The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-09-08
UEXTAUR LINIMENTs
FINANCE AND BUSINESS.
GENERAL MARKET REVIEW.
MONEY MATTERs.


MONEY MATTEIss.
ERDorts in general from the great money
s4ssssers OF the country are moderately favor
aESe in respect to the revival of business
1yss Chicago Tribune says: The movements
M tie money market were irregular and
-zsacsrtaiu during the past week. In their
mercantile accounts. the banks have found
and Improvement day by day.
y correspondent of the New York Tribune
Varz:ing from Washington, September 1, a.
sss-ts 1hat the business of the redemption
zsgsscy under Treasurer Spinner is threat
@5s>3 with summary interruption on ac-
es8Int OF the exhaustion of the per cent
enINsenback fund. The greenbacks which
Et.Es national banks are required, according
I'd me law, to deposit with the treasurer, to
Esns as cunt of 5 per cent of their circulation
fEsCva redemption fund of Sl7 900 600. The
redemption agency organized by Treasurer
Spinner has been in operation about two
s=rlarr1 rs and he finds that his greenbaclls
are about all gone. He would replenish his
stock were it not that according TO an in
E.ss-Drefation of the law given bv himself
Eise banks have the option of responding
WHash greenbackS or bank notes when he
GzHs upon them to make good their per
~Ss0E- reserve. The treasurer finds himself
at tbs end OF two months business with
Esataing to show for the Sl7 100000 he has so
EsEcittstrieusIy gathered from the 1000 banks
u che country, but an equal amount OF
ragged and dirty bank notes. some in the
IIslssury vaults, some in COmpt TOlIer nnox's
safes, some on the way bills OF the express
company, aud the rest in the tills and boxes
Of she new redemption agency.
The plain fact is, that the greenbacl fund
azEs frFindled 10 almost nothing by the
ssrCessE Of being ALWAYS depleted and never
Esnlenished, and the day is not far distant
s7ben redemption must cease by reason Of
Eae exhaustion of the grsenbaclIs, unless
EAey are renewed i'll some other way than
GSsan contemplated in the law. NOtwith-
z&ZIsding the low ebb of the fund, the treas
zrer hopes TO keep up the present sIckly
sssnhlance Of redemption by calling upon
1lle INKS, as fast as he can assert their re-
deemed notes, to make good the amount of
Eresnbacks they are obliged to keep in his
Es1Rds as a redemption fund. As their re-
sysouses, however, may be made in bank
notes regret is expressed that a 10 per cent.
redemption fund was not provided by Con-
-zress instead OF ) per cent.
REAL ESTATE PAPER.
me Chicago Inter Ocean, of the 9Th inst
has the following observations on the pres
sn1 value of real estate paper: AS good |
8szuy of the most frequent borrowers in the
@pen market during the summer were more |
,Sr less interested in real estate enterprises,
'sze take this opportunity to record the tes- |
zxnoonv Of some of the best posted note bro
tess u the effect that no class of paper in |
ne open market this summer has been
more promptly paid at maturity |
Sh4n real estate notes, representing |
Skunn One-third to one-half the value |
Of che property mOrtgaged to secure them. /
The brokers say that during the whole OF
zste past year, even including the panic last |
tat real estate notes have been paid |
sromptly 81 maturity with fewer exceptions |
ca this "a a rule, than in any other class of
Eaaper offered in the open market. Not
understanding this favorable experience, real
estate paper II expected to pay higher rates |
M interest than any other class in the mar
Rst and trust deeds and mortgages having |
&r0u1 three months to a year to run are |
aaaTsred in the market at rates which net the |
SENDER from IL to II per cent. per annum.
Tae difference of 4 or per cent. more |
On real estate paper than on paper secured |
9y coitaterals, which are readily salable in
che market any day, is probably due partly |
to the longer time 1t would take to realize on |
seal estate paper by foreclosure of mort |
-rszes or sales under trust deeds than it |
1souId TO sell out collaterals, but we think
e is also due partly to the fashion among
bankers of throwing discredit on real estate |
S1apeT generally, and speaking OF all real
sszEate operations only as real estate 'specu-
kEtiOns." 1t may be true that the
ssssurity in this case is not so readily
uEzrtxetable, but real estate operations
zz5e certainly no more speculative in their
character than nine tenths of the dealing in |
grain and provisions in this market, and the
Eszl estate security, though less readily sala-
bIa, is at least of more permanent value than |
vsrishabl9 products. Ths real cause, how
ever, OF the discrimination of bankers |
against real estate paper is, that their capital
actively employed in short commercial loans |
averages them about twelve per cent. per an
I1zm anyhow, and enables them to accom-
nnOiate their customers better than If they
Carried larger amount of long-date paper
IKE real estate notes