, 1877-11-17
FINANCE AND TRADE.
a Better Demand for Discounts...
Ciearings, $3.5Oo,0oo.
Errors In List of Connterfaits-Tha
Bank Of England Losing It's Power
Over the Money Market.
The Produce Markets L.ss Acliye... Hogs
Easier--.proyisions Dull and
Lower.
Wheat and Corn Tend Downward."-
Other Grain Firmer.


Other Grain Firmer.
FINANCIAL.
Anothe. outward movement Of currency has be-
gun. Considerable orders were received yestcrday
from The hog rnisng dittsicte Of Iowa and Illinois,
This IL tho beginning Of flow Of currency that
Will require the distribution throughout tho Wcpt
Of ten to fifteen millions In the next few weeks.
The demand for discounts has improved this
wrck. but rather on account Of deterioration Of
business than improvement. County banks need
rrntrcountn in order to Hupply customers who cam
not make their usual collections, and many local
merchants and manufacturer arc applicants for
accommodations on the came account. Rates Of
discount SO per cent Al the banks 10 rrrn.
lar cussouncrs. On tho street rates arc per cent
pn ealt. and 3 per cent Oh tIne.
The oIcsnr- Of New York exchange were frces,
mi tho quotation MAS ait1boc per $1,000 pre-
MUM,
The clcstingt wcro 81, 200, 600.
CHANGED RELATION RETwKEN THE nANK OF
ENGLAND AND THE MUNEf MAREET.
The Hank Of rranca with Its numerous branches
e controls the rates of discount In the French 1oAn
market, bat The Hank pf England, which hsd that
commanding power thirty yearr ago, no longer re-
tains II. In those days Interest Was teldom paid
for,Icporis. Depostora often pait 10 hare thetr
money taken caro- Of. Cudrr such circumstnncea
the superior wealth and nuanccrinR of the I1nnk Of
England Earc It the rule OF the Market Hut the
System adopted by tho IoInt.ssnck banks Of paying
Interest on deposits. which Tho 1,auk Of England
refuses 10 do, has built up tho power Of tho
former Institutions over 101nabie capital
10 auch an extent that lhe bank rate is mt
followed BY tho matkot rate. Tho bank rate has
recently been ~ high ~ 9 per cent above the mhr-
kct rate. But tho London banks still rcE11ate by
the bank rate the rates allowed 10 their depos{tort
In ruc situation As the toan market ID at present.
they thcrrby compelled to pay too much for
their dcpos!ts aud their interests suffer proper.
t:oually. The London Times In e.iticl.tng this
System rays 1t IL nothing short Of ridiculous. All
who are paying Interest public deposits arc In
~rryuus ami anxious slate Of mind On ac:ount Of
the losses they ate daily sustaining md yet there
is much rivalry and jealousy that combined ac-
ton to alter tho system, an It might 10 altered In
few hours 10 tho satisfaction OF all, sccms ncyct
even 10 be thought OF. One bank, Tor Instance,
has twice as much money on cutrent end deposit
account "a another, anu large portion Of
thI' fund is retained simply and solely 10,
cause II Interest wutc not allowed
IN the deposit account ut The rate Of per ccat un"
der tho bank rato 1t 10 feared that another rival
bank would takc tho deposit account on the same
terms In order 10 get tho currcat account with IT,
This 10 the pass which bank!ngin London has como
10 ~ compared with tho tine when lhe Lcposltor
paid fomrthtng for ths accommodation hs re.
Gus. It Ia absolutely rssentIal 10 the maintenance
Of the delicate financial balance Of tho London mar.
ket that tho Hank OF England should ba able 10
command I'LL tho bullion needed for its rcscsycs.
II tho hank broke down In this, the financial sys.
ten OF England woald break down with widespread
rnFn. Tho London Econotnltt, ia It's issue Of oct.
17, discusses tho situation quietly a. follows:
In aceurtancs with tho usual practice, tho bauka
and dieeonnt- -hou.es gave notice, when tho !iank
Of England put up it, rate. that ticir rates of al
OH onday the dscuunt. hoHsea stated t4ut tho off
Geu!t, % ~ snnis{!pg money wa' 20 gsest tug: they
ecnt, and % 1t notec @ from 4k to IL ner cont ~ ." III r.
fensGn for lhls was that three months bank bills
gould not be placed much h,gher .nan ! per cent
would bo Tho maximum. Tho action Of tho dis.
count honsea rendered necessary by Tho fact that
Of the market; md the check On tho bullion de-
bss 20 far boci, Impaired. rhs psoaSit, a tbs
moment !. Tint taa discount huuses md tho bAnka
A. well will now have again 10 lower the rates which
they allow IN tbs monoy Deposited with thoD.
It's not easy to Acu what couSse tho bunk can
take. beyond borrowlny on stock. to regain iho
!! may have dll,1eullJ IN Lending Is uot course
It can te4iroto pursuo. Yet thefo arc somo res
sons which rrndcr sueh action desirable.
EHnoAs IN 4 LIST or CoUATEnrgjTs
Secretary Sherman has received communication
from Philadelphia. written ~ an expert In thu art
Ct detecting counterfeit notes, with reference to
thc recent statement OF the Danktts Association
nr New York fcxssdsng counterfeit bank. notes,
Tho writer, referring to tho list compiled By tho
managers of ths Uankerp' Association. Bnys: nThc
list ,mncs tnore than forty counterfolis. nineteen
of which mover had IN existence c1cart In tho TN
assnatisc brain Of the compiler" liz appeuds .
*cAedule Ut theso, with thu deduction That 10
counteffeita upon theao denominations hare eyeF
appeared. Following ~ tho l,at:
IMosoNew furk lisnkeIa' Association Of the