Northern Ohio journal. [volume] (Painesville, Ohio) 1872-1896, 1873-09-20
FINANCIAL.
MONETARY.

like interesting and important 10 all. |
W ith the opening of the last half oil, the present
month We have reached \ period when the pros
t.ct, Of bn,ines, for the Fal, season may be in
diligently estimated, The experiepce OF the
ast three years has Taught US to regard the
FAIL and " inter months as liable to be attended
With very embarrassing stringency in the
money market Last wear the pressure was so
evere and so nrotracte,l. that serious fears have
,een felt as to the possible result to business in
erests at large of the repetition of the like stats
# things this Fall. We are glad to notice a
rked abatement of these apprehension with
m th,. mast few weeks: and TO .us it annesrs
hat this recovery of confidence is not without
rood reasons Experience has taught men of |
business the necessity of so regulating their ar
as to be dependent AS little as nos
.ible upon credit accommodation and discounts |
iurins the months in question; aud although |
there is a close limt,to the extent TO which mer-
chants can ,,;srense wit,, sncb accommodation. |
vet there can be no ,leubt that the exercise of |
this nrecautton will do considerable towards ai-
tba sressure for money later in
the wear. 1t is also to be kept in mind that the
use of the Atlantic cable has placed rs in much
closer proximity with the European money mar
ket, Last wear, MANY millions were loaned to
his country thron gh the instrumentality of bor-
rowing bills OF exchange; and already we see
evidences of resort to a like mo.e of borrowing
At London, the rate of interest is low and on
the Continent also it is steadily declining The
present condition of English trade suggests q
probability that the home mercantile demand
will he moderate: and the reaction from n wild
snaculation on the Continent is likely to be fol-
lowed with ease. and also with a disposition to
employ CAPITAL sbroad. At the same time,
variety of circumstances have lately combined
to influence American credit in Europe, while
there is considerable uncertainty about class
of Investments into which large amount of
rsoney have flowed within late years at London,
and on some of the Continental bourses From
these considerations it seems reasonable to an
ticipate that when money here touches the le-
gal rate or goes beyond it, important relief will
come from the foreign markets. Itsis dinicult to
say what weight should be attached to the gen
eral impressien that, in the event of any threat
ening strIugency, the Treasury will sfor,t relief
nv the issue of legal tender ont of the 900
reserve. The Secretary of the Treasury is
known to have very decided opinjons about his
authority TO make such issues. and all that is
known as to his views upon such matters would
lead ms tn expect his nrompt and etfectiye inter-
fereuce N the event of any sueeul atiye ATTEMPTS
to make money artieicialIy stringent Still. ex-
oerience suggests the imprudence OF relyiug too
much upon these extraneops aids. The present
condition of the banks of.New York-which is
the main element in the question of the future
course Of the money markets. not wholly sug
gestive of confidence. AT this early date, money
is going quite freely to the west, for facilitating
crop m ,yements, and the reserves are by no
means in a condition to sustain aheavy drain OF
greenbacks. The legal tenders in hand are ST.
100000 less than year ago, and Sl4, 600 ooe less
than at this date Of 1871; and the surplus beyond
the amount OF reserve required by law is sa,60o,-
600 at this date of last year, and $40. 200 in
1871. Thus the reserve are in no better position
than they were at the beginning OF two seaseps
| of extraordinary stringency; and yet it is the
reserves which, under our present snHlonat
banking laws most strictly determine the ability
of the banks to lend. There is, however. one
fact in favor OF the thanking situation At the
date of the last fiscal return Of the banks to the
| Comptroller Of the Cnrrency-yiA., June 18th
the New York City banks held $is,eoO.ooo less OF
| the funds of other banks than year previous;
from which we infer thatsthe country banks are
| not in q position to draw upon their New York
| correspondents as freely as last year.. We may,
| of course, expect the same attempts on the part
of speenlators to lock up currency, or otherwise
produce stringencs. as at all other periods
| faeorins such, operations; aud in that event,
the intervention of the Government sis the senly
effective relief to be relied apon.3 5i I3tHst II
II is siisheartening that. regularly at the omen
ing OF the fall season. we should have possbili.
| ties of this sort to contemplate and provide
against; and it is especially SO this year, when
| otherwise there is every condition requisite to
an active and prosperous business. Again the
erops Of the west are abundant, and the trade Of
the whole Interior is in fourishing condition
The Cotton crop gives every pfomiee of being 9
very abundant one: and our coal and iron trade
| which have already assumed great magnitude
are on the eve ola splendid opportunity for. de.
yelopmeRt arising out of tho peculiar embar-
rassments hesetting at present the uke indns
tries IN nreat hr'taih' .iet "lh tnc na''sHns
prospect before US, eapitai Is pafaiy1ed TON tn'
apprenehsioh 'na1 ma ahasai % rscA,ess specA
iators, may ee apie 20 e'n frass eie Mnole 1la
chihefy OF tne cFeais a'tne AnssLciai ccntfeso ~ Y
the country a.h sne eAespeion el shis ms o1AN -
pack-*nicn ~ shouia always De te'lieleeeres - =
exists only thfought she pefpetnatioh oi iaai'!
banking ia"s-we nave an tne oonaitlons neces
sars 70 perioo oi sihehu'd PROSPERITY. ou l
foreign commerce mas recovered from the over
tisut"s VI ,ast eur e ,Hpoi's INV sn t't
~ t...,,.s .,a.,.:a. =. a. go
'. ..s u .r',o !....e... 80 .ho ;o,,,,:,,,
pc'" o." ..s"i"i anu sae yo.'
;. ~ :. ~ -.
S 8. - 80 -.
."s plos M, " 80.
: -, :... :. -, g. 80, 60. -.
more we find the exports and imports nearl
| balancing each other leaving less to he expos
~ =, .,,s 60 &c s.,..;as - sa,,,a tha ,rsd
account than during late wears. -
| - -
| United States bonds retain the features Of ex
ttreme scarcity and firmness which we have ha
q - c'-.H'' - -. 1-s..s -, =,
u hoIe ior some "oheis Pase' A"ueeei, NC" III
vestments can scarcely any longer be made il
this class of securities. and are now eoing al
-, -. .:,s - - -,
most eheifeiy iuto raiiroao ponas, ~"'ch hSs'
in consequence, assumed n much frmer tone.
we nave Feacheu Pefioo "heh essna'oe