, 1873-04-22
MONEY AND COMMERCE.
MONETARY,

MONDAY EVENING, April 81. .
Tho local domand for money In this market Is
increasing steadily, and, while tho banks aro nblo
10 accommodate their regular customers with OIL
they are entitled to, they nro refusing to tako
outside papor, and thoro is consequently moro OF
Tho lattor offered by brokors In tho atreot. Tho
streot ratios for money aro tho truo index Of tho
money market, and in lheac wo motto hardening
tendency.
New. York exchange continuoB In active do
mand at TO cents per 81, 900 proml1im.
Tho panic In Wall strout scems to bo over, and
stocks nro again on tho riBo. But as tho prices
Of stocks approximate thoir former range, aud
a. speculation Ia stimulated by the rlao, 1t not
only takcs moro money to cRrry the stocks but
more money Is locked up In margins, and tho
sudden abundance Of money on Saturday after
noon IN Now York aooms likely to DO succeeded
by nm increased stringoncy during this weok.
Tho price OF money to-day In Now York Ia Htiu
20 per cent por annum. aud upwards. 1t Is ap~
paront that tho spoculators who arc paying
thcee rates for money to carry, stocks cannot
do 10 un1osH tho stocks continue to riso,
nnd aB this would only DO tho ro-eatab-
fishment Of tho samo condition Of things
eary, it will be little surprising II another tum-
bio is not experienced boforo long. It Is evident
that capitalists bolioyo they can mako moro ont
Of their money by lending 1t at 20 por cont per
nnnum than they. con by buying tho stocks et
price for money 1t proves that the stocks aro too
high, The high prices Of stocks arc, in fact, ono
Of tho principal cauroa Of tho tight money mar
ket In Now York. where tho stocks arc carried.
Bpeoulation and itB consequent rlae Of prices,
without any increase in tho intrinsic value Of
tho cominoditios epeculatod in, always
increases tho dolnnnd for mo,oy, b. h.
tho o.aa e q, tho " ordRussns nouoy
the country Ind boen put out Of oxistonco. II
tho stocks in which Wall stroos spcoulatos repre-
aont say $4,000, 600 Of value at prices which
would make tho zos pay 10 Rof con oh n s1G t1ar
mont Of ei5o0oo 900 Of money without interest.
In other words, money. must first become 80
plenty TINT tho oUnors OF it Would bo wll'ng 70
bo any general rieo In regular intereBtpnying So
puritioa like railroad Btocks and bonds On tho 9TH
or hand when money becomes scarce, hs it did Inst
fall, and rs it has continued since, it was necos,
gary TINT thore should hare been general and
largo decline in tho prico Of stocks in order to
mako tho ratio Of interest paid BY thor dividends
correspond to tho legitimate price OF money IN
the Market But this was not the case. Tho
tnl and deposits Of tho Now York banks, and
hayo called this to their aid to Bustain the dcti-
tious values Of stocks. Thus, practically, $780,
10000 to S150, 0,00o.000 Of money that, nnder tho
Legitimate and normal cQnQlt1Ous OF Luo money
market, would havo gone to tho aid OF tho mar.
camille community, hayo boon practically locked
up bY using 1t to suntain tho prices OF stocks at
from to 10 por cent above what tho general
scarcity OF money required thoy should decline
to. 10 superficial observation, Wall street spec
ulations do not Boom to be intimately connected
with or to seriously a1foct mercantile tntercata
outside Of Now York. But tits unqnostionably
tho vortex into which at present IL drawn some
hundreds of millions OF money MORO than tho
utcoLo nra xvorf}, md f1,ia hnirr t1h cnEa tho
money is practically put out Of existence ae
Tho imitation of railroad stocks md railroad
bonds is ono of the great cauaos OF the strin.
rency Of money in tho Eaatorn Statos OF the
present timo. Tho attempt to maintain this in
1ation abaorbB tho credit OF tho New York bank.
nud throws tho sustaining Of tho mercantile trade
Of Now York OH the bants OF othor cities. Dos:
ton. Philadelphia, and Baltimore have felt the
pressure very sensibly, nnd it's influence has e1
tended all over the country. Tho National Bank
ing system which compeB tho National Dauks o.
tho redemption cities to keep their final redeem
fpg agencies in New York and their largost crodi
balances thero, is to great o1tent Responsible
for thiH fictitious condition Of finances. Th
Now York banks having onco got tho money o
their correspondent banks into thor possession
must fls.d eonlo uao for it to help thom pay the
per cent interest 1t costs. As there B no logiti
mato uac for this abnormal accumulation Q
money, they aro obliged to foster the illegitimat
ono Of atook Bpoculntions, which Roon domand
more money than they have to give, hence tn
high rates OF interest.
LOCAL. STOCK AND BOND MARKET.
Messrs. Lunt, Preston i Kean quota Us fol