The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-02-21
The Financial situation at New
YOrk..RnmOred Locking up Of Cnr-

account.
The Financial situation at New
YOrk.-RnmOred Locking up Of Chr.
rency.
From the Financial Chronicle.
The continued loss Of specie by the
Bank of6England and the delay Of the
cable reports from London constituted
yesterday, with other causes, to impart q
hesitancy to the movements of Wall street.
But the demand for money was kept up,
and, although there is no fear Of imme.
diate perturbation, unless artiflcially pro.
duCCd, still the anxiety Is sufficiently gen.
eral to keep loans up to the high current
rate. This tendency Is aided by the
steady movement Of currency 10 the in
terror. Afew weeks ago there was at this
centre o glut OF national bank notes, and
II had been supposed that, as happened
last year, the usual drain Of February
would be omitted, or would at least have
less force than formerly. But this antici-
patton has not been realized and many OF
our business men who have been relying
on a plethoric money market for the
spring trade have placed themselves at a
disadvantage, As we pointed out last
week the present drain of currency is no
unusual occurrence. II is a sign OF a
healthy country trade and arises in part
from ,the preparations for the opening
spring. The currency which leaves here
in February, generally does not return till
April. From special causes this drain
was not so noticeable last year, but in
1870 the legal tenders in bank fell from
81 millions at the beginning OF February
to AZ millions in April, gradually rising to
0l millions atthe beginning of June. In
1869, at the close OF January the legal
tenders were IA millions, and gradually
declined to 4S millions in April, and rose
o5G millions in May. The same process
went on in 1868. when the legal tenders
gradually fell of from 67 millions at the
end Of January to 81 millions In April,
tising.tO 6S millions at the beginning Of
June. 1t is well for us TO know tina: this
is the usual course Of the tidal movement
in the legal tender reserve of the banks
and that it offers no special cause for I'm.
c0siness or surprise
Still it must be admitted that the banks
are not very well prepared TO bear the
drain. Last year they held of legal re-
serve $Sl 100000, or $19,950,0O0 more
than the law demands. This year, with
heavier liabilities, they hold but $67, ,90O,-
1000, leaving an excess OF no more than
$5,6OO,000. This is the most serious aspect
of the financial situation, and as several
weeks will probably elapse before the nat.
ural turn Of the tide, the banks may per.
heps find Unnecessary before long 10 cur.
tail their accommo odations.
1--we ask why 1t is that our banks are
so poor in reserves, the answer is not far
10 seek. They have been lending too freely.
But our New York banks are not alone in
this expansion. AT Boston and Philadel-
plna' the same phenomena have been de-
veloped, and il Is pointed out that while
the demand liabilities Of the three cities
are 50, ,000,O 900 higher than a year ago, the
legal tender aggregate is $l6, ,000, 900 less.
as the total loans Of the banks in the three
cities are $25, 900 900 more than last year,
1t Is evident that there is need of caution;
and that past expansion may be expected
Ito bring after 1t a forced contraction. An
important fact in connection with this
drain Of currency from banks is that the
EEfeasury balanceB smaller by $19, ,900, 900
than that of last year. Hence, il any
scarcity should arise, the Treasury will
not be able to assist tho banks to any great
teXtent.L
As to the special causes of these phe.
n0mena there are various opinions. The
savings banks have been holding and pay
ing out larger proportion than usual
during the present "run." But this trou.
bic has now almost ceased to produce any
perceptible results Another cause to
whichit is attributed is in some, of the
new Loan and Trust and Warehouse
COmpaniesi Of which "a number have
been recently called into existence by the
special charters Of the Legislature. These
institutions ore believed to be considera-
bly, expanded, though the rumors respect
ing them are probably exaggerated, as
their condition and management cannot
be learned, because they make no publi-
cation of their condition, as is required
of all other institutions that doa banking
business. This anomalous exemption
from the obligation of publicity, will, it
is hoped, be speedily removed.
Whatever may be the causes which
have tended to accelerate the currency
drain, the spectators have not been slow
to take advantage OF 1t; and the appre-
hension Is rife that they intend to lock up
greenbacks with q view 10 disturb the
money market, or the Stock Exchange,
or both. The effort, If It should be made,
isnot ikelyto beyery prolonged without
the direct help 6fiiie banks; and that will
assuredly be refused And though, as
heretofore, these cliques may be clever
enough to evade the law, their project is
likely 10 meet with no great succeIs.
There are indeed some indications that
the attempt Is likely for the present to be
postponed il not wholly abandoned.
THERE is a story told at the expense OF
Mcdowell county in the Greenbrier In.