The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-10-25
FINANCIAL AND COMMERCIAL.
SUNDAY, Oct. "a, 1850.

FINANCIAL AND CONNER GAL.
SUNDAY, Oct. "a, 1860.
Although the remittances to the South for the
movement Of the cotton crop have fairly begun, and
although the grain OF the West Is coming steadily TO
Eastern ports the money market during the week
was easy at all rates below the legal figure The
extreme range call loans was from four to seven
per cent, the former being the exception only on
pledge OF government colaterals Despite this ease
there Is very unsettled feeling in the street. reflected
more particularly in the discounting OF business
paper, which is negotiable outside OF tho banks
only at extreme rates as compared with the
ngure on call loans The banks are doing q
good deal for their regular customers the late panic
In the stock market warning them against the great
risk OF stock loans, the old proverb being verified,
that the greater the interest the greater the risk 1t is
difficult to fancy why capitalists and money lenders
Still retain their preference for employing their
funds on call at rates SO far below thoe at which
they can purchase first class mercantile paper. The
money lenders who frequent Wall street are nfatu-
ated with the plan Of lending their money from day
to day. on stocks often obtaining at this time only
I'VE per cent for Its use There seems to be
Mlcawberke trait In their character which
induces them to wait for something to turn
up which will crafty their desire Tor
ence has been often repeated Of week or
month OF stringency which has given them, in the
way Of interes-, more than they could earn all the
year round by permanent investment In paper or
other time loan that they take the chances Of the
frequent recurrence OF such periods. The business
however Is being done into the ground. The diver
sion OF loose capital to Wall street is great that
more than SUFFICIENT Is now offering to all the various
GLASSES OF borrowers whose transactions are con.
nected with the Stock Exchange Hence we
md accounts made up every day as early
as two O'Clock, and balances seeking employ
ment after that hour at low rates OF
interest. 1t is not within the range Of probability
that this in the money market will outlast the
period to the new year. But that there will be an
aggravated stringency there Is good reason for
doubt The banks are In strong posltion-much
stronger than they were last year. when they did
not have the warning Of so disastrous panic to
keep them out OF the stock market 1t Is notorious
fact that they were. until within few weeks, the
chief support OF the Wall street spectators; but the
lesson of the recent crisis has taught them to be
more prudent AZ the close OF business last
night they held twenty millions OF dollars in
excess Of the legal reserve. One-haf to
three-quarters OF this sum served to meet
the Southern and Western demand for currency
during November of last year. This season we have
drain has been going quietly and almost impercept
bly,. The cotton crop SO far is a hundred Thousand
bales in excess OF the corresponding period of last
year. But the money market has not reflected
the increased receipts OF the staple. Again, Inc
practice OF shipping cotton direct from Southern
ports is becoming more widespread every year. So
much less money Is therefore drawn from New York.
On the other hand the grain crop Is much cheaper
In its entire valuation that we shall not have
to ship as much money westward as
usually Were these facts more generally
known and appreciated by the money lenders who
are hanging about the precincts Of the Stock
Exchange waiting for eventuaty that may give
them extravagant rates Of interest would use their
funds in other channels and stimulate q healthier
tone In the general business and enterprise OF the
metropolis
The weekly statement OF the associated banks
submitted on Saturday Is not favora
bic one, but was received without much
comment. There is loss In reserve OF over
two Millions about equally divided between
specie and legal tenders. The decrease in specie is
due TO the heavy customs payments OF the week and
to the shipment OF specie to Boston ana Philadel.
phia The loss In legal tenders reflects the activity
IN the movement OF the cotton crop, above
referred to- The totals OF the last two statements
are as foows:-