Tho groonbaoka thus shipped nre
worth $3.50 pcr $1,000 premium over certified
chocke. Tho Eroeubacka afro therefore sold In
Now York for certified checks OIL tho Now York
banks, aud this furnishes New York exohAnga,
which soils III this mnrkot for 600 por 81, 900
premium. Tho margin botwcon tho price
Of groenbackH in Now York mud tio
price Of exchange hero Is IS por $1,000.
The cost Of sonling currency to Now York
ia 80 conts por $1,000. It will therefore, bo
eeon that Iii the present state Of tho market 1t
pays tho banks to ship currency from Loro 10
New York.
salos OF New York exchange woro made ba-
tween banks today at from par to so ceuts por
$1,000 premium. slippcrs' bills drawn against
grain aro takon by tho banks at 1s Of per cont
discount.
Tho aggregate deposits in the commercial
banks Of this city arc still, as near as VIC can
learn, from es,000.0U0 to S9,000,00O lcBs than
they wero lllHt previous to the panic. Tie bal
auces TO individual accounta arc al email, and to
country bank-ncco,lntR particularly 80. There IL
no question that this III mainly due Yot tho lack
OF confidence. This lack of confidence, how
but is exhibited in tho policy of tho banks:
When merchant gets loan or discount at
bank, tho amount Of TINT lonn Ia Immediately
passod TO his credit as doposit, ngainpt Which
lie checks from timc to timo, rs his nocessities
roquarc. Thus tho dopobits Of = bank are to
large extent tho result Of its loans, and in pro-
portion to the lberality Of tho latter tho do
posl.s ineroaao.. short description Of this
whole process Of expanding credits IL, that tho
cnnnt It. amonr, tn;r h1ts ,ecoiy.ho ,slio "'o .ro
then consiiored a basia far lin hnnlt lc,wf.
Ing It's eroait in IL, tho further expansion
limit 10 this nrocens. mi, II II nro,,ob1n tint
rcasonahlo limit in t1is resnoct NAV have tv hccn
nxceede1 hcforo tj,a rn,ic INT II ia nfan ,n;tI
rnrtn;n thnt tho hnnhs md Tin n,,hI;, II. ~ ,nn.
cone 10 tho othor oxtremo. 4{huannnlia oou"
seryatinm ia n rool poI;cy nj nil timc, j,nt Il
pceus That h, snmn hnrls In t;a citv cnnanr,a nr
tsm has run into 'narrow-ulindclness and somo
NJ thnm h.ra hccomo sn ntnnuo,v nr np'o
,bIe ncronmoiation onl are of hnt 1t+lo ,rnro
sery;cn in fncilitnfinc cntnn,orca finn, rn,.;nau
banks or eafo tlepositorics. II IL. of rn,rsa
nocossary To- ~, slnw IN ,1,o o.,,nnsinn u'1o ~
sen credits nnw 1,t i, vii, hc hninr ~ III u
When n mrs iihe1a] nnl;rv n, IGa nnrt ~ H. h.,
,tronacst bauhg ID nr,rsnod, hN' 'e
In SGe opou market money in ecorca md +,,o
senoral ratio for rgtcass nn,,or n;ilo, ..;s 1nu ~
Without colaternla IN nhops u,tne' mor ,,t m,tn or
month for short-timo 1no,,u so ih;r+y ~ s;Pt ~
days. For twclvo mnntha; na;'.r ~ w SHY
rate Ia about per ccnt mar mont1, 1nna SuusAa. o.
considerable inquiry for local soeIs. but tho ls
fhnt m trnnaactin,,u o,o ,s ~ oo ,.'s" .nlMtt
could: NJ a onernl ,s,ln ha hom:t ps'a esn s.osa
ahle Reductions On tho nrses NJ ar roan ats
feconsn tho nrouna .Mu piAiss ~ ak Meoks aGo,
e'd of tho haur. u Ptospucs as ~ tnas Tho profits
the cnrront -ronr T6,;,1 Wy Aass unia ~
Tha rar;oma 5ua, mam Dc very salnll:
Tho ou)y nxccnons ~ t'a & s.ocxs nf are Almost
poy fe excanon orsea .e rro, u ptieoa @
notu;fa,enJi,aP P ms,scs from tho faet TINT
hua;noaa IT,. eHu Sor11 u. uo tssun " otner
evo, lcon T. t,n,' =. o,,a Ill., ve
the nTncinni ~ ~ ;s h;sinGos @ u
suo .ne,at notsosrawayh ~, o. tMs c1sy WILL
so,,,,, vsor ~ nor eols. @ CURING 1a'"'
oooa ,,,r,, a.aotn,,. ttnns' ns:s; Ms'SnS.
n,nntS ~ thar ,t .'n,,a,naa ~ = NtaAo nro
nsn u ,at - nnss sot ~ lI:to tef
bpns bearing say s or nar est md rocnn. rro
~ l'o hiestoaoAs ugu'h q tao pleasure OF
fhe crqenc, ov,. n n,s :; .u,eaY snMe OF
tho vnnma - crro,,,,. :. W. ~ mouia nAke
@ @uo"esor, sna5 many oI thouo wno are IN favor or
~ aoot a,, poaa scnene 10 hol reaiizo that
-. a. sns why es W W M!!ey Goruot Me caTe
sthono1, ort;om ~ mt,is az 4i so operaon ana that
o,.ss "s".n "neuasur currency pocame extremely
eaaisa ,haRe part OF inc contsaetlon or green
moulo ~ ~ pe'ahet, aug IN tic present
y aggtavase g our troubles. II the Goyernu1ent
Meto ~" plepalSa 20 oneT per ceEt Or even
Pr cent bonas, " would bo apparent that tho
o'erene 10 was b onerng premium of por cent
!or GreenDacks to put away into O vault and lock
mem Up: After thoro llas bceli 20 mitch outcry
aeh1hse tho Hpeeniatora IN New York locking up
gteanDa:G,ks as various times during the last year
or tMo' Il seems m Tldicnlous for people to recon-
mona ta1:e tnat Inc government should 10 tho samo
th1ng. rye years ago, wo commended tho plan
OF convertible bonds because 1t WIS moaatro
OF currency eon|SacuoM N disguise. Tho cur
tency Mas 5oannaant thon, and, had the plan
oeen aa1optoa tnen. i Would haye prevented con-
40 siaerable % OF tue 70 imitation Of credit which las
f'nco fesnitoo III the recent panic. But the bnh-
hess OF no country hna grown .grcatly
~ ~ tne !ast nYo years: aud II ~ questionable
a. my lase' th's III no tlmo TO 10 advocating
eusuto o. currency co9tfactiGh unless Congrosa
snoa.d niss lepoa5 sne Legal-lonuor oct Except
sol oSa.s.ng uopes), ana py 10 doing PROVIDE tho
eho culIoncy TINT would 20 contracted by tho
=. consoa W ss osS, mno ptoPateu memorial
lid an astrnmnIv oat3o , thiue 'Aunsn' ,rlion to
put In clause that the aggregate amount Of out.
n Inv IFyFr ,1xSIrIr