The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1867-04-16
The Tightness of Honey.
ronl Razper,. Ktsk,n.

money market for considerable time
still continues, and borrowers still find
difficulty in negotiating loans, except
upon the best approved collaterals. All
descriptions of securities other than
Governments are undesirable; CONNER
eial paper is most carefully scrutinized;
and few will advance on bond and
mortgage more than one-halfthe value
of the security, even the most eligible
city property. The rate of interest,
however, is not oppressive.
There are many OF our business men
who look fora decided Improvement
soon, Just as they have been waiting
these six months, patiently but in vain,
for return of the activity of previous
years; but they have. built their hopes.
upon sand bank. tits quite possi-
bic there may be better feeling ere
long, and the money market become
gradually easier. 1t cannot be expect
ed, though, that the relief will be per-
manent, for the market is always
spasmodic and susceptible to the
slightest and most mysterious in
duences. 1t may at any time
jump from per cent. per annum to 5
per cent. u month without apparent
satisfactory cause, us 1t did in June
1864. Moreover, it is controlled just
now by the want Of confidence which
has so long prevailed throughout the
mercantile community, by the general
feeling of uncertainty, the underlined
apprehensions, and the whispers that
go round, but which nobody can ex-
plain. It Is true that Government has
sold gold, and thereby withdrawn a
considerable amount of greenbacks
from circulation; also that the banks,
catching the prevailing apprehension
of a continued stringency, are contract
ing, calling in their loans thatthey muy
get a higher rate of interest by-and-by.
This accounts, in part, for the scarcity
of money. The least favorable feature
of the case, however, is that depositors
are Withdrawing their idle balances
from the banks TO a very large extent,
1t is estimated that the deposits were
drawn down five millions last week,
and the legal tenders nearly as much
more. We know of one single bank
that was thus depleted to the tune OF
$3.50, 600.
New York city being the great
financial centre of the Western world !,
as London is of the other hemisphere,
Is naturally the great lending centre.
While business is active, immense sums
OfmOney are continually flowing here
from all parts of TIE country, seeking
remunerative investment; but when
business becomes dull, from any cause
whatsoever, these moneys can not lie
employed the idle balances are with
drawn because they yield nothing. No
matter how thriving or suspicious the
state of trade may have been in other
quarters, apprehension here begets APP
prehension there, and depositOrs will
prefer to have their balances under
their immediate control, or invest them
In Governments, which are sure and
profitable. This drain upon our banks
and banking houses helps very much
to render money tight; but the cause
OF this drain, as we have already
stated, proceeds from the want of con-
tidence in the community. There
is conviction, well founded, among
the shrewd mercantile community
(apart from the financiers of Wall
street., that the initiation of the curren
cy eliminated in the spring and sum-
mer of 1866, at which time the Secretary
OF the Treasury, backed by an act OF
Congress, publicly announced the poll
cy OF contraction, authorizing reduc-
ton of not more than 100000 per
month; also, the national banks had
issued all of their 800 millions of cur.
rency which they were legally author
lied to do. Well, then, the summit
having been reached; the tendency in
every thing Is downward. Excepting
In real estate, the prices of all descrip-
tons OF property and merchandise have
very materially declined-and they
have declined gradually and calmly,
distressing some houses, 1t is true, but
still creating no disastrous perturbation
oftradeand finance. The fact thatthey
have done SO relieves the mind of the
apprehension that there is to be gem
eral financial crash or monetary panic.
II proves to the contrary. We are not
at panic prices now. Commodities are
reasonably low compared to what they
have been for four years past.
4 Still, the season will not pass with
out trouble. Trouble may come from
| quarters least expected. On the LIST of
June the Bankrupt law will come into
operation. Many are no doubt prepar-
ing to take advantage of that law, and
the failures and suspensions which
may then be announced will be start.
ling. Many strong house which has
given extensive credits may find its
debtors on the bankrupt list, and their
assets, which had been considered un-
doubted, vanished like smoke. Then
what becomes of the supposed very
strong houses2 One failure carries
many, like a row of bricks which
school boys set up to tumble down.
Shrewd and crafty men, both debtoIs
huA GEGulIOE6I are SuHpluS Lu6IE SOuISS
TO meet the operation of this law. Such
persons as have kept their accounts
close, who have no overstOck OF goods,
aud who have not fooIishly speculated
for rise In stocks, in spite of every
possible preSage against SO doing, need
not trouble themselves about The fu-
ture. There is very considerable
portion of the business community
whose position Is very strong. These
borrowers and overtraders who are un-
able to obtain accommodation there
will inevitably be trouble, as we have
long predicted. The probability is,
that business will now gradually tizzIe
out, and that a dull summer will be
succeeded by a revival in the fall.
SENATOR FERRY, of Connecticut, has
written a "private' letter-which at
q = TO-.