, 1873-01-17
MONEY AND C0Hfi;HIs9}EE 9}EE}CCEE.
MONETARY,


THURSDAY EVENING, Jan. 70
The local money market still feels The effect
Of the inadequacy Of facilities for the transpor-
tation Of hogs, cattle, md products to the At
landc seaboard. The receipts hero now are very
heavy, but shippers are unable to realize because
they cannot ship aud draw. The shipments to
the East this week would hare been fully double
what they havo been if the railroads could have
taken the. freight Tho accumulation OF all
sorts of stuff here Of course helps to keep money
working close and dcpresses tho prices Of pro-
ducts and live stock, thus taking money out OF
the pockets Of every farmer and trader III the
Northwest. Notwithstanding this unfavorable
condition Of things, money is becoming little
easier, though, of course, to nothing like the
extent that it would if shipments could be
made.
The demand for currency is active, and SO
much WIS sent off to New York last week that
the supply here seems rather Ecanty. The
banks had depleted their currency balances go
much that they now feel disposed to accumulate
better supply. This induces the most Of them
to sell their New York exchange, and the effect
Was to depress the price OF exchange to about
Soc per 81, 600 discount between banks to-day
Money is to be Ind in the open market at 10
to u per cent per annum on frst-clasB conat-
erals, and On primo commercial paper TT ~ per
cant per mouth.
DEPOSITS N IHsoLyEST BASKs.
4 recent decision in the Supreme Court OF
Einge County, New York, announces the princi-
pie that deposits obtained by bank, BY fraud or
MISREPRESENTATION Of the real condition OF the
bunk, do not become the property of the bank.
mud that in the case Of insolvency OF euch bank,
the money thus obtnined is not part OF tho assets
of the bank. but must be considered the proper
ty Of the individual from whom it vas obtained.
The decieion also aitirms tho rule that bills re-
ceiyed for collection do not become the property
Of the bank. # tic principle above announced
is sustained, it may hnvc IN important bearing
on the business Of banks whose capital has been
public. ALI deposits before tho loss
Of capital would be the property OF tho bank,
but all deposits after the loss, and while it was
concealed, would continue to bo the property Of
the depositors, Fsho would, in case Of Insolvency
Of the bank, become preferred creditors.
The principle assumed by the decision referred
to implies, also. that if tho amount OF paid-np
capital Of bank ia misrepresented, tho banker
is guilty Of fraud, and liable to prosecution.
In cases Of this kind tho holders Of stock in q
bank Of which the capital had not been paid up
as represented, would DO hold liable for tho
debts Of the concern to tbs full amount Of their
property, regardless Of the supposed limitation
Of their liability to the amount Of their stock.
to was given in~the Supreme Court Of Kings
County, New York, was Jos, e. 6lavenes, who
recovered Judgment for 3,125 against silas 3:
butcher, Assignee in Bankruptcy Of the Central
tion after tho bank really insolvent 1Ir. Jus-
tice Pratt in deciding the question at issue, says:
"Inasmuch rs plaintiff WIS not allowed to draw
against check Eo deposited until tho expira-
ton of about tTenty.four hours, or until it had
been collected, tho relation Was that Of principal
and agent The testimony ehows TINT
when tho plaintiff deposited tho check
for s3,l25 lie Was ignorant Of any
change in the condition Of the bank that would
prevent them from continuing to transact busi-
ness as thoy lad before done. But in fact the
bank WIS insolyent, and tho bank ot6cerB well
knew that it they received the plaintiffs check
the implied conditions on which it was to be re-.
ceiyed could not be carried out. Candor and
good faith required them to decline to receive
the check. Instead of pursuing that course. 30
obviously proper, thoy took the check and placed
it among their>assets- At 2 o'clock OF the next
day it was. paid by the drawce, but
% 1hs bank, tie Court had % sppoiatea Racei1er, on
tirely destroying tho banks capacity for trans
acting business. When the Receiver WAS up
pointed the check in question Has still the prop
erty of the plaintiff, WAS in the possession OF
the bank and the proceeds came into tho Re-
ceiver's hands. He thus became possessed OF
the plaintiff e money without tho PLAINTIFF con-
sent, and under circumstances that gave him no
claim to retain It. But having donc 30, and the
;succeeded 10 S, tha p possession Of tue fund, IL 5
must be held to have taken it in subordination
;to the plaintiffs rights. Defendant being in
possession Of money that equitably belongs to
The plaintiff, an action for money had and re-
ceired VIII Ie against him in favor Of the
plaintiff. .....
SAVINGS BANK NyEsTNEEIs.
The forthcoming annual report of tho Bank
Commissioner of Massachusetts will show thatthe
1,nnt Ire ~ hat Ctnfa },r11
313 OF deposits, or considerably more than dou-
bic the total amount Of deposits in all the M
tional Banks in the State (3s3, 933, ,o13). The in
vestment ot the 91644;797 Sl3 in savings deposits
il as follows: As per cent in mortgages on real
estate; % per cent invested ip bank stock, rail-
rosd bonds, town, city, and Government bonds;
20 per cent in loans on personal security aud on
collate1als..
LOCAL sTocK AND BOND MARKET.
Messrs~ Lunt, Preston l. Kean quote as fol-
lows this afternoon