The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1880-11-15
Tn. Yoinne of sioney.

The legal reserve OF the New York banks
fell TO little over half a million on satur-
day last, the lowest point reached for q
long time. This, too, Notwithstanding the
large and continued heavy influx Of Spe.
Gle from Europe. 1t arises from the ex.
banded condition Of the bank loans as
compared with agar ago, and the de-
msud for currency from the South and
West. Still, the stock Of money in this
country Is abundant and daily increasing.
The Financial Chronicle reckons up the sx.
listing currency TO be 81 ,2l2, 000,0 900, or
S24 70 per CAPITA, S. more than It was in
1870, and nearly double what It was In
1890 and 1860, per head Of population. OF
this amount In round numbers, $500 000,-
900 Is In legal tenders and national bank
notes, nearly half and half, and $3.50, 000,-
900 in gold and silver coin. This is the
most extraordinary stock OF the precious
metals ever above ground In this coun.
try; and Is divided thus: 1870, 900, 600
gold and $3.50, 900, 900 silver. These figures
seem immense, but there is no reason to
doubt their substantial accuracy when 1t
Is reflected that the banks report Sl14 ,00O,-
900 in gold and tho treasury Sl35, 000, 600,
leaving the absorption OF gold in popular
circulation at less than Sl20, 100000. II
from the total amount OF currency as
above stated Isl, 2l2, O,0O0) We subtract
the total amount Of paper and gold and
silver held by the government and the
banks 1885,, 100000 which may be re-
Rarded as the reserve and working re-
ouirement Of the fiscal sgencies Of the
country, we have ss24, 100000 left in the
pockets Of the people.
The fact that the New York bank 70.
serves are almost down to the legal limit
NOW being held almost entirely In specie),
and that Secretary Sherman refuses to
pay fancy prices for United States bonds
soon falling due, fixes attention on the
possibility Of q move to corner the mar
ket by locking up currency. Even with.
out regard To any such move, the refund.
ing operations Of the next seven or eight
months involve some delicate ques.
tions OF currency mapipulations. OF
the $360,0O0,000 Of United States
bonds held ct Warrington 10
secure bank currency, 500 COX, 900 is in 5
and per cents falling due next July. The
question Is whether the banks will take
the money on these bonds, Or whether
they will put up 4 per cents Tor Sper
cents II such were ordered) In exchange,
and continue to circulate their notes upon
that basis. The bank circulation stands
now at SS42, 900, 900, and ia practically sta.
tionary. The prospect Of monetary sup.
ply, therefore, Is not quite clear for the
next few months.
We believe, however, that the banks
will take new bonds Of q per cent at par
and willinglyg 90 on upon the present sys.
tenn without contracting their note circu-
lation. A circular from the Chase nation
al bank OF New York makes the situation
the occasion Of an urgent appeal to Con.
gress to remove the per cent tax on cir.
culation. We apprehend no serious re-
sults, however, II the tax Is not removed.
The banks average q large return,
after all taxes arc paid, and do
not seem to realize the substantial de-
cline which has taken place In the average
rate OF profit on capital. The National
bank system IL wise and conservative
system and the banks must content them.
selves with rate Of profit corresponding
TO the greatly reduced risk. The tax on
circulation seems 10 be necessary TO reach
those institutions which have small de.
poeits, like most Of the country banks. II
might be RENTED TO such banks as would
accept q or 8 per cent bond by which to
secure their circulation.