The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-05-17
IAN Analysis of the Senate
Currency Bill.
THE BANK STATEMENT.
Shipments Of Gold and Treasury
Operations for the Week.
STOCKS DULL AND LOWER.
Money from 8 to 4 Per Ccnt-General Stagna-
ton in Speculative Circles.
WALL STREET,

WALL STREET, |
SATURDAY, May 1876 r. M.
An analysis OF the Banking Dill just passed by the
Senate presents the following features:-First,
At relieves all national banks holding any reserve
on account OF their circulation and instead thereof
requires that they keep on deposit In the Treasury
Of the United States amount OF legal tenders
equal to five per cent or respective circuatons
as fund for the redemption Of such OF their notes
rs may be presented at the Treasury, and aboshes
all other redemption except at the counter
OF the issuing bank. This will, probably, prove to
be step In advance towards a practical redemp-
ton of bank notes, but 1t Is not the proper way
Second, It leaves the lawful reserve on all other
liabilities other than that OF circulation the same
percentage under existing laws, repeats all
acts which have heretofore permitted the banks
to count as a certain portion OF their lawful re-
Serve their deposits in
BANKS OF THE REDEMPTION CITIES,
and requires every bank hereafter to hold the
entire reserve In it's own vault at its place of dis
count and deposit This provision, while it will
relieve the sO-caled redemption cities OF some OF
their deposits and reduce the profits OF banking in
the country, Will go far towards producing a
steadier and less fuctuating money market at .he
great centres. Third-lt requires all national
banks to retain and hold and count as SO much OF
their lawful reserve one-fourth Of all coin received
as interest on the BOMBS deposited security Tor
circulation and public deposits. 1t is difficult to
see why this provision is inserted in the bill. The
Banks cannot resume specie payments so long as
United States note is legal tender. Nor, under
this condition. is coin any more true banking
reserve than iron or -four. Each may be valuable
property, but il required to fulfil
THE PURPOSES OF A RESERVE
chat has to meet an emergency one has to be nrst
converted into legal money equal with the other
before 1t can be OF service. The government
Should be the only hoarder Of gold. This Is the
power that should first resume specie payment
When the government is prepared to redeem its
promises, then the United States notes held by the
banks will be as good as gold" Fonrth-It repeats
al the restrictions on the amount OF national
bank notes TO be issued. This, under different CIR
cumstances. would be highly proper but 1t should
have been accompanied by repeal OF that portion
pf section % of the act OF 1864 whica makes the
national bank note legal tender between the
government and the people, thus making the
United states note, in which these are redeem.
Rbe, oil more value than the bank note. II this
Wered0ne no bank would be able to keep IN circu-
.lati0n Its notes to greater amount than is au-
th0rized by the requirements OF commerce. Thus
would follow the much desired elasticity. Fifth
It settles q disputed point tf Congress has any
,such pOwerl-to wit, the legal amount OF United
States notes 1t fixes the maximum amount at
$685., 0O0, O00 and provides for the reduction from
such maximum amount OF twenty-five per cent OF
Che amount OF
INCREASED BANK CIRCULATION
which may be issued under this act until such re-
ductton SHAH have reduced the maximum amount
Of outstanding United States notes $500 900,
such reductions to be final and permanent, and to
accomplish which the Treasury is authorized, from
time to time. to sell at public sale sufficient
amount OF four and one half per cent gold bonds
Tor United States notes. Sixth-Section Of the
net pretends to provide alter july 1875 for redemp
fion OF United States notes with Jour and one.half
per cent gold bonds dollar for dollar but as says
che notes so redeemed shall be ressued for the
purchase OF the six per cent bonds OF the United
States or in payment Of the current expense, 1t Is
more an attempt at refunding at lower rate OF
interest than redemption. The bill, therefore, is
faulty in construction Objectionable IN all Its fea-
lures, and would not subserve any purpose except
to swell the currency OF the country, unsette
values, and. II 1t became law, call for corrective
legislation by some future Congress.
THE MONEY MARKET.
Money was in moderate demand ut per cent Tor
call loans, but subsequently, when the market was
supplied, declined to a per cent Not all the
capital Offering could find employment. There was
little done in sterling to-day. The nominal quota
lions Tor bankers bills on London Of all grades are
As7& 4ss for 60 days, and 4.sO1 49l for demand.
Continental exchange is quoted at SO for bankers
Reichmarks long, and 961 for short, and 5.13X
BIS Tor long bankers francs on Paris, and $40
ell for short.
THE FOREIGN MARKET.
London advices report consos strong and Amer.
acan securities barely steady. The market, how
ever. is quiet, with money at the rate quoted yes
eerday. The following are the late prices Con
soils, money 9s7I account, 9ah a o3a; 1ive-twenty
bonds, 1865, old, 1915; do. d. 1857, 109x l0s%;
ten-f0rty bonds, I04I; new nves, 104H 1O4a;
Erie, 32S New York Central. ssh. Paris dispatches
quote rentes at 5992H. The following are the
rates In Amsterdam Union Pacific Railway
shares, 25h; Northwestern preferred, So; Erie
railway shares, a14; American securities frmer
and higher.
GOVERNMENT BONDS
were X q lower to-day than yesterday, although
anrm in London. The close was dull and steady at
the following qu0tauons:-United States currency
SKIES 116t 116X; do. do, 1881, registered, ll9x
l197S; do. do, do coupon, 1914 121%; do. five.
twenties, 1852, registered, 1854 11516; do. do
!. ex coupon, 115x 1l5h; do. do, 1854, regis
tered, 1l6H 1l7 do. do, do. coupon, 118I
HTS 90. do, 1865, registered, 1l6s 1l7 do. do,
do, coupon, l17sI 1ls; do do, new, registered,
Ito hoy; do. do, do, coupon 11oha 1l9h; do.
do 1887, registered, 1lsx o 119X; do DO. do,
coupon, 1904 1907; do. do. 1868, registered,
l1oh 100; do. do do, coupon, 1904 12o1S; do.
ten-forties, registered, 114A a rs; do. do, do,
coupon, Hay 1161t; do. lives, 1881, registered,
1l5 1854; do. do, do, coupon, 1145s l15,i.
IMPORTS.
The imports for the week were:- DRY goods,
e1el2 1897 merchandise $5,91, 73o; total 81, $780,
THE GOLD MARKET.
Gold opened at ll2k and sold down to 112 but
st the close the price was 1928. The steamships
for Europe to-day took out ST. 900 in gold The
total shipments for the week ending to-day amount
to $2,2o5,3se. The carrying rates were 2, az,
and per cent. Loans were made nat The trans.
actions at the Gold Exchange Bank to-day were as
ioiows-
Gold balances. Al. 387 l63
currency paances..'... l,662670
Gross clearances ..'................... 42,570000
cIr CT xrru