Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1870-09-01
FINANCIAL AND COMMERCIAL.
PUBLIC LEDGRR OFFICE, |
MEMPHIS, Tenn, September /. 1870. !
MONEY.

! MEMPHIS, IENS., September i, 1871.
MONEY.
There is very little change to report in
financial matters. There seems to be
a more active demand for money to-day,
and considerable paper is being offered
on the street by those who have obliga-
tons to meet between now and the 9th.
The demand at the banks is somewhat
larger than that of yesterday, but not as
heavy as was expected, and in all cases
where regular customers were the appli-
cants, discounts were made at the old
rates. Exchange is scarce, and but lit
tie making; rates are as reported pre-
viously-par buying and ic premium
selling. Scrips, bonds and local railroad
shares are quiet and unchanged. City
scrip is purchased at 6Oc and sold at 63c.
City bonds are in request at Az to 49c.
County warrants are scarce and in light
eluest at Csc, and Tennessee money in
active; dealers purchase at lie and sell
at 73c Gold opened in New York at
ll6s, and subsequently advanced sc
dealers here buy shipping lots at ll5s
Governments opened active and steady
ard without any decided change
Henry Clews & Co., of New York, in
their last circular referring to the money
market, say:
"The suspension of specie payments
blythe Bank Of France has lessened the
uses for coin in France, and French gold
is consequently likely to frd employ
ment in other countries. The effect is
already apparent in the influx of gold to
London, with a consequent ease in the
money market and a decline in the rate
Of the Bank Of England This ease in
the central money market of the world
affects us favorablY in more ways than
one. Ii is favorable to the accumnla-
ton of balances here during the crop
season, when money is worth fully per
cent In the next place, it favors pur-
cases of our securities by London specu-
latOrs and investors Our bonds are less
directly affected by the war than those of
the European countries, and therefore
present a means for the temporary en-
ployment of capital next in stability to
English cansols; and for this reason they
may be more or less in demand pending
the war from London bankers DESTROYS |
of employing European deposits and
from continental capitalists who wish to
place their means beyond reach of the |
vicissitudes of war. The money market |
shows the hardening tendency usual at |
this season of the year The Western |
banks are steadily drawing out their bal
ances from the New York banks, in pre- |
paration for the moving of the grain |
crops; and the result has been that the |
legal tender line has fallen to $50, 300,- |
900, against $4,000, 900 on August q, |
1869 The export of specie has reduced |
the specie line to 500, 10000, against
S2l, 600, 900 at tie same date of 1863; |
while the deposits are Sl3, 100000 higher
than then and the loans stand $l3,000,- /
600 higher. IL will thus be seen that the |
condition of the banks ia less favorable I
than year ago. II is, however TO be |
kept in mind that the Treasury now holds /
a very large currency balance-$l5, 000,- |
600 more than a year ago-which the /
Secretary, according to his expressed |
purpose, intends to employ for the relief /.
of the money market, il need requires. |
by liberal purchases of bonds. 1t is also /
to be kept in mind, that preparations are |
being made for the issue of new cur
rency, under the law of last Congress
authorizing an addition of S5i ,O0Q, 00G TO /
the circulation. Although the amount
of per cent. certificates retired will 1
nearly equal the new issues of bank I
notes, yet virtual increase Of the cir
culatiOn will arise from the fact that, in
establishing new banks in the South and /
Southwest, large amounts of greenbacks 4
now absolutely boarded will be brought
into active circulation, and that after the 1
banks have eomHenoel operations they /
will draw into their deposits a consider
able amount of currency thus at present
held entirely out of use As the new
issue of circulation will commence forth
with, it is reasonable to hope that con
siderable relief will be thereby afforded
to those sections where it is most needed.
1t is true, that the interruption of agri-
culture in two Of the great grain-produc-
ing countries Of Europe will be favorable
TO our securing high prices for breadstuiis
which, if the surplus should be large,
would be some partial set-off against tie
foregoing considerations But on the
contrary, the commercial prostration at
tending and following war is always I'M
favorable to the price az cotton; and the
loss Of "a Rer pound upon our exports Of
cotton would find a very inadequate CON-
pensation in lew cents PEI hpshel adj
iiiioual upon our shipments of grain.
SO long as this danger hangs over our
exchanges, the gold market may be ex-
pected to remain sensitive, and we must
stand exposed to unusually free ship
ments Of specie. The course Of our
foreign trade, during the last lew weeks.
has not shown any Improved proportion
between the imports and exports. From
the beginning Of July to the Goth of Au-
gust, the imports at this port we're $780,
900 above the same period cf las, year,
notwithstanding the Interruption Of ex-
ports from Germany and France; while
our exports Exclusive Of specie) for the
same weeks are S5,700,000 less thaa in
1869; a course Of trade Tue reverse OF
what could be desired under existing cir