, 1874-02-17
MONEY and COMMERCE.



MONDAY EVENING, Fol-. 10.
lilo local money marriott presents no new
foaturoa to-day. Tho supply Of loanRblc funds
Is Btoadlly inorhasing, and the banks horo aro ro-
ceiving letters by tho dozen from the country,
asking them to find employment for country
bank money In loana on collaternlB hero at 10
per cent. Thoro scomH no doubt TINT the supor~
abundance Of money pressing on tho markot will
roduco tho ratos Of interest. Tho Rpeoulatlonn
iii pork, whoat, corn, etc., howovor, Boem to fool
no oiFooe OF tho incroaso of monoy now. Prices
havo already boon run mp till even spocuatora
aeo 1t IL folly to try 10 put thcm any lghor, and
TINT tic best thing that eau DO dono Ia to try to
1nd market tor tho immonao quantity Of BtuR
now held here.
Now York exchange was Il little tlrmor to-day,
with aRlcs ut 60c por 81, 900 discount.
FREE uANKlN0 NOT 1NFLAT1oN.
Senator Cameron ia about to offer, in Con-
greas bill to repeal tho legal restriction on tho
amount Of National Bank circulation; III other
nsgs to t a1a aa fSt
Inoyal Of oil restrictions to- tho amount of
bank circulation moans Initiating, tho cur
rcney. This ia q mistake which can DO
n1ndo only by poreonB who do not rca1ize tho
diiroronos bosween tbs bunk notea and tic
groonbaoks. Initiation Of tho currency Ia possl-
Bio only by means OF tho grcenbackB. II tho
groenbacka woro redoomablo only IN apocio, tho
nn n"tna % wou1 bo at nay With anosio. X IA not
tho National Banks tbat have suspended epccie
payments. but tho Goyornmont, which has
obliged The banks, as we'll as every ono clee. to
n1cointod motoa 1orai ton,cr foT tho anymont of
aehta. Il would be- impossiblo for banks to keop
INV notes In oirculstion that woro 1odoem-
ablo. in specie AZ long as tho aovornn,,
with deprecated :uoso Of the Government
which fueti,aioa continually in value. There
eoomg to bo pop1lar Improseiou that II the
sga restriction On tho amount Of National Park
" bo large incroaso OF bank notos. This would
certainly not DO tho caso unless thoro was, at
tie sumo time, at, increase in tho greonbaoka,
sponatom IN lawiu moSov % Of 'vvs tIo untea @
statcs" which means either spccio or ite legal
substitute. groenbsckg. II tho latter wero In
crensoh tLey wnn11 denrneinte in va1un nnl
hanEu ,yl,icE Ind iasuod rircIntion hafnra tha
increaso Of rroonbacks could redeem their oir-
culation with groonbacka, Of less value than
Wien tho hank notns wore iaaued. On tho con-
trary, II tho greonbachs are diminished and tlloir
valuo increased tho banks must rodeom their
ihen. @ The dobts Of bank wonld in Til; respect
bo afoctod Just like the debts Of all Individual II
tic pooplo saw that tic dovornmont wns issuing
more greenbaoks, and that gold was advancing,
and rim into debit m ma TO 1uuko nro]t by nav
lug the dott with less ronl value than WINS con-
tyactod for. On tho othor hand, If the rroeu-
backs wore being contracted ind the price Of
gold was falling. everybody would entloavor to
soll property and pay lis debts as soon Us posei-
bio. in order to avoid tho ponalty Of having to
riya more real value than lie contracted to nav,
ihis is precisely how il would operate With Tic
bnn1ta n bankiup warn free and the banks
couid soo tbot rrcenbankB woro to be increasej.
thoy would make haste to run III
debt by issuing moro notes, but
II tho groenbacks were being contracted,
the banks would also contract their circulation
gold. At tlet point, tho banks would ISSUE more
currency on a spocie basis, because thoy could
mako profit by supplying the community with
all The circulation that could be uBod. It will be
eeen therefore, that 'frce banking has moth
ing to do with either imitation or contraction of
the currouoy; tloeo aro dependent soely on
what is done with the groonbacks.
FINANCIAL DELusIoNs.
Tho popular interest In tho currency question
teene to iucreaso from day to day. As tie dis
cunsions in Congress progress, ttoy show the
uttor ignorance OF tho fundamental principles Of
currency which prevails among tho great major
tty Of tho spea!ters and financial quacks. This
sets thousands Of porsonB throughout tho
country to thinking, nnd results In Innu-
merable lettera from the people to
~ pupn1 p,a p,sen; .h,,, 1Iasn M n,,os Wsoe nAs
nna o sI savo saf no ron ~ oS
Of I these @ arc s seund commonsaenac Vows Of what
should bo dono with tile currency, and about
1or ID +oo rro"t !" nnhiirh nro"i,aH ~ Ih.t ,ro
no1 40 W" f1aAs fn ~ pao4; ;a oa 1 - n.Hy ~
Tecolve' Inc Mhlu Fuils ho"oSo1, ~ tnat lucy
contain nothing new, tne "ffteFs TOO olten lor-
get that hundreds OF othor persona hnyo had the
@ I'm a ar havo a tnS n nYqa
assaertions nnloaa sons now annlioation @ Of thss
,,,"enta T.; n,aan 'o ~" "fFA - "'o
A'Eunonsn . ~ - ~ ntauo' 'l c.,
Dut lnare IN ALSO !arBe clas1 OF nnanolM
planners Wheao mindB run exclusively to
srhnna crnahnt in }hut mild ID ronIJv kiohar t1n,
lin martet nrinn, or in ntbnr wnr,lS. that n
:" -. - ~ Hm:a - -. .,a. Iii H.