, 1873-10-10
MONEY AND COM MERGE.
MONETARY.
THURSDAY EvEN1No. Oct.

MONETARY.
THURSDAY EvEs11a, Oct, Q.
Tho points Of groatoBt interest in tho flnnncal
situation now arc tho rateB Of New York OK
ohange In Western markets and thu premium for
groenbacks over certified checka III Now York.
Tho duotuations In pricea Iii those particulars
show tho whole situation.
Thero >Sas no sottlel rato for Now York OK
change In this market to-day. It 1luctuatod over
range from par for bankors' sight exchange to
per cont discount for bills drawn against rrain
shipments. Tho banks hero still ndhoro to
tho policy OF accumulating no balances In
New York, and with that view decline to take any
moro exchange than thoy fool pretty alre Of soil
Ing from day to day. at tho Same timo the de-
maud from tho mercantile community for Now
York funds to pay New York dcbts, is worry ac-
tive, and about absorbs oil tho exchange made
by tho shipments Of Western products. Many
Of tho banks say thRt aa they cannot soil all tho
exchange they take, to their mercantile custom-
ora at par, they can only tako exchange at dis
count sufficient to pay for buying the cur1cpcy
IN New York, against such portion Of tho ex-
change as they do not sell to merchants hero.
The policy Of banks, not only in this city but
everywhere, Is got to contract their loans to
something proportionate to the decrease Of thoir
deposits NJ compared with what they we're before
the panic. Chicago Is probably tho only large
city whore the deposits In tho banks are increas-
ing. 1t will, therefore, DO the frat place whore
suoh hn equilibrium between lonns aud deppsits
is eatablyhod % will admit Of the banks begn-
n1ing to discount n business paper as usual. For
line, but are continuing themselves mainly to
demand loans on primo collaterals TINT will ael1
for currency in tho market In Case Of emerrency.
AZ mentioned yesterday, tie rate for money
cent per nnnum on primo collatorala to IL md
2per cent per month for iirBt-class mercantile
paper. We havo reaaon to bslieye that the
oanks Of Chicago hold now q larger aggregate OF
currency than tic banks OF any other city in
with tho condition this day two years ago. whom
the bankorB Of thlB city were walking srouad
over the smoking ruins Of their vaults, and
wondering whether any Of tho curronoy or aocu-
rites under tho hot bricks had been preserved,
Or whether they were simply charrod, worth
less mnsa,
TIE NEW YonK BANKS.
The question is, How ara the Now York banks
TO be refurnishcd with supply Of currency
that will enable them to Iosllme currency pay
ments2 Tho fact that they arc now with some
e1ceptions) practically destitute Of ourrency Ia
sufficient roason why they will not DO able 20 &C.
3 e1mnlate any by the ordinary means Of deposits.
able to all get out Of their difficulty at once.
There is a number Of Now York banks TINT
have RESOURCES at their command suf-
as aelens a,su,a1,s to :. securs % 90 large supply
these strong banks to broak tho compact that
ties them to the weak ones, withdraw from the
Clearing House Association, and roBupe cur
renoy puymonta independently. The bankB that
take this course will secure at once largo Vest
ern buainces. Thoro Is not only pleuty Of our
rency hero in Chicago, but IL the country north
west OF this city there ia suporabundanoe,
boarded In the country banks and in tho aafes OF
tho country merchants. The. Western banks
business with On tho same baais Of cur
rency as Ia tho rule horo. II thero
are any banks In the Now York Clearing House
Association that are strong enough to cut loose
basis, let them Dit at once aud SECURE tho
Western business.
anEENpAoEs, GOLD AND s11,vEn.
Greenbaeks ware quoted At from u to 1 por
cent premium over certified checks in New York
today, therefore tho price Of gold quoted ut 09
In certified checks is really triflo over $1.OS in
Breenbacks, and the gold valne Of greeubacke is
9219o. The gold price OF fractional silver coins
Of tho Unitod States is down from 80 to % conts
4 to 211 por cont cheaper in Now York than
greenback8.
Our dispatches from Salt Lake yesterday
stated that . IN immense amount Of silver orc
the lack Of currency" For tho present, all sil-
yer coins are also nothing but bullion, because
they have for 50 many years beon Of greater
value than groenbackB that the custom Of using
them In thofr proper character OF legal tondoF
circulating medium has fallen into disuso. Now,
however, that their value has fallen below that
Of gTeanbacka. they will soon como into circula-
tion again. Duainess men will probably object
to tho using Of ailyer coins as being less
convenient thau paper currency. But when
1t is remembered THAT this is simply. turning q
commodity into money, mobi1izing dead stock,
aud that It will probably add $40, 100000 or
sl2. 900 at once to tho aggregate amount Of
circulating mediumt no one should object to It.
Objection would, however, probably do no good.
u gold keeps down to the present price, siver
will come into circulation.
GOLD AND SILVER PRODUCT m 1879.
J. j. Valentine, General Superintendentof the
Bullion Department Of Wells, Fargo j. Co. Ex-
nless, has prepared statement Of the produc-
ton OF precious metala west OF tho Missouri
100000, most Of which passed through, tho f.
prese Company as curriers', and may therefore be
relied upon aB essentially correct. We condense
aa follows:
Gold by express. $50 ,0b8
Silver by express. a, ,100, ,710
Ores and baBe bullion. on.................... 70l0438
Total.. ".-...-.."......s82,23 ,23o, ,9l4
The sourceB OF the above treasure are given in
the annexed table;
California $40 oosutah s s,52l o2o
Hsvads 2s5e a 81 81 ]Ar1zons lts777
Washington 22e,osi Mexico: .:...:.,. 5W,o7a
1daho 2,5a ,o9o nrtdshcolumbia 1,a5o.o74
rotal.......... ................... .so2 2ao ,ol4
The produot tor the year shows au iucreaso
over 1871 Of $3o52,8s4, chiefly duo to gains from
Nevada and Utah.
SEPTEMBER RAILROAD EAnxINas
The New York Financial Chronicle Ina the
following summary of earnings Of the railroads
NArtHrnhRr far nj