, 1873-10-02
MONEY And COMMERCE.,
MONETARY.


WEDNESDAY EVENING, Oct. 1,
To-day Is the frat ti,lo sl.,co tho beginning OF
Tho panic TINT We linvo ycntured to writo "Iho
worst Ia over :" mud wo bcovo 1t is tho first tlay
fora wook that tho persons who know tile most
about tho cauHes Of tho panic In this part OF tho
country hayo darod to th,nk 1t possible.
Many people havo said from tmo to timo Tint
tho worst was over, but In most caHcs they eaid
go eithor bccaaso they hopol 1t might bo 30 or
because it would havo tho effect to PIT littlo
backbone into somebody olso. But now
tho general bolicf Ii that no Incl
1dont TINT is likely to happen vii
DO ablo to unsctt1o peoples minds and create
nny sucll feoling of diBtrust as has existed on
several Of tho last fow lnys.
1t Is au important fact tlat rs far as this COM
munity Is concerned, wo hnvo got rid of all olo-
ment OF woaknoss, bocat1Ho We havo got rid Of
the Union National Bank, with Its great mass Of
country bank accounts. This is not intondod Us
any reflection On tho busiuose character or mau-
agomont Of tho officers of tho Union Bank, but
simply with roforonco 10 tho fact tint tho Union
National Bank hold probably noarly ono-third Of
all tho country bank deposits in this city, Tho
suspension OF tho bank las, therefore, put d
quiotuH OH ono-third Of tho possible country do
nln,ll for currency.
femain open arc doing business with more conf
dcnce III zach other, from tho fact TINT inssoad
Of receiving checks on other banks only for col
lection, thcy arc taking checks on all but fow
city banks and croditing tho1n up to tho accounts
Of tho dopositors. 1t ls not at all improbable
that QUO or two small banks, of which tho shalty
charnctera aro welknown may fail within tho next
fow woeks, but their failure will not make rip
plo IN the business community, mud it will bo a
good thing when they aro out OF tho way The
eighteen largost commercial banks and all tho
important savings banks nro now cortain to re-
main unliarnlcl.
Tho advance to-day in tho prices Of wheat and
corn is significant Of returning confidence.
Wheat Is nearly up to the price before the panic,
mud as prices rise tho chances for speculation III
buying at panic prices will disappear, and tho
currency will flow into tho banks,-if our banks
had out great amount Of loan-cortilcateB, like
those Of tie Now York banks, it wouldn't. CHI
cago may congratulate horae1f on tho fact that
her barks, now doing business, aro Us q rule Oh
sounder basis than tho banks OF any other city
East or West.
Thoro is, Of course, not mitch New York ox-
change sold hero yet, but shippers are selling
eome, and tho rate charged rangca from Q to
4 per cent discount for exchange payable in cor
titled checks in New York. At this price, bank
crs here can afford to buy the bills, and, nftor
getting them certified in New York, sell them
for currency, which will be sent hero by express,
This, we know, is being done, and il will
probably continue to DO tho rulo. This will
obfiato the necessity OF keeping any
balance IN tho New York banks until they yet
rid Of their loan-cortincatos. Tho tendency will
also be to draw currency from the open market
in Now York to tho West. thus tic currency
will como West, instead Of the doubtful credit Of
the New York banks, III exchange for wheat md
corn.
Money was loaned III the opon market III this
'ity to-tlay ut 10 por cont per apnun on primo
collnterals such as city railway stocks, otc. Tho
banks aro' Of course, discounting scarcely
esDes as sy eaaeaas s5s mis spaEg s2ngs
ly, Of courBe, but it is believed
that thoy will now be ablo to gradually relax
There hnB been ali inmenso amount Of papor
gan. This Indebtedness will hnve to bo ',s worked
down gradually. The merchants cannot pay
these natured liabilities very rapidly until trnde
reyiyes, md trado will roviye hero III proportion
to the abundance Of currency III tho Northwest.
East by taling Now York exchange at tho per
cent discount md selling it III New York
for currency to bring ,West by ox-
therefore bo greatly facilitated BY tho policy Of
the bnnks in regard to New York exchange,
There is no doubt that tho country banks III tho
Northwest hold MI immeuso amount OF currency.
At least il it il not i'll tho county banks it is in
tho lands Of country people and tho country
merchants. TliB crrrcucy will not flow freely
from the country banks to Chicago until tho
country banks nle convinced TINT tllere ia ab,lu-
they are convinced it will como like a flood,
but the rccullel alton must begin horo. During