, 1873-06-18
MONEY AND COMMERCE
MONETARY.,:

81 TurApAr EVENING, June II;
Notwithstanding ,tho pfoscns tendency Pf
,monoy 10 accumulate IN tho financial oontrcs,
thero appears to bo general apprehension, not
only in tlia country; but In EnRlpnd, that mkt
fail will DO aceaou Of as groat stringency na last
fall Our telegraph reports from New York
show TINT while tho banks therc are oppressed
with surplus OF monoy just at present, they
are con1ning their lonns to short tisno, In order
to havo thoir funds well In hand at IN oarlior
dato in tho fail than usual. Tito London Nt,os
ofMay 81, discussing tho probabilities Of strin-
There ia every probability tha. tho abort caas va now
look forward to will DO used to the utterost by the
borrowers whose demands sre pressing. The very
every species of issuo duriug the next few month";
and 80 .lsc up tho moro quickly what rcsorvs mny now
may come aer may nat b )" Wholly I forgotten in ns
Sossn9y Gf The 5essn Scn IN spss 't ,ns
. IL still no email amount Of sphre capital for
investment. Between the owners, of that capital
and tho various competitions for 1t thore Il fair
amount Of blsincaa to bo dono. But nn1ther
side should forget the warning Of recent eyensthss
we aro now in ! period WHOM e1cess Of any lind may
nna he e h.
quito Inconsistent with tho high rates prevail.
R Ss sss nsa Rsay
ion sueltaa We ars now e5RcrdencinS Ihs oPosaon
r st9 9 hasn h e spss : bs
cal conclusion n beyond Al doubt, tae necessity o.
back with difficulty.
wo in the Unitod States sre in the habit Of
regarding tho extreme eollcitudo With which
British finhncera watch tho influx and outflow
Of specie, ns an old fogy notion. It is too often
h our n.'ony s net
'fectn Of the outflow OF specie from Great britain
on tho ono hand, and tho United States on the
other. II either caso, however, It is tho nflea-
Britain, Bank Of England notep arc called In
and destroyed in proportion to the decrease OF
the bullion in tho vaults Of Tug Bank, and tho
volums Of paper currency is thus reduced. In
, the United States, tho volume of Paper p money
Of money capital caused by tho outflow
Of specie is made apparent is In
the depreciation OF the value Of tho currency,
OF, as ne say, by "rso in the price Of gold. !"
In either csao, however, 1t Ii deoreaae Of money
In tho country.
Last fall and winter, when money became SO
stringent in tho United Stntcs, thore Was an OUT
cry THAT two had not currency enough" Every
in tho various cities to demand an Increased H.
sue of greenbacke. It Is Important, therefore,
that before the stringonoy OF next fall is export.
encad, tho commercial community should, II
possible, got little better understanding Of the
leemnble currency, and that they should
know that tho etringcnoy OF last fal Waa moi
caused by scarcity Of currency but by scarcity
: nf money, and that this scarcity Of money ~.
: tho reHult Of the enormous outflow OF specie In
the summcr OF 1872,--the aggregate exports Of
gold and silver for &he months Of June and July,
1879, having been s5o, o,644, 27e, against e2o, ,o2o,
977 for tho same months Of 1871. This Increased
drain Of noarly 500 900 900 Of money in tho su1n'
mer Of 1879 was tho Immediate cAuso Of the un.
uBuat Btringcncy last fall. Without going lnte
any. discussion Of the romoter causcs, Of which
, this drain Of money was the result
it is sufficient to know that it loft 1B that much
poorer The effect was not nlnde apparent IN,
showed there was less money In tho country
NeyerthelesB We had b large exportable surplus
Of all our leading products. Tho export bcgar
!. with unusual activity, nnd In tho months OF oc
tobor, November, and December our oxports ot
products, other than speoio, wore nearly double
Gus months. Temporarily this turning 0,
products into money countoraoted the summol
drain OF specie but when these exports began to
fall of, tho effect Was shown III the rise In TIL
pricckof gold. In other words, our fixed volume
Of irrodeemable currency Htlrunk in Value to cor
respond to the amount Of money capital in til,
country.
cur1stnrce that thus fnr the export Of spccio Ia
been small compared to what 1t was last HuHl
mcr, and, to that extent, IL an argument agains
my extrome stringency next full. But 1t remain
to bo seen yet whether wo shall he able to sell t
foreign countries as large q proportion Of ou
surplus cropa as wo did last fall.
In Tho local money market there wore no in
price Of Now York exchange to BOO per LOO
discount.
LOCAL. sTooH AND BOND MAnKET.
MessrB. Lunt Preston l. Kean quote Ra fol