The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-08-16

II will thus be seen that, as compared with the
responding period OF last year, the banks show
weakness OF resources in less amount held in
excess OF legal reserve OF 242 against SINH
lar weakness the previous week of SsS69 49S. 1t is
not to be wondered at that with this unsatisfactory
condition OF the banks the prospects OF the money
market for the coming fall and winter should absorb
much OF the attention OF the street With every ind
cation of an abundant yield IN both the grain and
cotton crops and great encouragement to expect an
Increased export demand for the former, the demand
upon the banks Is likely to be more than usually
heavy for the special objects OF moving these crops
TO the seaboard, while 1t must be confessed that the
growth OF the country during the past year and the
development OF new and great enterprises in the
West and South, calling for the use OF currency for
mere local purposes, does promise any very con-
siderable returns from these directions lower
price for the new grain, anticipated as a con-
sequence OF the plentiful harvest may
operate to equaze the demand upon the
banks with former years OF smaller crops,
while the reduced freghts secured by the intense
rivalry OF the great trunk lines OF railroads leading
West, II continued, VIII contribute to the same re-
suit but neither OF these causes Is likely operate
to sufficient extent to permit the same activity to
exist on the Stock Exchange at the corresponding
period last year. when prices OF many OF the
leading stocks were so very much lower. Thus
Llrec-Quartpr
millions against the capablIty OF expansi on
of the banks now and at this time last
year, and everyprospect OF equal II not greater
outside drain upon their resources for the next
three months, 1t Is impossible that with New York
Central at 200, Hudson River 1885, Harlem 1872, Lake
Shore 105, Pittsburg los, Northwestern SS and 81,
Rock Island 11e, ST. Paul So ana SO and Fort Wayne
153 that the same amount OF business can be done
during that period as when these stocks were
respectvely-New York Central 1877, Michigan
Southern 81, Pittsburg SO, Northwestern 81,
Rock Island 1O1, ST. Paul 70 and 81 and Fort Wayne
1O7 With this advance in prices to continue the
same amount OF business last fall corresponding
increase in the volume OF currency the street Will
be necessity, while a similar appreciation in the
government market presents equal evidence
that from ten to twenty per cent more money
Will be required to move the same amount
or stocks and bonds at their present
prices exclusive OF the exceptionally inflated
Vanderbilt shares and preserve equal activity in the
market as was called for last fall. 1t will thus be
seen That the chances OF active money market for
she closing months OF the year are OF sufficient
weight to call for the exercise of careful Judgment
on the part OF all who are called upon to enter
into time engagements OF any sort, and demanding
as o sound business precaut,on conservative prac-
tice among dealers generally. The relation which
the Secretary OF the Treasury, In the administration
of the financial department OF the government
holds to the money market has been always close
and intimate In the time of Mr.. McCulioch this re.
lation was regarded with suspicion and distrust.
In Mr.. Boutwell's case It excites much
doubt The policy which the latter has thus
far pursued, no matter what Its merits,
shows him disposed to his position for the COR
rection or evils In the monetary situation. That he
has acted thus far In good faith is not doubted but
the question arises-how far Is he prepared to 90 In
the future In this effort to preserve the balance OF
exchanges and to what extent can he be calculated
upon as an element OF disturbance, whether for
good or III, In the ordinary of businessP In
other words. how much gold does he intend to sell,
ana what amount OF bonds will he buyp II money
Is tight here next month the month after VIII he
increase his bond purchases, has he resolved to
stop them and II so; what relief Is he prepared to
give TO the money Market or viii he give any2 II he
had not commenced his gold sales and bond purchases
for the declared purpose, In the first place, OF de-
featlng the clique who were oporatir to advance
the premium, and, In the other case, relieving the
existing stringency IN the money market, these
questions would not arse; but, having shown
that he was in favor OF sucn interference II becomes
necessary consideration for all interested In the
several markets IN Wall street, how far he VIII 20 IN
tnat direction. Ills reticence the subject does
not meet with approval lt has been demonstrated
that there parties who obtain KNOWLEDGE OF his