New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-09-01


year has elapsed, ard many of ite prominent
features have passed away from fecollec-
ton. Hence, as specially observed in our
general and preliminary remarks, it has
been necessary, in order 70 explain some Of
the salient features of trade, and ably,
the remarkable abundance of idle money
caused by the shrinkage in the volume of
business from general depression to recall
the past and bring prominently before the
reader the causes and cunseq aences Of last
YEARS revusion. The movement in our
financial circles has undoubtedly been
materially checked by the proverbfal tint
dity Of capital, being exaggerated into a
distrust of all securities, bu. the com
paratiye stagnation from which bankers. or
dealers in money have suffered, as well as
merchants, or dealers in commodities must
be mainly attributed to general shrinkage
of the commercial movement.
The immediate effects of the panics were
manifest in nnme rous failures in financial
and commercial centres, disturbance of the
monetary movement, embarrassment of
banks aud a consequent check to the gems
-eral movement. The Interior effects, caused
by an enforced economy among consumers,
q curtailment of the consumptive demand
for commodities, aud consequent falling
oifin the wholesale trade of the commercial
cities. Money is the motive power of trade.
but there has been little trade to move. and
consequently little demand for money. 1t
might be supposed that, under such circum
stances. there would arise an abnormal de-
mand tor securities, including bank shares
and corporate, municipal and State bonds.
But this tendency has been prevented by
the basis Of such securities, being the pros
perity and wealth of the community, and
their decline having an indirect in
tuence in depreciating the shares
and obligations which they support.
Hence, large sums of money have been
left on idle deposit in the banks, it being
preferred to lose the interest from it1 EN-.
ployment, rather than run the hazards of
investments in securities of an uncertain
character Nor has there been any DISPOSE
ton to use this idle capital for new enter
prises il whieh the Investments can only
become AT tive and remuneratve at future
period-such, TOR example, as manufactures
and railroads Patience seems to have fol-
lowed panic as the controlling sentiment
patience, under the unremunerativeness Of
money. and a disposition to calmly await
for further Developments When these
exhibit a renewed consumption demand
among the toiling millions, and renewed en-
terprise on the part Of country merchants
and the city trade, then money will be again
wanted to drive the wheels of commerce,
and our banks lind ready use for all their
available funds in the discount of business
more favorable year for these institutions
than the last, aud a renewed activity in
financial as well as il commercial circles.
If these vie rs be correct, they fully ex.
plain the apparently irreconclable fact
that there should be an abundance of idle
capital, and none Tor investment in such rail
rCads as are not of vital Importance TO some
branches OF trade, and essential to the gen.
eral prosperity. Although there has been
a plethora OF idle capital there never has
been more than was requisite for its regular
movement, whenever trade shall exhibit it's
usual activity. Every dollar now idle will
then be required for the regular wants of
our commercial community IN its legitimate
action, and nothing can be spared for i'll
vestment on fxed capital-manutactures
railways, etc. Hence the necessity OF in-
creasing the circulating capital Of the coun-
try was never greater than at present.
Whatever millions might be contributed by
foreigners, with respect TO the whole coun-
try, only the North, with respect to the
South. for its construction Of railroads, the
esta blishment of manufactures, and the en-
couragement of agriculture. would not only
yield fair interest in the investment, hut
stimulate the production OF cotton, bread
stutfa and provisions, cheapening the cost
of fabrics in Great Britain and on the con-
tinent. and thereby increase consumption,
while in the localities where it is expended
il would give general stimulus to the ag-
ricultural and industrial movement.
We are indebted TO Mr.. l. N. Maynard,
manager of the New Orleans Clearing House,
Tor the f. Glowing comparative reports OF the
condition OF the associated banks, for the
weeks ending Friday. August .2S, 1874, and
Friday, August y. 1919: