Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-05-07

THE MONEY MARKET.
New York is the grest financial centre Of
this country, and when either ease or tight
ness is experienced there, it is soon felt
Throughout The country. Messrs. Henry
Clews & Co. state in their monthly circu-
lar at the close of April, that the crisis
which occurs in the money market about
the frstsof April of each year, has proved
very severe and more protracted than usual
this season. At The close of March the re-
serves of the banks Of the city of New York
were below the limit required by law, and
as the sending of currency to the interior
for April settlements involved still fur
Their loss of legal tenders, the situation Of
fered tempting occasion to stock specula-
tors to lock up currency, and accordingly
some millions of money were placed be-
yond the use of the banks. This so en-
barrassed some of the large holders of
stocks as to compel the selling of
q considerable amount OF shares,
and a heavy decline in tbs market was the
consequence. Then the Withdrawn money
came into market for the purchase ofs.ocks;
money became easier, and suddenly declin-
ed to per cent On call loans, while the
stocks rose to nearly their former values.
In these fluctuations, says the circular, we
have evidently seen the elimination Of the
spring stringency, aud the beginning of the
ease in money which always prevails from
April to August or September. Some i'm
portant facts touching banking operations
in New York city are stated in the circular.
For instance, in 1872 the amount of legal
tenders in the banks increased from
$i0,000,000 on April 20, to $685.
100000 on June Is; and in 1871
from s56,0OO,OOO to $72,OOO,OOO within
the same period. The banks now hold
S3,300,000 less than at the same date last
year, and Sl9,9OO0O0 less than two years
sgo. The loans and discounts, also, of the
associated banks are 100000 less than
a year ago, and S25, 100000 less than two
years ago. The loans and discounts Of the
National Banks of the United States now
amount to S9O8,OOO,0O0. In 1867, or six
years ago, they were three hundred mil
lions less, viz, S608,OOO,0O0. This is an in
crease of 100000 per annum for the
whole country. The loans this spring,
however, have been considerably below the
average of past six years, estimating the in
creased growth of the country; and this
shows that large Sums OF money have been
Withdrawn from the legitimate channels o:
business, and used for mere speculative
purposes.
The stringency in the money market haV-
ing subsided, it is anticipated there will
be freer and moro healthy
movement In all branches of business, as
the general trade of the country is in a
condition to respond quickly to an improved
condition OF money matters. Deficient
crops, in other countries, have enabled us
to realize high prices on large exportable
surplus of grain and animal products, the
effect Of which is apparent in an increase Of
100000 in the value of the exports from
the port of New York since Jan. l. Our
cotton crop, amounting to between $780,
600 and 100000 bales, has been market
ed, thus far, at high prices, considering the
extent of the crop.
Another feature which embarrasses trade
is the small supply of gold in this country,
the larger portion of which appears to be in
the hands of a few wealthy holders, who
show much confidence in the maintenance
of comparatively high premium. This
feeling seems 10 be based upon the dimin-
ished stock Of gold in the county, which is
now thirty-f1ve millions below the average
amount, aud also to the fact that extraordi-
nary shipments Of specie last year have
been followed by proportionstely large ex-
ports during the expired portion OF the cur
rent year, indicating the possibility OF
still further depletion Of the supply, instead
of the process Of accumulation which ordi-
narily follows year of heavy expcrts-
tons Of gold. This feature in the specie
movement attracts the more attention from
the fact that the imports Of this year, thus
far, largely exceed those of last, although
those of 1872 were much in excess of all
precedent. 1t is true, the exports show an
increase proportional TO that Of the i'm
ports; but ii is TO be kept in mind that,
last wear, the balance of the two
movements was such as TO necessita'e an
exportation of some thirty millions more of
the precious metals than we annually pro-
duce. Another incident OF this
oyertradipg is found in the
fact of The shipment of large amounts
of our stocks aud bonds. Our corporation
and state bonds are not much sought after
in Europe, but the shipment of national Sc
curiti,s during the past three months mas
been much larger than for any equai period
of the last two years. Our bonds OF all de-
scriptions which are held ID Europe bear IT,
terest, which constitutes heavy drain up
ON the country. The principal will have
70 be paid some day, so that when the reck-
oning comes, there viii be crash unless
"a. are in much better condition than at