The Weekly Perrysburg journal. [volume] (Perrysburg, O. [Ohio]) 1861-1???, 1867-05-03
Selected SelisfelIaup.
from Harper's Weeky.l
The Tightness of Money.

Tho stringency that has bcset the money market
Tor considerable Tins still continues, and borrow
ers, still iud difficulty in negotiating loans, exsept
upon the best approved cullaterals. All descfip-
tons Of securities other than Governments are
undesirable commercial paper Is most carefully
scrutnized; aud few will Advance on bond and
mortgage more than one-half the value OF the sc
ourity, even the most eligible city property. Tho
rate OF interest, however, Is not oppressive.
There are many OF our business men who look
for decided improvement soon, just as they hare
been waiting these six months, patiently But Id
vain for return Of the activity ofprevous years;
but they have built their hopes upon sand bank:
II is quite possible there may be better feeling
| ere long, aud the money market become gradually
easter. II cauuot be expected, though, that the
relief will be permanet for the market is alwkyA
spasmodic and susceptible to the slightest aud moSt
mysterious influences. IL may at any time jump
from per cent. per annum to per cent. mouth
without apparent satisfactory cause, as II did Id
June, 1864, Moreover, il is controlled just now
by the want Of confidence which has long pre-.
vailed throughout the mercantile community By
the generaltceng Of uncertainty; the tndefned ap-
pTehensinns, and tho whispers that so round, bht
which nobody can explain. II s truo that the
Government has sold gold, and thereby withdrawn
a considerable amount OF greenbacks from circu.
lation also that the banks catching the prevailing
apprehension Of u continued stringency, are con-
tracing, calling in their loans that they may get
higher rate Of interest y-and-by. This Accountsl
! In part for the scarcity Of money. Tho least
| favorable feature OF the case, however, is thai
| depOsltOrS are Wlthufawlnp their iulc DaiRnceo
| from the banks to very large extent. Il "a
! estimated that the deposits were drawn down Ave
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 S750,000.
| New York City being the great financial center
of the Western world, as London is of the Other
hemisphere, is naturally the great leading center.
| While business is active, immense aumB Of money
are continually flowing here from all parts OF tho
cuunry, seeking remuneratye investments but
when business becomes dull, from any cause wha
soever, these moneys can not be employees the
| idle balances aro withdrawn because they yield
nothing. No matter how thriving or auspi:ious
the state of trade may have been III other quartersi
| apprehension here begots apprehension theIei and
depositurs will prefer 10 have their balances under
| their immediate control, or invest them in Govern
ments, which are sure and profitable. This drain
| upon our banks and banking houses helps very
much to render money tight but tho cause OF this
| drain, as we have already stated, proceeds from
the want Of confidence in the community. There
is q conviction, well founded, among the shrewd
mercantile community (arart from the tnanciere
of Wall street,, that the imitation Of the currency
eliminated in the spring and summer of 1888. at
which time the Secretary Of the Treasury, backed
by an act of Congress, publicly announced the
policy of contraction, authorizing q reduction OF
not more than four millions per month"; also, the
| national banks had issued all Of their three hum
| dred millions Of currency which they We're legally
| authorized to do. We'll, theu, the summit having
been reached, the tendency in everything Is down.
ward. Excepting in real estate, the prices Of all
descriptions of properly and merchandise have
| very materially declined-And they have declined
gradually and calmly, distressing some houses, II Is
true, but still creating no disastrous perturbation
| of trade aud finance. The fact that they have
done relieves tho mind Of tile apprehension th at
there Is TO be general financial crash Or monetary
panic. u 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 tfouBie.
| Trouble may come from quarters least Expected !.
On tho first of June the Bankrupt law will come
into operation. Many are no doubt preparing ID
take advantage Of that law, and the failures and
suspensions Which fney then be announced will
be startling Many strong house which has giteh
extensive credits may find its debtors on the
bankrupt list, and their assets, which had beeE
considered undOubted, vanished like smoke. Then
what becomes of the supposed very stong houses
One 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 ms have kept theit accourta
close, who have no overstock Of goods, and who
have not foolishly speculated for rise in stocks;
In spite of every possible presage against doingy
need not trouble themselves about the future.
There Is a considerable portion Of the business
community whose position is very strong. These
win weather the gale But dmdng borrowers and
overiradefs vo are unable to obtain accoinhoda.
ton there will Inevitably be trouble, as we havo
long predicted The probability is, that businesA
will now gradually fzzle out. and that dull
summer will be succeeded by revival In the fall