The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-07-07
FINANCE AND BUSINESS
GENERAL MARKET REVIEW.
MONEY MATTERS.

The New York Journal OF Commerce re-
marks: The settlement of the currency
question in manner that has avoided the
evils feared during the past six months, and
the prospect of bounEiful crops of wheat,
rye, oats, hay. cotton, etc, seem to have CIV
en- fresh courage to merchants engaged W
every branch of trade. The business OF tne
Produce Exchange for the first six monIhs
of the year shows receipts of nearly p GOO,
600 bushels of wheat this year, TO I,OOO,0O ior
the same time last year; and OF corn. l3,VOO,
900 ;his year. to 9,0O0,0 900 last. We bave re-
ceived 80 900 bales more of cotton this year
than last That is a pretty good beginning,
and business all through the exchanges
seems to be picking up. There is specially
a cheerful tone 90 the dry-goods ma-ket. The
sales fer the spring trade were probably as
large in pdmber of yards, but The prices
MADE it less profitable than last year. The
fall dry goods trade is now commencing.
Several large lots of accumulstions have
been closed out at easier figures, but no new
orders are taken except at firm prices.
EFFECTS OF THE NEW LoAN-cRITIcIsM OF A
CRITIC.
The Journal of Commerce says: Some
smart chap in Washington has prepared
table, wherein he undertakes to show that
the new currency act will work contraction
to the extent of Sill, OOO, 900, ss follows:
l. Five per cent. of national bank cir
culation deposited as security in
legal tenders in Washington sl7OOOOOo
2. Currency in transit to and from re-
dempiiOn eenters..... 100000
g. Additional balance TO be drawn by
country banks ON their city balances 100000
4. National bank circulation likely to
be retired in excess Of the legalized
new 5O.eOO,OO
sarily made heavier because the re-
serve to be drawn upon in emergen-
cleS is 800 0CO0
Total OO1 600
This statement is positively ridiculous
because. first, the 81, ON, 900 to be deposited
as secu.ity in legal tenders al Washington
comes from the bank reserve and continues
to count as part OF it. AS il Is not now in
circulation, it cannot make any difference
And second, while it is in transit, it will
still count in the reserve. because it will be !
charged off on the banks books when it is |
sent. So we will deduct that S27. 600, 900 |
from the SLY, 5000 Third, under section |
30 of the act of 1864, country banks were
obliged to redeem their notes in legal ten |
ders at New York, and also at their own |
the city redemption, but continues the home |
redemption. In practice, this requirement |
has been next to useless, because nobody |
seemed to prefer legal tenders to bank notes; |
and ii they did, they could never get any |
large quantity of a single banks notes to- |
gether on account of the extreme difficulty |
of asserting. There will be no more re- |
demption over the counter now than before. |
The redemption will now be carried on |
through the treasury, the only place where |
there is any reason to expect that
it will be required. So we
can drop that s2O,OO6,OOO, which ,deduets
S47 0OO, 900 from the Sill, 900, 900. Fourth, if
$4,000, 600 of circulation be retired in excess
of the legalized new issue, it will be more
than offset by releasing over 100000 re- |
hot hocs hol1 ~. loN;o
we drop that S50,000,OO0, which deducts s97,- |
100000 from the calculation. Fifth, the Uni |
ted States Treasury has at this time work |
ing currency balance of between fourteen
and fifteen million dollars, which is enough |
for any purpose made necessary by the new
act. So we drop the last $40 0O0, 900, and the |
entire contraction of sl17000,000 predicted
by the Tribune's man vaniShes into thin air. |
The only way that the new act can contract
the currency is through other banks follow
ing the example of the Third National and
Merchants Exchange banks, who returned
$780, 900 of their circulation. But the con-
traction will not commence until the amount
returned shall ounterbalance the reserves
released by the new act. Releasing the re-
serves takes large amount of currency out
of the redemption cities, but that was idle
currency, and the change ought to have very
little effect now, because the movement Is
going on at q time when the money market
is easy and 1oanable funds are very plenty at
low rates OF interest.
ANALYSIS OF IMPORTS.
To many readers the word imports is al
ways associated altogether with receipts of
dry goods, but the total of this class is now
less than one-third of all the foreign imports
landed at this port. 1t may be convenient
for some of our readers to have in a single
line the comparative value of each class of
goods, and we add it as a final recapitulation
of the foregoing tables:
IMPORTS OF DRY GOODS AT NEW YORK FOR
THE YEAR ENDING WITH JUNE.
1928 1874
Nanufs. of wool ............si02412 $50 SS631T,S78
no cotton - q 50S924 22,O7G,357
DO. silk................. 30,l70yl06 24,72o,400
Do. fax. IL ,D0o,1 ia lD,3tOI5Zl
Miscellaneous dry goods. 95O9676 S,2i3,5S0
Total imports. 0S6e9O SlO6,7056H
DRY GOODS IN NEW YORK.