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MONEY AND COMMERCE. MONETARY TUESDAY EVENING, Jan. 20, There has not been much relaxation in the money market yot, but the tendonoy in that direction, the cause boing an increase in the suj ply of exchange mhilo against shipments of grain, and some iuflux of nuouoy from the country in the way of merchants collections, and of amounts sout in by country banks to loan ou collaterals or invest in commercial paper in the open market But It cannot be expected that there will be any very great increase of loanablo Yunde in this market until the rk-packers and )spoculators ship off and sell part of the several million dollare worth of pork and out meats now being hold here by them. The banks are accommodating all their regular customers at 10 por cont, but are taking very little outside paper. In the open market money is to be had at 12 per cont on primo col gaterale, though 15 por cent is paid in many instances. Now York exchange was little firmer to-day than yesterday, and sold between banks at 25 cente per $1,000 discount. THE MEOHANICS' NATIONAL BANK. The Executive Committee of the Chicago Clearing-House Association yosterday invited the Mechanics National Bank of this city to withdraw from its mom borship, to-morrow, Jan. 21. This is only polito modo of expulsion, and eventua it will probably result in the winding no of the bank. The bank was believed to be in a very unsatisfactory condition before the papic thoug not sufficiently 60 to warrant eithor the Bank Examinor or the Clearing- House Committee in making any decided move against its continu inco in business. The panic, of course, only made its condition worse, but the other bauksin the city have been disposed, until now, to at least lend the Mechanics' National their countenance by allowing it to remain in the Clearing House, partly because they wore afraid turb the recovery of public confidence from the effects of the panic, and partly because they were in hopes that its condition might improve with the gonoral improvement of affairs In the last two months. No improvemont however, in its condition appears to have been made since the panio. According to Site recently published statement the bank has only about percent of its deposit in cash lte Acaus are understood to bo now just about where they woro two months or more ago. It is alloged the bank has been unablo to reduce them, bo cause great portion of them are suspended paper which is past due and cannot be collected without great delay As the Executive Committeo of the Clearing House did not examine the dotails of the condition of the Mechanics National Bank yesterday. it is not positively known what the $178,000 of bills payable' in the published statement of the bank represents, but whatover olso it ie. is an evidence that the bank has increased its liabilities in some other way than the of logitimate one of an increase deposits, and only shows the more necessity that it should be put into the hauds of a ReDelver and wound up BANKRUPT FUND DEPOSITORIES. But if the condition of the Mechanics Nationbl Bank is disgrace to the city, it is not 80 of treat an outrage on the public as the order in the Bankrupt Court that all bankrupt funds the hands of Assignees should be deposited in the Dichanics National This order WAS, we believe, subsequent ly modified, 80 as to include the National Bank of Illinois, but, even with this modification, the keeping of bankrupt funds is a disgraceful monopoly managed by a littlo ring for their own benefit. The Assignees it in Bankruptcy are a part of it. and seems now to be an acknowledged fact that none but 8 few bangers on of the Register in Bankruptcy can be appointed to those offices. One of the results of this ringmanagement is that large amount of bankrupt funds have boon locked up, for nobody knows how long, in the Mechanic National Several bankrupt concerns, whose affairs have beon to a great extent adjudicated would have paid dividende to their creditors long ago, only that the Mechanics' National has not been able to pay This farce of settling up bankrupt estates through bank that cau DAY is played out. As far as the National Bank of Illinois is concerned of courso, nobody has any objection to its condition. It is, we believe, sound, well-mauaged bank, but has no right to any monopoly of the baukrupt faude in the hands of Assiguees. BANK. CHEQUE A new kind of financial institution line been started in Eugland called a cheque bank the effect of which is to makd a larger circula tion of bank checks in place of 0010, thus in one sense making au increasing supply of currency, and econom the use of coin for all emall payments. To the small tradesmen, artienne and other persons whose accounts are too small to be very desirable to the larger commercial banks, its conveniences are very great. Ite peouliarity is that, instead of being a competi tor of other banks, it in fact co-operates with them, so that all the ther motropolita: banks are practically made branches of the cheque bank. Chambers' Journal gives the following details of its operation When money is deposited, the only receipt given is at check-book containing chocks for the amount lodged. Tho largest amount for which any one check can be drawn is £10. If we deposit £100 we receive a check book containing ten checks for £10 we may, howev have twenty checks for £5. or 100 check for $1 Now, we can draw only to the amount of our doposit, and no further. for. in the corner of each check, its value is perforated in words, time boing indelibly fixed. In this way it is shoor impossibility for us to overdraw our account, for, though we may make out & chock for any less amount than that specified on it, we cannot for greater. This is great advantage, as there can never be any check re. turned to the payee with No funds inscribed on it, as too often is the case with the old eyea tem. If, then, we make out some checks for less amount than that specified. there must be balance standing at our credit when the checkbook is finished. This we may have carried on towards new book, or we like. may draw on surrondering the counterfoils of the old check-book. All checks are made ble to ordor, and are crossed besides: 80 that, before recoiving payment, the check must have been indorsed This puts such an effectual barrier to unfair dealing, that the risk run by the Oheque Bank is comparatively insignificant Each book of checks contains ten, for which the uniform price is onesbilling teuponce boing for Government stamps, and the odd twopence boing divided between the expense of the paper and bank commission The way in which the book is kept is poculiar. and SAVER an enormous amount of time and trouble Instead of each check being entered in the books some half dozen times, the total amount only of all the checks paid out is placed in the books. And to avoid all risk, the check are 80 caref indoxed and put past, that ton years linese chool cashed now will be found quite roadily also, their checks are cleared dail thus avoiding the necessity of passing through the bankers ClearHouse The leading peculiaritie of this norv instit tion are: 1. N interest is allowed on doposite 2. It does not keep its own cash. 9. It transacts no financial business whatever. 4. Beiug intended only for small accounts (ne no intorest given), it essentially a bank for the million 5. It discounts no bills. The sources of profit to the stockholders are 1. The interest on the £100.000 reserve fund in vested in government consols. Largo returus cannot be looked for here, as the be at security and not a high percentage issought. 2. The divi dends arising from the investment of the doposita terest the
