, 1875-04-03
Money AND COMMERCE



Ths cIe4rings were again very large, ,0a0, ,00o-
and tho counter bt.atncss Of the hanks corro-
sroniingly active. There not much movement
Etynrl this, and It Tas generally remarked thn so
lrIl sct&lomenday had not often beeu experienced.
Tho demand for loans from tho Board Of Trade inen
alhotbs lnrgc amount Of funds, and constitutes tho
chief feature Of the current buaincsa.
The mercantile cusomcrs Of tho banks uniformly
fstc tint their spring trade improves rath dAv: but
this has little rercept!he effect upou tho hnancra bc-
You'd Rwefting the deposits.
Nacs Of discount a tho banks e TO per cent ao-
cordfnR to circumstances.
On The street, 1onns nro offered at rates ranging
from 7td19 per cent.
New York exchange WIS asstnc premium between
lnnka for 81 900.
nANKs .ASn pAEIcs
No mora instructive financial figures have fatrly
rcn published than The weekly statements Of lhc Nrw
York banks during tho pano OF 1313. Tless state
mens, from motives Ut public policy, wore then sup
prescd by tho New York Clearinghouse for tile 0sst
linz twenty years. Tiny ccascd Sept, 2o apl were
10. relf+uc till Dec. G. The Intervening statements
vera i,E,t made public 1aat week.
Tho history Of paMtca thowR That their most painful
features have generally bccn tho result Of tho mistaken
pplicyof The uanks. All 1noaorn bsssncts is carried
nt by Of bank credits or toans-mereantlld mon
lork tn otr bankers for their ncgna, and they thc-
stlvc7 supply Aeao to tho bankcra lrotgh tle!t do
ro+is. Whc,s, through too extensive ratroad.buld-
!ng other cAusea Epecnlatoss become unable
10 meet thhiF engagements, the laks hasU III nearly
every instance record converted this limited erec,l-
lativo embarrassment Into general ruin. Ihey have
rcfuted further accommodations to legitimate rs well
lrgftlnlate dealers, and called IN or contracted
leans that, under mora enlightened policy, would
have been o1tcudcd II nil the customers Of any bank
-cven II II were M great and attonH ~ tie 1ank Of
England-worc simultaneously u withdraw their DE-
pose 1t would he troko. II tho banks troat Tho nts-
cantile community With 0tnlilar inconEtlerafentst
tle merchants Intiht break.
Tho weekly statements 10 which va bass referred
show that lilo New York banks pursued tho mistaken
rty Of contracting their loans at The critical period
IN the autumn Of 1873. Their loans were t5e, u0
July 6; on tho 10th Of August they had reached
t.sir mar!tnu1u seoa 200 o00. Fron that time they
reduced nt tho rate Of 0JO week, right In
face Of tho requirements Of the fail trade Until Oct.
n5 they reached the 1owess point, $254, Asa
result. the banks loa. In tCosisB S3 ;bO,
eco IN legal tcncrr and $'a,53,eoo in specie. Tcso
Withdrawals inevitable, and were made to supply
t!,c funds that tho banks refused to advance.
Ou April I, 1871, tho bant ioans had rlfen
ugah to sol orc, 90 lAatmnst a. much Il. tho
maximum OF August, 1s71. II thcro security for
tts nmount Of loans In the dull and contracted timea
tliat followed the panic II impossible to show that
there mt equal Eo.urity In the act!+r fall that pre-
coded It, These figures demonstrate that the policy Of
tho bankR during tic anic founded fright, anA
they took threw The lsa.uato merchants into
tue same category as Tho Epccnlatorst and tho
caueo Of The os disastrous sacrifices Of the pan!c
The history Of panca in other countries proves that
The true policy Is never to reiuGc accommo-
tntions at s1ch uno to good mer-
chants or bualness-mcu. This doctrine was e1rltc-
lily stated md demonstrated by the celebrated Bullion
Report III 1910. This abs document, reviewing tho
two nost important commercial CRISIS which Ind then
occurred in England, declared that tho policy Of tho
Hank Of England III contracting it's oansas tho New
York banks did In 1s73-groaly nggraTa!cd tho dis
reEs. Gu the approach Of tho grest criHs OF 1896 tho
LINK, darceazd!ng the teachings Of the Bullion Re-
or kept contracting Its fonns whio great commercial
aud banking ousea went crashing to ruin every hour,
III the scry thIckcst Of the disaster the Directors
changed tholr policy. They made loans to every
good merchant and banter WIN had security 70
rive. The result waa That the panic was
immediately stayed, aud tho Bank itself
saved frusn stpppnR payment. III 1886. tue Bank
entirely artrtsi great crisis by boldly extend
Ink ts loans. It is not necessary to push the ex-
uusiiou f'Irhcr-!he facts and the principles yerlfy
esc other It Ia great mistake for lsnka 10 tcuy
accommodation to tho legitimate huhiness-men OF hs
Country III time of trouble, to uulny extcnd their
lnau. iu Inactive times.
THE MAssAcrGsErrs noxAEzA.
Ten Of tha silver mining auds Of E4tex Cou1-
y, Massachusetts, advertised for sale In rccent
cory If the New York journal ef con,,atree. They
altou tbs D,yuon lode md the Ch!p.u,n lode, aout
which there las been 10 much p1cIteulent In Essex
Comfy lately. With lonanzas on boh sides Of tho
continent, there ought to be no lack Of Openings for
the Investment Of tue sarrua funds With which MONEY
Lenders u1c troubled At present.
BOSTON DIVIDENDS.
Tbs dividend, to.her than bank) and interest on
public and corpor1te securities announced for ray-
meat during Apsll in boston amounted to $252I4
The bank dividends smuunt 10 800 capita, Of
tIs Inn nal! lii October. 1ET4 ti,py e.