, 1873-09-30
MONEY AND COMMERCE.
MONETARY.

MONETARY.
MONDAY EVENING, Sept, %.
Tho resumption Of business by tho Union and
uook County National Dnnks and tho National
bank of Commerce this morning has undoubtedly
had good effect Of, tile public mind. poople
SOON to foel conndcnt that, somehow, the
tangled skon Of finance wilt gradually nm.
tanglo ftsolf, and while 1t must be aokuowloi1pe
thore aro good many hard knots in vet, It In
doubtless ttuo that some of thom will unite
themselves.
I. In the bnslness Of tho banks TINT have rcsumod
or, tor Tint matter, In majority Of those
"l'cn ola noe ausrond-the now deposits aro to
considerable extent in ourronoy. Tho businosa
public Bhow desire to ro-estobliel cont1donco.
They can teally do this with loss risk tl,un mony
timid people ghtsuppoao. The new depoaits NJ
currency will be, to great oxcut hold naored tn
meet the demands Of the now depositors. and
unless the banker is anre that ho has o,,tronoy
enough to moot tho demands Of all depositors.
Doth old and new, ho will at loast keep In mind
That tho new deposits are practically maao on q
now basis, and that he s moro liable to bo called
on to pay tho whole Of tlom back to tho indi-
sldua's who mndo thom. Que Of tho foara that
Keeps currency out Of the banks is that the preR-
1nfe from tho old deposltora will result In thoir
demands being lquidated too fast will. tho new
uoposits Of currency. But Justice to all would
certainly dcmand Tint tho old deposits
should bo nquidated no fastor than
The old bills receivable can bo collected.
Tho new business Of majority Of tho banks of
this city, beginning with to-day, will necessarily
be kept separate from tho old business oven il
there ia not scratch Of pen in any book to
show such distinction. Notwithstanding tho
advico of President Grant that tho banks should
ziVo creator accommodations, no prudent bankor
would dare to lend tho same proportion OF these
now deposits that he did Of the old. Tho net
result Of this conservative policy in connection
with tho liquidation Of old deposits will bo a
contraction of loans. While this may not bo q
pleasant prospect to tho commercial community.
1t Will be the necessary result Of tho panic, Il
VIII, however. he healthy process, and proba-
oly only DO OF short duration. Whom credit is
re-established 30 that tho banks will venture to
expand, there is no doubt that money vii, ha
abundant In the Wost, because the West Is really
rich,
Tho reaction from tho effects Of tho panio
must bogin in tho West, for tho good reason
that credit hero -is on sounder basis than In
NOW York. The loans OF our banks are not
made on collaterals Of stocks and speculative
bonds that have shrunk as to 80 per cont In tho
panic, but mainly on produce, that can scarcely
3an to be worth more ns soon as busness is ro-
organized, while with many Of the stocks. which
II Is surmlsed arc hold as eo1laterals by Now
1ork banks, 1t lB doubtful il they ovor recover
ther former prices. Tho fact is, re arc. or can
20, much more independent of tho New York
banks than most people think. In fact, the
present situation may compel tho West to cut
loose from thom.
Ihe New York banks. In tho issue Of their
clearing-Houso certificates, have practically
adopted now kind Of deprecated currency. In
which they propose to pay drafts from tho West.
Bankers hero arc notified, from both Now York
and Philadelphia, to stump their checks on those
cltles Payable through tho Clearing House."
NOW this simply means that New York drafts
arc to be paid in Clearing House cortincateB.-
The new deprecated currency issued by the New
YORK banks, land worth, according to the latest
quotations, about 96 conts in greenbacks on tho
dollar.
The West, however, is not Obliged to take tbis
new currency. Grain will aell in New York or
Boston for currency, and it the New York banks
insist on paying for 1t in Clearing House certifi-
Gates, tho only way for the West to do ia
mako use OF tho express companies, Let the
proceeds Of tho sales Of Western products bo
either brought West or paid to my account in
New York the owners Of the produce may direct
lnshort, the American, Adams, United States. and
Wells-Fargo EXPRESS Companies are much bot
ter New York correspondents just now than tho
New York banks. It is we'll known that in Cali.
1ornia tho o1preBs companies do MI immense
busines8 OF this kind. The balances of Western |
banks In New York havc been very much re-
!duced, and tho Weat can afford to establish new
hnd independent business relations.
hoW the New York banks arc to get out of
fhelr muddle with their Clearing House certifl-
rates is question difficult to answer, Even IL |
tho collaterals on which these certificates arc |
based are good, tho amount is too large to at
Eenpt to sell them for currency without coueid- |
erable loss. There ia probably no great stock
OF currency in New York, but whatever there ia |
1t will not 50 into the New York banks as long aB
they usc the loan-ccrtiflcates.
Iho plan Of the Chicago bauks in relation to |
thoir country correspondents is certainly more
legitimate and safer Tor all concerned than that
OF tho New York banks. It seems to be the gen.
eral understanding that every tub must stand on |
1ts own bottom, except 80 far as ono bank NAV
feel inclined to reuder direct aid to another.
Notice has been given by some Of the Chicago
banks to all their country correspondents, that
all drafts on other banks, cither In this city or
elsewhere, aent to banks hero, will not be credited
to tho account Of tho sender until collected In
currency.
Thoro are some indications Of d disposition On
the part of unserupuloua sharpees and epocula-
tors to got up an uneasy feeling in regard to the
savings banks in this city. It soems TINT in
quiries have been made at nearly oil the savings
banlA aB to how thoy would regard the transfer
of the books Of the dcpositora to other parties