Year: 1868

SpNnAY, March 90 1868.


The extreme monetary stringency was the most
conspicuous feature OF business in Wall street during
the past week, and up to yesterday seven per cent
in gold was freely offered for loans payable on de-
mand, while in not q few instances commission OF
one-ejghth per cent was paid In addition. On Satur-
day afternoon, however, there was a marked relaxar
tion experienced, owing to general desire to en-
ploy balances over Sunday and the fact Of the bor
rowers stock collaterals having previously sup.
piled their limited wants. and money was offered at
seven per cent in currency The Sub-Treasury did
nothing to materially relieve the pressure, owing to
its small currency balance, and Its purchases OF
seventhirty notes neutrazed by daily sales OF
gold, amounting in the aggregate to about two mil
lions and quarter. Hence we find the balance last
evening was $l01, 1927, against oS3l, 1856
on the previous SATURDAY.. The PROPOSE
ton of the Treasury to issue ten millions
OF the old Clearing House three per cent certificates
in exchange for seven-thirty notes was rejected by
the banks for several reasons one OF which was the
imitation involved in such an issue; but apart from
this the policy Of issuing certificates OF the kind ex
cept in exchange for compound interest bearing
legal tender notes. is to be deprecated places
the Treasury under the necessity Of being constantly
prepared to redeem them ON demand. In the dis
count line there was little or nothing done by the
banks and on the street commercial paper, even OF
the best grade was unstable unless at high rates.
The mercantile community naturally complain Of
this condition Of affairs, and very correctly argue
that If the banks had loaned less on railway and
other miscellaneous stocks they would have more
money for the accommodation of their customers
who are engaged In legitimate business. That the
banks are more expanded in the way OF stock loans
than it Is altogether safe for them to be admits OF
doubt, and some such amendment as that proposed
Inv Mr. No in tho 10
to limit expansion in this direction 1t is doubtless
the that the banks exercise discrimination in
the choice OF their collateras and exact margins of
at least ten per cent; but in the event OF panic
the Stock Exchange the best Of the speculative
railway shares would be likely to decline more than
ten per cent, and thus the margins would be swept
away and In those instances In which the borrowers
were unable to take up their loans, which might be
many the banks would be left the virtual Of
the collateras. There Is danger Of this In the
OF stocks upon which the clques carrying
them have borrowed largely than any others,
and it happens that the outstanding loans OF
the banks are made mainly to cques. The banks
should, therefore, guard against contingencies which
liable to occur at any time by exactng margins
proporoned to the high prices current for rail
way shares


The statement OF the associated city banks for the
week ending yesterday shows decrease in all the
items OF the account, namely:-In the loans Of
$403s,6 ,653, In the specie OF 62o941, in the circula
ton OF s2l 763 Ia the net deposits Of $4 39s, and
In the legal tender notes OF $13S OO8 As larger de-
crease In the was, however, expected after
the extreme pressure experienced, these figures had
a reassuring effect; but it must be remembered that
the full effect of the preparations for SETTLING
day" and the quarterly returns Of the national
banks has not yet been felt, and next week will
probably witness fully as stringent loan market to
borrowers on miscellaneous stock colaterals as we
have just experienced. The totals Of the last two
"a a a g anhioined.