, 1874-04-23
MONEY AND COMMERCE.


S@A'H'-05
tliotinB provisions, tho finances wore almost ae
uugettleil as over Tho lator report, over tlio
pauo wiroe, that tho bill bad not been approved,
but votool, waB looked upon like ita predecessor,
ae pnrt Of tho stasogy Of tho Wall atroos sreott-
latora. It proves to bo truo, but tllis WAS known
nj too lnto M hour to llavo my influence OH tho
money marriott horo.
uontraots voro mado to-day for tho shipment
Eastward Of 4 largo anaount-about 170, 900 bush"
ola-of grain. Alvicos from tho Straits indicate
The epoedy opening Of navigation. Yosscl
frcighty aro very low.
Exchange was scarco and firm. Tioro were
only a fow aa1os reported at ESQ premium Oh
$1,000, buyers aro generally awaiting tho
decline in tue rato wlloh will follow the opening
Of tho Straits, and tho shipment of grain to New
York.
Thoro was a l,risk omand for money to-day-n
moro active demand, perhaps, than has been
noera for the last fow days. Rntos aro firm at
10 pcr cont for good commercial paper. Loans
arc made at per cent to their own customers W
ono or two banks with n largo, limo Of country
bank balances. Thero Is good deal Of paper
offered which tho holders would bo glad to dis
count at high raeos, but conservative policy is
adhered to, and no paper takon that is not good,
md safo at 10 por cont. There is not q largo
amount Of nrat-clnaa mercantile paper In tho
Eligible applications for loans on roal estate
arc not numerous Tho ruling .rato romalns 10
res cent + th1qgh p0r cont is tahon when choice
Country COLLECTIONS havo been good tho past
wiutcr, but have fallon on noticeably In the laat
two weoks. ,......-... .o mr., nm
AN ELASTIC CURRENCY.
sr: JosErII, No., April "A, 1874.
70 The Editor of The chieaoo 1fsenHe: ...,o.
sIn: In tho discussions Of tile financial question
oPx of IN 'S e1aso % TnE TnInvaz borne so
nHf Jtu vim
havo no much Weight With large cia.s Of thoughtful
people, tint its opuons sought for Gy those who
oa 5aEy fyaSsnsps as psnsps
not TUE 1n1puNE has; directly or impllsa,y,
Ys o nsxs 70 os espansa and @
money, d measure Of value, and not the D yaae
lhe po,sessors Of comoties marvel tat yo
could 10 willing t. Il subject ito oer csnG gf
whent worth SID, ,0Oo,3tla value depending upon tlo
relative Quantities Of wheat Ind otler &c soan,oes 6
legislation which should by tho intervention Of tho
State incrcaBo Tho amount Of tho wheat destroy the
y I neae '9eSan s raoa sast s"o
orcaang i!a purchasing power7 And yet What would
Sa Shast SeSass Sy egaao %s and asreasin
samo process eftos have exchanged my wheat into
money? Thouehtf calculating men eonvsr ,t +, com
portion borna to money BY that conmod!ty renders
suoh conversion desirable or equitable. But, with an
prieo to exchange oonvart anything To Tho extent
that tho currency should become elastic, would not
Dcsdcs, there onIsss no nocesay. for m clasttc
currency growing out Of thu aunual moving Of cros
ox sss e1s and a Saata ssssny S no sas s
To most reliable dn.a on this subject aow TINT nbout
nve-si1ths Of tho commerce Of mo1orn civilization
done through tic ngeney Of credit in some Of ia mani
fold forms. Book-accounta, bills Of exchange, ina!.
business % % of tho Country Is done Those rsst upon
faith md evidence Of commodities in hand. The more
hore1eM = hes re a 5 9 fSrni5 a aancS
tic fraud of elasticity and snation The better for
tho country The ts,Cng he s,T tho a 1or'ans ns
tbs neeesHous, tile Ignorant mAko p Gna tho
Our correspondents error is in tho aasnmp-
tton that by elasticity Wo moan MI elasticity of
value. Gold and silver are tho most elastic cur
xenev in tho world, and got their value rematnB
practically without variation We moan to say
that d country which las . uetalllo currency
never has too much or too little to transact its
business witt, - deficiency IS Immediately SUP
piled by other countries and nn EXCESS imme-
dintey tlowB to other countries.
:'Therc arc EoasonR OF the year when thoro ia
much Inconvenience aud Interruption to busi-
ncss resulting from tho want Of currency our
correspondent is right in assuming that tho
great bulk Of tho worlds commerce is carried on
b. the means Of bills Of exchange, ohccks, and
bank credits. aud that tho amount oft currency
actually employed is relatively small. This is
true But ii this country re hayo largo crops
that havo to DO collocted from numerous pro-
ducers, each contributing D small proportion:
in localities whoro thoro arc no banks,
aud bsnliers credits will not purchase
grain out Of o farmor'B wagon. Tlose plr.
clases have to bo made over wilely-e1tondod
1r1yn b0nr fari