, 1874-03-24
m ONEY AND COMMERCE,


WHO say tneY cahnot got 1t nt Lllu, and also d
good many bAnherB, VIM my they won't 1ond II
ut Tint. Tho quotation. howorer iy correct, aud
as va got 1t from bnnkoER null nlonoy-lcniora
themselves, tllore ia ITO reason for questioning
It, we 20 not care to specify the narnos Of banlsa
anu othor lendors TINT offor money at thlB rate,
because that would Hond them a good 1uauv bor-
rowcrs who could no. f, ish Tho roauisio SECURITY
or mako paper that tho banks would consider
iirst-clnes. It would thus place tho banks In the
uncomfortable position Of having to rcfuse loans
10 men who fancy that their 'crodt Ia A No. !.
while tue banks may think differently. Tho
fact, however, iB beyond question TINT on ouch
collateral as iorse railway stooks, bank ntocks,
gas company stock, and n good many similar
local securities, money is to be Ind nt per cont
for sixty or ninety days, or even six month";.
There are also good many merchants who
could borrow ut per cent on their own papor
If thoy cared to mako it. This at lcast
establishes tue standard market price of money
Tho payment OF nay higher laso thnn this must
be due 10 other caiscH than tho deficiency OF the
supply Of nj roy. The bnuks ii, this city iaayo
botu in tho labit Of charging nil regular cus-
tomors. uniform rato Of 10 por cent for acco,uo-
because they loan to them ut 10 por cent whom
the rato III the open market is mitch higher tan
TINT. thoy nie now entitled to charge them 10
per cent when tho rnto in the open market ia
only = per cent. Wo claim, therefore, that
tho ratio clnrgea by banks to these
regular customers does not Indicate ths cort1i-
tion Of tho money market. II 1t dtd it would
provo TINT the supply OF tho money was always
tho sann, which would be evidently incorrect.
It Ia useless for any ono to dony the fact TINT
thoro Is an unusilal amount OF loanable funds In
tho market which Tho owners Aro willing 10 lend
at per cent II thoy Gun pot satisfactory Sc
sa,ily T;!, Ils sooms to bo tho great point now.
shows, some. lack Of confidence yot NJ tho
lingering effects Of tho panfc. Tho proof
that those effects arc passing away is
in the fact that capitalists otter their monoy go
freely at low rates Of interest Oh the best socu-
rity. As confidence IL still frrthor restored, It
will extend to other securities, and NJ the ptos-
peet Of active and profitable trado becomes moro
promising, the rapor OF moro manufacturers,
morcllants and real-estatc owners vii! DO con-
able to pay promptly will DO better.
New York exchange sold at Csc per 81, 900
premium to-day.
Tise BANK STATEMENT.
Much untavorablo con1ne ent is mndo on tho
nonecnslcal policy Of tho Comptroller Of the
Currency In calling for n statement of tho con-
dition Of tho banks On the 2Gtl Of February, Dv
re tinlo tho statements arc published. moro
thnn month will hive e}npBed from tho dato to
which they rotor, and tho statement will be
almost as vnluoles1, aB far as the current c2ndi-
ton Of the banks la concerned, aR ono mado lust
year. just now, while Congress ts discussing
tne outteAcf 4ucstioil. II NonId haTo boon tn1-
Tortant to show tho great Increase during lilo
iast month, in loanabo funds aud Of deposits in
tho banliB.
What the object of tho Comptroller is in sneci-
lying . day 80 far past is difficult to Imagine.
There ie certainly nothing TINT can be accom-
p!!shed by it That would not 10 botter accom-
pliRAed by specifying a later <1ay.
WHAT WILL CONGRESS- no?
Tho revival Of tho curl loncy discussion in Con-
Eross to-day with tha general understanding
that there will DO an earnest ontloayor both il
tho Senate and the House to bring tho question
to solno tnal conclusion, will arouse and conccu-
trate public attont1on on tho matter more than
ever. md therefore make 1t moro nccesgury
than over that it should DO aottled boforo busl-
moss will DO relieved from tho preaent Incubus
OF doubt.
1u Wow Of tho bills that nayo been before both
Houses in tho last two months, and the recent
private expression Of opinions by prominent
Gongressmen, It seems probable that tho mol re-
suit Of the whole currency discussion this winter
will be that the 4A, 100000 so-caIlod "reserya."
or at ienst the $26 200 600 Of It now out, will 10
authorized, and that banking will be maio FREQ,
with the provIso that greeubacks shall be retired
ln some ratio between 90 aud 100 nor cent Of tic
additional bank circulation issued.
- The reasons for this belief aro, that the Senate
tinance Committee have already made some
concession to tho grconback iutlat,onlsts, iu pro
pal1ng bill to establish tho limit of grooubncks
II the a1no;lnt now outstanding, viz: $3B2 OU0-
200. The House Of Representatives. however, is
sssn If be e sG woe ss92 e eS9f 5 Of he enthr
to bring the Senate to tnoir yiewa in that ro-
spcct is probnblc It IL not ut all likely that tic
Issue Of tho remaining 918000000 Of green
backs (of the 440uooo0) in payment Tor
bonds Pun chased would hare any important
Immediate effect on tho va1uo Of tho
currency Tho imitation would MT DO lorro
enough to cause much advance In tho price Of
gold, aud, in thai yfow Of tho Case, tho victory |
Of tho greonback inlationists would be barren
mt |
Nevertheless, tho issue OF moro Government do |
manu- notea, to pay out at heavy discount for |
bonds, aud thus CAUSE all increase OF the Ma |
tional debt whou the rapid reeuporation OF Tie |
in principle.
;, THE PROSPECT Fon FREE BANNING.
some months n%o, tho Banking and Currency
committee Of tho llonse reported bill proyid-
tho Chairman OF the Financo Comnittoo |
q the Senate also introduced, some time ago a |
bi4' Tor the saino purpose, coupled with d plan |
1or partial resumption Of specie payments. |
ure a. free banking may yet bo passed, notwlth-
Standing all tho ridiculous and contradictory Oh
jecslons that hayo boeu urged againHt II by both
tho contfactlonists and inilationIats. FREQ bank
lng, coupled with provision for the retirement
eos ereenbacks III tue ratio Of 30 per cont pf tie
increase of banlc notes, would not only fur
n!sh u flexible volume Of currency and |
tnus overcome ono OF tho great objoc-
ak.s.. Tins to our present currency, but by tho
nppreclate their value ana consequently alAo tic
value Of the Nstional-Bank currency, aud 10 |
cnuso progress toward specie payments without |
any contraction Of the aggregate volume Of cur
roncy. There are, Of course, those who will |
argue that fros banking on this basis would in
cieaso The aggregate volume Of tho currency, |
and 80 cause a depreciation of its value but |
their whole line of argument is based on tho
faacy TINT the present depreciation Of the cur
rency is due to M excessive volume Of 1t,
Wloteas moro correct thinking would show
them that tho present depreciation is ouly
the effect, OF doubts about tho dlspusi.
ton OF tho Government to redeem. II |
tho Government would dovo1o the surplus |
revenue whenever il LAS my. to tho redemption
OF tho greonbacks ut par in gold, instead of 60 /
lug into tho market to buy grconbacks at dis
count tby the salo Of gold) tfoy would soou iiHo
to nearly par isl gold, no mat:er how many Nj
tional-Banl notes were being issued under froo
banking law, Consideration Of this proposition
n'ust convince any unprejudlood mind tnut It is
possible to incsease tho aggregate volume Of
currency BY froo-bsuk issueH, without 1oprooiAt.
ing tho value Of the currency.