, 1873-10-13
MONEY AND C0MY1E ERCE
MONETARY.


SATURDAY EvESraa Oct H.
Now York oxohango continues scarce in this
market, and aclls at from par for bankers sight
bills to Il Of l por cent discount for bills drawn
against the shipment Of grain. As tho bills are
payable In certified chccks III Now York, and M
thcso checks nro still at u discount Of Il
of por cont for groonDaoks, 1t shows tbnt
o1obnuge is roally as plc1niun, OF $3.50
per $1,000. Tha condition Of things
Of course nocessitates tho shipment OF curreuoy
to Now York to make exchange, aud some Of tl,o
banks in this city aro shipping moderate amounts
from day to day for that purpose. As montionod
yesterday, we have roason to bolievo that NIL tho
Wontern banks TINT ship currency to New York
to make exohange now do go undor leluito
understanding with thoir New York correspond
enta that theao remittances Of currency arc to DO
considered special deposits, which arc to bo paid
ssain In currency on tho exchange sold against
them. Ono thing is quito appareut that, il tho
grain aud other Western products do not move
Eastward moro freely, thoro wilt bo strong
movement Of currency iu TINT direction that will
soon mnko 1t scarcor hero. II tho currency
wcre allowed to movo freely from tho whole
Northwest, thore would probably DO no Bcar-
city here, but 1t Is quite certain that
from S10,o00,000 to S15,000,O00 Of currency,
more than Ia required IN tho legitimate business
tof tho country, ia still boarded by farmors couu-
trv merchants, and country banks IN tho NORTH
west. Thoy will probably hold on to this Until
confidence Ia fully restored, !" and the nero fact
that they do 60 will, to considerable extous
provont tho restoration Of confidence. Thus this
ridiculous dend-lock OF currency produces tho
conditions that maintain it, It IL apparent that
in this oondil,on OF thugs confidence cannot 10
rc-established In all places et ouce. It must be-
from that to all others. Tie besiunng las boon
made IN Chicago, becnrso we Iayo Ioie wi1nt
will hring money. when nothing olHo WILL yig
breadstufis aud PROVISIONS. Tho be-
,ot tho ,tnost Importance to Tho nllolea country
that it should bo mainta,nod by largo supply
of currency in this city. In this coanccton ii ii
III important fact TINT, while tile banks aro ship
ping currency to Now York to make exchange. o
larger anlo',rs is coming hero BY express to pay
dor grain, and VIC hear to-day Of tho receipt, By
ono firm Of grhin-dcalcrs, Of $240 ,000 il our
reney to ray for grain. r.,
seem to bo convinced now TINT they did not net
wisely to follow the example Of New York In tho
issue Of loan certificates. III both cities tho
banking business is practically stopped. Gin
cnnati is making great effort to get out OF it,
banks to dig out Of 1t in Bome way or the city
viii lose large portion Of its trade. The
condition Of things in the latter city may
be imagined from tile fact that Now York ex-
change solls nt per cent premium for certified
checks on tho st. Louis bnnKs. while for currency
II sells ut par, thus showing that CURRENCY liz at
premium Of per cont over the certified checks
of the St. Louis banks.
nrticle from the st. Louis Globe OF Tho
10th, which shows tho rolatiye positions
in which New York, Chicago, aud st. Louis
navo boen placed by the loan certificates. aud
acknowledges tho correctness Of the view taken
iW0 wnntN ffrJE jsu1nrS.t NJ
of Issuing now kind Of dopreciated papor cur
roncy.
THE UNION NATIONAL BANK.
:. 1tis nov generally believed IN flnaucin1 cirolos
that tho Uulon National Bank of Chicago will re-
sumo business early noxt week, probably about
Tuesday, tho l4th. It H. to be hoped
that this will be done. In tho presont
situation the city needs all tho bank capital that
oan possibly be made available in ordor to help
restore confidence, aud tho 1890. 400 capital
and surplus of the Union National Bank ought
not to be Withdrawn from tho banking business
now. 4 large part Of this sum is the accumula-
long rs tho bank il IN i really sound conqi-
tion, aud has mot with no loss, tho owners
Of this accumulation Of bank profits
ought not to withdraw it from the business sim
ply hecnuse blnGng Ia not likely to be- 10 pr 0 it,
aGle for tho noxt few months.
THE PRECEDENT ON .'srEc1E UAs1s."
Our Washington dispatches Indicate TINT the
presidont is desirouB Of secing something done
vQ DHE UuHluEsa OIL luG COuukEE QIEG InOT9 Oh
d specie basis, but that he seems to belieye in
tile expression made ueo Of BY Socretnry Bout
we'll in one Of his lepol ts to Congross, namoly,
that specie payment will come from natural
causes and not through any special legislation
BY Congress; ,,.., ,,ua,ur ,.u,, ,.,c,
themselves: lie is represented as dosirouH Of
Beoing something done about it. Now, nothing
can 30 done about It. except by special act q
Congress. because nothing b,,t q special act Of
CouEresa can remove the unnatural obstruction
ot the Legal-Tenoer act, which is tho aole Oh
stacle to tue operation Of the "natural causcs,"
turn to specie payments. hfr. Boutwell's mental
composition, howovcr, iB such that whenever, in
bis devious flnnnciering, he runs against an OBJ
stacle in the shape Of solid fact, he perBhts. in
saying that it ls not so. Like mule that has
backed up against fence, tho more Ro1ia
tue fence, tho moro ho kicks against
It; tho more undeniablo tho fact, the
Mr.. Boutwell, having put himself on record az
believing TINT there ID nothing IN tho way of the
operation OF these ''nasural Causes" md TINT
therefore, no action Of Congress il necessary 10
pnt the business Of the country on spccie ba-
sls, Will probably continue to practically deny
that the Legal-Tolder net is any obstacle to the
resumption 0f specie basia Of prices. or that 1t
fs any hindranco to tho 1oxibi!ity Of tho volume
Of our circulating medium.
The President is represented as desiroua Of
seolng something done about getting OH to q
srocie basis. and yet is sad to agree with Mr..
Bu1twell.
The great majority ct cons,esamon are them
selves SO ignorant of tho fundamental principles
Of currency. and haye leon 80 awol by tho
elaborate schemes with which Senators Boutwell,
and Sherman have con,tived TO addle their
own heads. that It il doubtful! II they can
b. made to ea,a comprehend tue sdmllsi;
troubles in the repeal Of the Logai-Tonder
act. Ono great trouble is that NJ q rule, Con-
grossmen get their ideas on annnclal topics fr"m
National Bankers, ard that tlcHe, M clnAs are
opposed 10 specie resumption, because they
fancy thoy can make moro money while We ayo
III a Rtato OF suspension, with gold at d high
premium, 90 as to increase tho into.eat on their
bonds deposited to secure calculation. But
The nevare twist which the rocons panic is even
vet giving the whole banking intesost OF the
Fiat circulation Of paper money. limited by law
to certain amount and nlalo logAl-teudor SO
as to exclude specie. furnishes the element OF d
more distressing crisis than could occur ii VIC
wero on spseie basis. It il to be hoped
that both bankers anh Congressman will brgtn
to realize, before Congress meetH IN Docenlbor.
that tho business community OF tho United