, 1874-04-18
M0NEYAND COMMERCE,
MONETARY.

MONETARY.
friday EVENING, April II, 1874.
Hatoe OF diaconnt aro hardening, isolate
INSTANCES, in which there arc largo balances o
country bank deposits to bo kept moving, oaia
whore loans will bo naio at por cont, but I'll,
prevailing rate Is firm at u por cent,
Ihere IL AT ordinary everyday tlomand TO-
monoy but no sign Of any nctiyity or ontorpris
outside the usual routine OF business. Spocnla
ton rs lifoleHs, ana tho money lying idle in coi
sequence will venture upon nothing with auy
risks.
stocka IN New York woro feyerlsh and un-
settled during tho day, and oloaod firm. Money
can bo obtained tlloro on call at very easy rates,
but loans on long timo aro not rcndtly nogo-
tiatol.
Exchange was firm aud scarce, selling at 25e
premium.
Money Is loaned moro freely, and thoro Is q
better dcmana for II amoug the grain md pro-
duce mon, than IN other brauohoa Of busnoo,.
Those foel any disturbance Of tho money markct
= t, and feol 1t ioast.
It cannot DO denied that tho feeling among
bankers here is ono Of danuietude. Worry
lie result is expected from tho no.
ion Of Congress on tho currency this ses-
on. but tho fact that n precedent for intla-
has boon established, mud tho general OK
tation that the lnttnttonsts will mako d moro
full attempt at tho foxt session to got tho il-
ion thoy bayo failed to socyro this time
adens anything like enterprise OF development.
here is luck OF confidence in anything that
-. -. US 10 the Immediate futuso.
The Directors Of the Commercial National
Rank decided yesterday to retire $4,000 of
their circulation. This is done in pursuance Of
policy adopted Home tlmo ago, and which Ia
likely to bo largely followed by the National
Banks, which find the burden Of National. State
and local taxation destructive OF ali tho profit OF
their circulation. THE Northwestern National is
to reduce itB outstanding circulation largely,
nnd tho Gornnn National has begun to rotiiro q
large part OF It's notes.
THE RATE or DISCOUNT.
The rate Of discount at tho Bank Of England
or Franco, or here in Chicago. is Expressed by
how much that simple Rigu meana to him
who has been to tho trouble 10 in
quiro iuto ita signilcaucol Prof. nonany
prIce. ono Of tho highest authorities on tho suh-
icct in England, In d lecture delivered by him
boforo tho Bristol Chamber OF Commerce, d part
Of which we repubiiah in this issue, told Ills
hcarors that that little hgnro, tho ratio Of dis
count, waH matter Of the highest importance
enough to affect the profits Of business mon, to
eularge or contract their operations; that to in
creaao or diminish it WIS to act on tue commerce
aud industry OF whole nation. If
EVERYTHING HAS A REASON,
surely the rate Of discount must have one. Thore
EtuHt be something to determine it. What il ltY
Thorc are those who aro always ready with un
answer to oyory question; aud 30 there are
thousands ready to say that tho ratio Of discount
il simply !. question OF money; that rino
Of money; that riao IL tho rsto r'ni of
discount means that money. is plentiful,
and = fall that It is scarce. Those, however,
who have made tho little varying figure study,
who have Bought systematically and scieil-
tifcaf1y to ascertain what determines it, soc in It
much moro. Discount to them il tile barometer
Of commerce: Discount tells what Ia going on in
tho commercial world; what is going on IN tho
region Of production and consumption. It tells
whether people aro
aAy1So on SPENDING;
whether tho harvest hah been good or moor:
whether many or few sales are being made md
whether those who have sold consume tho pro-
duct Of their sales Immediately or aro willing to
enve it and employ it in the support Of labor, ia
the construction Of railways or otherwise. All
this and more does It tell It tolls whether many
or few deposits nre being made In banI1B wloth- |
or many or few burrowora OF bankers meet their |
notes or not. In word, 1t tells tho whole story
OF tho commerce Of State or country. 1t rop- |
resents the average prosperity of nation. All |
the rate should be stud;ed for it is impossible |
to ovorestimato how much may be learned from
the investigation.
Wc arc glad to be ablo to record that it is be-
much to Elbow tho Importance oi such study and
tho Belgian Minister ot Finance, Mr.. Malou las |
just published document showing the
FLUCTUATIONS
Of the rate of discount in the four princjpn3 |
banks Of Europe. tho Bank Of England, tic
Bank of Franco, tho Bank Of Belgium, and tic |
Bank Of the Netherlands, for about i60 Years,
Ao also shows tho amount Of precious
metals In England during this period |
And here wo would call tho attention OF our reai-
ose to tho difference between such men rs tho
Belgian Minister and some of o1,r fnanciers in
Congress. Mr. Malou takes into his horizon t1lo
banking experience OF tho past He studioa tho
rate Of discount during 150 years to ascertain the
Causes, natural and artificial which, have deter
mined Il, and this lie thinks necessary to OK
press m Intelligent opinion on the subject. In
belgium the Government rewards his industry
by placing him at tho head OF the finances. Il,
this country his views would bo secuted US those
OF q doctrinaife or theoriBtl
Ono OF tue tests Of scienco is that 1t is
TIE SAME IN ALL COUNTRIES
ana Il is interesting to observe how Mr. Ma1ou's
facts corroborato Mr. price's theories -aa indeed,
they should, for Mr.. prioa's theories arc only
principles obtained from tho generalization OF
facts. Thus NIr. 1ialou shows that. beginning
wlth l1a, for over hundred years tho rate Of
Or nearly 40; that it never wont below nor
cent nor rose above s. In tho oriaiB Of 1880 il
rose to 6 per cent. Since the passage Of the
aank act Of 1sa4: It has 1actuatoa greatly; and
arbtrusy limit to "ti the reserye. ,mpoa's hia an
aoems to be Alr. Nlalou's opinion. 1t Ia not
!ttlo curious that it is also Mr. Prices and that,
assigned it aa the cause Of tho rise Of the rate Of
discount, and Of the
n1 ri fhrcn md @fts {s,I-