New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-25
THE MONETARY PRESSURE.

One per cent uay was plu loi h'O"OJ i"''
night. in addition to the legal rate WITH
money lending at 81 per cent, the prospects
of borrowing at per cent do not appear very
bright. The severity and reality OF the none
tary pressure were shown by the sudden ad-
vance in prices when it was announced that the
Secretary of the Treasury would purchase at
once the S2j 900, 900 called five per cents, with
interest to the date Of their presentation. his
was a sensible and proper order, though to
afford present relief auth ority may properly he
given to redeem the bonds at the Sub-Ireasury
here. About $8,O00,0O0 of these bonds ale
now held in deposit for bank circulation, and
can be purchased only after the banks owning
them have surrendered their circulation. or
the remainder, q considerable part may be pre-
sented speedily, so that money to the amount of
several millions will soon become available at
business centres. The course of the Secretary
gives assurance, too. that the resources of the.
Treasury will be freely employed, so far as they
properly can be, to prev ent any general dis
aster. And yet one sentence from the Presl-
dent would save all this exertion, expense,
anxiety and loss.
Yesterday the deposits here fOr retirement of
circulation were $1,19S000 in cash, and
81 100000 in checks to be collected in t0-mOr-
rows clearincs total $3,1O4,0O0 Nearly the
whole amount was deposited III the afternoon,
after the order for purchase of bonds became
known; which illustrates the obvious fact that
the action of the Treasury has no tendency to
prevent fur thcr rctiTemCuts of circulation I'm
ouestionaJly the banks viii continue TO sur
render so long as there is prospect that the
fifth section Of the sO-cdllcd Funding bill will
become law. Indeed, this movement has
scarcely begun, if we may indgc from inquiries
received yesterday by banks in this city from
banks elsewhere. If the bill passes the House,
in form substantially a- it came from the Senate,
and if ut that timo tie determination OF the
President not to sign il is not known, the
amount Of circulation then surrendered within
n single day may bc greater than anybody eX-
meets. II is 10 prevent this sudden and violent
disturbance Of the monetary system disturb
ance of which the surrender Of circulation thus
far is only a symptom-fhat members of Con-
grcs5 are earnestly urged by many of their con-
stitucnts to stop the bl where it s., or to amend
itly cutting out the misunderstanding section.
If Congress refuses all responsibility for any
consequences that may then result will rest
upon the President alone if no leaves it to be
supposed that lac will sign the bill.
In every branch of legitimate business the
disturbance was felt yesterday severely, De-
clining prices, forced sales, inability to COM
plete purchases OF TO carry stocks Of merchan-
disc, resu ted in every quarter from the rapid
withdrawal by country banks of their funds on
deposit with banks in this city. That the Gov
eminent ought to do what it can to protect all
business from disaster is fully recognized in the
order already given by the Treasury But the
Utmost relief that can be afforded by mere pur-
chases OF bonds is inadequate. HE one thing
that the Government can do that is adequate is
to give assurance that the fifth section of the
Funding bin shall not become law. And that,
thus faI, it has not done.