The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1869-07-20
The Monel Market.

HENRI SLE"o !" w., uahhoio VI tNO"
York, in their monthly circular, discuss
the causes of the stringency in the money
market. We quote:
The past mouth has been distinguished
by very extraordinary irregularities in
the money market. Instead of the
usual summer plethora, we have ex-
perienced an extreme scarcity of meney,
with the result of rates of interest
ranging from per cent. in gold per an
NUN To per cent. per day additional to
the full legal rate. This condition OF
affairs has been the result of combina-
tion of singularly unfavsrable circum-
stances a. The South has retained,
for the purposes of boarding aud of local
circulation, large proportion of the
currency sent there in payment for the
cotton crop, this detained circulation
being variously estimated between $20,-
000, 900 and S3O, ,OO0, 900. (2.) The West,
IN expectation of abundant grain crops,
has forwarded to the East a very heavy
amount of its last years surplus OF
breadstuffs, which has called for the re.
mittance of several millions of currency
10 that section; while the purchases of
the new wool crop have been attended
with an outflow of money to Ohio and
other Western States; and the currency
thus withdrawn from the East has not
yet begun to flow back. (3) Through
out the month of June, the Government
withdrew considerable amount of cur
repcy from the banks, through selling
gold to double the amount of its pur.
chases of bonds, the loss of circulation
from this cause being abo1t ST, OOU 900
during the month. a. The internal
revenue receipts, always large about
midsummer, have this year been espe.
clally liberal; and the Secretary of the
Treasury having declined to allow
these receipts to remain in the hands of
the National Bank Depositories, so as
10 be available for market use, the
Withdrawals from this cause have been
on a very extensive scale. 1t appears,
from returns received by the Gov
ernment subsequent to the publica-
tion of the last debt statement, that
the currency balance of the Treasury,
on July l, was $40, 600, 900, beside which
nearly SlO,OO0,OUO was held IN the vari'
Gus branch offices of the Treasury sub.
iect to the order of disbursing officers;
so that, at the beginning of this month,
the Government was holding out of cir
culatlon about $4,000 600 Of currency.
The moral effect of this temporary con-
traction by the Government was as
injurious as it most direct results, and
helped materially to aggravate the
crisis. (5.) These extraordinary move
ments followed a contraction of S23 SOO,-
900 Of legal tender circulation, during
tue twelve months ending June l. (6)
The result of this combination of unfa-
vOrable causes was to compel coDrrac.
ton of S2O,500,0 900 in the loans of the
Clearing House banks between June 5
and July 10, and to reduce the legal
tenders Sl1, 900 600 between May 29th
and July Sd; the amount at
the latter date being S47,OOO,O0O,
or S22 900, 600 less than n year previous.
Under such conditions, the money mar
ket was within the easy control of spec.
ulators, and legal tenders were "locked
up" to tho the extent of several millions,
artificial expedients thus aggravatlDg
the stringency. At the beginning of
July, the Secretary Of the Treasury al
layed the prevailing apprehensions by
reducing his sales OF gold and equallz-
ing the receipts therefrom with the pur-
chascs of bonds: subsequently, a special
purchase of S3,O00,00 of bonds was or.
dered: but these eXpedients were found
unavailing, the currency being locked
up by spectators as it came out of the
Treasury; then the Secretary issued
proposals for three additional purchases
of $4,000, coo each during this month,
beyond the ordinary purchases of ST.
100000 each alternate week. Simulta-
neously, measures were taken by the
State law officers for checking
the custom of lending money at rates
disallowed under the usury laws. This
action on the part of the Government
and the courts, discouraged the specu-
latlve tampering with the money mar
ket, and the rate of interest suddenly
declined to per cent. For the last
two days, however, certain private
bankers have refused to lend their
funds, hoping thereby to renew the
scarcity OF money; but with little effect.
lhe government disbursements on the
purchase of Five Twenties, from the
i4th to the 29th inst, will aggregate
Sl35,OVo, ,OOO, while osly 81, ,375, 900 will be
taken off the market by the sale of gold.
al the same time, nearly every section
new stands indebted to New York; and
II Is reasonable to expect arrivals of
currency from other centres, within the
next thirty OF forty days. Assuming
tnat nothing untoward will arise from
the operations of the Treasury, il is safe
10 coLciude that, from now TO the ne.
r.od when money is required for moving
tee gram crops, the currency reserves
OF the banks will steadily increase. aud
tnat the mar ket will present a steady,
settles asne,t S'9ous /,