New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-02-23
THE MONEY MARKET.
TUESDAY. Feb. % p. NJ.

generally IL suspenueu' ..o ~
asd about the reasons why the banks are acting
y ,,rountly IN retiring their circulation IL Is not
,.nse of the proposed issue of per cents DOT
< ,.,se the proposed law forbds any deposits otner
ssan per cents after July 1. Thea question
= interest or taxes has nothing to do win tue
natives that are actuating the banks IL Is Simply
aauestion OF whether the banks shall Keep Oh sur
ysnoer the contro of part, or ALL OF their capi''
and All the talk about back threats and attempts 10
scare Congress are idle. Banking generally Is uh-
aerstood 70 be the business of handling hoatlhe
capital but the moment the present heluiuine vi,
becomes law il it does such portion oil the oanhS
capital as Is In Government bonds and deposteu ioi
security for circulation, becomes so liked that III cs9o
of il becoming desirable for bank. for any cause
TO liaudate. it would require years to accomplish
that end. Or if bank should wish TO accept
favorable opportunity to sell its bonds under the
nronosed law il could not obtain thom to dispose or
Ranks are of great value to the commercial ana
financial world, but they are not organ
;ged as charitable institutions, bnt, like all
other business institutions, for the purpose
of making money for their stockholders.
Who would WISH to be q stakeholder in bank or
any other institution whose capital was placed be-
yond the control of the trustees appointed to man
are 1T Under existing laws bank may obtain
iation by depositing lawful money to the amount of
the circulation issued against the bonds. The pro-
posed law annuls this wise and equitable provision
and substitutes for it one that compels the banks
To collect their own bills, and that the bonds
shall be surrendered only ON q surrender OF the
identical circulation for which the bonds were de-
posted. This provision will take effect the mo-
uent the President signs the bill This is the rea-
SON the banks are in such hurry-their option in
the matter is limited to the day the bill will be
signed, If at ALL The doubt about such an approval
being given, is of no avail to the banks,
and they cannot afford to take the
chances. And this is reason why
the President should be prompt with the veto.
While it is admitted that Congress has the power
and right to amend even to abrOgate the charters
of the banks, it should not be done without due
notice and sufficient time to permit the banks to
ercise their option of accepting the amendment or
retiring from the business If this proposed change
was to take effect three or six months hence, such
contraction of circulation might take place would
be gradual but as il is. such contraction must DO
made before the bill is approved it cannot be
made at all only dribblets and after perhaps
of delay.
We have been favored with an early complete
COPY of the annual report OF the Ohio and Missis
sippi Railroad Company for the year ending Deem
preferred stockholders of the company to have such
stock declared prior lien to the second consoida-
ted mortgages and upon which question Judge Drum
mond decided adversely to the claim of the stock
holders, Mr.. Receiver King says: Gan APP
Peal has been taken from the decision to
the Supreme Court of the United States at
Washington when the matter will be finally disposed
Of. it is supposed in about two years. The total
mount of the preferred stock is So. 600 600 The
accumulated interest claimed amounts to more than
81, 800 900. This-Iarge amount claimed by the pre-
1erred stockholders makes the question of their pri-
GRITTY over the second consolidated mortgage bond
holders, ii decided adversely to the latter one of
great Importance to the company ana one which
may involve the company in serious financial diff
culties. And this contingency. while regarded
probable, in view of Judge Drummond's very care
fully Considered no. opinion M sr the
that the suit of 4. Z. Dlmpfe and Others 10 avert
the sale of the Springfield Division has been APP |
peaed to the Supreme Court, and is there pending.
and thus the additional possibility is involved OF
the loss Of this valuable brauch' with the LA
bihty of being subjected to an account tor rents
and profits. aud OF disbu FsemeDts for repairs and
improvements during the period of occupation. In
view of these possibilities, Mr. King thinks it will
sipp Railroad to calculate upon the future without
reference to them.
The gross earnings and expenses of the company
for last year compare with the preceding year as
follows:
GROSS EARNINGS
Main line 49,, . 1shs ssss lss2s 1no s7o,slo
s5Sa5s 4s5sf5 tR s454
ExPENsRs
Main linz; s2os4,92e s9.6si4e5 Inc sGoa53s
Totals. ........ 245O,s2O s.iis6Oi inc, eGS7ai
NIT EARNINGS
Main line s1,o55l9s 81 28s97s Inc sls3 7so
Toais. . .. iObisIs issS70a Inc. ao5 9saS
.Deaolt
The financial condition Of the company shows
only little change from what il was when il passed
in fhQ a ~ herI ~
At that time the floating debt was stated at |
81, 1885, 10 which should be added bills alter
ward allowed. making the amount $1.564 954.
BY payments during the four years that amount
has been reduced 50 that it is reported $332365
December 81. 1850; In the meantime there has
been an accumulation of past due coupons, which
g sse2co on the "' ds ssa1 '~P Sonds
first Springfield Division. and dues 10 the various
sinking funds amounting to $276.000. making a
Of ~, $50, 100. These items, however do not in.
Guide the $236,O00 interest due on the first mort
gage bonds January l., 1881, against winch the re-
tie report furnish the figures of the usual liabilities
for psy-rolls etc. of the month of December nor is
any mentions made OF receivers outstanding certi6-
Gates, which are believed 20 amount TO 5000 900 or
$250, 600 During the year 1881 ,238 was ex expended
cars and $14 500 for two new switching englnes
The Stock Exchange will open tomorrow at the
usual hOur-lO a. M.
EUROPEAN FINANCIAL Markets
LosDox, Feb 225 p. m.NewYork. Ontario ana Western
36L '"'
LONDON. Feb. 22-6;00 m.-U. g. four per CENTS
i6t; Atlantic and Great Western FIRST trustees
SSfuhcateS "a second 800 NewYOrk Contra, l52:
Illinois Central 1877 Pennsylvania Central GG ReaGing
sac The amount bullion gone Eng and on
uaance To-Day &l5a0OO Paris aayiees quote per
cent fentes 81 francs y eenumes f0f the account
.sr AkiA ROB 20 D. m.-kxehahge 70 francs
90 cshtimes for eheekA
-
EUROPEAN MARRErA
MsEHrooL. Feb "a Breadstus steady; Corn 5sAn per
senta ier Now Mixed Western for Old; Wheat s.
60 9S 3D. per cent Tor average Canforna White aud g
", ~ California Club Peas per GENITAL Tor Ca
LAra ozs ID per ewt for Americans: bacOn,
- crt TOT Long Clear 43 Tor Short Clear Mia