, 1873-05-01
MONEY and COMMERCE
MONETARY,

wEnsrspAr EVENING, April 80.
1hero was moro than tho usual activity In the
local money market today on aooount Of tho
preparation to pay for grain oxpcotod to ho do
uVercd tomorrow on May options. Many OF
tho banks aro becoming tisgustod with the ro,
riodio disturbance OF business cauHod by tliB
demand for tho loan Of 1argo amounts Of money
for ono or two days to enablo spoou]a-
tors to settle up their option .trailos at
tho beginning OF each month, Dank-
ors say they aro willing to loan money for thirty
days In reasonable amounts, but not in tho o.
traorslinary sums required by tho spooulators for
only ono OF two days. A speculator may hayo
two or three hundred thousand bushols Of
wheat, for instance, coming to him In May, md
which ho expects will DO dclivorod on tho 1Bt.
AT tho samo tlmo hoanay have as mnoh wheat
or corn, or something olso to deliver to
other parties on tho sa1no kind Of options. Ho
must phy Tor the ono mud got pay for tho othor,
ana In the aggregate his receipts and payments
OF money may nmount to sovoral hundred tlo11-
sand dollars, while his OWL uctual capital mny
not DO over onc-ffth or one-tenth OF tint B,lra
The grain is simply moved around from ono
holder to another In this market, and tho money
shifted around from ono bunk to another. It Ia
much the ea,no as II tho banka woro to attompt
20 eoteie thcir respective demands against oaol
soa. osnoa without tho aid Of the Clearing Il
anu REQUIRES Breat doal Of currency for juat
ono day at tho beginning Of each month. Il
11epLossen the price Of exchange and dorangos
,mnn nasnoss generally The bHnks claim that tboy
maKe nothing at all out Of 1t to pay for the
trouble, aud some Of thcm declare thoy will not
40 1t my longer. Several Of tho applicants for
large Sums to-day wore refused at yar1ous banks.
sni,n and 1t 10 doubtful whether thoy wero ab1o to
tho expected largo deliveries Of grain Ind pro-
visions. Y seems probable tint as tho volume
OF speculation In the grain and provision mar
th Kets Increases, somo other plan Of aettling up
each month, will haye to DO adopted. 4
clearln8-house TOR option trados was sug-
eee gesteeu eit an aud discussed year or two
;o s1ood, and no attempt was ever mado to put tho
idea into practice Il tho bankers are really in |
earnest md should hereafter rofllso to furnish
inc means Of settling tho option trades Of tho |
eaa e5n,a .o dcaoTs the Latter you'd probably adopt
ASH aside from On tho temporary activity above re-
1orred to, tho money market seems to be grow
ing easier: eai Ton days agoo when. tho banks did
money hero, and willie 1t WAS extremely s:rin-
gent in New York. the banks wero all disposed to
increase thoir balances in New York for fhe sake
g. tho intoroat they could get from thoir Now
so,,,o nu1n corrGapohaonts: but now money hua be-
me large movement OF grain to tho East in q
Tow days will mako largo amount Of exchange
md Increase their Now York balances more thsn
e e desirable. Tho doolino in tho price of ox-
change, therefore, indicates disposition to
keep larger proportion OF their funds here.
j., The demand for currency Incident to the Hot
.lomonts In the grain market caused doprossion
q tho price of exchange to-day, aud some largo
n.y. This, however, was Tower than Tie general
condition Of trade would naturally mako tha
2rice, aud the legitimate ono would probably bo
Aossrs. Lunt, Preston i Kenn quote Is fol-