, 1873-06-26
MONEY AND COMNlE ERCE
MONETARY.

MONETARY. 4
"WEDNESDAY EVENING, Juno Is.
Thoro was nothing NOW In finances other IN
tho local or Honoral markots today. 'nnoy con-
<uucs abundant, but speculation OF any BORT
sooms to have oimnotcd down to zero. In the
grain markets thcro ia complete domoralization,
though 1t Is possible that drouth md graBetop-
pora may 10 tito cause Of sono new views iii re-
gard to tho wheat crop boforo long.
Now York exchange wns fr,ner to-day, with
nales at from 25o por g., 900 discount to par tho
lattor boiuB tho ruling rato.
The movement OF curronoy to tho country uon-
tinuoa worry light.
NATIONAL BANK RESERVES AND FREE nANK1Na.
Complaint la sometimes maao OF tho stringon-
oy OF requirements Of tho National Dank
law in regard to reservoB, and Of tho largo
amount Of funds lockod up by thom. EXAMINE
ton, however, will ahow that tho actual amount
OF lcgal-tendor reserves III worry small. Tho
country banks dopond on the banks In tho ro-
do,nption cities, and tho banks in theRo citlcH
dopond on thoao In Now York. There arc 1850
National Dauka in tho country outside Of tho re-
de1nption ottios. Those banks nrc required to
keep always on hand a rosoryo Of ~ Per cent of
that threo-Nttlb Of this is por cont may
oonsst Of balances duo from Homo bank
solcctod as a rodocming agont In nny one one
OF the redemption oiston:. Thero arc I3a
Natonal Banks IN tho hfteen redomptlon
citieB. Thoso banks aro required to koep al-
ways on hand reserve In legal tender notcs
equal to 25 por cont Of thoir circulation aud do
poslts. But 1t is also provided that one-haI Of
this 25 per cent may consist Of balances Que
deoming agent. There arc fifty Natiohal Banks
In Now York City, which aro required to keep a.
ways on hand reserve In legal tender notes
oqual to 26 por cont OF thcir ejaculation and de.
posts. Now lot liz aoe what is tho actual amount
OF cash reaervo Tin loyal tender notos, specie,
per cents, and United States cetti9catcs) hold by
Che three clasaoB Of banks. For this purpose Wo
will tnko from the reports Of tho banks for oot'
8, 1879, as published In tho report OF tho Comp
trollor Of tho Currency, tho aggrcgates Of thoir
circulation and deposits, and The actual amount
Of cash reBoryes held exclusive Of balances duo
from other banks.
Circulation a 1eaa! ~ tr"d'r'
,,s, *sss sfPs;', e .p;; r. se:a r;
II III sSan''s IL ssespi c:: sssss5s
80 banks in N. Y. dity.,.... 1so.1os,o72 8osoo,s2
.$olo, ,2e2, ,o4 .slle.l12,77s
From the foregoing It will bo soen that the to-
tai amount Of cash Toservea-exoluaiva Of bal
ances due from, other National banks-held BY
the 1879 National BankB OF tho unitad States
ls only $118,112,77s, or about 1l16 porc cent.
Tho country banks hold an aetud cash
roservo OF only about per cent, but, as
they arc permitted to koop Sd Of the required
IL per cont with thor selected rodeeming
agents In Tug redemption cities, this il aetu-
ally. moro than the amount OF legal lenders
which the lav requires thon to keep In their
own yaulsa. TIE banks in tho redemption
cities outside Of Now York City, being poEmittea
to keep one-haH Of tloir required Is per cont
reserve in tho form Of balances duo from their
selected agentIes iu Now York, had just about
tho amount OF actual cash in their vaults ro-
qrired by tho Inv. But according to the ro-
tho nfty National Banks Of New York. City
Should hayo hold $40, ,626, ,2G8 Of actual cash 70.
: serve in legal tender notes, specie, md United
States certificates, ; whereas they only hold
S22 or Little leas IL than alH per eent
md doposlts. II wo add ,000 Of Cloar-
ing House certificates shown III their reports. 1t
would still leave t1or aggregate reserve 81 ,250, :
QUO short Of what it should hayo been. BY ref-
t National Banks tn Now York City hold 5uat one
: third Of tho total reserve for the aggregate Of
s916 2i2 024 Of liabilities Of nearly $500 Nation
al Banks in all partB Of tho country. Tho small
concentration Of 10 largo d proportion Of 1t In
one place, is ono OF the weakost points in the
whole National Banking syetem. Tho fifty M
II a D oa1 e S Ns 4ssa aaess2 o s nS ass
ouch Other for support md strength, Thla
il shown BY tho :. fact that shoy
hold clearinghouse 'cortifoates OF checks on
each othor to tho amount of 1856, 600, and
counted them us pnrt Of their rosoryo. Who can
eBtimate the consequences to finances generally
ii Quo or two Of the prominent Now York bnnks
\ should fail Instead OF agitation to permit tho
bauka generally to expand, should thore not 10
aome change IN the law requiring tho country
banks and those in the redemption cities to keep
serves in ther own vaults7 If this :wcro done,
tho restriction on tho aggregate amount Of Na-
tonal Bank notes in circulation might be re-
moved without, danger Of. imitation, provided
thero WAS no increase In the volume Of green-
backs.
LOCAL eTooK AND BOND MAnKEr.e
b1esars. Lunt,; Preston 4 Kean quote as fol-