Year: 1874

SATURDAY. July 4EP.M.


The cessation of business for whole day at the
Stock Exchange gives opportunity to its members
and the other habitu6s of Wall and Broad-sts for
moro tboupbtful consideration of the important ele
ments that are to influence the prices of fancy
stocks. and chief among these elements still con-
tinues to be the new Currency law. AT first there
was general impression that 1t would give us an
increased volume of currency, and possibly IL
will; but the more the law Is discussed
the worse it looks for the nlatlon-
lists, until there has become wel-nlgh
settled conviction in the minds of practical and
thoughtful men, that it will he avoiled Of by the
older and stronger banks as to control the currency
and insure better rate Of interest for their loana
Bile funds To this end il is thought by many that
they will soon commence to return large amounts of
country notes for redemption. The process is rem
dered extremely simple by the circular of the Treas
urer inasmuch as our city banks have none OF the
burden or expense of asserting, but have only to
gather upon their surplus country notes, pack them
off to the Treasurer, and receive legal tenders III
| return. This will strengthen our banks immensely


while at the same time it will it is thought create
sucb an activity in money as to enable the better
class of banks TO earn nearly double the rates of in
terest that have prevailed for several months past.
| II. in addition to this measure of simple self
| interest, other banks shall follow III the wake OF
| those that have already determined to withdraw
some 81 500 900 Of circulating notes, there will be no
difficulty in raising the rate of interest to
at least paying point This viii doubt
| less worry the little country banks
somewhat and induce many that live principally
upon their circulation to retire from the field of
| banking altogether. There are hundreds of small
banks that were started mainly to avail of the profits
upon circulation in addition TO the interest upon the
bonds for the redemption of their notes.
and these have lived easily and comfortably because
no considerable amount of their circulation was ever
presented for redemption. The first notice that they
may receive from the United States Treasurer to re-
deem, however small the amount, will be a
warning to take in sail. Their loans will
be called in; renewals will be refused
and the business of banking ceasng to be profitable,
will doubtless in many cases, be abandoned alto
gether This work, it is to be hoped, will proceed
gradually and being spread over so wide territory,
and divided among large portion OF our business
population, nothing like panic can be expected to
result from it, 1t will be TO the banks healthful
and harmless remedy, enabling institutions that
have real business to earn and pay satisfactory
dividends, aud compelling those which are unsound
to retire. This is the complexion to when IL Is
| believed the banks will come at last.


1t is becomingan interesting question whether the
market value of railway securities is to be damaged
more by the too general neglect of railroad man
ayers to publish regular and truthful statements of
their business than by the statements which are IN
some instances rendered Attempts are frequently
made to doctor" such accounts as are sometimes
published; but in most cases where the real facts
can be obtained it is found that net profits are re-
duced and liabilities increased. Construction ac-
counts that should have been closed years ago have
been and are still kept open, and disbursements have
been sometimes charged to these accounts which
should have gone directly into the expense account
The following is comparative balance sheet of the
| Chicago Rock Island and Pacific Railroad Company
| for the years ending April /, 1873 and 1917