, 1873-09-20
MONEY AND com MERGE.
MONETARY.

MONE ARf. !
TatpAY EvEa1NG, 6ort. 10. j
Tho only ofrcot that tho financial panic IN New
York has had thua far OIL aifaira II, Chitago
has beon to diminish financial TRANSACTIONS.
Now York exchange was uuHn1nblo, because, In
tho prcsont condition Ut affarH, tho banks would
rrofor to dimiuish ratl1or than incroaHo their
Now York balances. At the sano time, thoy do
not feol disposed to woako1 their Now York
correspondents by checking OH them as largely
for currency NJ thoy would do un-
der ordinary circumstances. Tho ssool OF
currency has boon extremely acatco, both horo
and In Now York, for aovoral wookB past, in con-
sequence Of tho unusually largo movement Of
Fundh to tho West and South to pay Tor grain
aud cotton. Tho country banks will, Of courao,
continue to draw on tho banks hero for consider
Ablo amounts Of currency for aono timo yet, but
tho demand Ia evidently falling off. There is
probably currency enough In the country now to
transact all the grain business, and, under tho
present circumstances, the country banks should
exercise discretion, and not draw for any more
currency than thoy absolutely mood. Tho best
thing to do just at proaont is to do ab little 90
possible. Tho banks, Of courao. fool like cur
sailng their discounts and buying loss exchange
than uHual until tho proseut furry has passed.
Thoro Is evidently leBa money In tho opcn mar.
ket than there WAS two days ago. Several Of
The usual buyeEe Of paper ontaldo Of banks a, de~
cline to buy until tho condition OF financial a.
fairs is 3 little moro sottled.
LAte this afternoon tho rurnor somehow got
started that tho thanking house Of 4. 9. & Q.
f. Badger had failed. This rumor Is sus-
from tho fact that hreaara. 4. Q. 4 Q. :.
Badger hnyo beon practically Out Of tho
banking business since the fro two years ago.
They had hopes Of getting ro-establiahcd In the
business, and with that Wow have for some time
occupied tho banking -of1lce which thoy lad con-
traoted for before the fire, but thus far they
had mnde no progress, and had no deposits Tho
embaztassmonts Of tho firm, which, It ia vol
known, have existed since tho fire. have been In.
their suspension will have no effect on financial
nffaira. We nuke this extended mention Of tho
circumstances only because, in tho present aitu-
alton, thoy might bo mlsconstr1od.
Tho Suspension Of Mcssre. Fisk, Barr l. Hatch
and MeaerB. Z. D. Randolph 4: Co. arc the only
onoa Of importance announced in our Now York
diapatehes to-day. The rest aro brokers whose
liabilities hro exclusively to that olasB of stock
epocnlesors whose loasea do not affect tho COM
nercia1 public.
II tho Secretary Of tho Troaeury should, rs
rnmorod, como to tho relief OF the Now York
banks, by loaning thom $4,000, 900 Of grcon-.
backs, IT would. without doubt have tho effect OF
restoring confidence, not only in the bnnkes,
have had such d tumble in tho last fcw days.
But II tho Government aetB tho precedent Of
coming to the relief Of the money market now,
1t will bo importuned to do 90 on MI occasions,
and in all placea i'll tho United States, and tho
Secretary Of tho Treasury will bo obliged to
practically become banker. An instance, illus
trating how thoBo demands will increase, comes
oven now from New Orleans. Tho banka
Of New. Orleans have, liko tho
banks Of Chicago, been .prosaod for
vert their Now York exchange into curscncy fast
enough to meet tho demands Of their country
ban1l customers. Tho New Orleans banks havo
therefore recently monorializod tho Treasury
Department, PRAYING a., "for st, g.. dovetnmens
city, to 10 issued for exchange on New York
when tho emergency requires It," In other
words, tho Now Orleans banks ask tho Govern.
uaent to 60 into tho business Of buying exchange
and supplying currency III that city.
If tho Government comes to the relief Of Rpoc-
Uniting bankers in New York, who Aayo Been
building too many railroads and loaniDg money
Oh fancy collatorals, why should it not also conc
TO tho rolicf Of tho Now Orleans bankers whe
want their New York exchange takon off their
bands z And il 1t docs this, why should it not
be obliged to " "Hacritico tlier grain at proeent
pricoa in short, why not 80 into gonora
monoy-lending, exchange, and pawnbrokinG
business, with Rl i.s vicious couc0nlitant8 aud
financial despotis1n
There is no question but tho loan Of 410 900,
900 to tho Now York banks might prevent loss t
the ownora of largo amounts Of railroad boud
aud other securities TINT will otherwise lie aacri
feed, but, If the Government comes to their res
cue, the Grangers will demand that it shall ais
come to theirs; that 1t shall not only Hood tn,
country with deprecated greenbacks, but bu.
railroads and transport tlclF grain to market, 81
rs to insure tho producer profit, regardless o.
the LAWS Of supply and demand.