Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-08-24

the three cities compare thus:
August, 1870 August, 1859. Changes.
Loans $40 10000 $427 3oO,Oo Inc.sls. 10000
Specie. 29,loo,0O0 26,S0,0Oo Inc, 100000
Circulation 6SslO,OOO 100000 Dec. 100000
Deposits e. 295, 10000 275,70O,00o Inc le, $4,000
Legal Ten. 7S,SOO,OOO 7s,9Oo,oOO Dec. 100000
tFrom this comparison it will be seen
that the condition of the banks of the
three leading Eastern cities Is less favor
able than yesr ago. g The demand liza
bilities are $1s, 100000 higher than then,
while the mixed money reserve stands
S., 900, 900 lower. A year ago, the sur
plus over legal reserve was $40, 250, 900;
now, it Is only $11, 400, 900. Yet with
this less favorable condition of liabilities
and reserve, the loans stand SIS, 100, 900
higher. Considering that last fall was a
period of such stringency that the West
and South found it impossible to ade-
quately supply their requirements for re-
moving the crops, this feature of the
monetary situation cannot be considered
satisfactory. There are, however, other
circumstances which may be regarded as
fairly offseting the unfavorable aspects
of the banking interest. The Sec
rotary of the Treasury now holds
currency balance of about $40, 000,-
600, OF $4,000, 900 more than year
ago; and judging from Dir. Boutwell's
late speech at Boston, it is his purpose to
make this large supply available for crop
purposes by gradually disbursing it In the
purchase of bonds. Nor Is it to be over
looked that, within thelast twelve months,
there has been q very general decline In
prices, which very naturally has the
effect of diminishing the amount of
money required for the transaction of
business. Again, the provisions of the
new currency act go into operation
forthwith, and may be expected later in
the season TO afford some relief to the
money market The bill authorizes the
issue of $54, 900 900 of additional bank
currency; all of which is required to be
put out before the transferring of cur
rency from the sections having a supera
bundance of circulation to those having
deficiency Ia put In force. And, although
concurrently with the issue of the additi-
onal circulation, there will be retiring
of 8 per cent certificates up tothe amount
of $45, 000,0 yet there Is likely
W DC o WY
from the fact that ~ the new banks will
be established to some extent upon money
drawn out of absolute hoard in the South
and Southwest, and (2) that the banks
when established will draw into their
vaults money at present so boarded: to
say nothing of the enlarged credit fscili-
ties which the newly established banks
will aft Already, we understand,
about 200 applications have been filed
with the Comptroller of the Currency for
authorization to form new banks or to
issue additional circulation; and 1t ia to 81
presumed that the Comptroller, out of re-
gard for the monetary wants of the fall
business, will expedite, as fast as possible,
the granting Of these privileges.
Upon the whole, therefore, we conclude
that although we may have an active
per cent market during the fall months,
yet there Is nothing in the probable natu-
raj course of affairs to warrant the expec-
tation Of any stringency beyond what
may be ind iced by Temporary artificial
means
The United States Economist New
York; says the indications of termina-
ton, or at least of temporary arrest of
the long continued ease in the New York
money market, begin to multiply. For
the two weeks ending the Goth inst, the
decrease in the legal reserve of the New
York City banks has been $7,673, 14s.
On the 18th inst the excess of the legal
reserve held by the banks over the twenty
five per cent which the banks are required
to have on hand, was $l1, 493, Oil, while
on the goth inst. it had increased to ga
0S4, 649. The decrease in loans for the
two weeks ending the Goth inst. was S.
4O9,212. The Economist thought the
statement for the week ending the 18th
inst. (ths paper was published before the
for the Goth was made pub
Hc,) did not inspire confidence in the fu-
ture of the market, and that the effects
would, no doubt, be more apparent but
for the dizziness of business, which limits
the legitimate demand for money. De- |
mand loans still continue at from to 3 |
per cent, with the bulk Of transactions at !
to 4 per cent. onpledgs of approved col
ateralR First class commercial paper |
masses at 6 TO s per cent. These rates |