The New York herald., 1873-11-20
THE MONETARY SITUATION.

THE GENERAL CONDITION OF THE BANKS
during the week has been thus far one OF improve.
ment. The banks held on Monday morning
s2s, $780, ooo on Tuesday morning s2s, 81, ,O00 and
yesterday morning $3o, ,475, 600. An awkward error
occurred in even the limited statement Of the
Clearing House on Tuesday, wherein the banks were
represented as having lost s655,OoO The mistake
was made known yesterday morning and explained
as a clerical error in the memorandum OF its con-
dltion furnished by one OF the banks OF the ass0-
ciation. In the meantime, taken in connection
with the report of difficulties in the Mercantile
Bank and the failuce OF the Domestic Sewing Ma
chine Company, fully explained yesterday and
further details In respect to which viii be found
elsewhere, 1t had its effect on the market on Tues
day. This was further helped by
THE REPORT JUDlCIousLY CIRCULATED
at the same time OF the failure OF the London.
Asiatic and American Company, in London
stated to have resulted from complications grow
ing out OF loan recently negotiated by 1t for
Tom Scott. Messrs Purden q Wiggns, agents for
stating that they were in hourly Communication
with their principal In London and that it was
day, when it was again as promptly and emphati-
caily denied.
THE EFFECT OF THESE EXPLANATIONS, CORRECTIONS
was quickly apparent yesterday In much i'm
fair expression on the Stock Exchange, and q
more confident tone in other departments
Of trade an ana 81 speculation. Money ruled LED on
commercial circles II to Is per cent with
an increased proportion OF the days business at
the medium OF Is per cent. General expectation
has been excited here by the statement from Lon
don that reduction Of the minimum discount rate
lar session to-day. This, although somewhat
damped by the reported further large shipments Of
coin, as well as arrivals Is yet looked forward to
THE POSSIBILITIES OF THE SITUATION,
the rate for money IN the open London market
having receded TO eight per cent 1t is true, how
previous. when it touched IloA, the recession IN
that the shipments OF coin from England hither are
yet likely to continue for some time in which event
its its discount rate. This supposltion is
further further supported by increased nrmnssa in
at 1861 lO7 for days. bills and iOs to losX FOR
short sight, against 1861 and 1881, respectively,
pothesis is that the premium was advanced upon
with Spain, since considerably toned down BY the
deprecatory tone OF the Washington semi -ofncial
dispatches respecting the popular outburst.
THE REPORT OF THE CLEARING HOUSE COMMITTEE
The feeling, as has been noted above, is quite
warm upon the subject OF the proposed reforms
and new articles OF association, and may cause 9
postponement OF discussion upon the report at
this time to avoid heated action The Committee
OF Nine, however lby whom 1t was drawn, AFFECT,
at all events, IL they do not feel it, confidence
in its adoption, while others, who are opposed to
1t, say 1t will certainly not be adopted without
such notifications as Will essentially change Its
character. The principal objection appears to be
that 1t proposes the creation OF q central power,
which practically takes the management, In i'm
portant matters, OF each bank out OF the hands Of
the directors and officers oil the bank and transfers
them to the central organization making the new
Clearing House no. a mere machine for clearing
the business OF the banks, but q supreme power
over the banks. strong issue prevails in regard
to the payment OF interest on deposits, and the
following substitute for the statutes proposed
by the Clearing House Committee In their
report will be offered at the meeting to-day
Fira-Any member OF this association may pay
interest upon deposits not exceeding the rate below
by check at sight tour per cent per annum on deposits
Whenever the deposits in any bank member OF this
association exceed IN amount three times the amount OF
hand in legal tenuer sum equal 50 cent Of such
ana and nrn e bs n ne .,
times the capital and surplus shall be kept hand
The ehsrses to be made for collecting out o. town
unawiaI and immoral for tho banks t to MAKE trade
to compel ~ and osrs to pay prices or
ISIS 1t is conspiracy not authorized by law.
At a meeting OF the Committee OF Nine, held
yesterday afternoon, Mr.. Williams, President OF the
Metropolitan Bank, withdrew from the committee
upon the plea that he was not prepared to go into
argument upon the report and desired the post
ponement of It's consideration for 80 days. Mr.. J.
Q. Jones, President OF the Chemical Bank is ex-
pected to take similar action.
THE LATEST RESPECTING THE MERCANTILE BANK
was an advertisement made on Wall street yester.
day afternoon by the Bank Examiner that he had
-
and found il perfectly safe. The cashier more
modesty explains that while he is not prepared 70
state the loss which the bank has sustained
by the imprudent advances made by It's
former President, Mr. Blake to the Domestic
Sewing Machine Company lie was confident it
would fall below the banks reserve Of $39l 900,
The loans TO tue sewing machine company are
variousy stated at rom $33O0OO to $3.50, 900, ana
were chiefly secured by the paper or the company.
The President OF the bank Ell j. Blake, is stated to
be a large stockhoder in the sewing machine CON-
pany and brother OF it's President, David Blake.
Doesn't this open new vista to the Clearing
House Committee on the subject OF bank reform.
Congress would DO well 10 give heed to 1t when 1t
enters upon consideration OF the same subject.
There is quite too much OF this OF thing in the
national bank management and Mr.. Blake was not
without numerous precedents for his action He
has however, seen fit TO resign his presidency OF
the bank, ana Norman White was installed yester-
day his successor.
CONDITION OF THE BOSTON BANKS.
The following exhibit OF the condition OF the
Boston national banks rs OF interest Just now to
many jobbers and others in this city,
capital S4!35GW WU
$l2 46i, NU increase, STlWO
Specie. ?4lU.DO Increase, 266,2O