Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1873-09-06

The monthly letter Of Henry Clews
& Co., 80 Wall st. n. Y. for the month
of August, in discussing the business
prospect of the coming fall aud winter
and the probable condition Of the mon
ey market says: T"The present con-
dition ofthe banks oftnis city-which
is the main element in the question of
the future course of the money market
lis not wholly suggestive of conf
dence. At this early date, money is
going quite freely to the West, for fa-
ciltatiug crop movements, and the re-
serves'Rre by no means in condition
to sustain heavy drain of greenbacks.
Phe legal tenders in hand are So $780,
900 less than a year ago, and 4,OOO,-
700 less than at this date of 1871 (;
and the surplus beyond the amount Of
reserve required by law'is $4,000, 200,
against 50, 100000 at this date of last
year, and $40, 800, 900 in 1871. Thus
the reserves are in no better position
than they 'were'at the beginning of two
seasons of extraordinary stringency /;
and yet it is The reserves which, under
our present national banking laws,
most strictly determine the ability of
the banks to lend, There is however,
one fact in favor of the banking situa-
ton. At the date of the last official
return of the banks to the Comptroller
of the Currency-viz., June l3th-the
New York City banks held Sl3, 200,
900 less of the funds of other banks
than year previous; from which we
infer that the country banks are not
in position to draw upon their New
York correspondents as freely as fast
year. We may, of course, expect the
same attempts on the part Of specula-
tors to lock up currency, or otherwise
produce stringency, as atail other pc
RODS favoring such operations and i'll
that event, the intervention of the
Governments is the only effective relief
to be relied upon.
1t is disheartening that, regularly
at the opening Of the fall season, we
SHOULD have possibilities of this sort to
contemplate and provide against; and
Hit is especially So this year, when 9th
terwise there is every condition requi-
site to an active and prosperous bust
ness. Again the crops Of the West
are abundant, and the trade of the
whole Interior is In a fourishing con-
dition. The cotton crop gives every
promise of being a very abundant one;
and our coal and iron trades, which
have already assumed greatmagnitude,
are on the eve OF splendid opportt-
nity for development arising out of
the peculiar embarrassments beseLting
at present the like industries in Great
Britain. Yet, With this hattering
prospect before us, capital is paralyze
from the apprehension that handful
Of reckless spectators may be able tc
embarrass the whole machinery Of
credit at the financial center of the
country. With the exception of this
drawback which ii should always be
Remembered exists only through The
perpetuation of faulty banking laws
we have all the conditions necessa,
Try 20 d period of splendid Prosperity
Our foreign commerce has recovelel
from the overtrading of last year.
The imports show aninportant reduc-
ton in volume, and there is less of that
unhealthy competition in the import
trade between regular importers and
the jobbing houses, which on the one
hand has enhanced prices in the for.
eign markets and on the other has re.
duced profits here, or more properly,
has caused heavy losses. The exports
have very largely increased at all the
ports and once more we find the ex-
4 ports and imports nearly balancing
each other, leaving less to DC export
ed in the form of securities to settle
the trade account than during late
4 years"