Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1868-08-04
Another Money crins Expected East.


Another Money Crisis Expected East.
The following article from the last
number of the New York EcoRomisf ID
deserving special attention. Il furnishes
clear proof not only that moro currency
Is needed for fhe whole country, but that
business at the East, as well as the West
and South, is in great danger OF another
panic, whereby many will be " forced
into suspension, az the Economist says
they we're few months age How long
will tho business men Of the East SUBJ
nit to policy which so cndangers them,
while intended only to crush the West
and South: AZ
The extreme abundance Of unem-
Moved funds continues, and the banks
find some difficulty in employing oil
their balances at the low ratio Of 3C)f per
cent This plethora is 10 be regarded as
The result of reaction from the extreme
s,ripeency of money in the early spring
months. Many we're crippled during
that crisis, aud some forced into suspen-
sion; and on this account there has been
a martial contraction of business during
the summer months, and deposits have
accumulated in the hanks, the only en-
plcyment for whichis in Wall street
Ii is question OF much practical con-
sequence to merchants how long this
condition Of the money market is likely
10 continue. The banks appear very
generally 10 anticipate that il will prove
70 be of but brief duration. Usually in
August demand sets in from the West
for movinr the grain crops. which this
wear are unusually large. The prices OF
grain still remain comparatively high,
and as il is 10 be expected that when the
measure of the full supply comes upon
the market there will be break in
prices. it is to. be anticipated that sup
plies will be pressed rapidly toward the
seaboard so as to realize early.
Fer this reason the early demand from
the West is expected to prove very active,
and the banks are preparing to accom-
MEDIATE their correspondents literally. |
For these reasons, il is to be anticipated
that before the middle of August there |
will be free remittance of currency to |
the West. What then is the condition OF |
the banks for meeting this demand |
During the last few weeks the banks have |
largely increased their loans. At the |
beginning of June. the loans and dis
counts had been run to an unprece.
denied total. vet month later they |
stood sll ,OOO, 600 higher, while the legal
tenders bad been reduced $30O,0OO.
Compared with the same period last year,
the state Of the banks is not calculated to
inspire confidence The loans are nearly |
s3s, 000, 600 higher than then, while tho
legal tenders are $2,700, 900 lower than
then. tits true, the banks hold several
millions more specie than at that period; |
but this fact has practically little bear
ing on their currency operations. The J.
currency deposits are now $24, 100000
higher than year ago; but, as state d
above, the loans are $38, 000,000 higher.
The following statement shows the con
dition of the New York banks at t''ne pc
RODS stated:
July Io Isa ~ June g. sJ lss e. July y 6 ISL
Deposits =. 2a4.soo,fo0 2os,ocS. 200 lsI, 30. 900
Legal tend. 6s.OO0.0OO 6SsOO.OOO 7l.2OO.OOO |
This state of affairs is not at all calcu.
lated to produce an easy feeling in bank |
ing circles. With 1885, 900, 900 of loans |
already outstanding, in what position are |
the banks to discount several millions Of |
grain paper soon to come into thsir
hands? With only SOS, $780, 600 of legal
tenders how are they to accommodate
the demand of the agricultural districts
for currency? II is clear that there must
be large amount of loans on stock
called in, and that the Wall street specu-
lstors must be driven to desperate ex-
tremitier. Much of the injury to mey-
chants last spring was due to the bar ks
having made long loans to the sock
operators; in the light of the disa,, trous
results which followed that highly repre-
hensible policy, il is to be presp med that
the banks will know better th0'a to repeat
that nnlicY.