, 1873-12-04
MONEY AND COMM ERCE.
MONETARY.

NONE TARY.
WEDNESDAY EVENING, Doc. ..
Tho money market continues to Hlow signs Of
an increasing supply Of funds, both East and
West. In this city, Tho relaxation In Tho money
marriott has lcon quito rcrccptiblo III tho Inst
fow dnys. To-day mid yesterday, tho ror's-rack-
crs wore not checking 30 heavily rs previous to
tho prosont thnw md rain. Ih!R has mado busi-
ncss somewhat dull ~ The bauks.
Now York exchange il getting worry plenty,
Andia quotablo at par for Halos boswoon banks.
l'orlIaps tho most prominent fea.uro In which
!hc message Of tho presidont aud lilo report Of
Tho Secretary Of the TREASURY agroo iB III favor
Ing
AN ExrANaroN OF DANK CURRENCY.
Secretary Richardson only recommends In =
Ronolnl way, that tito National Danks bo por-
mitied to incrcnso their noto circulation to
limi!ol oxtens On tho decosit Of Uniteu States
bonds, Oh tho condition TINT tho bankn depoot-
ing tho bonds s1lal! forego tho .intcrcut on
them whilo 80 deposited ~ security for circuits
ton. 1t Is presumed from tho conlo1t that tho
Secretary means that any National Bank may de-
posit United States bonds and recoiro from the
treasurer Of tho Uni,o.l statos nj advance, or q
loan, Of Its (tho bankB) own notcB, to All
for which loan the bank is to pay a lato Of In
forest equal to tho intorcat OIL the bonds.
The proaidont, lowovor, elaborates Ibis itlon,
mud recommends lower rate Of interest q per
cont for the loan to tho banks. Flo favora an
Increase Of National Bank circulation to Il maxi
mum Of 40 per cent on tho presont 1854 ,000,-
coo m increase Of say $40, 100000, II tho banks
aud the people want It, aud nro willing to de-
posit United Statcs bonds to secure 1t, aud will
pay per cont interest for tho loan. II tho
proaidont's schomo wero authorized by law,
It would lead to aonle confusion III
the respect that tho Treasury would
Then bo issuing circulation 10 tho National Banks
IN two diTcront plans, ylz. tho present one, OF
90 per cent Of circulating notos to tho pnr valuo
of bonds, aud tho new plan OF which 100 per
,ent Of circulation would be issucd on tho par
value Of the bnpds, coupled with the stipulation
TINT the banks should, In tho latlor case, torego
I per cent Of tho interest Gu tho bondn dopos-
tied. 1uasmuch aB it IL now admitted on all
silea tlas the banks do not make moro tlan
per cont profit on tho whole trauEaction OF do
posting United statoH bonds aud getting 90 por
cent Of circulation on Them, 1t becomes quot
sion, whether tho difference betwcon 90 por
cent aud 100 per cont Of circulating
notes received by tho banlB would 10 worth pay-
ing 4 pcr cent interest on tho whole 100 per cont
Of circulating notes received. 1t MUST he re-
lnemLol cd TINT til Q Government tax Oh National
Bank creuat lou is por cent, aud that the mar
ket value Of the lonGs is from, Ii to 70 per cont
more Than Ear, MID that even II 100 ror cent OF
circulating nutcs wore issucd to the banks OIL tho
Un-,cd StuteH bonds deposited by tlem, they
lose ilo interest this IL 20 per cent Of cap
itat invested III tontls. II tho bnnka were re-
quiz od to hold reserve Of ]ogal-tonder notcs
ASa,nht tins additional circulation sBucd to them
Oh tho Presidents Elan, tho currency thus ao-
quired would cost neatly per cent, or nearly as
much al tho waOlo iutereA: on tue bonds.
Tie whole proposition tlleu resolves itself
into the question of whether tho owners Of
United States bonds desire currency to the par
valuo 1t tic bonds in preference to tho bonds.
1hero is no ti1nc, oyon WHOM currency is scarccgt,
when unltoi States bouds would not sell for
mole than par III currency in the market. We
40 inclinoa to tho boiief TINT oyon II tho loyal
requirement. for rosorvo Of loga-toudev nolcs
to uo held by lilo banks against their outataud-
Ing circulation wore repu4ed, tls privilege OF
gc,iLg lo0 lor cent OF circulation by the pay-
Meut IT 1 per ceut interest would 10
No 1SpucEMENF TO TILE DASKs TO EXPAND
by taking uut additional circulation OIL tue pres-
identB pun, mud If not un Aia, oorta,nIy not Of,
Secretary Richardsou's plau, Which requires
that tloy should pay Or i per ceut interest for
t4iB hdsGacs Of their own nUtcs.
The presidont, however, As mentioned above,
is III tayor of expansion Ut the bank currency,
Is at least not opposed to
and that he meanH by this simply the removal
OF the Legal Limitation to tho aggregate a,llount
National Danka, in all parts Of tho country, to it,
sue iunt al much circulation az tlloy naY dosire,
provided only thnt thoy deposit bonds to secure
It as HOW. IL recommends, however, that tho
luukB Eo
"yoncED INTO RESUMPTION"
even II it be - only III loSa!-,euarr notos." It
Eeetna to I'LL that tic President oyorlouks the
fact that to nAko Il resumption or redemption
Of National l,ant notes operative, s4eIe
ers Of tile bauk notes to present
them for redemption. Unless greonbacl.
nre nado ava'laDie Tor some purpose for Which
Nntlolal Bank uolos eau not 10 ubed, there is no
induccneut to exchange tic lattor fur tho for
mer. Az long as tha greculaols are so abuu-
dunt III proportion to huuk notea that thero ia
no scarcity Of legul-tcndora 10 hold as bank TO-
Eorfes, they alc not any more desirable than
bank uo:cs, and lllere is no lnducenlont to pro-
cont bank notcs TOR redemption in greenbackB.
X folco tho Eunks into swapping u euaoacks for
bank notes. under rucl cilculuslalcoH, would be
uuneccss:siy labor n1d expcnso wlthuut any coni-
lcnbasting Sood-
lal.ks GILL 10 forced lutu Legitimate ,csunpliup:
Itlst, ~ the Gosorllnlcut adopting policy that
will appreciate the yaiuo Of ILL uuten by TO-
deonliug them In apecio or by making them
tuadablo into inteteHt-beariug bonds. Second.
by permitting the incfcase ot National Bunk
notes to no exteut tlAt Hlull maao Eieenbacks
relatively no scarce that the banks Ms!l lind il
difficult to get enough to hold us lcgal rcscrscB
Either OF those nelhods would soon cause til.
legal tendogA to appreciate 10 par with HpccIc
lnd 10 matter how much bnnis circulation there
whs outstanding 1t would nlHo bo worth par III
specie Lecauso redcomaI!e iu Hl,ecie VI legal
loadecs, aud this redemption secured by the
deposit OF United GtateB boudH.
LOCAL ar0oK AND uoND MARKET.
Mcssrs. p1ostuu, koan u Go. quito ~ follows
THIS p. H.:
Euying. Selling.
y 8. cs OF 81 ......... .........I47:l 1l7l<
Y. =. b-.0s Ut u. 'B2.-.................lluE 1ll4a
2. =. t2us VI oth4...................AlE III @11aS
Y. 8. 5-2Q4 Ut Us ............lllI 11a!t
y. y. 6.os ot Gs january snd July. .ll5E 1lo4@llaH
u i. 64us uf 81 JAuu4ry aud July. .u7l 1l7H
Y. y. b2ss Of 'tS jHnuary aud July .ll6I 1lGat
io-4ua. ..l094i 1t0:t
Y ). 6s thaw asue) ...l0D{ 10ss1
tt curr El