The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-10-31
THE NEW YORK MONEY MARKET.

The following extracts show the state OF the New
York money market on Saturday.
From the Herald.
''Ihe salient and curious feature OF the financial
situation is the abundance of money in New York
and the scarcity of it in the other cities of the coun
try. During the two weeks which have just elapsed
the rate on call loans ranged from from four TO seven
per cent. At times the figure did not go below hYe
per cent. and frequently not beyond sN but the eX-
treme fluctuations within the limits above spec
fed In seeking an explanation OF thls rare state OF
progress of our city is still toward the position OF
employer and capitalist for all the varied enterprises
of the Union. In previous years, at this season, our
local money market has been characterized by the
greatest activity If not strngency year ago money
in Wall street was worth from ten to hundred per
cent per annum, such the. demand created by
the heavy shipments CT currency to the West and
South. The old state of affairs has been looked for
day after day. and lenders have, as general thing,
refused to make time loans, expecting recur-
renee of the periodical fall stringency. But the
season has so far advanced and the abundance OF
funds at this centre is great that many
inclined TO think that money can hardly he active
beyond the legal rate of interest. The money de-
manded by the South commenced going in the sum-
ser, and its drain has been so steady that its alb
sence is not felt while the great fall III stocks by the
panic Of last month has released a margin more
than sufficient to meet the continuance of the de
a considerable movement of the crops from the
West, but it has been checked and sus-
Chicago and Cincinnati record the extreme
stringency prevailing in money at those centres.
The banks are almost barren of funds, and loans
commanded eXtravagant rates OF interest The
deadlock between the East and West, noticed
rev weeks since, ana which was partially freed by
the initiation OF shipments of wheat this way in the
middle of the MONTH has again set in, owing to the
diversity of opsnion between the dealers in both
places. The East is unable to export wheat at pre-
sent prices. The Western Spectators are unwilling
to sell at a sacrifice. The money remains here and
the crops there. AS for the scarcity OF money in
Western cities, it is the natural result
Of this situation , The The sPecTIat0rrs, Ssa
margin between the prlce of production and the
prjce of CONSUMPTION, have drawn down their depo-
Sits in the Western banks to pay the farmers. Until
they can ship their purchases both they and their
banks are devoid of funds. New York, standing in
the relation Of 9asts to all sections says to the
West, we cannot buy your wheat because we cannot
sell it except at a loss. Our city mas not only It's
capital, but the surplus originating from the profits
made in being the entrepOt Of the country with the
world. Heretofore this surplus has been largely en-
ployed in carrying the stocks and securities of Wall
street. But the panic has produced a shrnkage
of these securities There is, therefore,
margin over and before the necessities of
Wall street equal to the surplus OF profits and
fraction of the capital underlying all our moneyed
operations. For this reason we find money almost
drug in Wall street and prime necessity in other
parts of the country Unfortunately, however, this
abundance does not rebound to the advantage OF the
system of loans from day to day that there is gene
raj ndispostion to deal in mercantile paper, and
hence we find the best notes passing at ten to fifteen
per cent discount, when loans on call are made at
one-haf these rates. The usury laws are set so
utterly at defiance that in cases OF stringency
lenders can obtain as much interest in one week
as they would ordinarily earn in whole year.
The recent prosecutions by the Grand jury
have only sharpened the practice OF the street on
this point, and while there was danger before from
the frequent open violation OF the law, there IS now
no risk whatever Those who are familiar with the
technicalities of Wall street will easily understand
how in tight money market, lenders, by the process
OF buying stocks for cash and selling REGULAR in
one transaction can obtain the most eNtrayagant
rates for the use of their money In the stringency
of the recent panic this plan was uniyer-
sally adopted, and although it is Writ virtual
usury there II no portion OF 1t on which to
hinge an Indictment. However, the evil may
cure itself, il we may interpret the present
signs. We are now at the advent of November
The money market must become stringent within
a week or two, or not at all. Last year the first
stringen day was October 20, and the last some
where towards the close of December. Then the
banks had but ten millions surplus to meet the
drain. This year they have twenty millions, WHILE
as the crops cannot move, except at a greatly re-
duced valuation as compared with last year, the
demand upon them cannot be near as great. The
weekly statement of the associated banks presented
on Saturday, is quite favorable There is a total
gain in reserve OF over two and half millions OF
dollars against an increase in deposits of five mil
lions, The banks now hold in excess OF the legal
reserve s2O 1862 647an increase during the week of
nearly million and half of dollars. The increase
in specie is due to the Treasury disbursement in
payment OF the November coin interest on the pub
lie debt The gain in legal tenders is rliing, but
any increase at this time OF the year is remark
ahp.n