National Republican. (Washington City (D.C.)) 1872-1888, 1881-02-23
FINANCIAL
National Banks and the Funding BILL
COmments by the New York Press.

Comments by the New York Press.
Yesterday was a holiday in New York as here, so
the Stock Exchange &c, closed but the follow
ing gossip extracted from the New York morning pa
pers of yesterday will interest and probably further
convince readers that the safest thing TO do in
stocks just now is to do nothing. The HOrId says:
The all-absorbng topic of conversation to-day in
financial circles and themOtive power influencing val
first by the national banks and secondly by the gen
eral public regarding the funding bill The threat
inaugurate contraction movement by the deposit of
cash in the Treasury to retire their circulation has
already assumed the form of overt action by the
post in the sub Treasury Saturday and to-day by
some of orr city banks-party for their account
but mostly for the account of their country CORE
spondents-of 900 for the aforementioned pur-
P2Ie OF Much - was cash and 81 FL 600 checks
feeling OF uneasiness in legitimate business well
OF the general public in opposition to the funding
bl but II can beYery easily c0unteracted by the Sec
perform his manfesly imperative 10 the general
business interests of the country That duty plainly
according to one of t0-iay's Washington dispatches
clear surplus of 900 in the Treasury that can
bonds for the sinking fund as are closely approachine
maturity His plain duty to the great Industrial and
commercial interests of the c6untryto retard which
at the present time indeed any time. would be
officially criminal in the EXTREMES Immediately
release that surplus ana SO defeat policy that at such
crisis in the Nations material advancement would
hamper or cripple trade and manufacture in the mat
Ter OF their monetary resources The purchase
next Wednesday by the Treasury of a considerable
islI due would do much toward reaching this desira
pie end. II Is difficult 10 comprehend without allow
ing suspicion of Interior motives, the active opposi
ton Of any of the national banks to the issue of
per cent bond and their of deposit TO
tional-bank circulation issued on per cent bonds
bought par, after paying the existing United States
tanning circulation will Weld net profit to the banks
Is foows On the basis of per cent interest the
the basis Of per cent for money it is liz per cent
and on the basis of 6per cent for money is lbs per
nai AT arp haCp nm alIo
OF per cent per annum for life incidental expenses
o. MAINTAINING the circulation which is much above
ably more than In per cent. The profit above shown
of per cent circulation were removed the profit
of % 70 2Ls per cent which could then be derived
the returns which capital may derive from employ
menJ in other branches of business. There is,
theless evidently profit in circulation issued
the basis Of per income derived from the bonds
deposited, already shown and wise bank officers
Will think twice before throwing it away under sud-
den impulse.
The Tribune INDUCES in its usual bearish misgiv-
inSs:
The volume of transactions In stocks to-day C45777
shares shows large decline from the amount of bust
ness that was done each of the last three days of
last week. The market, however, presented the same
general characteristics as on Saturday. Prices opened
down from the figures of Saturday evening and fur
Their declined Atterward the fluctuations were irreg
uar the tone teverish. and opinions unsettled. I'm
doubtedy operators are striving TO make themselves
believe that the talk about the banks retiring their cir
gress, and suggest the probability of Congress passing
that on 70 drcgso S remedy e for the freatene
evil. Of course the enactment of such law would
be neat boon TO the banks but it would not annul
the provision of the funding bill, which places that
proportion of their capital which may DE deposited
for circulation beyond their control for indefinite
period. In the meantime the banks are not pausing
10 theOriZe the problem but taking the only
step that will secure 10 them the control of their
sets. The total deposits of money up the close of
business to-day with the Sub-Treasury i'll New York,
10 redeem bonds pledged security for bank circula
ton, amount TO $50 and hear of deposits with
the SubTreasurerS of the other large cities for the
same purpose.
There were no special features in stock mar
ket. The ending was made much after the fashion of
Saturdays closing, with a good rally but in almost
every instance the last prices are below the Opening
figures, which were below Saturdays last The most
active stocks, measured by the amount of the tranSac
tons were Nashville, Chattanooga and St Louis
Union Pacific, Lake Shore, Erie, Delaware, Iacka-
wanna and Western, Central of New Jersey, Pacific
Mail, Ontario and Western, Reading, Central and
Hudson, St Paul, and Northwest. Relative to the
report that generally has been printed but not in the
Tribune that the Louisville and Nashville Railroad
holders Of the Nashville Chattanooga and st. Louis
Railroad the following denial is of official prOmulga
ton: The board of directors Of the Louisville and
Nashville Railroad held special meeting this morn
ing and officially denied all statements published that
guarantee of dividend or otherwise, or consolidation
with that road has been considered discussed,
mas ever been sanctioned by this body" The market
closed weak and unsettled.
The sun warns the national banks with vehemence:
The truth is that in matters OF national interest
cers. Absorbed i'll the business of buying and selling
stocks and of lending money, they only consider what
sight of the future regard for what is going else
where. In the present case they evidently in
pie of the West and Southwest to the natOnaI-bank
system, and the slender thread of federation which
II nags II needs only good pretext 10 secure me
substitution for it of an exclusively national currency.
That preext our W all-street bankmen seem bent on
furnishing and Washington WILL fear, be only too
glad TO seize upon 1t.