, 1873-01-25
Money and COMMERCE,
MONETARY,


FRIDAY EVENING, Jan. -.
In the local money market matters we're very
quiet to-day. The snow-Btorm has put partial
embargo on transportation, business is dull ani
likely to continue 30 for the rest Of this week.
The accumulation Of hogs, cattle, and products
here, oblges dealers to borrow Of their bankers,
ana keeps money tight. a good many OF the
money lenders say money is tighter now than it
was tWo weeks ago. In the open market money
Us to be had On collnterals at Il per cent per
nun, but it is difficult to sell even frs t-class
bua1oesa paper, though ~ and per cent per
month are the rates at which such paper is quot
Ablo Tor euch transactions as arc made.
Exchange is quotable at 75c to Soc per 81 900
discount.
BASH LOANS AND CAPITAL.
4 short time ago one Of the National Banks of
Boston loaned to . railroad company sum
equal to 10 per cent Of the aggregate amount Of
the banks capital and surplus. The Bank Exam
jner insisted that the National Currency act per-
mitted no aid to any one individual or corpora
tion in 4 greater amount thau 10 per cent of tho
banks capital, not including Eurplns aud oblg-
ed the bunk to reduce it's loan to the rai1road
company accordingly. The result Of the discus
sion in this case WAS that Mr.. Hooper,
OF Massachusetts, recently introduced. 8
: bill in Congress to enable National Banks to
make loans to single individuals or single corpo-
rations to the extent Of 10 per cent Of capital
and surplus. Mr. Hooper's bill also provides for
obliging National Banks to make good, by ASSESS
ment upon stockholders, any deficiency Of cap
ltal, from any cause whatever One purpose OF
the bill is to prevent banks from being organized
except upon capital actually paid in- recent
case here In Chicago showed that the capital OF
National Bank might be technically paid
in, but not paid in good faith, be-
ing only paid in to bo Immediately
baup s as o Sson nanf
notes. The facility with which this kind OF fraud
has been practiaed has, it is believed, induced
Individuals to nonlinally organize National Banks
when they had no intention OF doing regular
circulation. One instance il known Of IN indi-
Tidual in Massachusetts city who had the Of
fee OF his " National Bank" in the third story
Of cotton mill. He hAd no deposits, no loans,
no accounts belonging to tho bank, nothing
but safe in which be had an amount Of green
backs equal to ~ per cent Of the amount Of Lis
National Banll notes, and q memorandum Of
similar amount due him from bank in Boston.
This skeleton Of a bank enabled him to get
or s11a oto invested il the bonds, without absorb
ing any OF his tiuo or attention in the manage
mont Of tue bank Now let us suppose that
some shrewd but impecunious. fnancier,
of 9th some faRs fsna s oo5ey 5oy wiz aGGps }ss
aggregate 7115, 900 ho buys 100000 Of bonds,
deposits them with the Treasury, gets 600 600 Of
circulation back, pays of his debt, and continues
to draw Sc, 600 in gold for interest on the bonds,
making an ANIMAL income Of SC. $50 in currency,
or at the rnte Of 20 per cent per annurn On his |
E95. .000 Of capitnl invested. It is probable TINT
this Was the class of banks to which the |
Comptroller OF the Currency referred to in his |
last report when lie asked for further legislation
to enable him to promptly close Up i certain
class nf National u Hn.Ee y
NEW BANKS.
4 great bank, with capital Of $1,000. 900, to |
be called the Spanish-American Bank, is about to !
be organized in New York City. Theme insti- |
tuition is to be organized in the interest of tho
eugar aud coffee trade and other cognate lines |
Of trade out OF which are constantly arising |
large transactions with Cuba and South America.
The american Grocer, speaking Of the probable
business relations of the new bank, says: "The
6paniah-American and Brazilian business is, il |
possible, more extensive and much more inter-
ewlned with the interests Of our sugar re-
our nachinists and tool manu-.
Escturers, than even the European trade we are
:artying on, with the sole exception Of our cot.
ION export, and Spain comes in for 3 considera-
hon IN this lattar respect also to the extent Of |
10 less than Isl, 900 to 20O, 600 bales annually"
4 new State Bank is about to be organized in |
Buffalo with capital Of $500, 1000. Several
prominent citizens and business houses are con-
aected Nth the enterprise, and it is stated that
desaa. Jewett d. Root have subscribed S100, 600, |
Ar: George B. Gates S50, 900, Mr. Gibson: r.
made up by weu-known gentlemen.
LOCAL STOCK AND BOND MARKET.
Meeazs. Iunt, Preston 4; Kean quote Us follows
his afternoon