, 1874-03-20
MONEY AND COMMERCE,
MONETARY.

cfohao. In Now York money IL supcrabttldAnt ht
to por cont. OF course, thiA tB only for loAtls
On call but tho fact TINT monoy for this class Of
lohna Ia go Abundant in Now York Ia tho fesult
Of tho large auVply 1T tho interior banka that
cannot find employment and is sent to Now York
for tho sako Of the 4 per cont allowed on bauk
balances.
Amid ali tlliH abundance Of money, both In tho
cities and In tho country, wo find aonle people
hero In Chicago who complain TINT they
cannot borrow on what thgy conslor Gooa
security, honco they claim that thoro Is aomo
mistake about tho abundance Of fronoy. In
every such instance, however. 1t will bo found
tint londors Of money doubt tho security oforou.
Tho fact Is. TINT all nonoy-lont1crs arc moro
careful about security than ,thoy wero oight
months ago.
Some Of tho banks horn would bo glad to In
cronso their 1oans, even at per cont aud iu til
open market per cont Is nil TINT is nsked by
brokers for loans OH primo colintorals for Uu or
30 days.
Now York exchange continues scarco At 25o
to Soc por 81, 900 premium.
AN ABSURD PETITION.
A petition hos boon forwarded from rhilado1-
phia to Congress- declaring that this country is
now laboring under "groat financial Distress"
aud tho petitioners pray tint Congress- aa l,
ticans Of relief, will enaota law that tho United
States Treasury, on tho deposit Of United statcs
bonds with tho aaid Department by any citizen
in my sum amounting to $4,000, or upwards.
hall issue National bank notos to said parties Of
such denomination an he or they may require,
but being Of tho denominations now Issued by
tho Government" Tlo parties dopoBftlng tho
bonds, and receiving tho circulating notoB, ito
abato tho interest OH said bonds to tho Govern
t-,tn
OF tho United States for tho purpose Of acoutnu-
lating sufficient fund In gold for tho dnal 70.
de1nption Of The sa,d notes.
OF oil tho petitions that havo been cent to
Congress this is the most absurd. If tho hold
ers Of bonds wanted currency they could 70 into
Sl18, md the only loea thoy would experience
would bo tho loss Of intorest OH the par of the
bonds, wholcas, on the plan proposed by the
philadolphia petitioners. tho hollor OF q bond
ho could got $l15 to si1e Of currency By tho
salo OF tho bond iu tho market. Tho Fhiladc1-
phia petitioners seem impressed With tho notion
TINT 10 10 ablo to borrow money Of the Treasury
bspencpesoa It psf cent psr cont by bonds s
tho fact that these bombs focs command promium
in the market, proves Tint the rate OF interest
atnong tue oiass Of capitalists who hold bonds
s less than the rato Of interest OIL tho bonds. It
ls only tho difference in the security offered TINT
makes interest higher for loans on mortgages
atd commercial papor. Such Inv as tho phlla-
delphtans ASH for would effect nothing. Not O
single holder Of bond would ovor present it At
the Treasury for tho loan OF 100 por cont Of cur
roncy. The LolderB Of bonds do not want cur
renoy II thoy did, thoy would soil thoir bontsin
the market for lis to 118 por cent instead Of
getting 100 per cent from the Treasury.
WHAT IS MONEY?
Inns Of Liz and Mind !" "al}on III bosiu by 'os os-
changing things. They paaB to tho exchange Of
symbol Of value. finally, mon simply aobit
and credit each other, so that imulense transac-
lions are effected by means Of tis equation Of
squations. Tho results Of tho compiicato pro-
ina dererng Gnns auag fSa eoeog 1a ans
INTO Tho ontry OF . few words and fgtlrcs IN q
iodgor:" This is IN fact tho whole story. What
We call money, III the market, ~ ueithor
ey 1Sn ssed ass ''en a''si isaser H. al sa si
value, the supply Of which is but 1itte affected
by the supply Of either coin or paper promlsos-
to-pay-coin, henco, the idea that the supply of
fsfss sason @ sa1y Bt is Sfs soo
called "credit," or "money," requires to be
continually tested by comparing it with the real
value IN coin. A bank nste is simply a certIh.,
cato that tl'e holder 10 untitled to TINT much Of
the credit Of the bank. So, also, is a green-
buck certificate that the holder is entitled to
that much Of tho credit of tho Government.
But, as the credit itgelf mllBE be continually
tostod by comparison with the roal values ID
gold. 30 must tho currency DO Sustained by
ledomptiona in coin to prevent doubts
about its value. This testing and redemption
docs not necessarily impiy that oil tho credits
and all the certificates Of title to credit in tho
form of paper money should be redeemed in
soln. The redemption OF very small propor-
ton establiBhcB confidence in lhor value and
Keeps ttom ut par with gold, but tho actual ro-
aomption in coin is absolutely Indispensable to
Eeep any currency at par. Without aclual re-
demptiol, there is doubt, aud tho doubt il
measured by tho discount. Hence wa claim
that the present discount On tho United States
Treasury notes is not due to ali EXCESS of cur-
renoy, but to doubts about the ability OF dis
position Of tho Government to redeem its
promises.
THE COMING BANK STATEMENT
!. It seems to be understood in Washington that
tho Comptroller Of tho Currency will soon call
on tho National Banks for o statement OF their
conditlon on ono Of tho lust two or threo days Of
February. Az tile last statement WINS 1nnae for
somewhat 6hortor than usual. A statement OF
the condition Of tue banks at the present time,
however, would bo OF considerable interest in
allowing tho lingo supply Of loanab!s funds uot-
%ithstandlng tho ciaInor Of tho intlAtionista to
the contrary.
LOCAL BTocK AND BOND MARKET,
Meesrs Preston, Kean l. Co. quote as fol.
lows, this p. M:
United States Ga Of 's1... .liya 11oI
United States COOS Of '62........,l16X ll7a
United States 6-20s OF f'G4.........1l8X ll9t:
United Staten 5-ous Of '05. ..lloE 1eQii
United States 62us Of 'C5-Jnnu-
uaisa fs ss s:tss icy ia; oi sa-5aa: 's ''sH
ua';ed liz iasey s:tes 5:sSs Sf ss-5saa. 1''a
ary anu !uiy..... ....-......M9 119i1
United States s. now isse1... .ii4x i1t&
Uhlteu HtnteA currency Ca. .,..,...1lUf IlE1/