The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-03-31

On this great topic OF more universal inoer-
est than any other, the HERALD has tried to
discharge its duty to furnish the country with
the best accessible information. In faithful
pursuance of this object it has procured
interviews, through its reporters and CORE
spondents, with the leading bankers and
business firms of all the principal cities OF the
United States and it publishes this morning
the first instalment of their reports, including
interviews with prominent business men In
New York. Baltimore, New Orleans and st.
Louis The reports of similar interviews III
other commercial cities will soon follow. These
statements will be read with interest by bust
ness men in every part of the country, because
they give the opinions, not of mere theorists,
but OF people engaged in commercial pursuits,
who have great facilities and every motive for
gaining correct knowledge of the state of
affairs in their respective branches of trade in
their own localities. Before commenting on
any of the particular interviews we will call
attention to some features Of the situation. as
to which there is pretty close agreement
among them oil.
We will begin with that great topic OF uni
versal concern in every part Of the country,
the state of the money market. 1t appears
from all these interviews there is q great
abundance of currency in all the commercial
cities. 1t Is the pretty uniform testimony OF
the bankers whose views have been solicited
that their deposits are redundant and that bust
ness does not suffer from want of money ready
to be loaned, but from dearth of borrowers
who see their way clear to employ money
with profit This unemployed abundance of
loannble money in all the commercial centres
illustrates the wild folly of the demagogues
in Congress who so noisily insisted that the
grand cure of business stagnation was
large expansion of the currency. Experience
proves that the circulating medium is IN ex-
cess OF the means of employing it, and that
additions to its amount would have been as
idle as large increase of the rolling stock Of
our railroads as a means of attracting freights
at time when prostration of business
permits but diminished amount Of trans
portation. Why add thousand freight
cars as o means of earning railway profits
when a great part of the cars already owned
stand idle on the sidings And Ito apply the
illustration) why add fifty or hundred mill
ions to the currency when great part of
the existing currency lies idle in the banks
because commerce can find no use for it !?
We call attention to this general feature
of the interviews in the hope that if another
imitation craze, like that which the HERALD
SO vigorously combated last year, should
arise, facts may count for something gainst
the delusion. Business does not stagnate
for want of money, but for want of oppor-
tuniies to employ it with profit. Meanwhile
it is satisfactory to know that whenever
which it moves are ample for all legitimate
uses
Another poiut which is strongly put in all
these interviews is the retardation of bust
ness this year in consequence of the e1traor-
binary prolongation of our severe winter
into the spring months. We are unable to
make an instructive comparison between the
March business Of this year and the March
business of 1874 because this years March has
been equivalent to last years February. The
first great impulse to the revival OF business
is expected from the movement of the grain
reserves held in the West. There is no branch
of business with which the unwonted severity
of the weather has so seriously interfered
The state of prices in the foreign markets is
favorable to large expectations, and we are
confident that as soon as the softening weather
permits the grain stored in the West to be
III IL.
touched and stimulated into moderate activity.
In tile course of two or three weeks the nav1-
cation of the lakes and canals will be re-
opened, when cheap transportation and good
foreign prices will impart briskness to that
great branch of trade which infuses life into
all the Others The general impression that
business has been INSTRUCTED by the unusual
lateness Of the spring is no doubt well founded.
There is one other general remark which
we may be permitted to make, although it is
not suggested by anything said in the inter-
views The recent gold speculation II this
city and the advance in the price of gold is
topic which was not brought to the attention
of the bankers and merchants Of distant cities
with whom our correspondents sought inter
views but as the price of gold in this city
regulates its price throughout the United
| States its bearing on general trade deserves
attention. A high price of gold, though an
impeachment to imports, is favorable to the
export trade, and especially to the grain
trade, grain being the leading article of
export from this city. We will explain this
point so simply that even a child may under
stand it. The price of grain in Liverpool is
not affected at all by the fluctuations of tho
New York gold market. Whether grain can
be exported at profit depends upon its price
in gold here as compared with its price IN
Liverpool II there is difference enough to
pay the ocean freights and yield fair profit
wheat will be exported quite irrespective OF