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MONEY AND COMMERCE. MONETARY. WEDNESDAY EVENING, Sept. 24. The tolographic report of the suspension of the Baltimore banks, and the implied suspons ion of the Now York banks, la liable to bo misunce stood, and the gravity of the situation greatly exaggerated. The New York banks have not entir ly suspended payments, noither have those in Baltimore. In both citios, the banks have simply made n formal announcement of what Ins boon the caso for the last two or three days, viz: that currency is BO scarce that it is impos= sible to got it by the ordinary means of calling in loans. Therefore the banks in thoso citics simply say they cannot pay largo checks in curroncy for a few days, until the currency oxcitoment blows over, which it most unquestionably will. It should, howover, be distinctly undorstood that the banks in thoso cition do nct close their doors; on the contrary, they will oven pay all small checks in currency. It is, of oourso, understood that tho positivo refusal to pay a check for any sum drawn against funds cn doposit to the crodit of the drawer is an act of bankruptcy. But it is not probable that the banks in thoso citios would absolutely and PCEsitively refuse to pay even a check for A largo amount in currency, if the holder of the chock WAS dotormined to prolost it if not paid. With any depositor who was deaf to reason there would be no courso but to pay. It is well known that to pay all deposilors in currency would be utterly impossible, and if they were all HO unreasonable as to dcmaud payment in currency there would be DO sourse but for the banks to suspond entirely,that is, refuse the payment of all checks, This, of course, would be an unfortunate altornative, and the worst possiblo way for doporitors to get their monoy. But the depositors of the banks hold the issuo of this question iu their own hands. It rests entirely with them whether the Now York banks shall go on or not. The case between the Chicago banks and their dopositora is procisoly the same AB in New York, only that the Chicago banks are in a Bounder condition than thoso in Now York. It is the firm conviction of every one who has any intimato knowledge of the Chicago banks that there is nono of the Nationals that would not, if wound up, pay, not only overy dollar of deposits, but the full par valuo of the stock. The doniand for currency arises from the sudden desiro of overy man to convert not only his bank balance, but other marketable property into currency. Each man knowing that it will be impossible for all to this, ondenvors to bo ahead of his neighbors, and get currency out of his bank to the dieadvantage of other depositors. This is just what the savings banks prevent by the requirement of the thirty or sixty days' notico. The commercial banks, however, would have no recourse in such cases but suspension. It would be difficult to say positively whether the aggregato amount of currency in this city is inincreasing largely or not. Wo are clined to think it 18. Thore were undoubtedly somo liberal amounts received from New York. We also hear of a number of instances of currency being sent in from the country to buy wheat at the present ridiculously low prices. In theso cases, however, it is not sent to bauks but to merchauts, and by them paid to other merchants. Many persons, without thinking, are ready to censure the banks for having large balances in New York, and others equally thoughtless are ready to consuro tho New York banks for not remitting currency here more freely. It must be remembered that when the panic broke out the movement of Western products to the East was the largest ever known. All this made exchange on Now York, which it was the ,legitimate business of the banks to buy, and which it was necessary they should buy in order to keep the produce in motion. The banks here had ordered currency from Now York against this oxchange just as fast as they could get it, but it is well known that currency had been extromely scarce for several weeks before the panic and it was impossible for the New York banks to And currency for all the exchange from the West sovoral weeks ago. Thus, the very magnitude of the crops, and the abundance of our real wealth, was the cause of a great relative scarcity of currency before the panic. There is, of course, DO stated price for the loan of money in this market now, but the difference in the prices of whoat yesterday and and to-day for uoller the month soller October," showed that practically the prico of money to carry wheat into October is at the rate of about 20 per cont per month, or tico hundred and forty per cent per annum. Everything was quiet at the banks here today. The clearings were made without any trouble. The amount of checks sent in was smaller than for Home time past-in favorable feature, indicating a quietor condition. The balances also were lighter than usual, and were promptly paid in currency.
