, 1873-10-07
MONEY AND co Mn1E RICE
MONETARY.

As far as tho banks nro concerned, tho fnan-
nial situation In this city is improving daily,
Dopoalta aTo increasing gradually md conf
donce is 80 far restored TINT chocs on noarly nil
othor banks TINT havo not suspended nre orod.
Stod up to tho doponitor ut once. Tl,oro aro,
a,owovor, como exceptions to ths ruo. It Ia we'll
Understood that mnny banks In various parts Of
4he country arc. eyon now, practically in s,,H-
pended condition, notwithstanding thoy dony 1t
themselves. This iB in faot tho cnso with any
bank that docs not pay currency on demand to
the full amount Of tho dopositora balnnco On
banks in this condition, checks aro taken by the
minority Of our hanks now only for collection.
Depoaits Of currency arc increasing, md the
aggregate amount OF currency IN tho banks OF
Chicago Is much larger than 1t was a fow days
ago. It sooms to como from no special sonrco,
but from everywhere. from Now York, from the
country, and from tho eafes and pockets OF tho
people.
{, The aggrcgato amount Of outstanding loans
f>of tho baukH In this city,-antl wo presume In
nl1 other cities as woll,--is being steadily aud
largely diminished Notwithstanding tho grad
ual tncroaso Of deposits, bankorB are discount
ing but little. From. tho beginning Of tho panio,
up to tho oloao Of last woes, tho deposits
of tho Chicago banhs woro reduced about 912,-
0,000 Tho banks will, Of cor1so, endcayor to
.1o-cstabliah tho equilibrium botwoen their de-
posts and their loans. md will gradually reduce
the aggregate amount Of tho latter until 1t shall
be mot by tho iucroaso Of deposits. We hayo
renson to believe that tho aggregate amount OF
outstanding loans Of the banks In this city has
beon reduced $4,000 900 Or g. 600 600 In tho last
two weeks. But tic loann which hayo thus
boon paid up to tho banks woro the best of their
bills receivable nB It WINS mono but tho makers of
tho beat paper TINT could pay. The further con.
traction Of tho loans will therefore, not only bo
moro difficult for tho banhs but will DO felt moro
by tho mercantile community.
New York exchange was tnken by tho banks
today OF their customers, at from i to por
cont discount for grain bills in cases where tho
cash is advanced to pay for tho cargo. ConBtd-
ozing that these drafts on Now York banks arc
only certified. and therefore become only the
~ certified chocks" which are from " to nor
cent discount in Now York to-day, it shows TINT
this GLASS Of New York exchange is really at mar
In this marlet. But these arc time bills, md IL
there wero any sa1os Of bankcra' blight
exchange, thoy would, according to ordi-
nary rules, bo at a pre4nium, This, however.
only shows that Western banka havo no BAL
ances tn the New York banks, md also TINT tho
movement Of Wcetcrn produce ia insufficient to
meet tho demand to pay debts Of Western NOR
chants to Now York morchnnts.
The Third National Bank Of this city will
probably rosumo business in day or two.
a REFORM MOVEMENT IN THE NEW YORK BANKS
we leatn drem private letters tat some Of tho
House Association aro so much dissatisfied With
the position they hayo bocn compelled to Take
W connection with the loan certificates that
tlloy arc agitntipg tho subject of accctng from
new one. Many Of the banks IN that
oaey tcei that they wore strong enough to havo
gone through the recent panic without tesorting
70 tue loan certificates. They seem to realize
~ iast 'nat tney nhVo bonn compelled to sustain
weak banks that would otherwise haye been
compelled 60 into liquidation, and tint it would
probably have been better to let these "weak
R's1ors rotlfe at hrat.
House Association y, Is saia te he to mne IN ALSO
clat,on that ahal! include oil the strong banks,
so snas tney Gun ADOPT It as O rule of Tho Asso-
~ciatlon tnat thoy shall pay no interest
on depoSt8. Ihl6 would indoed bo IN
impoiItant reform IN tho practice OF New York
Banking; q reform that would striko at tho root
OF al its evils, as It would rondor great ashiBt-
5 aneo IN A. 3sqMppressing M etosk specu'ationss WHICH
the oanka nave beou obliged to encourage in
oruor to hnd uHo for tho abnormal accumua-
ton OF funds drawn there by tho interest on do
posts. .-..-.-
LOAN CERTIFICATES.
:, tn Saturday there was n marked decline in
tne PseM1u1t 1or currency over certified CLOCKS
probably due to tho statement TINT tin
banks had retired oyar so mn mn nf
their certifcatce Tha ,ren,i,,,n ~ aus
EcncY On Saturday was as low ne ~ of
por cent. But to-day there seems to haTo boon
i slight reaction and tho prctnium was from *
Of ner cont to / per cent, Z"
CREDIT has un1o11bteflt henn Hammond moro IN
nnn,o cif,on fhnn H., othoys 10 l.; "1nts ~ ~ ~, -
~ ~ - ~ ~ 'a . - us'.o4s ~ - nn2"u W tAo
sact s!'at "AiAo tultouoy lu NeW loTh oA4y CON-
mandod premium of Il OF per cont over cor
titled checks on Saturday, it commanded from
to por cent premium over tho certified checks
Of tho hanlts in philadetnh;a m thu san,o 7nv
Tl1a Nav yorlr D,,,,oHn onro ~ ~ ""
,-,t ~" ~" o@"es"' o"'''
NolalnR mas aggravated tho money panic more fhnn
ne payment ot pscm1um FOR grecnbacks a1id Nation
III 13anA notes."
That's it exactly! But tho curious mart Of
this whole atfor is thnt the New York bn,ika WIN