West-Jersey pioneer., 1867-04-19
THE TIGHTNEss OF MONEY.

The stringency that has beset the mon
ey market for considerable time still
continues, and borrowers find difficulty
in negotiating loans except upon the
best approved collaterals. All descrip-
tions of securities other than Govern
ments are undesirable; commercial paper
IS most carefully scrutinized, and few
will advance on bond and mortgage more
than one-half the value of the security,
even on most eligible city property. The
rate of interest, however, is not op-
pressive.
There are many of our business men
who look for a decided Improvement
soon, ust 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. 1t is quite possible
there may be a better feeling ere long,
and the money market become gradually
easier. 1t can not be expected, though,
that the relief will be permanent, for the
market is always spasmodic and suscep-
tible to the slightest and most mysteri-
GUS influences. 1t may at any time jump
from 5 per cent. per annum to 5 per
cent a month without apparent satisfac-
tory cause, as it did in June 1864 -
Moreover, it is controlled just now by
the want of confidence which has so long
prevailed throughout the mercantile com
munity, by the general feeling of uacer-
tainty, the underlined apprehensions, and
Inc ~hispers that go round, but which
noooay Ca explain. 1t is true that
tne government has sold gold, and
thereby Withdrawn considerable amount
OF greenbacks from circulation; also that
the banks, catching the prevailing appre-
hension of continued stringency. are
contracting, calling in their loans that
they may get higher rate Of interest
by-and-by. This accounts, in part, for
the scarcity of money. The least favor
able feature of the case, however, is that
depositors are Withdrawing their idle
balances from the banks to 1ery large
extent. 1t is estimated that tn. 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 $780,
OOO
New York city being the great fnan-
cial centre of the Western world as
London is of the other hemisphere, is
naturally the great lending centre. =
While business is active, immense sums
of money are continually flowing here
from all parts of the country, seeking
remunerative investment; but when bust
ness becomes dull, from any cause what
soever these moneys can not be employed,
the idle balances are withdrawn because
they yield nothing. No matter how
thriving or auspicious the state of trade
may have been in other quarters, appre-
hension here begets apprehension 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 g-houses helps very
much to render money tight; but the
cause of this drain, as we have already
stated. proceeds from the want of conf
dence in the community. There is a con-
viction, we'll founded, among the shrewd
mercantile community (apart from the
financiers of Wall Street, that the infa-
tion of the currency eliminated in the
springland summer of 1866, at which
time the Secretary of the Treasury, back
ed by an act of Congress, announced
the policy of contraction, authorizing
a reduction of not more than 4,OOO,-
600 per month; also, the national banks
had issued all of their 800 millions of
currency which they were legally author
lied to do. Well, then, the summit hav-
ing boon r---h-l, tl.. +@ndonoy in every
thing is downward. Excepting in real
estate, the prices of all descriptions of
property and merchandise have very
materially declined-and they have de-
clined gradually and calmly, distressing
some houses, it is true, but still creating
no disastrous perturbation of trade and
finance. The fact that they have done
SO relieves the mind of the apprehension
that there is to be a general financial
crash or monetary panic. 1t 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.
Still, the season will not pass without
trouble. Trouble may come from quar-
ters least expected. On the lst of June
the Bankrupt Law will come into opera
ton. Many are no doubt preparing to
take advantage of that law, and the fail
ures and suspensions which may then be
announced will be startling. Many a
strong house which has given extensive
credits may find its debtors on the bank
rupt list, and their assets, which had
been considered undoubted, vanished like
smoke. Then what becomes of the sup
posed very strong houses? One heavy
failure carries many, like row Of bricks
which school-boys set UP to tumble
down. Shrewd and crafty men, both
debtors and creditors, are shaping their
course to meet the operation of this law.
Such persons as have kept their accounts
close, who have no overstock Of goods,
and who have not foolishly speculated for
a rise in stocks, in spite of every possible
presage against SO doing, need not trouble
themselves about the future. There isa
very considerable portion of the business
whose position is very strong.
These will weather the gale. But among
borrowers and overtra ders who are unable
to obtain accommodation there will newt
ably be trouble, as we have long predicted.
The probability is that business will now
gradually fizzle out, and that dull sum-
mer will be succeeded by revival in the
fall.-Harpers Weekly.
SUNDAY SCHOOL CONVENTION.
The West N. J. Baptist s. S. Convention
held its Seventh Anniversary with the Baptist