New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-26
IN ILLINOIS.
THE FINANCIAL OUTLOOK IN MISREPRESENTATION
RUMoRs UNFOUNDED-CHICAGo's BANK POLICY
THE SAME AS NETWORKS.
Or TELEGRAPH TO THE TRIBUNE.l

| THE SAME AS NETWORKS.
[Br TELEGRAPH TO THE TRTBUSE.l
| CHICAGO, Sept. 25.-It must be acknowledged
that Notwithstanding the aspect OF financial affairs in
this city is the surface much the yesterday.
| there has been an important change in the
| general feeling. Yesterday there was undOubt-
| edly confidence that the unreasonable currency
panic would gradually subside, that gradually and
more currency would find its way INTO the
banks, and then in turn they could gradually
pay out currency literally to every owner
of back balance. But much of this confidence
destroyed by the publication by sensational
sheet this morning Of the statement that the Chicago
bank had suspended payment The utter fasty OF the
statement shown by the fact that this morning
every bank in the city open and doing business just
they had been doing since Monday morn
ing. The false report of the suspension
Of business of the Chicago banks TO have
been telegaphed early this morning to all parts
Of the country with an alacrity that sayors of a
preconceived design to force the banks to sus-
pend At early hour private dis
patches began to 10 the banks from
everywhere making the inquiry. Have the Chicago
banks suspended" The unanimous reply this
from the banks here mo banks all and
doing business as usual" 1t too late. however,
to prevent the effect of this ineendiary report
and before noon those effects shown in the
teegraphic report of the the banks OF Memphis
and suspension Of payments by the banks Of New
Orleans. The report in question had no foundation eX-
cept resolution not unanimously assented to by the
members of the Clearing house Association,
at a meeting last evening. The resolution.
itself amounted TO nothing but declaration OF facts
which have publicly known TO exist for the last
three days viz that owing TO the scarcity OF currency
the banks could not pay large demands for currency
This was not the announcement Of new departure,
or change in the feeling Of the banks from what had
been the rule for three days Moreover it not the
publes acknowledgment of any secret The position OF
the Chicago banks has been for two DAYS known
to be the same that of the New-York banks; that
is they cannot pay large checks in currency for few
DAYS until the currency excitement is The effect
of the sensational reports above referred TO has
updoubted been unfavorabe TO the situation today
The banks in this city to-day have all paid currency
ON small checks, but TO what is small check there
il great difference of opinion at different
banks At bank small check means
probably SIS; at another 1t may mean $780, s25,
or 1000 at one bank or 10 per cent OF mans
balance and at another IS or 80 cent As general
thing city deposors have been able TO get all the cur
rency which their real necessities called for.
what is TO be the result of this doing out of cur
rency by the banks is point upon which there Is a
| great diversity Of opinion among bankers them
! selves A few banks that were fortunate enough
70 have q comparatively large stock Of currency
when the panic began and have been exceptionally for
inmate i'm getting hold Of considerable amounts since,
seem TO feel confident that they go through any
| thing and that they will be able TO meet
| anv demand their customers Will make. But
| with fully two-thirds OF the banks Ill
i city # must be acknowledged that they believe that
the currency is being gradually driven out and that
| though perfectly solvent they cannot be expected
| 10 do impossible things. Their argument If
that currency will not begin to come into The
hanks mill confidence is in restored and that
the only thing that will restore confidence is for the
hanks 10 cease trying do what their depostors know
impossibe viz pay currency for all their deposits
at once There is undoubtedly great deal OF
crrrencv coming into the city to merchants. Some OF II
h depoed by them in the banks but any man can guess
how much by asking himself whether he would deposit
tbe currency IN bank or not There 49, OF course
no ouotable money market now. Borrowers az wen ~
lenders for ordinary purposes are out OF tue market
For speculation in grain, money Is worth any"here
100 10 800 per cent per annum according to the fuc
tatons Of the difference between the price OF gair
Co. oaeb and October The situation, however is by NJ
means homeless even in respect to the continuance
currency payments on limited scale for the preseh
ana gradually increasing the amount The main nop
Of the Chicago banks now lies In getting! currency
from the East The excitement has much aDate'
an York and II the advice from there tonorroV
sbopd he favorable, and the Hew-YOrk banks respon
10 the demand of the Chicago banks ior currency
the loss Of confidence will be quickly regaiheu 10
morrow. The clearings OF the banks were msu
today without any more difficulty than for the Las
three DAVIS. There was some talk to-day among tn
banks Of adopting the plan OF issuing Clearing nous
D certificates for the settlement Of Clearinghouse
e balances but there is no unahmiV
feeling and nothing was done about 1t. This Is I'm
great difficulty with the Chicago banks IN the preseh
emereeDcy-they are united. On the contrary the
IS are trying TO get the advantage of each other.