, 1873-09-25
MONEY AND COM M ERCE:
MONETARY.


8. Tho to1ographio report Of the suHpouRlon #
Tho Baltimore banks, and tho implied auHpen ion
Of tho Now York banks, Ia liable to DO mLBunto =
stood, mud tho gravity Of the situation groatly
exaggerated. Tho New York banks havc not
on'fr Wy suspended payments, Mother have thoto
III Dnltlmoro. In both citios, tho bnnhs havo
simply malo formal announcement Of whab las
boon tho case for tho last two or tllrce dnye,
viz: TINT currency Is 80 scarce that It is imps e.
sblc TO got It by tic ordinary moans Of calling
In loana. Therefore tho banks III thoao cities
simply say they cannot pny largo checka III
currency for few lnys, until Tho currency ox-
citomont blows over, which It most uuquestion-
ably will. It should, however, be distinctly uE-
dorstood that tho banke III thoHo cities do net
close their doors; OH tho contrary, they will
oven pay all email chocks In currency. II is, Of
course, understood TINT tho positive refusal 10
pay check for any sum drawn against funds en-
deposit to the credit OF the drawer is MI net It
bankruptcy. But It iB not probable that tho
banks In thoso citios would absolutely and pce-
sitivoly rofuso to pay evon cbook for
argo amount in currency, II tho holder
of tho clock WAS determined to pro-
sost 1t il not pnid. With my dopositor WHO
vas deaf to reason thore would bo no course but
10 pay. It Ia we'll known tint to pAy hll deposi-
sors In currency would be utterly impossible,
Ind II thoy wore all no unreasonable "a to de-
malitl payment In currency horo would be no
courso but for tho banks to suspend entirely
slat Is, rofuse tho payment Of oil checks, This,
of course, would DO IN unfortunate alternative,
and the worst possible way for doposi-
tors to got thoir money. But tho de-
positors Of tho banks hold tho Issue Of this
question in thoir own hands. It reHts entirely
141,u H1r
go on Or not. Tho casc between. tho Chicago
banks and their dopositora is precisely tho saln0
aB III Now York, only that the Chicago banks arc
n q soundor condition, than those III Now York.
any intitnnto knowledge Of tho Chicago banks
that there is mono Of tho Nationals that would
not II wound up, pay, not only ovory dollar Of
deposits, but tho fill par value Of tho stock.
The dennnd for currency arises from tho aulden
dosro of oVery man to convert not only his
bnnk balauce, but other marketable property
into currency. Zach man knowing that 1t will
bo impossible for NIL to this, nndeavors to bo
ahead Of his neghbors and got currency cut Of
his bank to the disadvantage of other depoBtore
tho requirement. Of tho thirty or sixty days no.
tice. The commercial banks, however, would
have no recourse in such caacs but suspension.
It would be difficult to say positively whether
olined 70 think IT ,s. Thore woro un-
doubtodly Aome liberal amounts received from
Now York. We also hear Of Il number OF in
stances Of currency being sent in from the coun-
try to buy whoat ut tho proscnt ridiculously low
prlcos In theso cases, however, it is hot sent to
bauks but to merchants, aud by thom paid to
other merchants.
Many persons, without thinking, are ready to
consure tho banks for having lureo balances in
New York, aud others equally thorghtless arc
rcady to consuro tho Now York baukB for not
remittiug currency lcre moro freely. It mnst bo
remembered that when tho panic broke out tho
movement Of Western products to tho East was
tho lArgest ever known. all this made OK
change on New York, which 1t WAS qhlegitinnto
business Of tho banks to buy, and which it was
necessary tloy should buy in order to keep the
produce in motion. The banks here had or
aercd cnrroncy from Now York against this OK
but it is wolf known TINT currency Ind been OK
tromely scarce for several weeks bcforo the panic
and it wns impossible for the Nav York hanks to
find currency for MI the exchange from tic Wost
several wooka ago. Thus, the yory magnitude
of the crops, and the abundance Of our real
wealth, was tho cause Of great relative Bcar-
city Of currency bofore tho panic.
There is, of course, no stated prico for tho
loan Of money in this market now, but the
difference in the prices OF wheat yesterday
seller 0ctobor," showed that practically
the price OF money to carry wheat
into October is at tho rato of about 20 per cont
per mouth, or tco hundrcd and forty per cent per
atn,tna.
Everything wae quiet at the banks hero to-
day. Tho cleaEings were made without my
trouble. The amount Of checks aont in was
smaller than for Bomo time pasta favorable
feature, indicating quieter condition. The
balances also were lighter than usual aud wero
promptly paid III currency.