. : turn HUNT'S MERCHANTS' MA.GAZINB, REPRESENTING THE INDUSTRIAL AND COMMERCIAL INTERESTS OF THE nNTTED STATES. VOL 16. SATURDAY, JANUARY 25, 1873. NO. 39B. C O N T E M r 8 MONETARY PRESSURE AND THE EXPANSION OP CREDITS. THE CHRONICLE. Two financial movements are just now httracting notice. Monetary PreJsnro and the Ex- Eni;ll9h News 108 The first is the ebsii^g up of the money market, which is pansion of Credits Chan<^6s in the Redeeming The Tlireo Hundred Million Agents of National Banks 104 making itself more visible in regard to mercantile paper. Loan Commercial and Miscellaucons Latest Monetary and Commercial News 104 Capital continues to accumulate here, as the bank statemeot THE BANKERS' GAZETTE. to-day will probably show. Last week the rise was five Money Market, Railway Stocks, Investments and State, City and 0. i3. Securities, Oold Market, Corporation Finances — 109 millions in deposits, and the tide is still flowing in. This Foreign Exchange, New York Canal and Miscellaneous Stock City Banks, Boston Banks, and Bond List 109 concentration of money in New York is checked in some Philadelphia Banks, National State Securities 110 Banks, etc 105 City Securities 112 degree by the stringency in the money markets of the inte- Quotations of Stocks and Bonds 108 RaUroad Stock and Bond List . US rior, which is already causing an outward flow of currency THE COMMERCIAL TIMES. from this Commercial Epitome 124 I Groceries 12B city. Catton laslDryGoods 139 Breaostufla This pressure on the monetary movements all over the 187 j country is ascribed by some persons, on insufficient grounds, ®hf €\)xonxtit to the obligation of the banks to hold 25 per cent of rwerve. The Commercial and Financial Chboniclk is Utued on Satur- The banks, if they were not compelled by law to keep idle day the latest morning, with news up to midnight of Friday. so large a mass of greenbacks, could lend this money, wo TBBHS OF SDBSCSIPTION-FATABLE IH ADTANCZ. are told, and could thus relieve commerce and trade, which Tbx Commkhoial akd FiSTANctAL CiinoNtOLE, delivered by carrier to city subscribers, and mailed to all others (exclusive of postage). have been sorely distressed for the past three or four months} For One Year $10 00 For Six Months 6 00 As relief from other sources cannot be had, why, it if 7%« CuuoNicLE wUl be sent to subscribers until ordered discontinued by letter. asked, Postage is 20 cents per year, find /s p tid bij the .^ubicriber at his nw post-office, cannot this method be tried of letting loose the WILLIAM B. DAHA, I WILLIAM B. DANA & CO., Publishers, greenback reserve 1 banks left to their JOIIS 8. FLOTD, JR. 79 and 81 William Street, NEW YORK. Why cannot the be ) Post Oryioi Box 4,592. they Subscriptions and Advertisements will be taken in London at the office of own judgment to bold less or more of reserve just as the Chronicle, No. 5 Austin Friars. Old Broad street, at the following rates please 1 The persons who thus argue forget the lessons of Aniuinl Subscription (including postage to Great Britain) £2 2s. " " " " 15s. Half-Yearly e.xperience which we have so dearly bought in this country. Advertisements. 9d. per line each insertion; if ordered for five or more i nsertians. a liberal discount is allowed. Experience does not show that the b.inks can safely be left THE RAIL, -WAY MONITOR—A Journal of general Railroad Intel- ligence, intended to supplement the brief railroad news contained in TuE free of restriction in this matter, or that the reserves of the Chronicle, is published monthly on the fifteenth of each month. Subscription price per year {including a file cover the first year) $4 60 banks are a source of weakness, or that the power of those '• " " to subscribers of the Chronicle 3 00 inslitations to give atisistance to commerce and industry is ^r~ The Publishers cannot be responsible for Remittances unless made by Drafts or Post-Office Money Orders. capable of enhancement in the way proposed. Since 1857 A neat file for holdintt current numbers of the Chrohiolb is sold at the CS'" our banks have been more free from panics than ever before, office for 50 cents ; postage on tlie same is 20 cents. Volumes bound for sub- scribers at 50. The first and second of the Chronicle are wanted (1 volumes and their freedom has been due chiefly to their ample by the publishers. reserves. To weaken the reserves of a bank is to place THE RAIL^ITAT inONITOR. that bank in danger, and to do this to our banks generally The first number of the Railwat Monitor (inontUy) was published is to undermine the foundations of the whole financial January 15, 1873. The characteristic feature of the Monitor consists in its furnishing the machinery of the country. most complete reports and freshest intelligence concerning every railroad The true sources of the general stringency which ha« per- in the country, so classified and indexed that eacli item of information can always be referred to with the utmost convenience. vaded the financial movements of the past year are not to A Handsome File Cover or Binder for current numbers, is be sought in the excessive reserves of the banks, but in the furnished gratis to every new subscriber for one year. over-expansiou of our credit system. The banks have held A Standing Index is continued from number to number, so that all reserve during the last year than ever before in the railroad matters publlahed within the year can be referred to by the last less number issued. course of our banking history under the National Currency Tlie Monitor is in no respects Intended to take the place of the law. If the reserves are justly chargeable with being the Railroad Department of the Cbronlcle, but ia expressly inlendod to latter have decreased t* supply a want long felt by the readers of that department, in giving cause of the stiingency, the should numerous reports and details of railroad information, which could never the former fell. But the stringency has done just the con- be given in the limited space allowed in the columns of the latter. trary. With obstinate tenacity, it has been much more Terms of Snbscrlptlon—(Payable in Advance.) severe since the reserves were defective than in former The Railway Monitor for one year, (including File (Jover with first 6ub- scrintlon) $4 00 reserves were held. It is well known The Railway Monitor, to subscribers of the Commercial and Financial years, when ample Chronicle 3 00 that the chief cause of our banking stringency is over, The <'ommercial and Financial Chronicle alone (with Pile Cover first year) 10 00 of the reserves expansion ; and this being so, the weakening WILLIAM B. DANA & CO., Pdblishers, of the banks could give only a temporary ^ase. It would 79 * 81 William Street, Hew York. Specimen Copies S«nt on Appllcatloo, mock us with a destructive and disappointing relief. StiJJ 102 THE CHRONICLE. [January 25, 1873. although these facts are generally acknowledged, «uch is the here ; and that the foreign part of the negotiatior. will not monetary pressu'e which obtains throughout the country comprise more than two-thirds or three-fourths of the whole. that a considerable number of persons ar« tempted to grasp In this anticipation a largu number of applications have at any «xpedient which promises miiigation. With the been already made by bankers in various parts of the growing ease of money they will not be so liablo to be thus coKntiy to be allowed to take a share. The presei't led astray ; and, as has heretofore happened, the popular arrangement is, however, to confine the business to the feeling on the subject will suSside. same central a£;encie8 by wl;ich it was managed before. A second point is the rise in gold and governments yes The chief of these were, if we mistake not, Messrs. Fisk & terday. The advance in the Ten-forlies is doubtless duo to Hatch, Henry Clews, the Fourth National Bank, aiid the the announcement of the Syndicate operations, which are First National Bank. What compensation these agents discussed elsewhere. But the rise in gold has been pro- are to be allowed by the Syndicate has not trans- duced by a large complexity of causes. Prominent among pired, but we believe that on the last ocdsiun they gained these is the agitation for enlarged issues of cuarency. If about \^ per cent; though their profits depended, in the inflationists can only succeed in this scheme, the price of part, on their adroitness in taking advantage of the gold must inevitably go up. In regard to new issues of movements of the markel. The present Syndicate is the greenbacks, Congress does not seem so pliable as was ex- result of the union of two separate parties, that of Marton pected. The chief hopes of the inflationists i est in the in- Bliss & Co. and that of Jay Cooka & Co., each of whom crease of national bank notes. This expansion they hope had been making proposals to the Secretary. If there is to to obtain ; and the prospect, however doubtful, has exerteJ, be any Euch operation, the people are well satisfied that Mr. with other forces, a noteworthy influence on the gold market Jay Cooke should be prominent in it, for two reasons. for some days past. First, he hss had more experience than any other individual There are a'so indications of .in accumulation of bank in negotiating the loans of the United States from the first notes, which are selling at a discount, but the influx is not five-twenties of 18G2 to the present time.