Year: 1868




We publish elsewhere corrected ta-
bles OF the official statement of the
National Banks for July. The figures
show several changes which deserve
and will command special examina-
ton. First OF all, one is struck by the
large increase in the deposits which
since April have risen AZ millions OF
dollars, the aggregate being now 575
millions. It is impossible TO conceive
a more striking proof of the accumula-
ton of capital in the great monetary
centres, and monetary institutions OF
the country. It is now highly proba-
BILE that the accumulation has reached
its highest point for the season, and in
a week or two we shall see return cur
rent setting in from New York and 9th
er seaboard cities towards the interior.
This movement may be expected to be
more brisk than usual for several rea-
sons. The bounteous crops and the
expected activity of the fSll trade COM
bine with many other causes to force
on us the belief that season OF lively
activity is before us.and that it will open
earlier than usual. The reports of our
associated banks will be scrutinized
with extraordinary care for several
weeks to come, and the symptoms Of
monetary activity will be looked for
by our shTewd business men who aim
to trim their ships to meet an expected
gale.


that during this fall any panic in the
money market Is to be expected like
that which desolated 1t last spring.
Among the safeguards against such a
catastrophe we may mention the -
millions of three per cent. certificates
recently authorized. These will pToba-
bly, initiate the currency less than was
predicted. At any rate they will ease
the money market and will prevent
auy disturbance from the payment OF
the maturing compound notes.


As a further indication ofthe pletho-
ra of the loan market we may mention
the small increase of loans; which are
only % milli6ns more than in April, /,
while the deposits increased Al millions.
This shows how idle capital is accumu-
lating here, and how difficult 1t ts for
our capitalists to lend that capital at
remuneratiVe rates. 1t would be well
for the country and would render our
internal banking machinery more prop
erly adjusted to the wants that machi-
| ueFv has to supply II such a plethora
as the present were met by general
sending home of the National bank
notes for redemption. During the
summer months the country needs less
currency by 20 or 80 millions to do its


work. The banks which issue this su'
pert1uous currency ought therefore &c
redeem it and put it out again in the
| Fall when IL will be wanted Tor The ex'
| igencies of business. SuCn aspontane


Gus and self-regulating method of Civ
ing elasticity to the currency, Is the
great want of our National banking
system, and it must inevitably be ere
long supplied. Without this our mon
ey market cannot work with that sta


bility which in times of pressure Is in
dispensable if we would have our In
dustry and trade prosperous and ex-
empt from preventable evils.


| We must not omit to notice the great
strength of the banks in their legal ten
der reserve which has considerably In
creased. As will be seen from our ta-


bles the aggregate of gold and green


backs is 1S7 millions against 164 mil


lions in April. These figures give re-


serve of over 23H per cent upon the IL
abilities, and show that the banks are


stronger than the law requires, though


not stronger than is necessary for theil


thorough security.