New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-21

. BOZ, 600. 250, the sum required q year ago. III
weeks movement results in loss Of $255S $50 u
the surplus reserve, and leaves it at $3, s0727i
against 81 400, 400 at the same date of 1880 Thu
following are the comparative totals Of tho state
nsnts of February IL aud February 10:
s sS$ ss y lee Bss s.
ss.nders ss sc S Dec Dec
ssao :. IsssaSSS 9s5s5SS Dec Dec $50
The following shows the relltion between the
total reserve and the total deposit liabilities:
sg ss n gsG 70 Dec GssPSs
sssSS sassoo Dec
.s: s5 ssSS Dee
Compared with that of the corresponding date OF
1880, the present statement shows: Loans in
creased $50 100, specie increased, So ,9G2 400
beal-teniers decreased, $61s.300: deposits IN
meased $36,117, 100; circulation decreased.
B3.O22. 700. The total reserve $3.50. 1856 500 now
B2623 per cent of the total deposits against a. 06
sst week and 2775 for February 81. 1880.
While last week was prolific of surprises in specu-
1--WE circles through the announcements of new and
he least expected combinations and proposed con-
sodations of railroad and coal interests, the great
Eurprise of the week and the event of chief import
hnce to the financial and commercial world was the
HCtlOn Oh tn6 Oulbcu 6bateS CoudJ6 III pdSSiiB
Reminding bill as IL came from the House, with I'M
Important amendments With the weight Of the best
of opnions--of those persons whose experience and
Raily observations of the money markets of the
world enttle them TO give advoe-adverse to the
practicability of 8 per cent loan, the large ma
ority Of the Senators to have cast aside the
personal experience, which many of them probably
have had, that IN borrowing money the lender is
Important person as Is the borrower in establish
Ing the rate Of the loan and has limited the rate for
tefunding the maturing @ aud per cents
ut 8 per cent. While there perhaps are
still few persons capable Of forming an opin-
ION upon the subject whe think certain amount of
per cents may be foated at par there has been so
great change In the financial position since the
original per cent bill first introduced in the
House that there are many who then favored 8
per cent loan who now question the feasibility of
even Ga per cent loan. However. the question of
the loan proving success may be matter OF opn-
Ion, but il Ii fails it will be another illus
tration of the uncomfortable stupidity of
the Democratic party With every opportunity to
throw the responsibility of failure to refund the
maturing bonds at lower rates OF interest upon its
opponents, it bindly accepts the probability.
against the advice of its best men. Of tying the
hands of the Administration to an impossbty.
The obnoxious clause Of the bill, however, Is the
nth section. which compels National banks to re-
place the 6s and IS only with per cents
circulation. after July /. 1881, to the
B per cents. This is an attempt at a
species OF forced loan that rs usually only submitted
/, 10 under the esgences of war, and is in violation
pf the original charter permitting banks to deposit
sny ssues of the Government as security for circua
zion. The provision that banks may obtain possess
son Of their deposited bonds only by the presenta-
4ion of their own redeemed notes, instead of
now BY deposit of lawful money to
tho amount of the notes that were issued
for the bonds withdrawn. may work incalculable
mischief before the bill becomes o law. As stated
IN te-day's TRIBUNE, the movement to forestal the
operations of this provision has already begun. And
may well be Questioned IL the directors Of bank
hsye the right thus to lock up the capital of its
tteckhoiders without explicit consent for an
Indefinite time. 1t Is easy to comprehend
now slow will DO the work of redeem
in9 the deposited bonds with the banks' own crcu-
thsaon Yet for many reasons it might DO desirable
g essAin the bonds 70 cell on a favorable market
Oapiiat q the baak may be impaired; circulation
ko1 osnk IN one ioeality may be unprod table with
ne pnce o. tne bonds az certain figures and profit
vpie Iof bank IN another locality, or liquidation
ufe'ifemens from busintss mar he desired In all
snese cases, not merely suppoabs, but OF frequent
recurrence under tho provision mentioned the
BANKS capital win be beyond the control of Its di
ee'ors and stoekhodsrs and subject to The fluctua
s0n q market values perhaps for years, before the
sssled object can BE- scconplshed. or course all
sasS desire to avoid sueh possibilities will act
under Che existing law. because ii the bill
sss aua y approved that provision will be law
tne per cent bonds sre successfully nego.
=.
~ money market worked fairly easily al s and |
q. ssnh "''n oR some days exceptional and late
- y Per can't Yet the evidence of hardening |
clesziy apparent. fhs full effect Of the alb |
& ..'e o. the snfpius funds which have 40 long |
81 q ofug 10 the money markets will be felt ONLY |
'oe 'sse q itis about to disappear remain
Il " q ", ooO0 900 10 as effective on rates as
s. $ster surplus. TIE domestic cxchanQes
+ u 4 ~ fsyorable to Hew-York. but only at
I'D &c.,.