Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1870-08-23

predict, but, let the war be long or short,
tie people viii have coffee. 4 II long, the
Vest viii have high priced msrksts for
their products; il short, the South VIII
haze the same advantage, but. in either
event, both oan and viii be free oonsum-
ers ofths BEAM
KFFEcr on TIE EuRoPEAN WAR UPoN THE
NEW YoRz RANKS. Il
The New York World says; 1.-THE war
in Europe continues to drain our banks
of specie, thereby decreasing their legal
reserve and forSdug them to contract their
loans. The exports Of specie for the week
were 1917, S7s, and the following is q ia
bic of the amounts shipped since D
European war commenced;
Specie exports for the week ending
July y e,IOl, $50
Specie exports for Inc week ending
Specie exports for the week ending
sr Assu sS ports for the week ending
August z,sIf,Sle
Total specie exports for I've weeks.-S225S0 30
The preceding shows that Europe has
drained this market OF S22,639,2l5 in I'VE
weeks. an amount as great as that held
by the.banks (S24, 104,S02) at the present
time, That is to say, 8 drain of specie for
the next five weeks Ike that Of the last
five weeks viii clear out every dollar Of
gold now held by our banks.
This loss of specie by the en-
forces contraction of loans y on them
precisely the same as the loss of green
backs or legsitenders to asimilar amount.
The bsnks reckon specie in their legal
reserve y the same as SO many greenbacks.
The loss of specie by our banks is there
fore the same as the loss OF legal tenders
to them, so far as the contraction of
hank loans is concerned. Their loans
were decreased this week 81, 534, $50, and
since the war commenced about 81, coo, 900.
This movement Of thank contraction"
enforced the following comparison of the
condition of the banks from July 10, when
the war commenced, compared with this
week:
Ioans....--s2S5 Is, SIS sGS,Gi7,6l5 Dec sS,6@,6gs
Snecfe - 4f.13S6sS "a, lOi .8U2 Dec i7,Ul,@
CircuIanon s2sG,7s5 32sG,leo Inc ssl,sse
Daposftp 80. gs4S32.S55 2lb. "a ,4et Dec ls.25liul
Legal tders 5S,l6l,S4i 5l,g76,92 Dec l,4SS,V4s
The preceding shows contraction of
loans Sc, T29. 699, while the banks have lost
the enormous sum of $l7 ,O3l 1856 in specie,
and the equally startling sum of Sl9,25I,-
sci in deposits, or the mount to TIE
credit of the commercial community in
the banks. In plain terms, Europe has
taken Sl7.0 3l, 1856 in gold dollars, or real
money. from our banks during the last
five weeks. and the commercial commu-
nifty have lost in the same period SlS,25I,-
sci in deposits, or money to check against.
That is to say, the New York community
have lost SIG. 257. Sol in deposits, or bank
balances, or available cash, since the war
commenced, and the country has lost sl7,-
O3l, $50 in gold, or real money.
The utter ~stagnatiOn of speculation and
legitimate business has prevented this
loss of real money and bank funds from
telling on our money market. There is
no demand for money, because business
and speculation are stagnant.
The condition of our banks in view Of
the foreign drain for specie, commends it
self to the earnest attention of business
men. The following is an abstract Of the
present condition OF the New York banks
compared with those of the preceding
week:
Saacie ,4T2.5g2 81, Il 1902 S2,S6S,90
Legal tender. 52,&7,lSS bi,gFo,BZ 5iO,sb
Total reserve-.s7s7ss.7sO s70,OS956I 2.67s,2I7
Circulation... 3294S,Hi 32,O99, l66 1865
Deposits-.---~ 3N,Sls,SO 2R.O444 o,I4bo0
Total Ii abilities IS, 1894 s27. sS8,66O IS, "a ,7S4
3 3 ct. reserve 6~3,420.6Il l6lsS,4i5 II
Excess over le-
The preceding SHOWS tndt bno DnAhs
hold only Sl4,OS2, l49 in excess of the %
per cent. reserve required by law. This
excess of Sl4,O 900, 600 is all held in gold
coin, which Europe has the power 70
drain from us at its pleasure, The gold
coin reckoned in the illegal reserve"
amounts to S24,IO4,3 02, so that not only
the access of $l4,0O0,000 in the legal re-
serve can be taken from us by Europe,
but also, in addition thereto, another
Sl0.O00,O0 In plain terms, Europe, or
strictly speaking the Bank of England,
holds The "screw" which can be turned
at its pleasure TO squeeze S24. 0O0, 600 in
specie from the illegal reserve" of the
New York banks,
The New York banks and money mar
ket are completely in the power OF the
Bank of England. These are the grave
possibilities of our financial condition at
the present moment 1t is not pleasant
TO contemplate at any time. 1t will be
profitable, however, to look at this matter
now, before the fall business commences,
so that bankers and merchants may shape
their affairs accordingly. Prudent fore
sight now will prevent trouble hereafter.