, 1873-09-06
MONEY AND COMM ERCE
MONETARY.

though, ns was tho case day betoro yesterday, |
II nay provo only temporary. Tho amount 60
lug out Ia Sill worry largo, and Indicate n
stronger disposition In the country to soil tho |
wl,cat crop md got 1t out OF tho way thAn hnu |
bean shown In any previous season.
A more actlyo demand tor money Is tho rc-
suit Of tic accumulation Of grain loro during tho
past few days. Tho deficiency Of laso tonnage I"
carry OF tho grain ia also causiug large nsno"at
Of Iown grain to sock othor rontca to shn Eaet
than via Chicago: This morning tho R.~k
island Railroad ordorol 100 cars Of wheat VOW
being londed In 1own to DO tnkon alrc"t thNa,Neh
10 Now York via tho Joliet Cut-0n, thta chang"
being made at tho request Of the rhtrpesH sa
consequence Of tho high 1nko froish!s asA tho
scarcity of warehouse room In Chteng.,.
Exchange wh8 nominal to-tlay nt M Y $l,hN
discount.
Tho report that tho city has borrowed $son mo
OF tho Btato Savings 1nhtitWtiosl IN .1tthfoh ~
the "$l 900, 900 roountly borrowed nf TIM s"sna
bank" s incorrect. Some mouths ago tho city
borrowed $500, 900 of tho State Savings 1nstitu-
tion. Recently tho City Con,l,trollcr ttod to
nogotato $500, 900 city bonds n NOW F. aork, pMs
I'd 1noney-]ondors from buying from, tho city
direct at loHB than rar for 7por cont bonds, 7
por cent hetng tho highest legal ratio OF intcress
tho bands Of third party in Now York to aoll,
tho Comptroller negotiated tho s5oo,0o0 with
tho State Savings institution Of this city, thus
making tho total indebtedness Of tho city to tho
bank s1,oO0000.
ADn111oNAL BAsR CIRCULATION.
Our washington dispatches Of yostorday
(Sept y mado muddle Of tho supposed infor-
NATION about tho issno Of additional circulation
There is no such thing as !" so 600, 600 re-dla.
tribut!on net" The act Of July, 1870, authorized
al increaeo Of $54, GOO, GOO in tho National Bank
CT sF'sSn ssaea aa' asogs tssng ' sSRss sn?Tns Tha
Same act provided TINT $25, 600 900 Of tho already
authorized s300,000,00o should be taken from
banks In tho Eastorn statos and re-dist,f6utcd
that this redistribution should not take place
until tho additional a54 1000 600 had been issued
10 such bauks as had o right to 1t. At tho
!atest accounts tho whole Of tho 200, COG
had beon iBsuod to nov banks IN tho West md
Bouth except about sc, ,0000 which had boon
applied for but had not been isB11ed yet. because
Tho banks applying for 1t Ind not 5et deposited
Tho circulation. The banks 10 which this remain-
ing .s0,OoD,000 Of circulation was appor-
tioued hayo tho option Of taking It any
time before ~, the 18th ;a INT. - I they do
among my other Western or Southern banks
Ono point Of groat interest in connection with
tho lssuo Of 96f ooo Of additional circulation
years to get banks to tnke It, During tho first
year after tho passage OF tho act only apont
S20 600, 600 Of tho additional circulation was np-
second year less than slo,o00,ooo, md during
is Is time % that that Banks in the Eastern
tsss sstss a ts s19GG% s9 f5on mt E yovss;
from tho 6lowaoss with which this Sol ,000, 600
was taken that there is much less profit III Ma
tional Bank circulation than tho popular notion
asorbes to it.
There is, also, another point Of still greater
intareat: The faot that it has takon over throo
years to get banks to issue e54, ,o00, 900
OF additional circulation shows that tho
moyal Of ali restrictions on tho aggregate
amount OF National Bank currency aro entirely
groundless. It will, of course, be argued that tho
average increase OF only about e17, 900 per
larger If it had not bcon that the law required
that tho pcr cent certifcates--which tho
National Ballka had boon using aa legal-tender
resorves, ,-should be retired and cancelled In pro-
portion to tho increase Of National Bank circula-
tion. There ia, howeyor, no validity in thisargu-
ment against tho removal Of MI restrictions on
the aggregate amount Of National Bank clrcula-
ton now. If oil such limitations were removed,
banks would only tako the circulation to tho OK
tent that they found it profitable. The 3per cont
certificates ate now aA oNt OF tho way, and
tho profits Of tho circulation arc considerably
less than they were when banLs could uBo these
per cents III reserves, aud there is reason to
heliovo that If nl tho National Banks OF tho
United States were allowed to issue all the circu-
proportion Of circulation to bonds as now, tho
average incroaBo Of National Bank circulation
would not exceed s25, oo0. 900 per annnm during
the uo1t nvo years. This il even assuming
tondor groenbacks from tho present aggregate
Of 9956,Oo0,000. Tho ground for this prcsump-
tion .s, that tho last three years haye given thu
West and South nearly all the bank circulation
they havo tho capital to take. and that for the
no1t three yoars the demand from Western
banks would be ANAL. But il the banks were
allowed to issue as much circulation as thoy
pleased {only provided they dopoaited United
States bonds for accurity aB now and
Of tho same time the procoas Of ro-
LYING gEsennaG1As , IL proportion to tho
rs under the law Of July, 1870, tho clango III the
proportion Of tho National Bank notca and
gEeenbacks would soon crente y demand for
greeubaeks for reserves, and would mako q
noteB This would soon establish system Of
redemption Of National Bank notes il groon-
backs, which would eventually DO the means OF
flE as to spce s MGq
100000 Of logal-tender notea and
about s20,0oo,ooo Of specie continually
up Il s ef aegfato yas e Raoaa Rt oi ba aoF
culation was about $500, 1000. 900 mud tho aggro-
gate of greenbacks was s20o, 100000, nearly the
whole Of tho $2oo. .ooo, 900 Of groenbacha would
serves. This condition Of things would make
gteonbacks at par with gold. Therefore It ia
plain, that to remove ali limitations from the
amount of National Bank circulation aud to 70.
tire greenbnclts in proportion to the increase OF
National Dank notes, IL tho suroHt road to specie
resumption.
LOCAL sTooK AND noHD MARKET.
MeBsrs. Preston, Kean Il Co. quote as fol.
lows this afternoon:
1nying. Selling
k-24sof b1 ...-....................l1a lletf
6.20e Of Gf Gf..................,....1 ..1l6x 1lGk
k-2Os Of e.. ...................117H 117a{
b-20B Of T5, Jun. md July. ........1lbsi 11e
6-e0s Of Ct. Jan and July. .l171 l17st
t-20s OF c6, jan. and July. ..-~A-...117I 117H
l0-ios.-, ........................1l2ls 113E
Y. q. Is {new issue. ,.....,........1 1l45;