, 1874-02-13
MONEY AND; C0MM ERCE.
MONETARY.

and on time loans Mt 10 but tloro aocnls scarco-
ly any inducomont to put tho ratcs OF money |
lower than thcBo figures. In tlllB market, when
n borrower wants money Mt all, ho Wnnts 1t bnti
enough to pay 10 or per cent for 1t, and tho
difference Of !, or ovon 2, por cont on short
time loans would not Go sufficient to Ill
ducc hin, to embark in any enterprise
which he otherwise would not. Iii tho
Eastern marlsots It is different. speoulntors
doa 10 largo o1tont In dividend paying stochs,
which fuctuato lens in pricc than Western prod
uets, ard Wien tue rate Of iutorest ou money
RetB below the average ratio Of dividends on cor-
tain stocks lis borrowed to carry the stocks or
speculate in them. In this market, howevor, tho
supply of money, bo 1t over 90 nbuntnne seldom
puta tho rato Of money below per cent on do
mand and 10 por cent Oh alxty or ninety days.
What ia not usod at Ltoso ratios other oa idle or
Is sent East, wloro the Now York banks pay 4
per cent on curreut balances,
Now York oxchango continues wenk at 75c Per
$1,000 discount.
Currouoy shipments to tho country are still
pretty largo.
CHICAGO BANKS D1aoussED IN LONDON.
It aeems that tho Chicugo banks aro doomed
to be bcliel in regard to tho position thoy took
during tho panic ast fall. Hero in the Weat
even our rivals, .Cinolnnati and st. Louis, Woro
honorable euough to acknowledge that, while
tho baiiks in every other large city IN tue United
stateA stopped currency payments, tho Chicago
aE e y 5fnf on na 81
New York parora. however, with tho exception
Of the Now York Journal of Commerce, ignored
tho fact, and Haid TINT all the banks in Lilo
unea states hp shspGnaG;a nn; currency
Magazine boldly asBertcd tito falaelood that tho
Chicago banks suspended, US vol as all othors
tn the West.
But now comes the most nnconso|onable mis-
representation Of oil, from the mouth Of Mr. +.
Potter, tho President Of tho Grand Trunk lsail-
why Of Canadn. At meoting Of tho drand
Trunk Railway Company in London, reported in
tho Times Of that city. Jan. az n1r. Potter DO,
condition OF tile road. In this ho took OCCASION
To Bay TINT ho sailod for America in September,
and whom lie arrived found TINT great COM
mercial storm lad commenced, which swept over
everything. "Ho then." says The Times report,
'dosoribod tho stnto Of things during the
whole panic, both 10 Now York md Chicago.
For I, whole mouth said Mr.. Potter, there
Chicago, and A.at aoas their Canadian bank, 70
toltic Me american people brought htetr capital"
II Mr.. Potter is interested in tue CANADIAN
bank which has branch in this city, he would
was honorable to bring it into notice. But to
toll in London n Wholesale falsehood for tho
sake Of giving his bunk 4 prestige to which IT
WIS aot entitled by any Of tho circumstances of
tho easo and in SO dong to ,nsrcpresent evcry
rival bank in tho city, was not only diHhonorabe
ih Mr.. Pottur, but donbly so from the prominent
position, ho occupies ns President Of great
trunk line Of railroad: Il Mr.; ,,: Pot,
during hia visit to America. there
might be some excuse for his statomoutH,
on tho ground that he had heard such reports.
But Mr.. Potter WAS in Chicago, and must have
ing tho panic, that tho First National, tho Com
meGcial National, the Merchants National, tho
Corn Exchange NATIONAL tho Fifth National,
tho Northwestern National, tile Merchants Say
inga, Loan l. Trust Company and several others,
continued to pay currency on the demanl-chccks
Of their dopositors throughout tho whole panic,
md thntt in order to do this, they brought
s8 1000 ooo OF 90 ooo of e currency from the
panic, ind woro able to bring it because they
owned the securities that could DO turned
into currency notwithstanding the panic. Mr..
pople bringing thor capital to his Canadian
bank in Chicago, will appear ridiculous when it
is known that the aggregate deposits hold by tho
Canadian bank iii Chicago to which he rofors
ind even in tho present abundance Of money aro
IL not ono OF tho bauks aboyo montion-
cd but what held then, ond holda
Canadian bank: Tho First Nationnl hold then,
and holds yet ton timcs ns much deposits "a tho
Canadian bark to which A1r. Potter rofors.
Thu business community Of thiscty were heartily
glad WHOM tho Bank OF Montreal decided to ro-
establish It's branch in Chicago. They fully un-
deretand that thoro has always beon too littlo
bank capital to transact tho large buBnesa Of
Chicago. On tho other hand, tho managers Of
the Bank OF Montreal also knew that banking
business in Chicago waR. as q rule, on moro
secure basis than In almost any other city in tho
United States, for the reason that tho creator
portlon Of the advances mnde by banks hero nro
either on colatcralR Of warehouse receipts for
grain and provisions or against shipments OF
theHc commodities, which will always He'll for
cash in tho great markets OF tho world
This .was, in, fact, tho reason why
tho Chicngo bankH wore nbio to command cur
roncy in tho panic when tho banks OF Other cities
could not. While. therefore, it is O good thing
for both sides for furelgn banks to establish
branches in Chicago, it is apparent that iniudi-
cious friends, like Mr. Potter, may mako their
very unpopular.
LOCAL HToCE AND BoED MAnRET.
Aloasrs Preston, Kean l. Go. quote as follows